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Randy Frederick on Trading Strategy

Randy Frederick discusses his thoughts on having a trading strategy.

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Well, I think it’s important for a trader to have an overall investing strategy because the investing strategy is sort of like the business plan of a business. You can’t really start a business and you can’t run a business without a plan. You have to think about all the things that might happen upfront. And maybe you don’t hit all of them, maybe some of them come a little bit later, but having an idea of how much time you’re going to spend doing research, what particular securities are going to be invested in, what types of strategies are going to be used, that’s kind of a main framework that can always be referred back to if things get a little bit off track. An investor who goes out and lets emotions or impulse drive his or her investing strategy is probably not going to have very good results, but the investing strategy provides that structure and that framework that will help keep any investor on track if things start to go off, and maybe the results aren’t as great as what he or she expected originally.

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