Click to learn more. Before investing or trading, it is important to develop a strategy or game plan that is consistent with your goals and style. As with many aspects of trading, many sports offer a good analogy. A football team with goals geared towards ball control and low-scoring games might adapt a conservative style that focuses on the run. Teams that want to score often and score quickly are more likely to pursue an aggressive style geared towards passing.
Teams are usually aware of their goal and style before they develop a game plan.
Investors and traders can also benefit by keeping in mind their goals and style when developing a strategy. Goals First and foremost are goals. The first set of questions regarding goals should center on risk and return. One cannot consider return without weighing risk. It is akin to counting your chickens before they are hatched.