How to develop a personalized investment strategy


How to develop a personalized investment strategy

What must every trader consider when creating a personalized investment strategy? First of all, how much time the trader can devote to investing. It will depend on the style of the investment (short or long term) and on which time intervals their analyses will be performed and investment decisions made.  Capital is another very important value that defines the time intervals of our investment. We also need to select markets to trade on. It does not matter whether we invest in shares, indices, commodities or currencies, we need to determine which markets we want to focus on and which ones we want to know in order to invest successfully. Then we have to select from a wide range of tools and indicators that will help us to carry out technical analyses. It is also necessary to determine what situation must exist in order for us to open positions. But before we open it, we need to determine the stop loss, position size, identify the place to realize profits, verify profit-to-risk ratio and think how to manage the position.

However, each an investment strategy needs to be tested because we don’t know whether it will allow us to make a profit. To do this, it is best to check your strategy and to do this either by using historical data and doing a simulator test or verify it using a demo account.

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