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Summarizing some free trading idea resources I've been using
I've been following many free resources on youtube and twitter to generate trading ideas. Some of them are suspicious; some are more like boasting their wining trades but never post any losing trades. I see many people ask about trading ideas/resources, so I want to briefly share some resources I find useful. Twitter resources:
Instrument: Mostly SPX/SPY/ES
Highlights: TicTocTick is amazingly good at levels, spotting sellers and buyers levels. Everyday he posts his plan for the next day of the following format: If open above X, long/short bias, target Y. If open below X, short/long bias, target Z. Intraday he sometimes send "warnings" of potential big sellers / buyers at certain level. His price target and long/short bias is often right in my experience. His levels are useful for day trades IMHO.
Notes: (1) even with his plan, one needs an actionable plan. (2) He sometimes delete his tweets. His day-by-day and intraday tweets are more actionable than his longer term view. (3) he sometimes tweets political and controversial non-stock related things.
Trade transparency: 0/5 (doesn't post any trades)
Live update in-time: 5/5 (updates very frequently)
Actionable trading plan: 1/5 (good at levels and price targets. need your own plan)
Live interaction: 0/5 (no interaction)
Educational: 2/5 (can learn the technique from other resources. TicTock doesn't teach you directly)
Instrument: Mainly SPY/SPX/ES
Technique: candlestick patterns, Fib levels, support and resistance levels etc
Style: only day trading
Highlights: he diligently post daily plan and many educational resources, sometimes intraday updates. Had many good trades.
Notes: I haven't followed him long but so far so good. He also recently has educational youtube videos.
Trade transparency: X/5 (hard to measure)
Live update in-time: 2.5/5 (updates frequently)
Actionable trading plan: 3.5/5
Live interaction: X/5
Educational: 5/5 (youtube videos)
Technique: candlestick patterns, support and resistance levels, trendlines, channels etc
Instrument: SPX/SPY, Forex, Cryptocurrency,, Gold and Silver.
Style: holding for a few hours for SPX/SPY, swing trade for all
Timeframe: 8H for analysis. Lower time frame for entry.
Trading frequency: 1-2 trades per week.
Highlights: For SPX, he rode the big drop down in March; rode the rally up, and rode some pullbacks down in April. Got chopped in May. Now he's positinoning long. He also did well in Gold and Silverthis month. He only uses candle sticks, support and resistance lines, trendlines, and sometimes true trend indicator. He doesn't use volume though.
Youtube style: 2 videos every trading day: (1) live at 9am ET for 1-2 hours and talk about his plan and market analysis. Sometimes he trades during the live session (enter / exit). (2) after market closes he summarizes the day, and talks about plans for the next day. (3) Every weekend he gives out his technical analysis for the next week.
What I like: His levels on the chart are very good. He is also very transparent about his trades no matter whether it's winning or losing. He also explains the general economic environment.
Trade transparency: 4/5 (not knowing trading size; but knowing entry/exit)
Real-time update: 2.5/5 (two times a day)
Actionable trading plan: 5/5
Live interaction: 3.5/5 (some interaction on youtube live; Jordan responses to youtube comments)
Timeframe: all time frames. Mostly 5min, 1H, 1D, 1W, 1M.
Trading frequency: very frequent. multiple trades per day.
Highlights: Justin is very good at seeing through market maker manipulation and highly manipulated stocks. He often explained his plan and his outlook (especially in OPEX days) in his YouTube channel. The stocks on their weekly watchlist tend to do very well. He does live Q&A on youtube as well everyday where one can ask him to look at a chart.
Youtube style: Three videos by his team every trading day: (1) live at 9:30am ET; does 1-2 live scalping trades. Explains what he thinks of the market. (might discontinue) (2) at noon: summarizes what happened and what he sees is happening later in the day. Some of his trading plans. (3) 4:15pm ET: summarizes today and looking forward to the rest of the week. Videos (1) and (2) include live Q&A. I've asked many questions on youtube. Every weekend has two videos talking about plans for the next week.
What I like: The Q&A and Justin's outlook of the market, his team's stock pick.
The scalping trades in the morning is not very suitable for small accounts since they will trade for example 100 shares of BA (~160) to scalp a few dollars per share.
Even though the stocks on their weekly watchlist does well very, one still need to come up with an actionable plan. Very often say they recommend stock A on Sunday, and on Monday it already gaps up big. They sometimes do YOLO options -- big risk big rewards-- options can go to 0.
