The main thing is to make the strategy profitable!

The main thing is to make the strategy profitable! 
Your investment strategy will depend on which way you choose to trade. Whether it will be:

Investment of capital or direct trading. 
A conservative, moderate or aggressive investment strategy.

Which is better to be: a trader or investor? 
Each type of employment has its own characteristics. Investing means investing money for a long time. Market analysis is necessary, but it takes about a couple of hours per day. Transactions are relatively rare. An asset is bought at an affordable price and sold at a more expensive price, or vice versa: it is borrowed from a broker, sold at a good price, and bought back at a cheaper price in order to repay the debt.

A trader has to spend a lot of time - first on training (minimum 2 months), and then on trading and market analysis. Only scalping can be combined with the main work, if you devote a couple of hours to it in the evening. If your vocation is to trade inside the day, but not scalping, then you will have to stay at the monitor all day, studying charts, watching the news feed and making deals.

You have to understand for yourself: what is closer to you. For example, there are people who crave constant activity. They want to be in the market all the time. That's how scalping is recommended. But if you can hold a position for weeks and months - then you are a natural investor.

There are several approaches to trading. What kind of investment strategy does it take? 
You can manage financial investments in different styles. They can vary from conservative with low income to aggressive, which allows you to form super profits. However, in the latter case, there is a risk of losing all or a significant part of the capital. A balanced option is a moderate approach that combines the advantages of two extreme solutions.

The conservative variant assumes work with application of the most reliable tools. This:

Structural products, where capital is 100% protected. 
Stable precious metals and currencies. 
Eurobonds, government bonds, deposits. 
The golden mean is the use of a balanced strategy. Here, the investor assumes some degree of risk, and investments use reliable and speculative assets: volatile currencies, municipal and government bonds, securities belonging to private companies. Investment strategy.

An aggressive (speculative) strategy can enrich its owner. It allows including in the portfolio structure many financial instruments suitable for speculation. These are derivatives (options, futures), as well as currencies and shares with high volatility. An aggressive approach is allowed if the investor is well-prepared. If money is put under trust management, its owner should express his willingness to take risks. 

Johannes Röll

Johannes Röll was born 1978 in Brilon,Germany. Graduated RWTH Aachen University. Over the past ten years he worked as Head of the plastic card team, where he was mainly responsible for the development of the distribution, Head of sales Department and Financial Analyst,where he got experience in planning and support sales figures for branches. For the present he works as freelancer

Comments 0