Welcome to our Articles Blog !
Understanding the differences between various trading styles can help one make informed decisions when entering the financial markets. This section will compare and contrast Scalping, Day Trading, Swing Trading, Position Trading, and Buy and Hold strategies, focusing on Risk Management, Profit Potential, and Time Commitment.
If you want to find opportunities in the market that no one else can see, then you must admit to looking at the market in a different way than the herd. In practical terms this can mean doing things like: The minute you stop searching for new ideas and new ways of expressing your edge, is the minute that the pack is gaining on you.
Dr Van Tharp (Featured in market wizards) looks at stock trading from a probabilistic perspective, discussing the expectancy value measured in multiples of R and highlighting the importance of position sizing. Dr Tharp says most traders are looking for the holy grail of stock trading within a particular setup, when in reality the way to trade your way to financial freedom is to look within yourself. Managing your risk through position sizing, using the risk reward ratio and controlling your inner self (trading psychology) are keys to your stock trading success. The expectancy value should also be aligned to opportunity, expectancy without opportunity could lead to minimal profits.