Wednesday, 25 November 2015

Effective Trading strategy based on Risk Management and Wealth Management

Effective Trading strategy based on Risk Management and Wealth Management
The risk management and wealth management are the most important principles in forming a proper trading plan. There are always risks associated while trading in the stock market. There are 50-50 chances of profit and loss in the stock market. The trading in the stock market will turn beneficial only when the trader follows some good strategy and the success rate of the strategy adopted is high. A strategy with about 60-70 percent success rates can be considered as a good strategy. If every 6 or 7 trades out of 10 will be profitable the trader will incur an overall profit.

A proper trading plan is very important and vital for the success in the stock market. The principles of Risk management and Wealth management can be used to have a proper trading plan. The principles of risk management are used to have a risk free strategy. Thus if it is a known fact that there are always losses involved in the stock market , the losses can be minimized using risk management. The tool of Stop Loss can be used effectively to exercise risk management. The stop loss prevents the trader from incurring heavy losses. The stop loss gets triggered when the market goes in the opposite direction as expected. When the stop loss gets triggered the loss is incurred according to the levels of stop loss.

Similar to risk management the principles of wealth management are also important. The wealth management principles include the proper distribution of the wealth among different investment options. Also the charges levied by the brokerage firms as well as losses will account for the proper wealth management. The ultimate aim of wealth management is to make the wealth grow. 

When the risk management and the wealth management are used together with a proper strategy there are high chances that the trader will end up in making good profit. The overall outcome of such a trading plan is immensely beneficial.

The advisory firms like Money Classic Research gives proper advice and stock market tips based on the principles of risk management and wealth management. The advisory firm is SEBI registered and also ISO certified. Money Classic Research is a reputed advisory firm and has acquired and established a brand image. There is lot of consistency in the buy and sell calls provided by them and they provide highly accurate calls for intraday as well as short term trading.

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