Multiple trading approaches
by Shaun Rosenberg
There are literally hundreds of different trading strategies out there. Some have their advantages over others. But no one strategy is perfect. Trading multiple strategies can allow you to help other strategies weaknesses.
For example say you like to trend trade. But during a volatile market when the market is not trending you can focus on day trading, or use some other approach to handle the volatile times. This allows you to switch back and forth between strategies to allow you to make the most at your given time.
You probably want to have a couple different trading strategies out there that you prefer to use. Personally I like the high probability of option selling and the huge short term profit potential of swing trading.
You might like different things in your trading. The point is you probably want to find a couple strategies that work for you and fit your personality.
But be cautious. Trying to trade too many different strategies at once can actually be harmful. If you try to copy every new strategy you find you will never be improving.
Instead try to find just a couple strategies that fit you well and learn them inside and out. This has the advantage of letting you improve those couple strategies over time. The market will teach anyone who is persistent enough to stay at it.
In fact you might even decide to learn to trade just one approach when you first start to trade. Learning just one approach gives you an advantage by allowing you to focus more on that single strategy. Just using one strategy can allow you find ways to produce a profit more often as well as find out how to cut losses shorter.
The disadvantage to just using one strategy is that you will have to benefit to switch over to another strategy when it is working better. Ultimately the decision of how many trading approaches to use is yours.
Article Tags: Day Trading Strategies