Tag: trading

by James Adam

Quick Tips for Intraday Trading


Business

Intraday Trading is completely different from long-term equity investment. It is riskier as compared to stock investment. Off late, the stock market is absolutely volatile. If you have to make your living from the arena of stock market, then this type of trading is the only solution.

The most critical point here is to keep long-term equity investment separate from this type of Trading. Following are a few things that you should keep in mind for the best results. 

Never trade in middle of a volatile market

you should never trade in the middle of a volatile market. it is the basic rule. This type of trading is best done when the direction and impetus of the market is predictable. Otherwise you might end up spending more time activating stop losses.

Protect your capital 

This trading is all about guarding your capital. First you should concentrate on how much loss you are willing to take in general and on a per trade basis. Once you can guard your capital from reducing beyond a point, intraday profits are automatically going to follow.

Don’t trade intraday without stop loss

You should not trade intraday in the absence of a stop loss. Remember, stop losses are needed in most trades but in intraday type of trading it is an absolute must. In the absence of stop losses you could end up holding positions with incontrollable MTM losses.

Profit target based on Your risk

You should always take decision regarding your profit target based on your risk-return trade off. Stop loss is one side of the tale; the other side is you even require to take profits. Allow your profit targets be a manifold of your stop loss. A trade-off of 3:1 or that of 2:1 is comprehensible, not 1:1.

Don’t stretch 

Never stretch yourself on margin of trading. Once you leverage yourself on margins keep an eye on the worst-case loss. Don ‘t stretch yourself to a point that your losses turn out to be unaffordable in the event of any black drift occurrences.

Be careful of tips 

Evade the lure of tips and just trade when you are convinced. There is no shortage of research analysts and market professionals. Most of them are simply pretenders to the throne. Treat these thoughts with a pinch  of salt. There is no alternative to doing your own research before you do trading intraday. It is something that works best at all times!

Stay away 

To stay away from markets is even an important decision for intraday traders. As an intraday trader there are a few key decisions you make; when to purchase, when to vend and when to sit tight. In an interesting manner, most of the money in intraday type of trading is made when you simply sit out doing nothing while the rest of market is scorching profits in the chaos.

Conclusion 

So, since you have a few of the Tips for Intraday type of Trading, make sure that you keep these in mind for the best trading results.


Weekly newsletter

Recent Posts

Visit us on YouTube

Visit us on Google Plus

Visit us on Instagram

Visit us on Pinterest

Visit us on Reddit

Popular Posts

Categories

by James Adam

Questions You Should Ask Before Enrolling for Forex Trading Training


Business

Forex trading provides an excellent opportunity to make money. The market is quite huge, and daily trading volume is around 5 trillion dollars. If you are a novice trader, proper forex trading training can help you understand the basics of trading and the terminology used. 

With so many forex trading courses available, it can be a daunting task to choose the right one. Here are a few vital questions to ask the forex trading coach before enrolling for the course. 

How Does the Course Deliver Training?

The learning medium is an essential aspect of any training. There are different ways of learning like a theoretical approach, visually, practically, or aurally. Some forex trading courses deliver training through videos while some deliver it through PPTs. 

You will also find some forex trading courses using combined delivery methods. You need to select a forex trading course that offers a delivery method you are comfortable with.

Who Will Teach the Course?

The forex trading coach is as important as the contents of the course. There are different types of forex trading courses that provide an option of traditional face to face class or learning online. If you are joining a course delivered in a conventional classroom, you need to ensure the teacher is a successful trader. 

If you are joining a course that is delivered online, you need to look for a reputed provider. Most reputed forex trading training institutes will rope in an experienced forex trader having demonstrable success in the forex market for teaching. The forex trading coach is the USP of forex trading courses for many forex training institutes.   

What Is the Course Content?

The course content of forex trading training programs might differ with each provider. Often, the course content seems different, but it is mainly due to the different terminology used to describe modules. You need to look into the course content carefully and ensure it suits your needs. 

