#1
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\"Trading 101\" questions !!
Hey guys,
I read in the thread "Trading 101: Position sizing", that people basically have bankrolls, and they invest in stocks with 1-2% of that money. Is this just called Trading? I've read in a few books that people should invest for the long term. So do these Traders just buy stock for the short term, and resell it when the price goes up or down a certain amount? Share your wisdom with a fool please(im reading fool.com ;D ) |
#2
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Re: \"Trading 101\" questions !!
Yes, Traders try to take advantage of short term price movements, where the odds are in their favor based on technical patterns, and they have a defined stop loss limiting their losses if they lose the coing toss (so to speak).
If you take advantage of enough 60/40 (or 70/30 etc) opportunities, with the risk:reward ratio also in your favor, you can make nice money trading short term. |
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