“The purpose of trading is not the market, but profit.”
Just as there is no fail-safe trading system, there is no best trading strategy.
All trading strategies have good and bad sides, and there are always pros and cons.
Many traders make the mistake of thinking that theirs is the best and only way.
The real key factors to making a profit on trading are risk management, active technical analysis and trading beyond a single time period.
Each trading strategy has advantages and disadvantages.
Therefore, the most important thing is not to find the best trading strategy, but to find the most suitable trading strategy.
This trading strategy must be coordinated with the amount of time you spend trading in front of a computer and consistent with your personality, risk tolerance and account size.
What will determine your success is not the time period you choose to trade, but your testing and research of historical trading data for that time period.
Day trader: The advantage is that you don’t run into overnight risk.
The downside is that this type of trader must stay in front of a computer all day, keeping an eye on the market.
This kind of deal is too stressful for most people.
Trend trader: The advantage is that you are always on the main side of the market and do not have to buy and sell many times.
The downside is that you can’t make money in an uncertain or unstable market.
Many trend analysis systems do not perform well in volatile markets.
Short-term trader: The advantage is that you will make more money than you would if you missed a buying opportunity on high probability support and short wave resistance.
The downside is that in trend and parabolic markets, you have to cut your losses in time or you will be taking on a huge amount of risk.
Growth investor: The advantage is that you can buy a company’s stock, research and focus on its potential to continue rising.
You can make a lot of money if you buy a company whose stock is in a bull market.
The downside is that if there is a bear market, the downward storm will be fierce and urgent, and even the strongest companies cannot avoid it.
Options trader: The advantage is that you can control your overall loss risk by the size of the contract, and you can trade with leverage.
The downside is that options expire and become worthless;
More likely, they will go to zero while you are still holding them.
In addition, you must ensure that these options have enough liquidity to trade, otherwise the bid-ask spread will be very wide.
In addition, the direction and time period of options trading should be accurate.
In short, you should ask “What is the best trading strategy for you?”
The best trading strategy is one you can stick with for the long term.
Your trading strategy should best suit your personality and help you achieve your trading goals.
As Europe’s energy crisis intensifies supply constraints, oil prices have enjoyed a third straight pre-Christmas rally and gold has held steady.
Please pay attention to the specific operation, the market is changing rapidly, investment needs to be cautious, the operation strategy is for reference only.
