Commentary: Trading Styles
Many traders approach trading as a coin flip. Their efforts are really nothing more than gambling. However, there are those who strictly apply trading rules for entries and exits and learn to cut their losers short and let their winners run. This is a lot easier said than done. It takes a great deal of discipline. Even those adept at this style of trading find it difficult and challenging as “Emotional Capital” as well as “Trading Capital” can be depleted. Those embracing this style of trading will encounter times when they suffer through several losing trades consecutively. This is when you must remain steadfast and believe in your system. Sometimes in the midst of a winning trade, the trader ends up staying too long and watching an unrealized profit morph into a realized loss. Fear can also take hold and force a winning trade to close prematurely booking a much smaller gain than should have been.
Another way to trade is by hedging your positions and learning how to adjust to optimize a change in trend. This approach to trading has several advantages. 1) We stay with a stock that we know. This can supply a tremendous edge in that we become very familiar with how the stock reacts to the market as opposed to abandoning the stock and moving on to another unknown position. 2) When you have confidence that you can adjust a stock and move with the trend, you begin to trade without fear. The absence of fearful trading means that decisions are well thought out and not panic driven. 3) Hedging can provide the luxury of not monitoring your trades 24/7 for fear of having your positions move against you.
We at www.markettamer.com specialize in hedging and trend following. Let us show you how to trade successfully without fear and stress. Best Robin























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