The success in stock market trading depends on number of factors but the most important of all is “A Perfect Trading Strategy”.
The basic requirements for “A Perfect Trading Strategy”, are that it ensures that
- The capital invested by you is safe
- The probability of your making money in the trades taken by you based on your system is more than 85%
- The strategy is taking care of the volatility in the market and doesn’t allow you to enter in very volatile market
- It doesn’t allow your emotions to play with your trades
- The profit margin is good for every trade you take
- The exit targets for every trade you take are pre determined at the time of entry itself
- It allows you entry in to the trade at the best possible price
- It ensures that the trade doesn’t remain open indefinitely
If your strategy doesn’t have at least the above 8 parameters, the chances of your trades going against and ending up in losses are much higher.
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