Tuesday, February 14, 2017

How do we trade and invest at Stochtrader?

We trade and invest of course according to the Trade & Investment Principle.

The instruments we use are capped futures (limited downside risk), options and direct investments.

Futures and options, i.e. leveraged financial products, are mainly used for all trading purposes and for investing in commodities, currencies and indexes. For investing in bonds and stocks we buy or sell the underlying securities directly.

When responding to RSI trade setups for actual trading it is especially effective to use leveraged products, like capped futures and options, as very small moves, which we usually go for, in underlying commodities, currencies, indexes, bonds and stocks, may provide acceptable profits.    

For an explanation of the abbreviations and the Trend Trade & Investment Principle see the bottom of this blog. Please also read the disclaimer there.