We all have different lives, personal traits, beliefs, objectives and levels of knowledge. Hence, as different as we all are, we also have different investor profiles. To optimize your odds of success, finding the stock trading strategy that works best with your profile is a very sound way to proceed.
A few good questions worth asking yourself, in order to determine your profile:
- What are your objectives in trading stocks? (be as specific as you can be)
- How much risk are you willing to tolerate?
- How well do you know the different types of securities (stocks, options, derivatives…)?
- Do you wish to be able to liquidate your assets quickly, if the need arises?
- How much time are you willing to spend in studying and monitoring your portfolio and the market?
- Are you interested in trading on an international level, or solely domestic?
- Do you have a preference for socially-responsible corporations, or does it matter not?
- For how long do you expect to be trading stocks?
By answering these questions, a few other good interrogations will likely go through your mind, helping you determine your preferences and requirements a little bit better. You will then be one step closer to finding the trading strategy that’s right for you!
Before diving head first into doing online stock trades, consider a few key elements to improve your odds of success.
1) Know the basics!
If you ever practiced sports to a competitive level, you know that mastering the basics is the key to victory. The same goes with trading stocks. Knowing the investor’s language and basic principles are fundamental: the lingo, acronyms, charts, tables, reports, economics etc. (Read More »)