Besides the free content, everyone can get a free one-week trial for their paid membership, or a 2-week free trial by winning a lottery game on their youtube ( what I did) or knowing someone in their group and get a referral. What I like about the group: (i) very frequently updates each day on SPY and stocks on the watchlist. (ii) all their positions, Profit / Loss are very transparent. I learned a lot about how to manage trades by observing their live trades. (iii) There are many very experienced traders in the group posting their trading ideas, plans, entry/exit, and there are many live discussions. (iv) There's a "helpdesk" in the group where members' questions will be answered in minutes. I often ask about my trading plan, entries/ targets.
Trade transparency: 0/5 (free content: not knowing entry/exit nor position size);5+/5 (membership\*)*
Live update in-time: 3.5/5 (free content: three times a day);5+/5 (membership\*)*
Highlights: I follow their free Shadow trader swing newsletter, where every few days they post some trading ideas and analysis with actionable plan. Their twitter account will also real-time update their entry/exit and trade management.
What I like: I enjoyed learning what they look at to find a good set-up and how to manage a trade. They also have a spreadsheet tracking all their positions and profit/loss. All the winning/losing trades are transparent.
Notes: Because of the current market volatility, during certain weeks the swing trading performance is quite shaky. Profits (per 100K account with no more than 30K invested each time): 2020YTD: +9K, 2019: +6K; 2018: +30K; 2017: +3K; 2016: +2.5K; 2015: -1.8K.
Trade transparency: 5/5
Live update in-time: 5/5 (updates frequently)
Actionable trading plan: 5/5
Live interaction: 0/5 (newsletter and twitter alerts only)
Educational: 4.5/5 (the newsletter explains set-ups, what sectors they are looking at)
I've spent much time looking for free contents, and I like the ones above. Also looking forward to hearing about other good/bad resources. I might also update this post if there are enough interests. NFA
Some trading wisdom, tools and information I picked up along the way that helped me be a better trader. Maybe it can help you too.
Its a bit lengthy and I tried to condense it as much as I can. So take everything at a high level as each subject is has a lot more depth but fundamentally if you distill it down its just taking simple things and applying your experience using them to add nuance and better deploy them. There are exceptions to everything that you will learn with experience or have already learned. If you know something extra or something to add to it to implement it better or more accurately. Then great! However, my intention of this post is just a high level overview. Trading can be far too nuanced to go into in this post and would take forever to type up every exception (not to mention the traders individual personality). If you take the general information as a starting point, hopefully you will learn the edge cases long the way and learn how to use the more effectively if you end up using them. I apologize in advice for any errors or typos. Introduction After reflecting on my fun (cough) trading journey that was more akin to rolling around on broken glass and wondering if brown glass will help me predict market direction better than green glass. Buying a $100 indicator at 2 am when I was acting a fool, looking at it and going at and going "This is a piece of lagging crap, I miss out on a large part of the fundamental move and never using it for even one trade". All while struggling with massive over trading and bad habits because I would get bored watching a single well placed trade on fold for the day. Also, I wanted to get rich quick. On top all of that I had a terminal Stage 4 case of FOMO on every time the price would move up and then down then back up. Just think about all those extra pips I could have trading both directions as it moves across the chart! I can just sell right when it goes down, then buy right before it goes up again. Its so easy right? Well, turns out it was not as easy as I thought and I lost a fair chunk of change and hit my head against the wall a lot until it clicked. Which is how I came up with a mixed bag of things that I now call "Trade the Trade" which helped support how I wanted to trade so I can still trade intra day price action like a rabid money without throwing away all my bananas. Why Make This Post? - Core Topic of Discussion I wish to share a concept I came up with that helped me become a reliable trader. Support the weakness of how I like to trade. Also, explaining what I do helps reinforce my understanding of the information I share as I have to put words to it and not just use internalized processes. I came up with a method that helped me get my head straight when trading intra day. I call it "Trade the Trade" as I am making mini trades inside of a trade setup I make from analysis on a higher timeframe that would take multiple days to unfold or longer. I will share information, principles, techniques I used and learned from others I talked to on the internet (mixed bag of folks from armatures to professionals, and random internet people) that helped me form a trading style that worked for me. Even people who are not good at trading can say something that might make it click in your head so I would absorbed all the information I could get.I will share the details of how I approach the methodology and the tools in my trading belt that I picked up by filtering through many tools, indicators strategies and witchcraft. Hopefully you read something that ends up helping you be a better trader. I learned a lot from people who make community posts so I wanted to give back now that I got my ducks in a row. General Trading Advice If your struggling finding your own trading style, fixing weakness's in it, getting started, being reliably profitable or have no framework to build yourself higher with, hopefully you can use the below advice to help provide some direction or clarity to moving forward to be a better trader.
