E-Book Overview
This publication is for short-term traders, i.e. for traders who hold stocks for one to eight days. Short-term trading assumes buying and selling stocks often. After two to four months a trader will have good statistics and he or she can start an analysis of trading results. What are the main questions, which should be answered from this analysis?- Is my trading strategy profitable?- Is my trading strategy safe?- How can I increase the profitability of my strategy and decrease the risk of trading?No doubt it is better to ask these questions before using any trading strategy. We will consider methods of estimating profitability and risk of trading strategies, optimally dividing trading capital, using stop and limit orders and many other problems related to stock trading.
E-Book Content
1
How to Win the Stock Market Game Developing Short-Term Stock Trading Strategies by Vladimir Daragan
PART 1 Table of Contents 1.
Introduction
2.
Comparison of trading strategies
3.
Return per trade
4.
Average return per trade
5.
More about average return
6.
Growth coefficient
7.
Distribution of returns
8.
Risk of trading
9.
More about risk of trading
10. Correlation coefficient 11. Efficient trading portfolio Introduction This publication is for short-term traders, i.e. for traders who hold stocks for one to eight days. Short-term trading assumes buying and selling stocks often. After two to four months a trader will have good statistics and he or she can start an analysis of trading results. What are the main questions, which should be answered from this analysis? - Is my trading strategy profitable? - Is my trading strategy safe? - How can I increase the profitability of my strategy and decrease the risk of tradin