Forwarded from Stock Market News
📊 Day Trading Strategies 📊
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Day traders use numerous intraday strategies. These strategies include:
🛑 Scalping: This strategy attempts to make numerous small profits on small prices changes throughout the day.
🛑 Range trading: This strategy primarily uses support and resistance levels to determine buy and sell decisions.
🛑 News-based trading: This strategy typically seizes trading opportunities from the heightened volatility around news events.
🛑 High-frequency trading (HFT): These strategies use sophisticated algorithms to exploit small or short-term market inefficiencies.
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📉 @Market_Share 📈
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Day traders use numerous intraday strategies. These strategies include:
🛑 Scalping: This strategy attempts to make numerous small profits on small prices changes throughout the day.
🛑 Range trading: This strategy primarily uses support and resistance levels to determine buy and sell decisions.
🛑 News-based trading: This strategy typically seizes trading opportunities from the heightened volatility around news events.
🛑 High-frequency trading (HFT): These strategies use sophisticated algorithms to exploit small or short-term market inefficiencies.
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📉 @Market_Share 📈
Forwarded from Stock Market News
📊 *What Is Swing Trading*? 📊
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Swing trading is a style of trading that attempts to capture short- to medium-term gains in a stock (or any financial instrument) over a period of a few days to several weeks. Swing traders primarily use technical analysis to look for trading opportunities. These traders may utilize fundamental analysis in addition to analyzing price trends and patterns.
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📉 @Market_Share 📈
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Swing trading is a style of trading that attempts to capture short- to medium-term gains in a stock (or any financial instrument) over a period of a few days to several weeks. Swing traders primarily use technical analysis to look for trading opportunities. These traders may utilize fundamental analysis in addition to analyzing price trends and patterns.
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📉 @Market_Share 📈
Forwarded from Stock Market News
📊 *Advantages of Swing Trading* 📊
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🔴 It allows you to take advantage of the natural ebb and flow of markets. Financial markets never go in one direction forever, and by being able to take advantage of that, you can increase your returns as you in theory are going to be making money when the market rises over the next few days, and then make some when the market pulls back, as it will certainly do sooner or later.
🔴 By being in and out of the markets, you can identify more opportunities. If you look at any financial chart, you can see that there is almost always a definite long-term trend, but the market might not always be at a support or resistance area. By being in and out of the market in a matter of a few days, (typically) you can collect profits, and identify other markets that are setting up for other trades. This allows you to spread the risk around, and ties up a lot less capital instead of constantly having to come up with margin for new positions as you find new trades. By closing your first position, you will not have to deposit more money in your account to cover the second one.
🔴 Stop losses are typically smaller than longer term trades. The stop losses on a swing trade might be 100 pips based upon a 4 hour chart, while a stop loss on a weekly chart that is based upon the overall trend might have to be 400 pips. This allows for you to place larger sized positions instead of extremely low leveraged ones via the longer-term trends.
🔴 You have clear boundaries. The swing trader is a more technical based trader, and as such will normally have a specific area that they deem as being a sign the trade is working against them. Because of this, you know exactly when the trade isn’t working and can limit the damage a bad trade can do. Longer-term traders normally have to give a wide berth for the markets as they wait for them to “go with the fundamentals”.
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📉 @Market_Share 📈
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🔴 It allows you to take advantage of the natural ebb and flow of markets. Financial markets never go in one direction forever, and by being able to take advantage of that, you can increase your returns as you in theory are going to be making money when the market rises over the next few days, and then make some when the market pulls back, as it will certainly do sooner or later.
🔴 By being in and out of the markets, you can identify more opportunities. If you look at any financial chart, you can see that there is almost always a definite long-term trend, but the market might not always be at a support or resistance area. By being in and out of the market in a matter of a few days, (typically) you can collect profits, and identify other markets that are setting up for other trades. This allows you to spread the risk around, and ties up a lot less capital instead of constantly having to come up with margin for new positions as you find new trades. By closing your first position, you will not have to deposit more money in your account to cover the second one.
