Trading Strategy Articles –
Stocks are a wonderful investment but they will not be the right choice for small investors looking at trading for a living. A widely cited figure is that stocks return about 10 percent a year in the long run.
These days you do not have to listen to an investor very long before hearing of a boom-bust cycle. The recent internet stock boom followed by a housing boom has left many confused.
When the market is rallying and bulls stampeding, it’s easy to get caught up in the hype. But every trader must learn when its time to step back or step out altogether if he or she is to survive in the trading game.
A reality of part-time trading is that you may not always have time to trade every day. Full-time traders will have a daily schedule and routine tasks will be a part of their day. This is a definite advantage for traders who make a living from the markets, and ultimately you need to find time to become a successful trader.
Diversification is an effective risk reduction tool and should include trading different strategies. Almost all trading strategies consist of rules that use price as an input, and almost every trading indicator relies solely on price in its calculation.