Monday, 2 February 2009

Don't Be A Standby Trader

day trading
The attraction of using a leveraged share trading account such as a Contract For Difference (CFD) or a Spread Betting account is that it is far more flexible than if a trader was using the normal way of purchasing or selling shares in a company. Considerable profits and losses can materialise when an investor uses derivatives for the purpose of profiting from the stock market fluctuations.

One of the phases, which most traders tend to go through is that after a while they seem to confuse "Building More Discipline" with being "Extremely Overcautious" with their trading, to the extend that they reduce the number of times they are prepared to trade drastically and become virtually idle or Standby Traders!

Stock Markets are there to be traded and skillful experienced traders would not do their bank balances any favours by just being market watchers - in my experience once a trader has worked out that he has an advantage over the stock market, he should not hesitate too much to press the Buy or Sell button and this together with a bit of money management strategy should stand a frequent trader on a healthy and wealthy financial position in the long run for many years to come.

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