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