KEEP IT SIMPLE. Do not throw a million things on your chart from the get go or over analyzing what the market is doing while trying to learn the basics. Tons of stuff on your chart can actually slow your learning by distracting your focus on all your bells and whistles and not the price action.
PRICE ACTION. Learn how to read price action. Not just the common formations, but larger groups of bars that form the market structure. Those formations carry more weight the higher the time frame they form on. If struggle to understand what is going on or what your looking at, move to a higher time frame.
INDICATORS. If you do use them you should try to understand how every indicator you use calculates its values. Many indicators are lagging indicators, understanding how it calculates the values can help you learn how to identify the market structure before the indicator would trigger a signal . This will help you understand why the signal is a lagged signal. If you understand that you can easily learn to look at the price action right before the signal and learn to watch for that price action on top of it almost trigging a signal so you can get in at a better position and assume less downside risk. I recommend using no more than 1-2 indicators for simplicity, but your free to use as many as you think you think you need or works for your strategy/trading style.
PSYCOLOGY. First, FOMO is real, don't feed the beast. When you trade you should always have an entry and exit. If you miss your entry do not chase it, wait for a new entry. At its core trading is gambling and your looking for an edge against the house (the other market participants). With that in mind, treat as such. Do not risk more than you can afford to lose. If you are afraid to lose it will negatively effect your trade decisions. Finally, be honest with your self and bad trading happens. No one is going to play trade cop and keep you in line, that's your job.
TRADE DECISION MARKING: Before you enter any trade you should have an entry and exit area. As you learn price action you will get better entries and better exits. Use a larger zone and stop loss at the start while learning. Then you can tighten it up as you gain experience. If you do not have a area you wish to exit, or you are entering because "the markets looking like its gonna go up". Do not enter the trade. Have a reason for everything you do, if you cannot logically explain why then you probably should not be doing it.
ROBOTS/ALGOS: Loved by some, hated by many who lost it all to one, and surrounded by scams on the internet. If you make your own, find a legit one that works and paid for it or lost it all on a crappy one, more power to ya. I do not use robots because I do not like having a robot in control of my money. There is too many edge cases for me to be ok with it.However, the best piece of advice about algos was that the guy had a algo/robot for each market condition (trending/ranging) and would make personalized versions of each for currency pairs as each one has its own personality and can make the same type of movement along side another currency pair but the price action can look way different or the move can be lagged or leading. So whenever he does his own analysis and he sees a trend, he turns the trend trading robot on. If the trend stops, and it starts to range he turns the range trading robot on. He uses robots to trade the market types that he is bad at trading. For example, I suck at trend trading because I just suck at sitting on my hands and letting my trade do its thing.
Trade the Trade - The Methodology
Base Principles These are the base principles I use behind "Trade the Trade". Its called that because you are technically trading inside your larger high time frame trade as it hopefully goes as you have analyzed with the trade setup. It allows you to scratch that intraday trading itch, while not being blind to the bigger market at play. It can help make sense of why the price respects, rejects or flat out ignores support/resistance/pivots.
Trade Setup: Find a trade setup using high level time frames (daily, 4hr, or 1hr time frames). The trade setup will be used as a base for starting to figure out a bias for the markets direction for that day.
Indicator Data: Check any indicators you use (I use Stochastic RSI and Relative Vigor Index) for any useful information on higher timeframes.
Support Resistance: See if any support/resistance/pivot points are in currently being tested/resisted by the price. Also check for any that are within reach so they might become in play through out the day throughout the day (which can influence your bias at least until the price reaches it if it was already moving that direction from previous days/weeks price action).
Currency Strength/Weakness: I use the TradeVision currency strength/weakness dashboard to see if the strength/weakness supports the narrative of my trade and as an early indicator when to keep a closer eye for signs of the price reversing.Without the tool, the same concept can be someone accomplished with fundamentals and checking for higher level trends and checking cross currency pairs for trends as well to indicate strength/weakness, ranging (and where it is in that range) or try to get some general bias from a higher level chart that may help you out. However, it wont help you intra day unless your monitoring the currency's index or a bunch of charts related to the currency.
