Surprisingly, many traders do not even imagine how to work a good trade. They instead go after the market, hoping to earn on the latest news or views of various analysts. This approach may work for short periods of time, but will, ultimately, lead to very large losses.
Image pricing models are the mechanical language of market forecasting. Take the time to explore their inner work, because they show the nature of opportunity. In other words, they tell us when to sell, how to trade and why trade should operate.
Here are 15 ways to manage opportunities through price graphic models:
1. First of all, learn the classical models to recognize them immediately, at any price schedule. These models describe the broad, predictable forces that affect all time formats and offer a good deal. Then move on to more original and complex models.
2. Traded on models that correspond to the current market phase and reduces the size of the positions where the forces are in conflict. For example, most models fail to be a breakthrough in the weak market, regardless of how nice they look at the price chart.
3. Models predict the subsequent motion, since they show the desire to crowd. They point to the time and direction, because the behavior of the market crowd is generally a desire to market to key intersections. Models lose their effectiveness when the market crowd, finally, to understand the prevailing mood of the market.
4. Opportunity may be multifaceted. Popular models, such as head-shoulders at the top, capturing the attention of traders, but the graphs show the many lesser-known predictable formations. Since these models did not raise the interest of market crowds, they are reliable for a longer period of time and less susceptible to rapid spread.
5. Ideal model is rarely appear in the current market environment. Learn to effectively operate in a "cross". Conversely, no gonites for each intersection of the rolling average for both the main signal and distinguish the wanton umeyte candle combination, as set out in textbooks of really applicable in practice.
6. Recognition of graphical models does not work for everyone. Some people learn much more benefit, building a trading system or carefully analyzing your balance. Avoid mixing systems and the uncontrolled trade in a strategy, because they are not very well combined.
7. A good trading model does not gives any signal as to when to sell or when to stand aside. She points to the coincidence of time and direction, which should lead to predictable movements in appropriate circumstances. This is a task for the trader - use the right tactics, which brings a good profit, if the model works, and protect the balance of trade from large losses if the model fails.
8. There is no single unequivocal method of trading for any model, and no market situation will not pass on the same path twice. The chosen strategy of trade should be expected to use the opportunity in the management of unexpected risks.
9. Spread each model in the category as the original or classical. It predicts the level of involvement of the public and the potential for rapid spread. Dismiss the strategy to a more defensive situation, where a large crowd at a popular selling model. Consider the possibility of movement in the other hand, if the model fails, or stand aside and let other traders initially risking their capital.
10. Log in to the model before it will develop, where possible. The risk remains low until the price has not been raised or not spread, providing signals for all other players. Early entry allows traders to open positions with low risk while waiting for more movement when the model becomes apparent.
11. Always know the time. Time eventually turned against the model, if the price of just sits there. Technical indicators are beginning to turn, and the model could have degenerated into a lot of unpredictable price bars. Wisely choose the levels of entry and exit immediately if the model deteriorates.
12. Be patient, after the model launched without you. Focus attention on a possible entrance in the back and be prepared to stand aside if the market starts to run. Trading on the back must be seen, based on its own merits after the breakthrough model. Keep in mind that many models predict only one price fluctuations, and the potential gains to evaporate after the first movement.
13. Make sure your installation at the entrance to the market consistent with the natural tendencies of time. Do not miss significant periods of movements caused by fundamental news, and other objective factors, consider the natural periods of greatest activity and low, the output in different markets, seasonal periods of recession. And do not get to conduct a market azhiotazhnoe crowd after weekends and holidays.
14. Models should be consistent with the distinct levels of support or resistance. Use multiple formats temporary, to confirm that a large picture of the market does not contradict this possibility. Check the basic Moving averages and technical indicators to identify the divergence that may damage the trade.
15. Determine the level of the entrance to the market with low-risk targets for profit and stop-order for each model. Consider the impact of the failure model for each new installation of the entrance to the rynok.Kogda price goes in the wrong direction, it can yield a greater profit than if the expected result.
www.hardrightedge.com
No comments:
Post a Comment