What is the correct strategy?
- by Mark Densel
Successful trading depends on selecting the right strategy.
Choosing the trading strategy, in turn, depends on the ability to successfully plan targets and timetables to be correctly calculated in the process of buying and selling, as well as the opening and hold the necessary positions.
Trading strategy combines information on the process of trading (from the initial to the final results), as well as all the necessary information required to be taken into account in financial management. This allows you to adopt a trading plan that excludes speculative aspect as it is in the decision making process when choosing a trading strategy.
Some traders pursue the trading strategies without considering the changes taking place in the markets. Others, however, prefer them more mobile strategy that can also be successful. In the second, the emphasis is given to feelings and assumptions of the trader, it is impossible to consider when choosing a strict trading strategy.
When using a trading strategy can combine different types of assets. In addition, many trading strategies are also considered derivatives, which allow to calculate the initial risk. The most common trading strategies, built with the additional derivatives, often applied in the CFD market. CFD market is a separate market where traders can use different types of positions, personally hoping risk for each of them.