Sunday, January 05, 2020

Its Your Money

       This post is a continuation of the $50 a month stock challenge I started October 14, 2019.  Click on, "No Commission Stock Trades", on the right side of the page to read from the start.


     No this is not a J.D. Wentworth commercial, but just my way of emphasizing that "your money" is "yours" and it should not mean more to anyone than you, unless they are trying to make it their money.

     As we move forward with our trading account, keeping accurate records will keep you engaged with your account and "your money".

     Develop your own trading style (your, others, or a combination) and use it exclusively for at least six months (or a year if you like the results) to get a decent gauge of how it is working. Any shorter time frame will not take into account the normal market fluctuations. Switching between styles in a time frame will not give accurate results.

     That being said, Using more than one style can be done. Each style trades has to have its own trade book. Each trading style must be traded independently of another to compare results.

     ALWAYS compare your results to the overall market returns. Beating the market in both good AND bad times is important. If you can not beat the market then you might as well buy an index funds.

     Remember percentages are the only true gauge of returns.


Disclaimer, I am not a professional.
   

     

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