Title: A COMPREHENSIVE REVIEW OF TRADING STRATEGIES : IN SEARCH AN EXELLENT STRATEGY FOR TRADERS IN THE INDONESIA STOCK EXCHANGE
Abstract: For all of capital markets, trading strategies through online system is very important. Most players in stock trading are seeking a strategy that appropriate to their expectation about profit. They concern about a prediction of taking profit in one or two days trading in the stock exchange. For those who expect high profit in short time, may be a day or a week, trading strategies are very crucial and most wanted thing. Traders use a trading strategy to help make wiser buying or selling (entry and exit) in order to minimize the risk while maximizing profit. Besides, with a proper trading strategy traders can eliminate emotional bias that brings the unbearable risk. They can use the system operate within the parameters that familiar enough by traders. The parameters can be reliable because the system is set based on the historical analysis and real world market studies (forward testing based on backward testing). Hence, an appropriate trading strategy can have confidence in selecting the timing to entry and exit of stock trading. This article is aim to review some strategies that most traders practicing in some stock exchange. This article adopt the meta-analysis approach in extracting some of trading strategies which is popular in daily stock trading all over the world such as entry at break out trend (buy high and sell higher), buy on weaknesses and sell on strength (BOW and SOS), Cut Loss at 5%, select the stock at up trend, etc. These samples of stock trading strategies programs are presented on the online publication by the securities companies. Those programs are crated in theoretical and practical approach explanations by some securities companies all over the world. Therefore, it is very crucial for all traders to be familiar with those systems to minimize the risk while maximizing the profits.
Publication Year: 2011
Publication Date: 2011-10-13
Language: en
Type: review
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