GENERALLY SPEAKING, IN LIFE, you get out what you put in. The longer you exercise, the more weight you’ll lose. The more you study, the better you’ll do on a college exam.
Trading, however, is one of the few activities in which more is not always better. If you want to make money, trading more positions more frequently and with more leverage is hardly a stellar strategy. The opposite — fewer positions, fewer trades, less leverage — often yields considerably better results.
Today’s international markets trade around the clock, offering more opportunity than one individual would ever be able to capitalize on. But what many investors, especially the most competitive, often forget is that to be successful, one need not master the market, but only catch some of its waves along the way. (more…)