Watch For Trading Opportunities: Personally I make a mental short list and alerts on TradingView of currency pairs that are close to key levels and so I get a notification if it reaches there so I can check it out. I am not against trading both directions, I just try to trade my bias before the market tries to commit to a direction. Then if I get out of that trade I will scalp against the trend of the day and hold trades longer that are with it.Then when you see a opportunity assume the directional bias you made up earlier (unless the market solidly confirms with price action the direction while waiting for an entry) by trying to look for additional confirmation via indicators, price action on support/resistances etc on the low level time frame or higher level ones like hourly/4hr as the day goes on when the price reaches key areas or makes new market structures to get a good spot to enter a trade in the direction of your bias.Then enter your trade and use the market structures to determine how much of a stop you need. Once your in the trade just monitor it and watch the price action/indicators/tools you use to see if its at risk of going against you. If you really believe the market wont reach your TP and looks like its going to turn against you, then close the trade. Don't just hold on to it for principle and let it draw down on principle or the hope it does not hit your stop loss.
Trade Duration Hold your trades as long or little as you want that fits your personality and trading style/trade analysis. Personally I do not hold trades past the end of the day (I do in some cases when a strong trend folds) and I do not hold trades over the weekends. My TP targets are always places I think it can reach within the day. Typically I try to be flat before I sleep and trade intra day price movements only. Just depends on the higher level outlook, I have to get in at really good prices for me to want to hold a trade and it has to be going strong. Then I will set a slightly aggressive stop on it before I leave. I do know several people that swing trade and hold trades for a long period of time. That is just not a trading style that works for me.
Enhance Your Success Rate Below is information I picked up over the years that helped me enhance my success rate with not only guessing intra day market bias (even if it has not broken into the trend for the day yet (aka pre London open when the end of Asia likes to act funny sometimes), but also with trading price action intra day. People always say "When you enter a trade have an entry and exits. I am of the belief that most people do not have problem with the entry, its the exit. They either hold too long, or don't hold long enough. With the below tools, drawings, or instruments, hopefully you can increase your individual probability of a successful trade. **P.S.*\* Your mileage will vary depending on your ability to correctly draw, implement and interpret the below items. They take time and practice to implement with a high degree of proficiency. If you have any questions about how to do that with anything listed, comment below and I will reply as I can. I don't want to answer the same question a million times in a pm. Tools and Methods Used This is just a high level overview of what I use. Each one of the actions I could go way more in-depth on but I would be here for a week typing something up of I did that. So take the information as a base level understanding of how I use the method or tool. There is always nuance and edge cases that you learn from experience.
I keep a general high level Macro outlook for currencies. I dont get too deep into Fundamentals and just keep an eye out for news. If I am already in a trade I will hold it if its far enough away from my entry. However, I wont enter right before/during news as it can invalidate your setup.
I started with the basics of learning the standard price action formations/patterns and candles. You can find tons of free info on that online, google is your friend. Then I stared at charts and said "why did the price do that or do this etc" then after a while I started to understand what's happening without having to think about it and I can see the market structure without having to look as closely as I did in the past.
After many many hours of staring at 5 min charts for 15 hours a day 5 days a week I learned how to look at 5 min charts and be like "Oh that's a hammer on the 15 min etc. If you keep track of time you can do the same for hourly candles as well and you will start to see market structure naturally. However I typically trade in a two chart panel window so I have a 15 min and 5 min chart up when trading intra day so I dont have to think too hard about it.
Draw support resistance lines on Daily/4hr timeframes. I prefer to use body of the candle instead of the wick for support/resistance.
You can find support/resistance liquidity levels through out the day as well and trade those if the price retraces back through levels its already been through that same day.
It would be a bit length to explain exactly the best place to draw them. If your unsure there is plenty of free resources on the internet. Just try to use your head and look for price levels where the price was "Supported" or it "Resisted" that price level then slap a line on it. Draw as few or as many lines as you feel helps you and your style. I tend to lean on the side of fewer. I typically do about 6 lines main support/resistances (3 of each).
Draw two Fibonacci Extensions. One on the daily timeframe, and then one on the 4hr time frame. Then you can trade the Fibonacci levels and use them for TP targets or entry zones if price action respects the level. Also you can use it along with support/resistance and pivots if they happen to line up or are very close.
