With a personal strategy, you act along clear guidelines and within a defined corridor. Every single decision must necessarily fit your defined principles. Every trading setup, i.e. every entry and every exit from a trade, must be done according to your strategy. Day trading demo accounts offer one way to comprehensively test a strategy. Many brokers offer...
Documenting your trades is also known as a trading diary. This can also just be an Excel spreadsheet in which you enter the name of the asset class, the time of your entry, the time of your exit, the amount of leverage, the net profit-loss and perhaps additional comments. After a certain amount of time, you can easily assess your trading performance, better...
The big difference between an active private investor who makes losses and a successful professional trader is the discipline factor. As a rule, it is not due to a lack of knowledge on the part of the private investor, but rather the sudden change from one technology to another. A professional trader who does not stick to the trading plan will fall out of favor...
In the stock market, investors who speculate on falling prices are called bears. In a bear trap, bearish investors enter a short position based on a price signal and thus speculate on falling prices. Contrary to expectations, prices begin to rise after entry, so that investors are now holding a losing position with their short position.
In triple bottom trading, the chart pattern gradually emerges after a downtrend. The pattern is confirmed by a breakout above the neck line and indicates an impending uptrend. This type of chart pattern is used for technical analysis to identify a possible change in trend direction from bottom to top. Technical analysis is primarily about predicting future...
Trends always begin when prices move away from their usual range of fluctuations. Since 90% of prices move within the BBs, the probability of a trend starting is greatest when the range is lowest. The probability of a trend ending is greatest when the range is widest.
Trend trading is a form of investing in which investors attempt to profit from observed trends in the market. To do this, you look for stocks, currencies or other assets that are currently in a strong up or down trend and buy them in the hope that the trend will continue. Since numerous investment tools and indicators are suitable for trend trading, getting...
“Scalping” refers to the shortest of all trading strategies. The trader takes advantage of very short-term opportunities, builds up a position and immediately closes it out as soon as a profit is achieved. In order to make suitable profits, “scalpers” usually invest a lot of capital. You can find “scalpers” primarily in the area of raw materials and foreign...
The basic idea of swing trading is a combination of bottom fishing and trend following strategies. The investor acts strictly trend-following by acting exclusively in the direction of the prevailing trend and taking advantage of entry opportunities where the price is close to the technical chart guidance line that accompanies the trend, be it a trend line or a...
There are definitely simple trading strategies that work. You just have to know them and use them correctly. Here we introduce you to important trading strategies and methods such as trading strategies for beginners, trading strategies for professionals or trading strategies for professional traders. What's important is that you pursue a strategy that fits your...
In day trading, traders buy and sell multiple assets within a trading day, often making their exit at the end of the day. In fact, it is rare for active day traders to hold positions overnight, let alone for several days. The most commonly used time frames in day trading strategies are the 4-hour (H4), one-hour (H1), 30-minute (M30) and 15-minute (M15) charts.
This means that the investment horizon of day trading differs clearly from that of trend trading, in which positions are held over a longer period of time. By buying and selling securities quickly, day traders hope to benefit from short-term market fluctuations and make many small profits. Day trading is a popular Forex trading strategy because good profits are...
A trading plan should also include a risk management strategy aimed at minimizing the risk of loss and ensuring capital preservation. A trading plan should also include strategies for overcoming psychological challenges such as fear, greed and euphoria, which can often lead to irrational trading decisions.
It is very helpful to set goals in every area of life. You should also use this type of approach in trading. It is less about setting individual trading goals such as: "I want to make 100% profit every year" or "I want to earn 150 euros every day". Rather, it should be about precisely defining your main goal of becoming a successful trader and setting intermediate goals.
There is also a situation in trading where one market suits you significantly more than another. Even if one market could get you closer to your goal, you should then think about whether it's worth - I'm exaggerating - suffering to get to your goal. A slightly longer, but more relaxed trip could be a much better option.
Flags form when prices consolidate after strong trend moves. The preceding sharp trend movement is called a flagpole. In an uptrend, a flag pattern forms when prices consolidate by forming lower highs and lower lows to signal a period of profit-taking. A break outside the upper falling trend line is a signal that bulls are ready to push prices higher in the next phase.
Please note that the scenarios presented are based on my personal assessment and experience and represent a summary of the most likely price range for the respective time unit. Trade appropriate position sizes that correspond to your individual risk management.
The key influencers of trends are the fundamental factors driving the underlying financial asset and market sentiment. As an example of fundamental factors, the price development of a share can be a reflection of the company's economic strength. Accordingly, a price increase may be due to the company's success in implementing its business plan or to the...