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Trading To Win – It Takes Uncommon Knowledge

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Author: Gary E Kerkow

Do not follow the crowd

There is a reason why most traders are not really trading to win, and ultimately lose. This includes those who participate in the stock market, commodities market, or any other trading venue. The reason is, they do not possess the uncommon knowledge necessary to be a consistent winner. Virtually, the same traders and investors win year after year. In this article, I will share with you some of this uncommon knowledge. To be in the elite group that is trading to win, you will need to learn, and then implement this type of knowledge.

Learn about the power and methods of the big players

Big institutions such as mutual funds, hedge funds, bank funds, and pension funds account for about 75% of all market activity. These are the big players that have the potential to cause enormous price movements in a stock or commodity. These huge entities are trading to win. It can be a great strategy to buy shares in a stock at the same time they do. It is important to note, you also want to sell when they start selling.

Posted February 14th, 2012.

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Using a Carry Trading Strategy

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Carry trading is a Forex trading strategy that is popular among traders and investors in the Forex market. Carry trading strategies are popular mainly because they guarantee some kind of return on medium to long-term positions.

A carry trading strategy focuses on interest rate differentials between currency pairs, rather than focusing on currency pair price changes like most other Forex trading strategies do. Ideal carry trades involve currency pairs that experience minimal changes in price but have wide interest rate differentials.

These wide interest rate differentials are what you must look for in carry trades. If you find one currency that has a higher interest rate of 5% and another currency that has a lower one of 0.5%, the interest rate differential will be 4.5%. So, this means that if you sell the currency with the lower interest rate and buy the currency with the higher one, you will make a 4.5% gain from the interest on your borrowed funds.

Posted January 27th, 2012.

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Using a MACD Trend Trading Strategy

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MACD trending is very simple. It will allow you to profit from a very specific chart profile. Anyone can use a MACD trend trading strategy to make money. It works time and again, offering a very high number of successful trades.

We will use an example to demonstrate how this type of trading strategy works. For this example, use a 60 minute chart. Remember though, 90 and 120 minute charts are also acceptable.

The first step is to set up the chart. You will be using candlesticks to monitor price action and for signals. You must also put an MACD indicator on your chart with the following settings (12,26,9) – remember, there should be no other indicators on your chart.

You will be using a candlestick as your setup bar to help recognize trading opportunities with this method. We are working with trends in these types of trades. Regardless of whether the trends are moving up or down, the setup works the same way.

Posted January 22nd, 2012.

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Aggressive Forex Trading Strategies for Long-Term Profits


 Aggressive Forex Trading Strategies for Long Term Profits

The lure of quick money brings many people to the online currency trading scene and most of the people get tied up, trying to make daily profits investing in short time frames, where prices are very volatile.

However, most of the top traders and the ones holding all the money only place between 1 and 5 orders per year, since they have found a way to make more significant profits on each of their trades. While this may not seem aggressive, these traders often risk as much as 50% of their accounts in order to secure profits in the hundreds of thousands and even millions of dollars. The real question to be answered is: how can you take advantage of this type of trade and make some real money?

Identifying the long-term trend is the first thing you must do, in order to place a trade of this magnitude. If you look at the EUR/USD during the middle of 2011, you will find that it moved in a channel that was approximately 500 pips wide for over 3 months. Once it broke out of this channel it continued to move down for 800 pips before correcting to the 76% Fibonacci level before turning down for an additional 1000 pips to this type of long-term trader.

Posted January 20th, 2012.

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Using a Trend Trading Strategy

Trend trading is a strategy used in many financial markets, including in the Forex market, by many traders and investors. Although trend trading strategies work in many financial markets, they are particularly effective in the currency market.

Trend trading is actually based on basic, fundamental principles of successful trading and investing:

- Buying when prices are low and when the future looks hopeful

- Selling at, or immediately before, the price highs in a particular trend.

Although these types of strategies are based on basic, fundamental principles, using a trend trading strategy is not simple and it can prove to be difficult.

First of all, the trader or investor must identify a trend and then predict where the trend will stop. They will then hold their position until the trend is broken by the currency, or if the currency reaches the predetermined sell point.

In Forex Trading, trends are often defined as when currencies break out of their Bollinger bands and then trend in one particular direction. The easiest part of using a strategy that involves trading trends, actually tends to be the identifying of trends, as long as your Bollinger bands are well set.

Posted January 16th, 2012.

