Why Care for Reversal Patterns?
Market movements are shaped by the buyers’ and sellers’ behavior, and often similar patterns can be found on the chart. Such patterns can form when the price reaches a certain level, leaving both sides to decide on who is in the driver’s seat. Many traders rely on chart patterns for possible indications of trend continuation or reversal and, even though there are no methods that could predict the market behavior 100% of the time, patterns may be quite useful when used correctly.
How to Decide What to Invest In?
An important issue for every trader is the decision on which assets to invest in. Here you are, ready to step into the world of trading: you already know the basics of technical and fundamental analysis, however, the question of which assets to pick still remains. While you may already know how to evaluate stocks, sometimes it is still hard to decide. Here are several things you may take into consideration according to your trading appetite.
Trading Tools and How to Choose Them
When you start a task, one of the first things to do is to prepare the tools you will be needing to accomplish it. For example, if you are painting, you think about the brushes, paints and paper that you will require. If you are traveling, you think about the means of transportation, your route and accommodation. If you are starting a business, you think about your capital and the staff you will need to hire. Such tools are necessary to help you carry out your idea.
Planning Your Trading Approach for 2021
As the year is coming to an end, it is the best time to start planning your trading approach for 2021. There are many factors to consider and doing it well in advance will give you time to think it through and prepare. This is also the time when you may consider seasonal changes as well as major events that might influence the market. We have compiled a list of factors you might want to consider when picking assets and planning your trading approach for the foreseeable future.
3 Steps For Trading Stocks on Short Time Frames
When you are looking into investing in stocks, one of the first decisions you may consider making is whether you are a short-term trader or a long-term investor. Based on that, you will need to choose the approach you exercise in your daily trading routine.
How to Choose a Strategy? Find What’s Best for You – Part 2
This is part 2 of our most extensive guide for choosing your own trading strategy/method. The goal is to provide every trader with the opportunity to decide what’s best for them depending on their trading preferences. In part 1 we spoke about the timeframe and the asset. These two things are, essentially, the main factors, which a trading strategy/method is based on. However, there are other things to consider when creating a trading plan – internal factors such as trader’s experience, approach and goals. These personal traits largely influence the way you trade, so it is just as important to pay attention to them in order to be able to make more informed decisions.
How to Choose a Strategy? Decide What’s Best for You – Part 1
While there are hundreds of different trading strategies and methods out there, finding those that work is still challenging. Some strategies seem too hard to follow, some look too good to be true. The real secret lies in a simple line – the best strategy does not exist. There is no one strategy that fits everybody, but everyone can make up their personalized strategy and find the method that works best for them. This is part 1 of our most extensive guide to choosing a trading strategy/method. No matter what your approach is, this guide will help you discover new tools for trading.
4 Trading Rules for Any Market
When deciding on what to trade or invest in, there are many trading options to choose from: Crypto currencies, Stocks, Forex, FX Options, ETFs and so on. Naturally, each instrument is different and many traders prefer to focus on certain instruments only. This approach may be quite beneficial as it allows traders to concentrate on the exact assets they trade the most and polish their approach. However, such an approach prevents traders from diversifying their portfolio, which is one of the crucial steps for a working risk-management strategy.
Trading With the Elliott Wave Theory
The Elliott Wave Theory is a complex method that can take months and even years to master. It is a method that may be suitable only for traders who approach the market seriously and strive to achieve professional competency. Today we will look at the basics of this approach and see how it may be applied in trading. The method is fully and extensively described by the author in the book “The Wave Principle”, which was published back in 1938.
Trading Method for Novice Traders
If you are a novice trader, this article is for you. Trading can be extremely hard and scary but it can enhance your knowledge and experience at the same time. Analyzing markets and figuring out how it all works might be an interesting endeavor. Though there are many methods that one could try, starting with a solid and popular indicator may be a good idea.
8 Money Management Techniques
The risk management approach that a trader is using can determine the whole outcome of a trading session. In this blog, we often emphasize that it is extremely important and traders have to think about it before entering the market. However, what exact steps could a trader take in order to develop an effective risk management strategy? There are 8 ways that might help manage losses and each step might get a trader a little closer to a mindful and more responsible trading method.
How to Trade With the Dead Cat Bounce Pattern
“If dropped from high enough, even a dead cat will bounce back” that’s how an old Wall Street saying goes. The idea is that even after a strong recession, the markets will bounce back and the prices, at least temporarily, will go up again. The phrase was first introduced in 1985, when the Malaysian and Singaporian stock markets bounced back after a sharp recession but continued to decline after that. Let’s see how a pattern with such a quirky name works and how traders can use it in their strategies.