The ultimate goal in trading or investment
It is often mentioned that a trading or investment journey is a marathon rather than a 100-meter sprint. This is easier to say than done. Most people will either lose money in it, casually invest break-even or slightly make some money or they make big money once awhile like during covid-19 and exit the market with all the cash they earn from the market.
The challenge here is how can you generate profit consistently from the market over the years. It is a very big challenge because of market conditions change. For example, Kodak was once a very profitable business but now end up in a sunset business as everyone going into a digital photo.
Sound similar to most of our trading strategies were some of the strategies work well on certain market conditions but it slowly fades off?
Many traders tend to change strategy too quickly when the strategy suffering losses. Hence so many traders only win on a certain period and subsequently, they no longer trading the market. For example, some articles actually mentioned Warren Buffet’s value investing no longer applicable and his performance is underperforming the S&P500 but who knows 5 years later his fund will outperform so much that this is just a temporary “drawdown”.
To avoid changing strategy too soon trader should have a strategic guideline so you can evaluate your strategy properly.
As a result the ultimate goal it’s always to maintain its profit consistently over the different market condition. We shouldn’t be too excited over our winning traders and keep bragging about it or too disappointed over the losses.
There is definately a lot to find out about this subject. I really like all the points you made. Madlin Reinhard Eusebio
Hi, Thank you for your comment. This is a very huge topic and the article just basically focuses on the small area of the entire goal. We will continue to write more about it, stay tune!
Thanks again for the article. Really Cool.
Greate article. Keep writing such kind of info on your blog.
Very informative blog article.Much thanks again. Fantastic.
You produce quality content, I appreciate you
Thanks-a-mundo for the blog. Really thank you! Awesome. Catie Durward Ruberta