Our Investing Approach
What Exactly is Our Approach to Investing?
There are many ways to trade or invest in the financial markets. In fundamental analysis, investors and analysts study and analyze data from various reports or sources ranging from economics to politics, from fiscal policy to monetary policy, from domestic affairs to foreign affairs, and from public to private sectors to elicit useful information. There are virtually no limits to how much information you can gather to form an opinion on the direction of the financial markets. Also popularly known as value investing, sometimes the mass opinion may differ from individual investor’s opinion and may delay or reverse the expected outcomes. Imagine you trade against institutional investors who have dozens of professional economists and analysts with doctorate degrees who have access to lots of economic, industry, company data and the financial power to buy or subscribe to major news organizations. They also have all the super computers with AI technology to perform various complex mathematical calculations or simulations to deduce the value of a specific stock, commodity, futures, or industry. Therefore, this approach is probably not suitable to retail investors or traders due to the lack of time and resources.
Is technical analysis, also known as charting. Traders or investors derive useful “signals” based on chart patterns, usually with the aid of other technical indicators. Based on historical experience, chartists expect to see some high probability of predicting similar, repeating patterns or outcomes. This approach is fine if traders’ duration of trade is short to medium term. Precision is the keyword. If the expected outcome or chart doesn’t manifest itself in merely days ahead, that useful signal or trading opportunity is lost. Traders may have to leave the position or cut loss if a loss is incurred. Of course, ordinary traders may continue to hold to hopefully see the chart moves in the favorable direction in the near future.
Have an Active Vision, Strategy, & Roadmap to Reach Your Goals
Unlike the value investors, technical traders usually also trade in the down markets by short selling the assets, which makes sense as nothing can stop traders from doing so to make money if such situation warrants. This gives traders two ways to trade instead of waiting for a new uptrend market to take up position again. For this reason, technical traders have more time and/or opportunity to trade in the markets than value investors do.
In addition to value investing and technical charting mentioned above, there is another way to trade with higher probability of success, lower requirement to study, lower reliance on accurately predicting the market, less time and stress to manage, and more comfortable to enter and exit the markets. It is this third form of trading strategy that is the subject of next section and it is suitable to retail investors.
We have used an option many times in our life time. When you buy an insurance policy, you buy an option. When you place a deposit for a house you want to buy, you have bought an option. When you buy a movie ticket, you have bought an option…
Most people love the thrill of directional trading. The prospects of huge gain within a few days or even a few minutes are exciting and mentally satisfying for hitting the jackpot. But this speculative punting comes with a price.
Iron Condor Academy merely wants to help you set up the trade correctly. Any experienced traders will tell you that the nuances of a successful trade from beginning to the end are what you should be learning, NOT FOCUSING on finding the right trade entries/signals – which is the mainstay of other directional trading systems.