Hello, everyone! Welcome back to this week’s Tip. Today you’ll read a bit more on what it means to have and develop a strategy when trading on Famebroker and why is it so important to have one regardless if it’s in your plan A or plan B. So let’s get rolling!
What a trading strategy means for the Famebroker stocks market & why do I need one?
A trading strategy is a set of general rules that the traders set up before starting to trade. Usually, the rules consist of a few specifications such as the trade points, trade exists, trade filters and triggers, money management, time frames, order types, etc. When you develop a trading strategy and then execute it properly, the rules you have set beforehand may easily predict the benefits you’ll be getting from your investing, thus, help you as a trader and investor make a decision whether your trading idea will live up the strategy’ expectations. In Famebroker’s stocks market, this means that you have to set the minimum and maximum price at which you can afford to buy the celebrities stocks, as well as create an exit alarm – when is the right time to quit trading the same stocks, determine your full budget, the time period of which you want to buy and sell your stocks, etc…
How to create and develop a trading strategy?
There are 2 steps that you need to take into an account when creating a trading strategy. And these are the following:
1. Decide between a long term or a short term investment.
Before you start trading, you have to decide whether you want to trade with stocks whose gain you’ll receive will be accumulating for a long period or trade just for the fun of it. It is very crucial to decide on this because if it’s fun only, then you can pick celebrity stocks randomly without worrying about earning more BF. But, if you want a steady Bitfame income then you need to take into consideration which celebrities’ stocks you buy.
Go through the market prices of the celebrities’ stocks you want to buy – BEFORE you buy it. Why? Because you need to check the stock’s ups and downs every time before you get your hands on it. It is important to analyze the stock performance and its fluctuations, as well as do a meaningful research the market to see what that specific celebrity is doing right now or what are their plans for the future and how would their daily activities affect their value. Make sure you do your homework every time before making a deciding to buy somebody’s stocks.
2. Decide the amount of money you can and you want to spend buying the Bitfames.
Let’s say Mark Zuckerberg did something amazing with Facebook and the value of his stocks starts to rise. You think it’s a good idea to buy his stocks now and not to wait for them to increase in price, so you log in very quickly onto the platform and go to the Trading Room where his stocks are. The price you see is still not that high and you decide to buy 50 of his popularity stocks. All of a sudden, the screen say: Buy request unsuccessful! Whoops! You have insufficient Bitfames in your wallet and you have to purchase more BF in order to buy the desired stocks. In order to avoid rushing since the price of the stocks can change at any minute of the day, you need to make a plan of how much money you are willing to spend on buying the Bitfames, thus, buying the stocks.
To sum up, yes, a trading strategy is needed in order to avoid risky moves on the stock market and meet your expectations. Just don’t forget to relax and have fun as much as you possibly can.
The Famebroker Team