I cannot really figure out how to put it into words how to draw a Fib if you dont know how. I will have to make a picture to demonstrate it. If your interested post below and I will draw one up and post a link. Probably the easiest way to understand. Just keep in mind the Fib you draw on the 4hr time frame will be inside the daily timeframe one.
The TradeVision2020 dashboard that I use just helps me keep a tab on the current market post plus any swing strength/momentum a currency might have on higher time frames. Helps me look for shifts in the market or confirmation that the bias it already has in momentum is continuing. I have found that often currencies when they get really/weak or strong might continue for several days or even longer like a full week or more. We recently had what felt like 1 week or so of flat out Yen weakness which was making some things wonky. All it does is allow me to look at the dashboard instead of a million other charts.
I use two that work well for my intra day style. The Stochastic RSI is just like a RSI but its faster. The second is the Relative Vigor Index which I use to detect swings in momentum and divergences in bullish/bearish momentum. I have used many others in the past, but as I have grown and got better as a trader I have found making my analysis simpler has improved my trading.I dont like the whole idea of have 43 different indicators on 32 different time frames light up a dashboard to be green for me to enter a trade. With how I do it now, I have a clear understanding of what I expect to happen and why. That way when it does happen I understand the move and dont get freaked out if the market moves funny after I am in the trade.
Conclusion I use the above tools/indicators/resources/philosophy's to trade intra day price action that sometimes ends up as noise in the grand scheme of the markets movement.use that method until the price action for the day proves the bias assumption wrong. Also you can couple that with things like Stoch RSI + Relative Vigor Index to find divergences which can increase the probability of your targeted guesses. Trade Example from Yesterday This is an example of a trade I took today and why I took it. I used the following core areas to make my trade decision.
Fundamental Bias: I already had a bullish fundamental outlook on EUUSD with expecting the markets to price in future similes due a higher an higher chance of Biden winning on paper as the election closed in and a "Blue wave" coming which would lead to a weaker dollar. Also, the Euro Zone is getting hammered with COVID pretty hard plus Brexit drama so I had a strong Euro bias.NOTE: As frame of reference, all the other pairs I trade I traded as if they were ranging and trade a range. Markets are messed up right now.
Currency Strength/Weakness: I use a tool that gives me a currency strength/weakness dashboard called TradeVision2020. Helps me track individual currency strength/weakness intra day. Took me about a month to get used to it, but helps me keep track of intra day strength/weakness that can add a bias to trade direction as the day unfolds. Like "Will this run have a 2nd or 3rd push higher" or "I should look to TP at the first sign of weakness in the push" type bias data. You still got to use your brain and figure out the best decision. It wont make choices for you, its only a guide.NOTE: I am not trying to adverse the tool (if providing the code is against sub rules let me know), its just a tool I use every day that helps me with directional bias calls. I am sharing the coupon code that was given to me when I found out about the tool in the TradingView forex chatroom and the guy gave me the code to use when I signed up. I dont want someone to read the name and want to try it out then overpay for no reason. The coupon will give you 40% off. Coupon Code: 3F7A0T5T
Higher Timeframe Analysis: Detected some early signs of Bearish Divergence on the 1hr chart using a on a higher time frame using a Stochastic RSI. Then I saw more confirmation on 5 min charts using Relative Vigor Index to help time my entry mid session.
Pivot Points: I treat pivot points like support/resistance and trade them as such using price action to give me some idea how its being treated by the market. Pretty straight forward.
