Introduction to Investment/Trading Strategy
“Investment and trading are the same.”
They are not.
One of the key difference is the time horizon.
Investment is usually for a long-term holding period. While trading can be monthly, weekly, daily or intraday.
You won’t hear people saying they are an intraday investor, or a long-term trader often.
An investment/trading strategy is a set of decision points which are used to achieve a particular target of desired returns from the stock market. Now, a strategy that buys and sells at the correct points fulfilling the desired target returns evaluates to a good investment/trading strategy.
A question comes, how to develop one. There are multiple methods of developing an investment/trading strategy.
In general, people follow the news, use technical analysis, fundamental analysis, and several other functions, different people have their own ways to do an analysis.
Stay Tuned.
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