Most traders and investors ignore this very important rule. They believe that identifying a good stock and managing the risk is good enough. For your information, trading details are not for clerks to worry about. When you buy a little higher and sell a little lower, your total cost of trading is adding up over a longer period of time. And you are missing the icing on the cake!
Why order execution is so critical
A delighted investor told me that his investment had earned an incredible return of 12% in a 3-month period between May 2014 and August 2014. I was hardly surprised, considering that the market was up 30% during this period. In such a raging bull market, a 12% return was nothing to write home about. But it set me thinking on a different trajectory altogether! Continue reading