3. How frequently do I trade?
This question is pretty much the same as asking whether you are a short term trader or a long term investor. The latter may trade anything from a few times each quarter to only buying ever few years with the aim of playing the long-term trends and reinvesting dividend income. The former – in stark contrast – may be in and out of positions like a yo-yo, with trades lasting anything from a few minutes to a few weeks. The aim here is to profit from much smaller moves, the income element being unimportant.
“When seeking out ideas, look at both the long term and short term charts for the stock, commodity or index you’re interested in”
4. What’s my time horizon?
If you are looking to double your money it might be optimistic to think that this will be possible overnight. It can happen, but you have to be in a very particular type of stock where good news on a product (new drug approval, oil find, contract win) can significantly change a company’s prospects for the better which is often rapidly priced into its stock. Healthcare and Oil & Gas are good examples. In most cases, however, it will take time before a share price manages to deliver gains of 100%.
That said, there are helpful ways by which bigger returns can be delivered more quickly. The bigger the trade size the bigger the absolute returns possible. And the use of leveraged products such as CFDs and Spread Betting can magnify both trade size and thus returns in order to deliver those bigger profits over much shorter periods. In some cases just days rather than months, even years.
CFDs and Spread Betting tend to represent the products of choice for the short-term trader placing frequent orders, making the most of low cost trading and no stamp duty. This makes them much more cost effective than traditional and expensive share dealing and attractive to all investors over all durations.
5. Do I have the right broker supporting my endeavours?
We don’t believe that talking only about profits is giving a good service, but we do think that talking to you is a good thing! To that end, our aim is to provide the help you need by highlighting opportunities which may be profitable to you, the investor, and assist you in making investment decisions which can benefit from the use of leveraged instruments. At Accendo Markets we don’t tell you what to do. It’s your call whether you buy or sell. We think that’s really important.
Our approach focuses on 3 elements below;
- Education – not obligation
- Observations – not recommendation
- Assistance – not persistence
Our unique and award-winning service provides you with the help and tools you need to make appropriate trading decisions in the financial markets, both to grow and protect your capital. You can find out more about daily research and trade ideas received by Accendo clients below.
