Do You Know Your Trader Style?
Did you know that there are 4 mains types of trader and depending on what sort you are will determine many parts of your trading strategy and trading plan. The 4 main types are: scalping, day trading, swing trading and position trading. When you determine the type of trader that you are it will also determine the time frame in which you will be making your trade. This will be a very important decision that you need to make when deciding how you want to learn to day trade.
1. Scalping Trader, if you scalp the markets this means that you are only looking for a few ticks profit per trade and you may only be in the trade for a few seconds or a minute at most. trading. Some people will also call this day trading but it’s really micro day trading, buying the bid and selling the offer, it’s
Click here to continue readingMoving Average Trading Secrets
One of the most popular technical analysis indicators is the simple moving average also known as SMA, if you learn how to use these correctly they can be a very useful tool to help you to make good trading decisions.
The 50 simple moving average, or 50 SMA, is simply the sum of the last 50 values for each period, divided by 50, this is a moving window, as time moves on so does the average. Notice that I used the term period because this indicator works on any time period in exactly the same way.
It can be used on monthly, weekly, daily, hourly, 30 minutes, 15 minute and on whatever time period you want to monitor and trade. Although the SMA is the most commonly used there is also the exponential moving average or EMA. This is a weighted version of the formula using the mathematical exponent function to give more
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There is a lot of hype surrounding options trading, and for good reason, it’s a good way make a lot of money fast, or can be used to grow your capital consistently month after month.
There’s also a lot of hype about how complicated it is and why you need to spend thousands of dollars on options trading education before you get started. Needless to say this last statement usually comes from trading seminar companies trying to sell your their trading course on options.
Lets cover a few of the basics about options trading and set you straight about a few important points. Firstly yes it is true that you can make a lot of money trading options, but of course you can also lose money just as fast.
When trading stocks your leverage is 1:1, if you go on margin you can get get 1:2 leverage, but thats about it. With options it
Click here to continue readingWhy a trading plan will earn you profits
So many are lured towards the excitement of quick profits on the markets. The vast majority wipe out within the first few months. Casualties include people from all professions and all walks of life. Doctors, lawyers and lots of other “smart” people have wiped out. This just goes to show that intelligence isn’t enough.It’s not that these skills are difficult to master. It’s that they’re unintuitive, not obvious that makes them elusive.The good news is that you too, could master these skills with a little bit of practise
Trading is a business driven by taking risks.You’ll win, but you’ll also lose.
No system is watertight, no trader is perfect. There are no guarantees (if you want one of those, buy a toaster). Trading is different from gambling or slot machines. In trading you can swing the odds in your favour, something you can’t do in any casino
A plan can help you beat
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