Trading Strategy or Habit

24th August 2010 0 By Camasu

By Camasu

INVESTING, Business, Selling, Buying, Digits focus, GAMBLING and many other.

These all can control under our habit, or in beautiful saying ‘Strategy’.Either you do these in the smart or bad way, either Gain or Lost. Investing and gambling is only tiny gap difference, that is you must study the history, focus is no 100% accurate, this only you buy the probability of the even,  if you control more than 50% of the earnings than you are success.

Today talk about securities.

Everyone has his own trading strategy. Buying and selling a stock within the same day and trying to profit on leveraging relatively large capital to take advantage of small price movements in highly liquid stocks, this is what we call day trade. It is a difficult strategy to master the people who starting day trading. They are scalping other people money, and it involves selling almost immediately after a trade becomes profitable, many times it is a meter of 1/2 of a cent price difference per share in KLSE.

Each new trader first faces the question: which trades should I try? Fading is another profitable counter based on shorting underlying assets right after rapid move. The philosophy of Fading based on assumption that stock (Composite Index) could be overbought at this point, many investors are ready to take profit and the potential buyers could be unsure of buying at this price, after such a rapid increase. This risky strategy many times becomes the most profitable one

Low/Hi of the day is another day trading strategy and success is determined by getting right low point, and it is an instruments used to make well educated guess.

Many traders choose to trade the RUMOURS or NEWS. This strategy trading involves buying stocks which start moving right after the news and keep it until they determine first signs of reversal. Ones you determined your trading strategy It is always much more important to follow your strategy religiously, then try and chase the profits.

Statistic Traders are analytical minds, usually they are gambling in calculating risks, and they are looking to take advantage of hi probability being right. Many people who have degree in exact sciences tend to use statistic strategy in their trades. Many of those traders choosing to trade options, in fact 80% of then expire worthless by selling out of the money, and it gives a lot of data to be analyzed.

The above I put the word “gambling” instead of investing, may be many people not agreed. On earth the people who make big profit or loss, we called them Investor, Businessman or some beautiful expression.