Trading on the movement seeks to take advantage of the basic pricing models, which arise and can be used to trade in any market. While I refer to two-, three-day sales cycle, the principles set out here and work equally well for a week-long zoom, as well as the five schedules.
Do you sell short with a mechanical system or on a methodology similar to that which I represent, there is one key point I want to inspire you - Be consistent! You can not do the calculation for the Fibonacci levels of one transaction, try something else the next day, and then use something else for a third time. This does not work, because the trade - this is just a game of numbers and all that you need - is to try to get a small piece of the pie for themselves. My rhythm is composed of the purchase in one day and sell to the next or the next day. I perenoshu many positions on the following day. I do not sell much in the within-day basis, only those transactions that do not work. Those transactions that do not work, are intra-day fairly quickly. The exception, of course, is the market S & P, in which there are many opportunities for intra-day trading.
Managed Funds (and risk)
To measure the opening and closing positions. This is one of the aspects of money management, where I concentrated. I always measure the transaction. Put yourself in a situation of winning. Close of entries on record profits. Thus, you can not lose. If the market goes against you, then at least you have something to capture. If it goes to your side, you still have open positions to play more. Do not be greedy.
Most traders, traders in the room makes money twenty days a month. Then in the last two days, a strong trend in the day they lose, when other traders are selling to break. In trading on the vibrations, you should not try to resist the trend day - the market is going to quickly tell you, is your game or not. And if you're wrong, do not resist it.
Always enter the market with a game plan. At any time when the market effect of deviating from my plan, I am out of the game, because the market is not doing what I expect from him. If I do not know what he does, why should I be there?
At any time when you are in the market and begin to ask themselves questions like: "Well, what I should do now? I must go now? I should now take the profit? I must still wait? I must increase the position?" Whenever you have such questions, you have no business in this market. You have lost their advantage, because you do not have any control or plan to play in this market. So, before you start to trade on the movement, understand that you should never put themselves in position where you are going to react to this market.
I believe that the best way to manage your risk is to observe its curve assets. Every day I count how much money I made or lost. I do not care what position it is earned or lost or how much the winning and losing deals I had. When my curve starts to descend assets, I know that something is wrong - perhaps I pereutomlena or become rough.
I also believe in diversification. Something is always available. Do not "marry" in the position do not form opinions on the market. If I have formed a view on a certain market, I should cease to trade on it.
Finally, when the market rose against me, it is likely that it will go even further against me. That is why I go. I have always been able to come back next time for a better price. This - my rule. I do not see this as taking the loss - I just try to find the best position! And it works!
Reading data
The most important value for me - this is the maximum and minimum of the previous day. That is all I care about. Now, some traders like to calculate the levels of recovery based on the Fibonacci numbers. Any number will work, because it draws your attention to the market activity on another number. You can take any number and ask if the market coming nearer or farther from it. This is really a question of reading the data. Price makes progress to or from this number?
You will see that the intra-day peaks of cycles, founding the cycle, within-day variations, minimum and maximum levels are important support and resistance. Even at five schedules observe the minimum and maximum fluctuations. If you are on a weekly schedule, follow the previous maximum and minimum. Focus your attention on the pricing activity around these points.
These levels, or will be tested and the market will find support and form a good double bottom (trade from the double bottom provides a good opportunity, because you can make a very close stop-order and the market should go to your side almost immediately), or otherwise They will be broken (if it is accompanied by volume and activity, the more likely the movement will continue). Probably 90% of my trade is targeted to the previous minimum and maximum daytime schedules.
Many people like to look for the price divergence by using oscillators, or the fifth wave of Elliott - which is either a failed summit or the latest slight bend. This is still the same concept - a double peak, double bottom and testing. This is what is the basis of trade on the movement: Buying on the restoration - the location of where the market to find support, and will go away.
You only need to determine what works specifically for you. There is nothing wrong in a temporary format or another, with one style of trading or other. But keep trading plan, in its head. This will teach you to expect to have a plan to monitor how it works.
