| people have this wrong perception... that short | | | | really glue you to the news. |
| term trading strategy is risky and long term | | | | Short term trading strategy runs extremely low |
| trading strategy is safe. | | | | market exposure for as high as a 75% winning |
| Now, let me put this in an analogy. The capital | | | | rate for profits per win of as high as 100% these |
| markets is like a huge ocean and your trading | | | | days! The amazing results of short term trading |
| strategy is like a boat on this ocean. Some think | | | | strategy have been made possible by the |
| that the slow and steady ship is safer than the | | | | creation of more and more sophisticated financial |
| fast and furious speed boat, right? Now, if the | | | | instruments like options and futures. It may be |
| speed boat runs a 20% chance of capsizing but | | | | riskier per trade than long term trading but who |
| takes only 1 day to reach your destination, | | | | needs a 100% chance at a 2% profit per month |
| wouldn't it be safer than to stay on the ship that | | | | when we can get a 75% chance at a 100% profit |
| takes 1 year to reach your destination, 90% safe | | | | in a just few days? |
| from capsize but runs the unpredictable nature of | | | | So how do we manage the 25% chance of losing |
| the sea and its weather? | | | | in short term trading? That's where a smart |
| The stock markets is as unpredictable as the | | | | portfolio management strategy comes in. It has |
| weather today. Long term trading strategy for a | | | | been said that even if you know nothing about |
| 10% to 20% gain a year might really be | | | | picking stocks, a smart portfolio management |
| something thought of in the industrial era where | | | | strategy will be able to help you win money on an |
| people love steady, long term growth. The world | | | | overall basis picking stocks at random. |
| today can potentially be thrown into complete | | | | So, what form of trading has the lowest |
| chaos at an instance. Who says 911 cannot | | | | mathematical risk? In my opinion, it is a Short |
| happen again? A long term trading portfolio can be | | | | Term trading strategy backed by a sound |
| wiped out overnight suddenly and all you wanted | | | | portfolio management policy. Such a short term |
| was to make 20% a year out of it. No long term | | | | trading strategy gives you predictable, high |
| trading strategy today is completely hedged to | | | | returns in short periods of time at minimum |
| downside. A long term trading strategy would | | | | market exposure. |