🔴 Stop losses are typically smaller than longer term trades. The stop losses on a swing trade might be 100 pips based upon a 4 hour chart, while a stop loss on a weekly chart that is based upon the overall trend might have to be 400 pips. This allows for you to place larger sized positions instead of extremely low leveraged ones via the longer-term trends.
🔴 You have clear boundaries. The swing trader is a more technical based trader, and as such will normally have a specific area that they deem as being a sign the trade is working against them. Because of this, you know exactly when the trade isn’t working and can limit the damage a bad trade can do. Longer-term traders normally have to give a wide berth for the markets as they wait for them to “go with the fundamentals”.
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📉 @Market_Share 📈
Forwarded from Stock Market News
📊 Disadvantages of Swing Trading 📊
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🔴 You can get whipsawed often. Just because the market shows support or resistance at a specific area, doesn’t mean they will be respecting it today. Also, anytime you place a trade, you are risking money. Because of this, as a swing trader, you are risking it more often. Odds are you will have losses from time to time, no matter how good you are.
🔴 You have to be well-versed in technical analysis. While not necessarily a “disadvantage”, it means extra work. Almost anyone can tell the trend on a chart that is going from the lower left to the upper right over time, but someone trying to swing trade that chart needs to identify entry and exit points. This is something technical analysis can do, but you need to learn it first. This takes time.
🔴 It takes a different mindset than long term trading, and more nerves. While it isn’t necessarily scalping, the swing trader does run the risk of being “spooked out of the markets” as pullbacks in these smaller ranges appear to be more violent than to someone looking at a weekly chart. This is a psychological issue, and one that most traders will eventually have to deal with during their career.
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📉 @Market_Share 📈
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🔴 You can get whipsawed often. Just because the market shows support or resistance at a specific area, doesn’t mean they will be respecting it today. Also, anytime you place a trade, you are risking money. Because of this, as a swing trader, you are risking it more often. Odds are you will have losses from time to time, no matter how good you are.
🔴 You have to be well-versed in technical analysis. While not necessarily a “disadvantage”, it means extra work. Almost anyone can tell the trend on a chart that is going from the lower left to the upper right over time, but someone trying to swing trade that chart needs to identify entry and exit points. This is something technical analysis can do, but you need to learn it first. This takes time.
🔴 It takes a different mindset than long term trading, and more nerves. While it isn’t necessarily scalping, the swing trader does run the risk of being “spooked out of the markets” as pullbacks in these smaller ranges appear to be more violent than to someone looking at a weekly chart. This is a psychological issue, and one that most traders will eventually have to deal with during their career.
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📉 @Market_Share 📈
📊 What Is Position Trading? 📊
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Position trading is a strategy where traders and investors aspire to capitalise on strong pricing trends through entering and remaining present in a market for an extensive term. A position trade is a commitment of both time and money, with the intention of realising a sizable gain from the sustained growth of an open position's value.
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📉 @Market_Share 📈
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Position trading is a strategy where traders and investors aspire to capitalise on strong pricing trends through entering and remaining present in a market for an extensive term. A position trade is a commitment of both time and money, with the intention of realising a sizable gain from the sustained growth of an open position's value.
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📉 @Market_Share 📈
Forwarded from Sticker Downloader
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📊 Advantages Of Position Trading 📊
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The advantages of position trading include the following:
🔵 The negative factors have a minimum degree of influence – if a trader buys, for example, on the weekly chart, he won’t be shocked about the daily price fluctuations. The position trader feels less stressed compared to the day trader.
🔵 The ability to “squeeze out” the maximum of a trend – position traders do not have to regularly open and close positions, thereby losing on spreads.
🔵 High profits – position trading allows you to trade with high leverage, as the probability of a mistake is much smaller than in conventional trading.
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📉 @Market_Share 📈
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The advantages of position trading include the following:
🔵 The negative factors have a minimum degree of influence – if a trader buys, for example, on the weekly chart, he won’t be shocked about the daily price fluctuations. The position trader feels less stressed compared to the day trader.
🔵 The ability to “squeeze out” the maximum of a trend – position traders do not have to regularly open and close positions, thereby losing on spreads.
