The answer varies by trader –
Is the indicator right for you?
Is the indicator too sensitive when it comes to technical trading?
Is the indicator just too close-minded to make a good trade?
Let’s look into some of the above questions and how they effect your trading decisions.
Question 1: Is it best to invest in individual stocks vs large cap stocks?
Many professionals believe stocks are the best investment vehicles, but the reality is they often trade at a low price-to-earnings ratio (P/E), which is not conducive to high returns.
The bottom line is that stock market analysts are not qualified to make accurate long-term investing decisions for your trading portfolio. They are generally less objective or more subjective than those of retail investors.
Question 2: Should you trade stocks in the short term, or would you rather invest in larger stocks, or would you rather trade short a short-term trading strategy that results in greater returns over time?
We suggest you trade stocks the short term to provide the best potential returns by using a time-tested and proven strategy that has consistently yielded high returns in the past. If stocks are not suitable for you, there are many other funds, which may be the right investment for you.
Question 3: Do you trade in long/short periods?
Most traders prefer to trade in long/short, but if you prefer to trade in the short term, then that is definitely your choice.
If your trading strategy is highly technical, you may prefer to trade short-term, or if you have a time-tested stop trade (TST) option, you may prefer short-term trading as well.
You’re going to need to decide between long-term and short-term trading strategies:
Long-term Trading Strategy
Long-term trading is when individual stocks are bought into and sold-out (called a volume buy/sell). The total transaction cost per transaction is higher than a volume buy/sell, but trades are typically completed in less than a second.
The stock price is not adjusted for different holdings or the different trading days. The total transaction cost can range between $25 – $100 dollars per trade depending on the number of stocks you’re buying and selling. This is usually a good long-term investing strategy.
Short-term Trading Strategy
Short-term trading occurs when individual stocks are sold-out (called
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