The transfer of positions
I am really confident in the transfer of positions to another day. For those of you who trades on intra-day temporary format, if you have a profit on your position at the end of the day, try to move them the next day. There is a high probability that you win. Clearly, one or two times they leave GEPom against you. But people do not care? You stay with a small profit. But there is a high probability that in 70% of cases, you will get more profits, shifting positions on the next day.
How many times have you composed the morning and saw that the market is made at the opening of GEO? And you have to sit and wait until the dust ulyazhetsya. You know as well, where you can enter, along with the market to open above, and you say, "Well, if they want to pay more, well, they will get it - sold!" And the price is usually recedes after a while after that.
As there are "variations"
Here is what the market. You have a lot of different players and time formats in these markets. You have the funds, pools, banks and all that with a lot of money.
On the other hand - all of those who traded in the room. Half of them receive their profits from teak, trading in the market back and forth. The other half usually, one way or the other, closing their positions by the end of the day. These traders skalpiruyut market, earning on that money, in fact, not so much the position of traders among those who traded in the room.
Because of all these different market players there are models of two-three-day fluctuations. Large corporate players can not use this to their advantage, and traders in the room is not interested, but this creates an excellent place to earn a living.
What's happening? The major players know the basic information that their analysts have laid in the market. They know where they should put x number of contracts for x number of days - really long-term plan for the game. They have really deep pockets.
These players are right, ultimately, they have deeper pockets than any of us. They can sit around and buy one after another decline. Maybe three months later the situation will change and they will sit on it, and then they begin to sell, sell and sell.
When the big players are starting to accumulate their positions, this does not mean that the price is going to stay there, just on some level, they start buying. The players in the room see that, for example, "Merrill Lynch" is working on a buy order of 1000. They just know that this will continue, and where the major players, so they start to come and buy a little, while supporting the market.
Suddenly, the price ceases to fall. Since the price is kept, all the people who sell the paper before beginning to collect their money back. Well, the price has stopped falling, so that they begin to pull money that could force the price up a bit. Then it begins to gradually increase. Then some people feel that the price is going to rise, and they start buying.
Around this time, traders are looking at the graphs, notice this increase. However, by the time they decide to send the warrant, other buyers will still purchase and the price will increase further and it has to pursue this motion.
And if there's no one who would like to buy more, the price ceases to rise. It does not fall immediately, but the price stops rising. When traders in the room will feel that the acceleration is weakened and begins to slow down the flow of orders, those who bought the morning when no one wanted to buy - are beginning to pick up their profits. This creates a low pressure sales on the market and people who see the beginning of the weakness in the market, are starting to sell.
Always there are people who bought at the market and selling it. There is a constant demand and supply. There is always support and resistance at each time the format is always someone collecting a profit. Anyone in a long position is required to take the profit or loss, and anyone in the short position is going to be closed at certain price. This is like a zero-sum game! This is - double the market.
Rhythm "variations"
So, I am looking for bottom variations and I think this is the first day. Day two should be the second day up, and on the third day I'm going to sell and go into a short position - to sell and look to roll back the following day. Then I go back to the first day, looking for a purchase.
So, my rhythm is from "buy", "exit", "sales", "exit", "shopping", "exit", etc. Of course, not everything goes so smoothly, but in most cases everything is done that way. I do 90% of its orders in the market, I am not bidding for one or two teak.
Above the foundation / below the top of
As a market test levels? Prices are reduced one day, and traders in the room close their positions. The market finds support at some point, even if small. What I want to do - is to buy when you are testing this support, the market usually gives you.
The market makes V-base only in a minority of cases. Basically, he makes W-base, or multiple testing, sometimes higher and sometimes lower-bases. The tops are very rarely inverted V - rarely the market is straight up and straight down. You get tested, or at least lateral movement or consolidation.
Do not be too troublesome, think about what you want to buy, what, where. Have a little patience, look at what the market is going to do. You can earn a living, just buying at the higher ground and selling at lower heights.
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