Everyone is different. So it would make sense that everyone has a different trading strategy.
Everyone is different. So it would make sense that everyone has a different trading strategy. Developing a trading strategy that fits you should be the goal of every new trader.
Most people do not realize that someone else’s strategy may not work as well for you as it does for them. They may draw support lines different then you or they may decide to move up there stops at different times then you do. Every little thing matters. This is why it is important to create your own system.
The first part of that is finding which strategy fits your personality. Do you like the high probability trades that you can get from option selling? Selling out of the money options doesn’t attempt to strike it rich with one big trade, but tries to gain a smaller consistent income every month.
Maybe you want the quick profits and losses that come with swing trading. Making huge returns when you are right and taking small losses when you are wrong allows you to seek out the huge short term returns. Or maybe you want even quicker profits that come with day trading. Gaining small profits throughout the day can add up after all.
Maybe you are the fundamental investor who prefers to buy a fundamentally strong stock and hold onto it for the long term. This is the easy do your research, buy it and forget it approach. This way you don’t have to worry about short term movements, but you will most likely not make as big of a return.
Whatever strategy you choose it is important to develop a system for trading it. Sticking with that strategy to get it to work out is also a key to making a good return in the markets. If you constantly go from one strategy to another you will not get anywhere. But if you stay with it and continue there is no telling how far you will be able to go.
For more information about stock market traders visit http://www.stocks-simplified.com/stock_market_traders.html
For more information about the stock market visit http://www.stocks-simplified.com
Naked Puts
Selling naked puts isn't as dangerous as it is made out to be, if you do it in moderation. It can be a good strategy to pull out money from the stock market.
Staying with the trend
Stocks trend, that is what they do. So many people try to fight the trend by picking the top and the bottom. That isn't the smartest thing to do.
Trading and commission
No one wants to pay commissions, here are some ways to reduce their affect on your account.
