A trading magazine recently published an article about a university that runs a FOREX fund as part of its undergrad business program. The students manage $2,500 in real money and learn how to trade.
Your current trading strategy blows; it’s time to search for a new one. That’s what a lot of traders think when they are not seeing consistently profitable results. What you probably don’t realize is that you have all the tools; it’s just a matter of fine tuning.
What if someone told you it was possible to capture the lion’s share of Dow gains by only being invested and at risk in the market for a little more than half the time?
Trading for a living requires steady returns. Equally important, and often overlooked, is that you must avoid big losses to stay in the game. Gains and losses are asymmetric and the math is well known – a 10% loss requires an 11% gain to break even; a 20% loss will need gains of 25% to fully recover.
Value investors in the stock market spend a great deal of time studying the words and actions of Warren Buffett. He has delivered amazing returns in the stock market for decades and created great wealth for himself and others.