In trading, investors frequently use a pre-set list of considerations, which helps determine potential investments. They also choose the amount of capital they want to use for risk management purposes and try to pre-determine the length of trades they are about to enter based on their goals. The goal, of course, is to maximize profits.
A few thoughts about trends are needed, even though we did mention trends in the Basics section. We need to differentiate between the different types of trends:
Often, when we embark on a new adventure, it’s nice to know where that adventure might take us. That’s ESPECIALLY true when we’re investing our hard earned money. We may want to maintain its value or increase it. And that’s where trading and statistics cross paths – using quantitative methods to determine probability.