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Using a News Trading Strategy

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News trading in the Forex market involves trading currencies around newsworthy events, such as important releases of economic data. Traders and investors not only consider US market news, but also news from other countries, as long as they are relevant to the currency pairs they are working with.

Using a news trading strategy is all about comparing news with previous forecasts: traders and investors are most interested in whether current news meets, exceeds or falls short of previous forecasts. Predicting the extent to which the market will react is also important to traders and investors using a news trading strategy. Quite simply, some newsworthy events and stories will bear more importance than others, however the more difficult side of news trading involves predicting how the market will respond to particular news in particular settings. If you implement a news trading strategy into your Forex trading, you must work out what the market is most concerned with at present and the degree of concern that the market is showing. You must consider whether or not there is a strong consensus for whatever the market is most concerned with, as the market isn’t always stable.

Posted January 15th, 2012.

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123 Forex Trading Strategy


 123 Forex Trading Strategy

The 123 Forex trading strategy is one of the most effective ways to trade reversals. It works on any time frame and on any currency.

I prefer patterns like that because it has to do more with the price action so it’s not just about using Forex indicators it’s about the behavior of the price it self.

The 123 pattern is basically about breaking the low of the last valley or the high of the last peak. If for example the price made a new high then it bounced back for a while then it moves back to break that high then it’s a strong indication that there is momentum upwards and vice versa.

In the pictures below there are 2 patterns for the 123 strategy, one is pointing down and the other one is pointing up so let’s see when to buy or sell using this strategy.

Step #1: Once the 123 pattern is formed place your sell stop entry below point 2 or in-case it was a bullish move place your buy stop above point 2.

Step #2: To control the risk of you trade always make sure to place your SL target (Stop Loss) which is preferable to be few pips above point 1 if you are selling or below point 1 if you are buying

Posted January 14th, 2012.

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4 Effective Strategies to Foreign Exchange Trading


 4 Effective Strategies to Foreign Exchange Trading

If you had aspired to become highly successful in making money by buying and selling in the foreign exchange market, you must have already put in place a sound risk management strategy. This simply means you will be disciplined enough to know when and where to apply your stop loss. Your personal character will determine the way you trade. A sound trading strategy will enable you to make the right choices at the right time that will allow you to buy, sell, long or short foreign currencies in almost any currency exchange market in the world.

Before you embark on your journey into foreign exchange trading, you need to understand that the foreign exchange market is a worldwide-decentralized financial market for trading currencies. This is a continuous operation business: 24 hours a day except weekends. According to the Bank of International Settlements, as of April 2010, average daily turnover in global foreign exchange markets is estimated at $3.98 trillion, a growth of approximately 20% over the $3.21 trillion daily volume as of April 2007.

We came up with 4 strategies to help you fine tune your own trading strategies and made it more robust.

Sustainability

Posted January 13th, 2012.

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The Secrets On Developing High Probability Trading Strategies




By John T Conejos

A lot of people are on a quest on finding the best trading strategy that assures to produce enormous profits for their investment. Most are hoping to find high probability trading strategies that doesn’t require a lot of work to put into and even have zero risk involved. Though it’s very possible for you to develop a strategy that can produce great rewards, no strategy involves zero risk and effort.

A miracle trading strategy doesn’t exist. Your high probability trading strategies will depend on your personal trading style, risk acceptance and choice of market. You won’t see a strategy that works every time. You must be ready to face the risks as well as know how much you are prepared to lose per trade relative to your capital.

It is just reasonable for different markets to require the application of multiple strategies

The strategy that generates high profit in the equity market can cause a disaster for options or futures due to the expiration. A strategy that functions well in the currency market cannot often be applied in mutual funds investing since while currency can be traded almost 24 hours a day and 7 days a week, a mutual fund can only be traded once a day.

Posted January 13th, 2012.

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Important Stock Trading Tips

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By : Bidisha Nath
It is important to know about a number of crucial stock trade tips. Effective stock market tips are traditional, time tested and the most profitable way to help traders based anywhere in the world.

Stock Trading Tips 1

While there should be certain underlying inspiring factors as to why you want to trade in stock, but you have to take a position to trade with confidence. Therefore, you must know why you want to trade in stocks. To take a strong grip in stock investment, you have to understand why you want to do it before you move ahead. Though you may have diverse motivations and reasons for choosing to trade stock, but the major reason is to make money and more money. Because that’s what stock trading is.

Stock Trading Tips 2

Posted December 12th, 2011.

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