Trading Strategies
It took me many years and tens of thousands of dollars wasted before I finally learned how to properly invest in the stock market. Like many others I was obsessed with the idea of making millions through online trading. At work they used to call me Daryl the Dreamer when I’d check the prices of the latest hot stocks every five minutes. While a few of my investment worked out just by chance, the overwhelming majority were disastrous. Still I remained undeterred. When one hot stock went bust, I simply moved on to the next one.
Then one day a broker friend of mine instructed me to look into trading strategies. At the time I didn’t even know what trading strategies were. He said the idea was simple, decide what you want to do in the market and devise a strategy or plan that will help you get there. “For the record,” he said, “trying to make a millions of dollars in just a few hours isn’t a plan. If that’s what you want,’ he said, “buy a lottery ticket.”
I understood what he was saying and I set out to devise a plan. I went through at least a dozen trading strategies before I finally settled on the one I thought was right for me. I decided to choose a strategy with just the right amount of risk. Because I am young and have many years of earning ahead of me, I could afford to take on some risk, but I also wanted to diversify. I put some of my money in bonds, some in commodities, and the rest I put into equities. I only purchased a small number of stocks that I had adequately researched. Since my portfolio was small, I was able to pay close attention to each stock I owned. Before long I learned their trading patterns and was able to make small profits on these movements each and every day.
Since I heard about trading strategies and implemented one myself, my portfolio is up over twenty percent and I have considerably less risk than I did before. The next time I saw my broker friend I thanked him profusely and told him that without the use of trading strategies I’d still be a man throwing darts at a board or chasing the hot stock of the nonce.
