which is best to do long term investment/intraday?
- Thread starter johnmmf
- Start date
if i fall in loss in long-term trading then there is any kind of steps to overcome with that loss? or what kind of steps to be more preferable which i had to use at the time of loss.
Some trades will be losers unless you chance on a 100% win rate strategy, so don't obsess over these. Keep your account alive by making sure each loser is only a small % of the capital in the account. Always set a stop-loss so the loss per trade is controlled and predictable.
Demo trade first. Use a simple strategy - don' look at charts in more than 2 time-frames, 1 off-chart indicator (if any), no more than 2 MA's. As you learn, make small incremental changes but focus on doing this with the winners.
Select targets that have narrow spreads and few overnight / over-weekend big gaps. Reject stock tips and anything you hear on TV about company performance and market bullishness / bearishness. If buying stocks, only buy if their index is also bullish.
Generally its risky to buy when price is a a new high or to short when price is at a new low.
Thanks a lot! if i set a Stop-loss while doing trading as a security position,so there is any strategies i have to keep in my mind or i have to set up a SL in a small % only?
Most people set their stop-loss so that if triggered the capital loss will be small %age from your account. Many argue for 2%, some go down to 0.5%, on a trade following a strong trend I am happy to go to 5%, very few go higher than 10% per trade. Remember that even if each trade has a maximum risk of 2% loss if the SL is triggered if you are holding say 10 S&P500 stocks, they will probably all move up or down in step, so your risk in the event of a deep market downturn triggering all your stops is 20%.
Some people know their strategies so well they will use a larger risk % for a safer trade.
Always set a SL, but bear in mind that a gap can jump across your SL price and your SL order will be executed beyond it. This isn't an argument for a very high % risk.
The best place for the stop is where price on reaching it proves that your reason for opening the trade is now more probably wrong, the most important element of a strategy being the price you pay to get out, not the price you pay to get in.
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Both; i dont know about 4ex. But to do any kind of trading +investing i have to enter/exit intraday, exact close is to busy for me LOL.
