{"id":17407,"date":"2025-01-09T17:00:35","date_gmt":"2025-01-09T22:00:35","guid":{"rendered":"https:\/\/mtatradeoftheday.com\/?p=17407"},"modified":"2025-01-09T17:34:49","modified_gmt":"2025-01-09T22:34:49","slug":"follow-these-8-fundamentals-before-you-trade","status":"publish","type":"post","link":"https:\/\/mtatradeoftheday.com\/follow-these-8-fundamentals-before-you-trade\/","title":{"rendered":"Follow These 8 Fundamentals Before You Trade"},"content":{"rendered":"

When I played basketball, my coaches always stressed a strong fundamental foundation as the keys to success.<\/p>\n

Trading is no different.<\/p>\n

So as we begin 2025, let’s put you on the path to trading success.<\/p>\n

Here are 8 fundamental strategies to consider when trading the markets.<\/a><\/p>\n

1. Define Your Goals and Risk Tolerance<\/strong><\/p>\n

First, it\u2019s important to know where you want to go with this.<\/p>\n

How much income do you want to generate through trading? Are you looking for short-term gains (e.g. daily or weekly trades) or long-term wealth accumulation?<\/p>\n

Then, define your risk tolerance to achieve those goals.<\/p>\n

Risk tolerance is the level of risk you\u2019re willing to accept when it comes to making investment decisions. It reflects your emotional and financial capacity to handle losses, which do happen.<\/p>\n

Overall, high risk often corresponds with higher potential returns. So make sure your goals are in line with your risk tolerance.<\/p>\n

2. Diversify, Diversify, Diversify <\/strong><\/p>\n

Once you know your goals, you can start allocating funds across various asset classes to reduce risk.<\/p>\n

Here are a few different areas for a diversified portfolio.<\/p>\n