Hello Investors,
Since the S&P rating came out, the Stock market is just
fluctuating like a yo-yo. Most of the days though it is
going down as traders are in state of panic.
See, I remember few years ago, the US economy was in
state of recession (it still is to a certain extent..).
A lot of big chains closed down during that time and some
lost huge businesses..
But there were some that stood the storm and survived.
Why?
What is so different about the companies that survived
and the ones that saw drastic reduction in their businesses?
The difference is “Strong business fundamentals”
1. All the companies that did well had good understanding of
what is happening in the market and what can happen going forward.
Its like they knew storm is coming and they need to prepare
for that.
2. They had good discipline..like how much of each inventory to
keep, not putting all eggs in one basket etc.
The same concept applies to traders also..
..for all kind of traders – forex, stocks, commodities etc..
A successful trader is the one who has strong fundamentals and
good trading discipline and of course a good system to trust and follow.
like knowing when to trade, when not to trade, following
money management principles, not over trading etc.
So, it is essential to follow good trading fundamentals to
have regular profitable trades in all kind of market conditions.
Good trading,
Erik