Sunday, December 23, 2007

The Curve Drawdown - A Sensitive Aspect of Stock Trading

If you are a new player on the stock market, you should know that things aren’t always nice and shiny when it comes to stock trading. There are downsides and upsides as in any other trading or investing process and you have to be prepared to cope with the negative aspects. The drawdown is the worse thing a stock trader may experience along the years. You should know that a peak in a share’s price is always followed by a going down to the bottom period. But don’t panic, this negative impact is also followed by an ascending trend, so your shares will be going up again.

Experienced systems traders are well aware of this drawdown trend; the ‘rookies’ (new traders) are those who panic and start selling their shares. This drawdown period represents an important p View the rest of this article

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