Technical Analysis Explained




Risk – What is it in Relation to the Market?

Every time a trader takes a trade, that trader takes on risk. Risk must be well defined and understood. This means that you must know why you are making the trade and you must know at what point during the trade that you will get out. Most people in the market do not look at each situation in that manner.

Trading Trends – Knowing When to Enter and Exit

Entering a trend early in the first few days allows you to enter when the risk is lowest. Entering a trend when it is already weeks or months old raises the chance of your getting on when you should have been getting off. The difficulty in trend trading lies in identifying when a trend has started and knowing when to get off quickly when the trend is over.

Swing Trading – The Best Indicator That Tells Whether the Security is Trending Or Ranging!

In swing trading you need to know whether the security is trending so that you can apply the right indicator. It is very important for you to apply the trending indicators to the trending market and non trending indicators to the non trending market. So the first important question that you need to ask before swing trading is whether this market is trending or not.

How to Trade Pivot Points

I think the most important fact, yes I said fact, regarding pivots points is they are a prediction of future support and resistance levels. The key word in the previous sentence is “prediction” and traders should keep that in mind when trading pivot point systems. I have always been conflicted as to why pivot points (PP) become important throughout the course of the day. Most traders begin their day by plotting pivot points onto their chart.

Options Trading – Education Advantage

Once thought to be the sole domain of the highly skilled, professional investors and traders, today more and more private investors and traders are entering the options market. For those who have the right education and mindset options trading can become their main source of income. Options trading offers a series of interesting and profitable alternatives to normal share trading.



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