Wednesday, 9 September 2015

Trading is an art which can be Mastered

Trading is an art which can be Mastered - Money Classic Blog
Trading in stock market seems to be difficult when it is done without following any strategy. But when the trader works with a fixed plan following a particular strategy his odds of winning the game are more. Thus the trader should follow a fixed plan on how to proceed in share and commodity trading. Following good strategies are essential to get benefited from the share market. Also the trader can rely on stock market tips from advisory firms.

The simplest strategy which the trader can follow is to follow the trend and to trade with the trend. Thus if the trend is formed in upward direction a buy call can be initiated. Thus after buy if the trend continues to move in upward direction the trader can sell at a higher price to gain profits. On the other hand if a downward trend is observed in the market or the stock the trader can initiate a short sell trade. In short sell the trader first sells the stock and then buys at a subsequent time. If the trend continues to move in the down ward direction the trader can buy at lower prices at a subsequent time. Thus in this way also the trader can incur a good profit.

Also the trader can trade with the principles of risk management and wealth management. The trader can keep the target at 100 percent and the stop loss at 50 percent. By doing this the trader will incur twice the profit and half the loss. Thus by probabilistic distribution the trade will incur loss at certain times and profits at other times. But since the loss is half the profits there are more chances that the trader will overall be in profits.

Like the above strategy there are other strategies too which can be followed and the trader can end up in good profits. Thus it is always said that the trading is an art which can be mastered by the consistent efforts.

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