It may seem like a lot of stuff to process on the fly while trying to figure out live price action but, for the fundamental bias for a pair should already baked in your mindset for any currency pair you trade. For the currency strength/weakness I stare at the dashboard 12-15 hours a day so I am always trying to keep a pulse on what's going or shifts so that's not really a factor when I want to enter as I would not look to enter if I felt the market was shifting against me. Then the higher timeframe analysis had already happened when I woke up, so it was a game of "Stare at the 5 min chart until the price does something interesting" Trade Example: Today , I went long EUUSD long bias when I first looked at the chart after waking up around 9-10pm Eastern. Fortunately, the first large drop had already happened so I had a easy baseline price movement to work with. I then used tool for currency strength/weakness monitoring, Pivot Points, and bearish divergence detected using Stochastic RSI and Relative Vigor Index. I first noticed Bearish Divergence on the 1hr time frame using the Stochastic RSI and got confirmation intra day on the 5 min time frame with the Relative Vigor Index. I ended up buying the second mini dip around midnight Eastern because it was already dancing along the pivot point that the price had been dancing along since the big drop below the pivot point and dipped below it and then shortly closed back above it. I put a stop loss below the first large dip. With a TP goal of the middle point pivot line Then I waited for confirmation or invalidation of my trade. I ended up getting confirmation with Bearish Divergence from the second large dip so I tightened up my stop to below that smaller drip and waited for the London open. Not only was it not a lower low, I could see the divergence with the Relative Vigor Index. It then ran into London and kept going with tons of momentum. Blew past my TP target so I let it run to see where the momentum stopped. Ended up TP'ing at the Pivot Point support/resistance above the middle pivot line. Random Note: The Asian session has its own unique price action characteristics that happen regularly enough that you can easily trade them when they happen with high degrees of success. It takes time to learn them all and confidently trade them as its happening. If you trade Asia you should learn to recognize them as they can fake you out if you do not understand what's going on. TL;DR At the end of the day there is no magic solution that just works. You have to find out what works for you and then what people say works for them. Test it out and see if it works for you or if you can adapt it to work for you. If it does not work or your just not interested then ignore it. At the end of the day, you have to use your brain to make correct trading decisions. Blindly following indicators may work sometimes in certain market conditions, but trading with information you don't understand can burn you just as easily as help you. Its like playing with fire. So, get out there and grind it out. It will either click or it wont. Not everyone has the mindset or is capable of changing to be a successful trader. Trading is gambling, you do all this work to get a edge on the house. Trading without the edge or an edge you understand how to use will only leave your broker happy in the end.
Hello fellow traders, Since April 9 at around 14:20 was I when I decided to change from a scalping technique which didn't work for me to a daily and 4 hour time frame (sometimes 1 hour when needed). So far it's been profitable and I want if possible if I can receive some feedback to improve it. Here's a brief description, I put my stop loss on each trade at around 2-3% of my equity, no more than 6% risked at any given time (no matter what) I try to aim for the 20-60 pips range, risk reward ratio is about 2:1, 3:1 usually.. My leverage is 100:1 and it is a demo account.. A redditor who I can't remember inspired me to seek major support and resistance on daily charts. And I just do swing trading mostly, its been easy so far.. I've been on and off of forex for about 2 years and this feels awesome, having a "click" moment. Anyways I will be gladly receive any suggestions.. Thanks in advance. myfxbook profile : https://www.myfxbook.com/members/mavalu/demo/3189183
7 reasons why should you become an Introducing Broker with IQ Option? Reason #4 - Trading Strategies Review
https://preview.redd.it/jg87b5e7kym31.jpg?width=1520&format=pjpg&auto=webp&s=7993d1cab6a906c69b064424f93b188423afa257 When working on the financial markets, traders can utilize dozens of different strategies. It is worth saying that there is no ultimate one-fit-all strategy that works for all traders, all instruments and all timeframes. Each trader has to develop a trading strategy of his own. What trading strategy is the best? There is no clear answer to this question, as some strategies that have demonstrated decent results in the past do not work today. Put shortly, an optimal strategy is the one that works. Or, in other words, the one that consistently provides positive returns. If the strategy consistently provides negative results (the trader is losing more than he is earning), this strategy should obviously not be used. As already