Unleash the Hidden Power of Your Trading PlanDeep in your trading plan, you may be missing an element that could be eliminating huge winners. By merely tweaking a few indicators and steps to your trading plan, you may be able to produce returns you've never been able to achieve.
Price is Determined by the Interaction of Buyers and SellersProfitable traders use technical analysis to judge prices because they know that price is not dictated by market events, but rather the interaction between buyers and sellers which determines price. The action of just a few traders can have a very significant impact on price, as their volume of shares can push the price through uptrends or downtrends, based solely on the exchange price for one tr
Momentum InterpretationTrading gaps is extremely profitable, especially for traders with strategies for gapping up and strategies for gapping down. Some traders only take one side of each gap, but learning to trade the gaps up and down proves to be doubly profitable. It's hard to trade the gaps intraday, on a short term chart, but can be done. For the swing trader, there is much more money to be made in gaps.
Candlesticks and Overall Technical PictureCandlesticks fit into the overall technical picture, but it should be known that candlestick chart patterns are just one part of a wide array of studies that fit into technical analysis. Technical analysis spans all chart analysis, and it is even applied to some fundamental analysis statistics.
The Basics of a Piercing PatternAfter knowing what a piercing candle is, you'll find that they are very easy to spot on a candlestick chart. A piercing candle usually comes to rest after a downturn that is longer than five periods on the chart. Thus, on a one day candlestick chart, the trend would have to be more than 5 bars and exist at the bottom of a downtrend.
Adding Stock Scanning Tips to Your Trading PlanStock scanning is a vital tool used by professional traders to find symbols that fit their criteria. There are thousands of programs and resources that scan the stock market based upon investor criteria, locating stocks that fit your trading system. Are you seeking stocks with a price between $5 and $50 with a PEG ratio of .4? A stock scanner will search through piles of data and return with hu
4 Types of Gaps and How to Trade ThemTrading gaps is extremely profitable, especially for traders with strategies for gapping up and strategies for gapping down. Some traders only take one side of each gap, but learning to trade the gaps up and down proves to be doubly profitable. It's hard to trade the gaps intraday, on a short term chart, but can be done. For the swing trader, there is much more money to be made in gaps.
4 Steps Necessary for Trading PreparationThere are four very crucial steps for determining a trade and making the right decision. Profitable traders are able to spot opportunity, but not act until it knocks. Waiting for opportunity to knock is the sole difference between the average Joe and professional traders. True insider methods aren't methods at all - just a strict adherence to the day trading rules.
Maximum Position-Size Strategies and Trading ConsistencyThe maximum position-size strategies are catered to traders who desire to make a living rather than grow their capital. Once a trader has sufficient capital, the result is taking positions that are equal in size to further the odds advantage.
5 Technical Analysis Stops that Every Trader Should KnowIt has been said many times that is not important where you enter a trade, but where you exit that really counts. This is very true in the fact that entry points can be profitable anywhere, if you get out at the right time.
4 Single Stop Loss Approaches for Managing Trading RiskMeeting your trading goals is often as easy as managing your trading risk. The use of different stop loss strategies will help maximize your returns while limiting downside, especially in wild markets. Using stop losses effectively will improve your trading, increase returns with proven strategies, and fully capitalize on technical analysis patterns.
3 Forces Behind Overtrading and How to Control ThemOvertrading is dangerous. It increases the exposure of your account to downturns, leaves you open to trades you haven't thought through, and greatly increases the cost of commissions. Controlling your overtrading can be difficult as many traders become overzealous as a result of a very poor investment. Rather than 'getting it back next time,' the 'next time' becomes right now. Traders start to
Trading Breakouts and BreakdownsManage your strategies in your trading plan to handle both breakouts and breakdowns. Before you do, make sure you know what the differences are between the two.
4 Powerful Pivot Point StrategiesPivot points used to be a favorite on Wall Street, but like other technical indicators, pivot points are time consuming to calculate. Thanks to computers and plenty of web resources, it is now possible to calculate pivot points in seconds. Professional traders have long used pivot points as a way to define support and resistance lines before the market even opens.
Significance of DivergenceProfitable traders know the significance of divergence; its significance is usually noted by the large movements that come after a true divergence in price and leading indicator. The most talked about is the RSI divergence, but there are many forms, such as MACD divergence, price volume divergence, and practically any kind of divergence between price and indicators.
Significance of a Trend LineMuch of what we know about technical analysis and its ability to predict prices is relatively new. The study of technical analysis on the financial markets goes back to the 18th century, but what truly came out of technical analysis was discovered mostly in the computer age. Computer modeling has sped up innovation in price studying and trading more than other development.
Volume InterpretationInterpreting volume depends upon the kind of trader you are and what kind of returns you wish to generate. Day trading and swing trading call for a very in depth look at volume, while investing requires the bare minimum. Studying volume helps investors find the best times of the day to trade and produce consistent profits.
The Basics of VolatilityTo say the stock market has been volatile lately is an understatement. But no matter what the market is doing, there are proven strategies that make money when the markets are uneasy because of the breakout potential that exists. Find out if you have the right strategies in place.
Don't Give Back ProfitsAfter racking up a very healthy trading portfolio, many traders get the idea that they are infallible and every trade will come as easy as the last. Don't be a victim of this mindset. After gaining some experience, nothing should motivate traders more than a trading plan that monitors trading structure, while helping the trader follow through only with quality trades.
6 Skills Every Trader Should Have Going Into TradingWhether day trading, scalping, or investing, there are fundamental skills that each trader should master. Skill-building activities will help you sharpen your ability to make money and cash in on critical market movements.
Why Moving Averages are PopularLike it or not, the Moving Average is the indicator of choice for most, if not all, traders. Find out why.
What to Look for When the Market Hits a TopMarket tops are extremely profitable for short sellers. Tops are usually much more exaggerated than bottoms and last only for a short amount of time. Learn how to take advantage of this small 'window of opportunity'.
Reading Candlestick Charts Like a ProfessionalProfessional traders love candlesticks because they can be read much quicker than a bar chart, while also allowing a different kind of technical analysis known as candlestick reading. Learn how candlestick reading can enhance your trading.
What Trading Cannot and Will Not Do for YouTrading is often portrayed as a glamorous career. While it does provide the opportunity for an amazing lifestyle, the reality is that many traders had to go through a lot blood, sweat, and tears to get it.
What to Look for When the Market Hits a BottomBargain hunting when the market hits bottom can be a very lucrative thing to do, but only if you know what to look for and what strategies to apply to the bottomed stocks. With experience and lots of patience, traders can come out way ahead in a bottomed out market.
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