Some forex trading courses are targeted towards beginners, while some are targeted towards people who have some knowledge of the forex market. It will help if you find which topics are essential. Conduct research to get the information. The next step is checking whether the course fulfills your forex training needs. 

Forex trading technology is always updating. Make sure you choose a course that offers the latest knowledge about the forex market’s tools and trading strategies. The content of the course should cover all new developments and learning.  

Is the Content Downloadable?

If you are joining an online forex training course, ask whether the course is downloadable. This will allow you to download online lessons and learn while on the move. Make sure the content is optimized for delivery on mobile devices. It will enable you to attend online classes even when you don’t have access to a laptop or desktop. 

Before joining any forex trading course, it is always good to confirm its integrity and quality. Look for online reviews of the forex trading courses and what students have to say. Don’t fall into the trap of guarantees of earning millions and choose a course that offers good knowledge and fits in your budget. 

by James Adam

Change the object of emotions at trading


Technology

There is no doubt that emotions are the biggest enemies of traders. Whenever you are trading or thinking of a strategy, emotion will come up and potentially ruin everything. Many professionals struggle to cope up with this syndrome so it should be handled carefully. However, what if we tell it can be also profitable? We know many will be surprised but if you learn this simple tweak that will be shared in this article, the performance can be greatly elevated. Read carefully and you will be surprised to learn that by simply diverting the object of our emotions, we can have huge success in lives.

Think of profit rather loss

The first thing to do is a simple mind switch. How many times have you thought of losing the entire deposit and quitting this career? We bet it has been countless times but what if can be switched? When your mind begins to focus on profit, it starts to work on developing concepts that will bring productive results. This is the problem with the novice community. They are focused on their failures and every strategy tries to save their capital from being flushed out. As a result, after a few months, there is no money left in their accounts. Think of the profit instead and soon the direction of the career will begin to move.

It has been found that experts focus more on success than remembering the past flaws in their performance. This may explain why some investors are highly successful in why others struggle to maintain a positive balance in the account. The next time you are wondering whether this trade will close in loss, simply don’t think so.

Trade with the best broker

If you buy stocks with the best broker, you will be more comfortable. Taking the trades with the top brokers allow you trade with less emotional attachment. The reason is, the high end brokers are not offering insane leverage. After you get access to a controlled trading environment, you will be able to take trades with low risk. This will help you to change the object emotions. You will be more focused on quality trade execution and ignore less good trades.

Focus on future opportunity

This is another important lesson that should be mastered. As long as a person keeps on thinking of the old flaws, there is no way to look forward to the future. This is a marathon and investors should not be bothered with drastic failures. Think of them as paving stones to success and start working hard. If you are in a community where everybody is talking about how wonderful trends they have missed, it is time to leave this community. Professionals never reminisce about the past. They only develop further successful plans for the future. Be like them and start preparing from today onwards. It will take some time but gradually your results will improve.

Be content and don’t greed

This is another piece of life-changing advice that can transform your career. The majority of traders lose money because of uncontrollable greed. As long as any trade is positive or crosses the target, they want to hold the position to make as much profit as possible. This is a bad habit and can destroy your career. Maintain your mindset and when the target is met, simply close the trade. At first, this will be hard because every person wants to get rich. After a few months, you will realize it provides more money than losing all the profit in the end. Hence, a positive balance begins to accumulate over time. Build up your fortune slowly and conduct a monthly analysis. If there is a positive balance after every trade, it will help you to earn a substantial amount.

by Incredible Planet Staff

Market Movements 101: What is the Difference between a Correction and a Crash


Business

One day in a beautiful summer afternoon, your regular physician asked you to come in for a further discussion on the results of your regular checkup. This has never happened before and you can literally feel your heart beginning to sink as your physician told you that they’ve detected a tumor inside your lungs. Before the physician can proceed any further, you’ve already begun sobbing at the cruel injustice that fate has dealt you and it wasn’t after you’ve showered your physician with stories about your pregnant spouse and how happy you were during the first ultrasound that your physician finally tells you that the tumor is benign. Well, that was much ado about nothing, wasn’t it?

