How not to lose money

Discussion in 'Psychology' started by Ironplates, Jun 7, 2024.

  1. There are many ways to trade and not lose money, but I doubt most people here are able to do it.

    1) Hedge trading using either options or Forex.

    For options, let's say u are long the underlying so u buy protection with puts.

    For Forex, if u have 2 accounts you could be long EUR/USD in one and short in the other.

    For stocks, let's say Company A is buying Company B for $ 90 a share but company B current market price is $ 80 a share. For example, you could buy 100 shares of company B and short a 100 shares of Company A locking in the the $ 10/share profit.

    2) Computer trading mostly done by large firms where they are able to front run buy and sell orders. These firms pay for servers near or on the Exchanges and try to do trades that last less than 1 second.

    3) Insider information like in the show $ Billions, which has been dowe by Hedge firms in real life and sometimes these people are actually caught by the SEC.
     
    #81     Jan 25, 2025
  2. shine

    shine

    The main thing is that during these 6 months, he had positive statistics on trades and profitability. Otherwise, it makes no sense to switch to a real account.
     
    #82     Jan 27, 2025