A lot has been written about an investor ‘knowing the term’ of any position that they take in the market. For example, when a long term ‘buy and hold’ position is taken, the investor must be prepared to ride the ups and downs of the market but must also be prepared to accept a lower…
Considering I am a huge advocate for mechanical trading, I thought that this week I would give a definition to all those that are interested and share the ten benefits of mechanical trading. For most, mechanical trading is a relatively new concept requiring explanation in itself. Mechanical Trading- definition: Mechanical trading is defined as using…
The main benefits of using a Trading System are to: • Remove emotion from the buy/sell/hold decision. • Remove personal ego from the buy/sell/hold equation. • Exclude outside influences and ‘noise’ from the buy/sell/hold decision. • Achieve objectivity & consistency, trust and confidence, in the buy/hold/sell decision process. • Overcome personal expectations of the market.…
It is ironic that generally the less capital novice investors have the more risk they take. They focus on higher risk trading instruments or higher risk trades seeking the large quick returns. Besides the additional volatility risk, they then magnify that risk by allocating too much capital to these high risk trades and in many…
