Well, I don’t have a crystal ball, but it will be interesting to see where the market takes us now that there are two major factors to consider – Fed tightening and Fed support.
For the most part, the past few years have been pretty good for trading, but when the stock market went tumbling in 2007, they weren’t all bad.
If you’re thinking of taking on a hedge fund or another high frequency trading firm, you have to be mindful of how your trading strategy may affect your daily returns.
There is one scenario where I think it’s safe to go short, especially if you have a low trading turnover. This scenario is if you think you can expect the economy to slow a lot in the future – you might want to go short the market if you expect prices to tumble a lot even if that doesn’t occur.
One other factor I don’t like is if your daily cash flow is limited because you don’t have enough trading volume. If the market is going down, but you still have the cash flow, you may want to add some volume with your daily trading. The biggest risk is that if you add volume, the volume could get so bad you actually lose money. Another risk is that if you don’t pay attention to your returns, you may be making money for someone that will not follow through with a trade. I’ve had many traders who would put money on the market and pay themselves huge commissions to go ahead and make a trade.
To top it off, there are many different reasons that a stock trader might want to go long. A big one is if they have to make a trade, in which case all the extra money makes sense. Another reason is if they’re a market maker, they can use this extra cash flow to pay down debt, which is typically less risky.
So when it comes down to it, what I think you should be doing is weighing all these important factors and taking a call on the best time to pick stocks. It’s a tough call to make, but if you’re making a decision right now, think of it as money in the bank.
What advice would you have for someone starting out? Is it too difficult to start trading with high frequency trading?
No other investment is so
warrior trading swing trading course, best day trading courses reddit, swing trading books, swing trade chart setup, stock market classes in college