ETF Trend Trading: How to Consistently Beat the Pants of the S&P Average Every Day
The people who are just stepping into the forum of trading are nowadays abandoning the age old forex trading techniques and stock trading
. They are nowadays more interested in ETF trend trading. This article aims at explaining how ETF trading can be of real help is minimizing your losses everyday and ensure a win win situation for you.In a trading there are drawdown or rather sudden and abrupt losses involved. If you do nothing to shield yourself from these losses then this business will simply ruin you and get your whole world crumbling around you. For example let us assume that when you started trading your account consisted of $20,000.
After 3 consecutive losses you simply come down to a value of $10,000, which happens to be 50% of what you had. So the loss incurred was 50%. Now if I ask you that how much profit you need to make in order to get started, I think your answer will be 50%. This is nothing shocking, because this would be the reply of most people.
But in order to be in the business and to ensure that you are extracting a good lot you must make a profit of 100%. In order to get back to even you cannot afford to compromise a value less than that. Your new base would significantly grow low as you suffer these losses and so it is necessary that you come back with a high percentage of profit to be in a stable position. Now here comes the role of ETF trend trading.
Professional managers and people who are into this business of trading would never risk more than 2% for every trade. In this way they can handle 10 consecutive losses which would result them a total loss of 20% and not more than that. And there is less to recover in this way.
This is quite low compared to the earlier situation. If anyone has told you that more risk is equal to more money then please break that world and come out, more risk is more risk and nothing beyond that. ETF trend trading does a great job in teaching you handle these risks. It works excellently by reducing your chances of losses. And if you can reduce your chances of loss then what else but a good win deal is waiting for you.
The biggest battle is the battle of survival in this field as most traders do not manage to survive. Since ETF trend trading can make one survive this drawdown, naturally it turns into something that would go a long way.
If you can go for an ETF trend trading course then nothing can be more helpful than this. It would give you a brief idea on the government policies, economic scenario of the country, the supply and demands. It would help you identify trends and would equip you in such a way that you are able to make most of the moving costs.
So learn more about it and stop suffering by losing heavily over trades.
ETF Trend Trading: How to Consistently Beat the Pants of the S&P Average Every Day
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