🔵 High profits – position trading allows you to trade with high leverage, as the probability of a mistake is much smaller than in conventional trading.
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📉 @Market_Share 📈
📊 Disadvantages Of Position Trading 📊
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The disadvantages of position trading include the following:
🔵 The need for a high deposit – Position trading with the minimum amount of funds is simply irrelevant. It is likely that the strong price fluctuations will lose everything.
🔵 Swap – The swap is a commission paid to the broker for the transfer of the trade to the next day. If the position is open for a long period, the swaps can accumulate a large amount.
🔵 Risk – The risk is much lower when compared to day-trading or swing trading, but if a mistake is made, it will likely be fatal. If a trader goes against the trend, he will lose not only his deposit, but also the time in which he could generate a profit – don’t forget, we are speaking about months.
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📉 @Market_Share 📈
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The disadvantages of position trading include the following:
🔵 The need for a high deposit – Position trading with the minimum amount of funds is simply irrelevant. It is likely that the strong price fluctuations will lose everything.
🔵 Swap – The swap is a commission paid to the broker for the transfer of the trade to the next day. If the position is open for a long period, the swaps can accumulate a large amount.
🔵 Risk – The risk is much lower when compared to day-trading or swing trading, but if a mistake is made, it will likely be fatal. If a trader goes against the trend, he will lose not only his deposit, but also the time in which he could generate a profit – don’t forget, we are speaking about months.
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📉 @Market_Share 📈
📊 What Is Momentum Trading? 📊
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Momentum trading is the practice of buying and selling assets according to the recent strength of price trends. It is based on the idea that if there is enough force behind a price move, it will continue to move in the same direction.
When an asset reaches a higher price, it usually attracts more attention from traders and investors, which pushes the market price even higher. This continues until a large number of sellers enter the market – for example, when an unforeseen event causes them to rethink the asset’s price. Once enough sellers are in the market, the momentum changes direction and will force an asset’s price lower.
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📉 @Market_Share 📈
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Momentum trading is the practice of buying and selling assets according to the recent strength of price trends. It is based on the idea that if there is enough force behind a price move, it will continue to move in the same direction.
When an asset reaches a higher price, it usually attracts more attention from traders and investors, which pushes the market price even higher. This continues until a large number of sellers enter the market – for example, when an unforeseen event causes them to rethink the asset’s price. Once enough sellers are in the market, the momentum changes direction and will force an asset’s price lower.
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📉 @Market_Share 📈
📊 Advantages Of Momentum Trading 📊
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Momentum trading can result in significant profits for the investor with the right personality, someone who can deal with the associated risks while committing to the momentum trading strategy. Advantages can include:
🔵 High-Profit Potential in a Short Period of Time: If a stock you purchase grows from $25 to $37.50 due to an overly positive analyst report, you can sell that stock at a profit of 50% before the price corrects itself.
🔵 Taking Advantage of the Market’s Volatility: Momentum trading is all about capitalizing on the volatility of market trends, looking for stocks that are on their way up to buy and selling them before the prices start decreasing.
🔵 Taking Advantage of Other Investor’s Emotional Decisions: As opposed to being controlled by an emotional response like many traders, capitalize on the changing prices resulting from emotional traders.
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📉 @Market_Share 📈
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Momentum trading can result in significant profits for the investor with the right personality, someone who can deal with the associated risks while committing to the momentum trading strategy. Advantages can include:
🔵 High-Profit Potential in a Short Period of Time: If a stock you purchase grows from $25 to $37.50 due to an overly positive analyst report, you can sell that stock at a profit of 50% before the price corrects itself.
🔵 Taking Advantage of the Market’s Volatility: Momentum trading is all about capitalizing on the volatility of market trends, looking for stocks that are on their way up to buy and selling them before the prices start decreasing.
🔵 Taking Advantage of Other Investor’s Emotional Decisions: As opposed to being controlled by an emotional response like many traders, capitalize on the changing prices resulting from emotional traders.
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📉 @Market_Share 📈