Is it better to be conservative or reckless when trading?

When trading, there are some who are conservative, who look for the “perfect trade” which almost never comes. And then there are others who look at the tiniest changes in price and think “there we go, that’s my opportunity.”

But which one is it better to be? The low volume, low risk trader or the trader that opens positions with reckless abandon?

In actuality, my opinion is that it is the former who I would most likely place my money on to earn more. In trading, as in other areas of life, “less is more”, as they say.

Although there is potential of even the most meticulously planned trade going the wrong way, careful planning and a strong investment thesis reduce the chance of it happening exponentially.

The same can’t be said for the high volume trader, where even one failed trade will wipe them out.

Be safe, stay safe.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s