Finance in terms of trading strategy is a fixed plan which is designed to achieve a profitable return by going long or short in markets. Some of the carefully researched strategies that help to trade are verifiability, quantifiability, consistency, and objectivity. I searched a lot for different kinds of strategies like Swing, Scalp, Trend trading but I could not find a profitable one for myself, therefore, I created my strategy. I believe that trading is a profitable yet risky business and we should be careful as we can lose our money if we are not aware of risk management.
Level 1
10 € / Day
Accomplished
Level 2
30 € / Day
In Progress...
Level 3
60 € / Day
Locked
Level 4
100 € / Day
Locked
My strategy is called the FBI trading strategy. Even I use it in day trading but more focus is on long-term investment. The problem is that when you get profit from positions then you are trading with a big amount of money and a bigger risk in your next trade.
What if before you start taking a big risk for your next trade you just invest 70% of your profit weekly in an Index market like S&P500?
Investing in Index funds will decrease your risk and you put your money in a safer place than your trading account. Let’s say you’ve 100€ profit weekly. If you invest 70€ per week in the Index fund then it 280€ per month and 3360€ per year. Index fund’s average profit is 8% per year. This helps you to not trade with all of your trading funds in the market and reduce risk. Most of the traders give up trading and lose all of their money before they learn what is going on with the stock markets. FBI strategy will give you more time to educate yourself in trading and keep you safe from losing all of your money.