mentioned, as there is no single «best strategy», traders may want to look at several factors when developing a strategy of their own. First is the instrument they want to trade. It is no secret that that Stocks behave differently than Forex, and ETF trading is quite different from cryptocurrency trading. Hence, the first rule. Decide on the financial instrument before developing a strategy. Secondly, choose the time frame you want to trade. Intraday trading is radically different from value investing. Choose the time frame first and decide on the strategy second. We have covered the time frame and chart types in our previous article. Thirdly, adjust your trading strategy to your trading style. As in life, we are much more likely to be successful in something that we like. The same applies to trading. If you don’t like how a particular strategy works, find another one. It is as simple as that. Now, to the strategies themselves. As already mentioned, trading strategies are numerous. This article is not enough to list all of them. Nevertheless, we can provide a list of the most notable ones. https://preview.redd.it/j67438iykym31.jpg?width=1800&format=pjpg&auto=webp&s=2530db3429aedc7574bc99e370363445f8e8426c Day trading Day trading is a strategy that implies that all positions are being opened and closed within the same day. This strategy is common among Forex traders. Currency pairs can demonstrate decent movements over the course of one day. Moreover, the use of leverage can turn miniscule price swings into tangible gains. Forex, however, is not the only asset class to be traded like that. Cryptocurrencies, for example, can also be traded on a daily basis. One thing that is absolutely required for day trading is high volatility, as it is impossible to trade when the market is flat. Value Investing A strategy that is commonly used with stocks, value investing implies that the trader first has to find the discrepancy between the market and the intrinsic (real) value of a particular stock. In order to do this, he will go through earnings reports and key financial metrics. If the intrinsic value is higher than the market one, it is wise to buy the stock. Conversely, if the company is traded at a price that is higher than its intrinsic value, it can be expected to go down (the time when this will happen, however, is not set). Swing Trading Strategy When using this strategy, traders try to capitalize on the sudden price swings, hence the name. In a lot of markets, and for a lot of assets, sudden price movements are quite common. One way to apply the swing strategy is to find a strong trend and wait for a retracement. A retracement is a short-term move in the opposite direction that doesn’t change the direction of the bigger trend. When the retracement happens, the asset price will depreciate, but since it is only a retracement and not the trend reversal, the price can be expected to go up again. All in all, this is a practical application of the ‘buy low, sell high’ technique. Scalping Scalping is a subtype of the day trading strategy. As in day trading, all deals are being opened and closed within the same day. Yet, the number of deals and their duration will vary significantly. When applying the classic day trading strategy, you can open as little as one deal and it will still classify as day trading. In scalping, things are a little bit different. Traders open a big number of deals, stacking up small gains over time. In scalping deals can be as short as a few seconds. All in all, it is an interesting strategy that a lot of traders, especially on the Forex market, find useful. News Trading https://preview.redd.it/6fje1e96lym31.png?width=2558&format=png&auto=webp&s=6ffb982c4c971d43244fee0e900933a69d2e016f Political and economic news have the potential to affect the asset prices and move the entire markets. Here are two examples to illustrate how powerful news trading can be. On the Forex market, traders buy and sell national currencies in pairs. Their exchange rate is a good proxy for the well-being of the respective national economy. When the American economy flourishes, so does the USD, and vice versa. When the US economy is in crisis, the USD will also depreciate. Of course, it is more complicated than that, but the general idea is roughly like this. Forex is not the only market that is affected by the news. The equity market, where corporate stocks are traded, is another example. Corporate news, like an appointment of a new CEO or a new sales milestone, can make the company move up or down. People, interested in stocks trading, have to follow corporate news and evaluate the overall business climate in order to make well-rounded decisions. These are the 5 common trading strategies. Of course, they are not limited to these, as there are endless opportunities on the market. Yet, for those willing to start somewhere, this list can provide an idea or two. Choose the one that suits your trading style and you are good to go. https://preview.redd.it/dmeb4i9alym31.png?width=2558&format=png&auto=webp&s=5c78de080555fe7b6d26ade0aee3e331d0094b13 Simply share this simple knowledge with your community and you will Become a successful Introducing Broker with IQ Option! Earn up to 45% commissions!! Sign Up now!