The same thing applies to the financial market. The skills you’ve acquired from whatever trading courses you’ve completed and how many trading books you have read won’t be of much use if you can’t contextualize what each move in the market means. Whenever you see headlines with sensational word like market plunges or nosedives or other similar words, it might be a good idea to first ask why instead of how much. Just like how tumor can be either benign or malignant, a particular negative movement in the market can mean a number of different things, two of which is market correction and the more pervasive market crash.

Correction is the tool for creating better from worse

There is no absolute definition to what constitutes a market correction but it is generally accepted that a correction refers to a negative movement of at least 10% in the market, a specific index or even an individual stock. The key difference between a correction and a crash is the point at which it is measured. A correction refers to the 10% of its most recent high while a crash is irrespective of its most recent high. The reason why it is called a correction is because it usually happens to adjust for an overvaluation and during the middle of a general uptrend in the market. Some of the key indicators to know when it comes to a market correction are:

  • They happen particularly often and for a relatively short time. Unlike crashes, which happens rarely but always violently and usually a precursor to a general recession, corrections are more regarded as part of a natural cycle of the market and at times, welcomed by experienced investors.
  • They are both inevitable and unpredictable. The general wisdom is that it is almost always impossible trying to figure out if a particular movement is a crash or a correction. This is wrong, it is possible to figure out whether there’s an economic bubble or not and just how bad it’s going to be when it would eventually burst. In the 2015 film The Big Short, the character Michael Burry, played by Christian Bale in the film, predicted that the United States housing bubble is going to burst at some point, allowing himself to massively profit in 2008 by betting against it and the economist Robert Shiller won a Noble prize for predicting the dotcom bubble burst of the early 21st century.
  • They are used for reassessing your portfolio and gather on cheap stocks. Unlike in a crash that would usually trigger a recession or a bear market, correction is the perfect time to invest on some of the higher-valued stocks while prices are down because you know it’s going to bounce back relatively quickly.

If avoiding a crash is impossible, brace for it

As with correction, there is no absolute definition for a market crash but it is generally defined as a double-digit dip drop in a stock index in a relatively short amount of time, usually over the course of a few days due to the collapse of a speculative bubble. While the crash itself isn’t bad, it could lead to what is termed as panic selling, in which a mass withdrawal of investments occur due to pervasive fear, which acts as a self-fulfilling prophecy of some sort, making the matter even worse and usually lead to a general recession. As a crash is usually triggered by what the general market does, it is almost impossible for a single investor to avoid the impact of a crash, but it is possible to prepare for one by looking at the indicators, some of which are:

  • They’re relatively rare but the impact is almost always extensive. The 2008 financial crisis lead to the demise of one of the biggest investment bank at the time, Lehman Brothers and pushed the US government to enact one of the biggest regulation changes since the Great Depression of the 20s with the Dodd-Frank act. The Japanese housing bubble burst of the early 90s ended the golden era of Japanese automotive industry and 10 years of economic stagnation commonly known as the Lost Decade.
  • They arrive at the end of a bull market or a speculative bubble. All of the crash examples listed above happens when an economic bubble burst and if you stretch back all the way to the 18th century for the South Sea Bubble, where the titular company took advantage of Britain’s colonial expansion at the time to spread excessively exaggerated claims on opportunities within the New World which at one time raised the company’s stock price to £1,000, ten times its original price of £100 before falling back again.
  • Each crash lead to tighter regulations. Probably the only silver lining to be gathered from a crash is this; they almost always lead to stricter financial regulations and systematic improvements, enacted to keep the same crash from happening again. While there has been notable crashes in the last few years, the impact from these cases have been mostly isolated, like the Chinese stock market bubble of 2015 that prompted a response from the Chinese government that same year which helped mitigate the effects

Correction and crash are two completely different things but they have one thing in common, you should stay calm in response to these two movements. Correction is only temporary, so holding your position is advisable while with a crash, engaging in a panic selling will only exacerbate the problem and selling your stocks at a low price isn’t exactly a good idea in the first place. The only thing you can do when it comes to crashes is to prepare for it, either by diversifying your portfolio or selling your stocks before a crash happens.