Interesting Facts About Trading: It Requires A Strategic Plan

Trading is an active style of participating in the financial markets that seeks to outperform traditional buy-and-hold investing. Rather than trying to profit from long-term uptrends in the markets, traders look for short-term price moves to profit in both rising and falling markets.
Gone are the days when traditional brokers were needed to play the stock market. Nowadays, online stock trading can be done quickly and easily with the click of a button. Trading online has become a fully automated process so that average investors can buy and sell stocks for their own brokerage, mutual funds or retirement accounts.
As a trader, one of the most important things you can do to improve your chances of success is to approach trading as a business. A successful trading business requires a strategic plan that covers your actual business and your actual trading.
Your business plan will include things like short and long-term goals, the amount of capital you have available for the business and how you will set up your office. Your trading plan includes the details of trading: what you will trade and how you will trade it.
Your plan should be so objective and concise that you could hand it over to another trader and they would be able to execute it exactly.
It’s important to understand that your trading plan is not simply a set of rules that you think will work, a list of set-ups that you are somehow fond of, or someone else’s plan. A good trading plan is one that you have researched, tested on historical data, tested in a live market and continue to evaluate at regular intervals.
By increasing their share in world trade, least developed countries (LDCs) reduced poverty (defined as people living with less than 1,25 USD a day) from 65% of the population in 1990 to 45% in 2010! This contributed to the inclusion of more and more people into the riches of world trade, not only cutting living costs, but also raising living standards globally.
It’s important to note that trade is not always the solution to poverty or fragile economies but it can help boost local economies, increase employment and bring people together.
We are now going to look at TEN interesting facts about trading. Hope you learn something!
1. There is no need for trade wars. The WTO has handled over 500 trade disputes in the last two decades. This resolves conflicts and reduces trade tensions, so that trade can flow more freely and easily, which also increases your country’s exports.
2. Innovation fuels trade. Patent applications rose by 9% in 2013. They help extend trade and will eventually find their way into our smartphones, cars, houses or gadget which don’t even exist today.
3. Less tariffs means greater trade. Over the past 20 years, an average tariff reduction of 15% helped to quadruple trade worldwide! That has not only helped to boost local economies but also to increase the global standards for health, security and environment, which in turn increase average life expectancy.
4. More trade means more choices. The WTO now has 161 member countries, which account for about 98% of world trade! So, the more countries get included in global trade, the greater your choice of products is when we go shopping (and the more economic growth will be stimulated)!
5. Trade brings prices down. Trade liberalizing measures increased more than 60% in recent years, which has helped to bring down the prices of imports. This translates into spending less on our purchases.
6. A trading firm spent $300 Million, digging a tunnel through the Allegheny Mountains of Pennsylvania, to shave 3 miliseconds off its time to connect with New York Servers.
7. On Sept. 29, 2008, the Dow closed 777.68 points down, a 6.98 percent loss. The largest single day point decline in history. On October 19th, 1987, the single worst percentage drop occurred at a loss of 22.61% in a single day.
8. Jesse Livermore, the most famous trader of all time, lost 2 fortunes, made $100 million and died with a net worth of $5 million.
9. TD Ameritrade, one of the largest brokerages in the world, has around 7 Million customer accounts.
10. In 1999, The Electronic Trade Association estimated that 4,000 to 5,000 people traded full time through day trading brokerages and accounted for nearly 15 percent of daily volume on NASDAQ.

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