How do trading advisors differ in their investment approaches?
A. One way is in how aggressively or conservatively they participate in the markets. There also could be differences in which markets they trade. Some specialize in particular areas — such as financial instruments, metals or agricultural products — while other pursue profit opportunities wherever they appear to exist. If you have a preference for a particular approach, this should be taken into account. Another difference is whether the advisor employs a “fundamental” or ” technical” trading system — fundamental meaning that trading decisions are based principally on supply and demand, and technical meaning that the markets themselves are continuously analyzed for signals to future price direction. Even then, different advisors have developed and employ different systems and may read the markets differently. Moreover, the fundamental-technical distinction has broken down somewhat as fundamental advisors frequently employ computerized tools to pinpoint the timing of their trading d
