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Trading strategy is a approach trading that use objective entry and exit criteria that were validated by historical testing (back-testing) on quantifiable bandwith.
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I always encourage traders to develop their own trading strategy, whether it be possible a day trading investing strategy, swing trading strategy or investing strategy. There are two main reasons why I believe it is important for traders to develop their own trading strategy.
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Risk management is the identification, assessment and prioritization of risks followed by an allocation of resources to minimize, monitor and control the probably of unfortunate events and to extend the realization of opportunities or reserves. The strategy to manage risk includes transferring risk 1 party, avoiding the risk, reducing the negative effect of risk, or accepting the consequences of the particular risk.
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