The online metatrader platform is the platform of choice for almost all Forex traders. Even traders that are not currently using it, know what the platform is and its capabilities. The platform is offering three types of charts that are possible to be used when analyzing the market: a line chart, a bar chart, and candlesticks chart. A line chart shows a simple line that rises and falls together with the price of a currency pair. It has little or no importance in the technical analysis of a market. Bar charts show bars in a time frame that have the high and the low of that time frame, as well as the opening and closing level. This is enough for trading theories to be developed and for traders to try to interpret and forecast future prices based on how a bar chart is looking like. A bar chart on the monthly chart means that each bar represents one month and the high and the low in that bar, as well as the opening and the closing prices, are the ones corresponding to that timeframe, the monthly time frame. What to do with MetaTrader platform For this reason, the trading theories developed based on interpreting bar charts are considering the time frames used in the analysis. From the daily chart above to the weekly and monthly, the trading style is suited for swing trading and investing, while lower time frames are favored by traders that scalp their way in a trading session. A candlestick chart is, by far, the most popular chart type used by retail traders. There are multiple candlestick patterns that can be interpreted and used, thanks to the Japanese Candlesticks techniques. The Western world was surprised to find out that the Japanese have their own way to predict future prices: patterns based on candlesticks. Up until this moment, it was believed that the classic patterns like the head and shoulders, the rising and falling wedges and others alike, are the only approach to technical analysis. Trading theories like Elliott Waves and other were not even invented when the Japanese candlesticks became popular. The candlestick techniques are mostly used to forecast reversal after strong trends. A candlestick has two part: the body and the shadow. The body is being marked by the space between the opening and the closing price. If the closing price is higher than the opening price, the candle is bullish, and typically it is colored in green, as this is the color associated with a market advance. If the closing price is lower than the opening one, the candle is a bearish one and it is associated with the red color. The hammer is the most popular Japanese candlestick pattern. It is formed out of a single candle, and the body of a hammer can be either red or green, without influencing its outcome. As a rule of thumb, the hammer is a bullish pattern, and this means it appears at the end of bearish trends. A bearish trend that ends with a hammer will most likely reverse, as the hammer shows bulls are stepping in. Typically, a hammer is having a very long shadow. The bigger the shadow, the more powerful the pattern is. The opposite of a hammer is called a hanging man, and the idea behind trading and interpreting it is the same like in the case of a hammer, with the only distinction that the hammer calls for long trades to be taken, while a hanging man is a bearish pattern and shorts should be traded. The idea behind this article was to get you familiar with the Japanese candlestick techniques and the hammer is the most representative of them all. Other patterns fit in this category as well, but they should be the subject of a different topic.
Forex Scalping Techniques: Comparing Time Frames. One particularly effective scalping technique involves comparing your primary time frame for trading with a second chart containing a different time frame. For example, if you use a 1-minute time frame to scalp currency pairs, you could then consult a 5-minute chart to check any signals that come up. Forex Scalping Tools: 1-Click Trading ... Some certain factors are very important in forex scalping, which includes volatility, liquidity, risk management and Forex scalping strategy indicator time management. The major thing produces a great impact on traders performing scalping is market liquidity. Besides, a few of them finds 5 minute scalping strategy trading with more liquid market good therefore they easily move with a large ... Creating a Forex trading strategy does not have to be a difficult process. Today we will review a simple scalping strategy using the Stochastics indicator. Simple Scalping Strategy could be a powerful 1-minute scalping system as well and if you try in on the time frame let us know your results! We could use the best scalping strategy indicator (volume) and have a whole basket of strategies to use with it. The reason is that it can confirm a trend, a can confirm a reversal, and it can show us when there is less interest between buyers and sellers. Forex scalping is one of the main trading styles in the Forex market, along with day trading, swing trading and position trading. The main difference between scalping and the other trading styles is the trading timeframe and holding period of trades. Scalping is an extremely short-term and fast-paced trading style, where traders hold trades for a few seconds to a few minutes. In order to find ... The reality is that if you scalp stocks with one oscillator, most likely you are going to accurately predict the price action 50% of the time. Literally the equivalent to flipping a coin. While 50% may prove a profitable ratio for other strategies, when scalping, you need a high win to loss ratio due to the increased commission costs. Scalping relies on the idea of lower exposure risk, since the actual time in the market on each trade is quite small, lessening the risk of an adverse event causing a big move. In addition, it takes the view that smaller moves are easier to get than larger ones, and that smaller moves are more frequent than larger ones. Best time frame For Scalping 5 mint Or 2 Mints. For 100$ Profit Choose Long term time frame 4 hours. For short time trading choose low time frame 30 or 50 Pip Target. You can choose any Scalping Strategy indicator Forex brokers best i prefer low spread Like OctaFx etc. Extract Zip file in Laptop and copy all files into mt4 folders. Template file Paste in template folder. This is simple step ... Scalping strategy is focusing on the short-term time frames. When we’re trying to trade on an intraday basis, there are certain advantages like it removes the guesswork of trying to identify the long-term or the medium-term trends and as a result, we really don’t need to pay too much attention of where price might end up a week from now, because we’re more focused on what’s going to ... Forex traders construct plans and patterns based on this concept, using only inside bars on the day based chart time frame. The 1-Minute Forex Scalping Strategy. The basic idea behind scalping is opening a large number of trades that usually last seconds or minutes. Some scalping strategies developed by professional traders have become very popular with traders. For example, the famous trader ...
Most Profitable & Simple FOREX SCALPING Strategy - YouTube
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