Keep showing up every day and trying to get better. Don’t count yourself out.
- Jacob Rogers
- Posted Articles: 7
- Last Posted: 2017-06-08 11:09:23
DIY Trading Techniques2016-10-20 09:30:15
There are different trading strategies which are available, but an investor can also create his own. Surprisingly, a do-it-yourself technique is an easy, enjoyable, and satisfying risk.
A trader must have the following: a pad of paper (or notebook), a shrewd mind, and access to charts denoting the timetable to be traded. These three can help formulate a strategy and be visibly back tested on other charts. First, one has to figure out if he is a day trader, a swing trader, or an investor. Next, choose the time frame for trading. Lastly, select the market to concentrate on. Upon deciding on the timetable and market, find the type of trading suitable for your financial needs.
Monitor price movements. Look at increases and decreases in price and detect any clue which trigger these movements. It also pays to check indicators or patterns. After finding a likely technique, go back and determine if the same thing emerged for other movements.
Refer to the same examples. See the possible risk that can surface from these movements. Decide on the stops to be used to continue generating profit without being stopped out.
Evaluate price movement. Do so after each trade and discover where the stops should be placed on your charts. Find profitable exit points as well by checking indicators, patterns, and other tactics.
Identify other techniques. Find other strategies that work for you over very short time periods. Oftentimes, short-term anomalies occur, enabling the trader to earn consistently. It may not last longer than a week, but it can be used again in the future.
Here are other pointers.
Jot down all your observations and integrate those in your trading plan. This helps your cash in on the market or avoid an unfavorable circumstance.
Not all techniques are designed to last as market conditions change from time to time. In some instances, what has worked for the last few weeks may or may not work the following trading day.
No strategy is 100% effective. The key here is to search a technique or two which net a profit at the end of a day, week, month, or year.
Trade confidently. There is a huge line between confidence and arrogance. Being presumptuous gets you nowhere. Also, confidence is imperative when pulling the trigger on a position when there is a setup to gain money.