What are the downsides or pitfalls of trading currencies?
If economic stats and indicators of many countries are available to anyone (or are they?), why isn’t it commonplace for people to be trading up on different currencies and getting rich? Is it transaction costs alone? What are some other factors that make it risky?
I play around with it (paper trading) and discovered it can go against you very quickly but if you are stringent and wise when setting your stop losses, you can avoid big losses. I myself find it is best to play it safe by trading mini-lots and trading one currency pair at a time. The problem with stop-losses is if you set them to close (say 30 – 40 pips) you will hit them too often and will have a hard time making up the losses. I found the strategy that works best for me is setting very small limits (10 – 15 pips), setting no stop-losses and just waiting it out (it could take a few minutes to reach your goal or a few days). The drawbacks to that strategy is if the trade continues for several days, you’ll have to pay rollover fees, which takes away from your original potential profit and if it goes high against you, you will need a lot of margin to stay in the trade otherwise you will have to take a big loss.
Can someone recommend a good momentum trading course i can go on?
Looking to learn momentum trading.
Any help would be most appreciated.
It’s no secret that in the stock market you can watch certain stocks rise more than 100% within a few minutes to days, regardless of market conditions.
The financial media constantly reports about momentum stocks that are achieving tremendous gains in matter of hours. And even when you can see online traders making $2000 on a single day, it is also not unusual to watch beginner stock investors lose a great deal of cash because of a series of unwise decisions.
The problem is that if you don’t know how to choose among stocks & how to manage the trade, you could end up wasting dollars instead of making your profits grow.
Bogus stock trading software programs and complicated day trading systems that rely on a “boat load” of technical analysis indicators can confuse you and make you slow, and being slow when trading stocks can be as dangerous as not knowing what to do in the first place.
The worst thing that can happen to a beginner stock market trader is to get information overload. It’s better to go step by step, and test a practical trading strategy that can help you focus on simple ways to make money while picking SOLID stock trading opportunities once at a time.
Learn to choose among the hottest stocks and dramatically improve your trading results today at http://www.MomentumStockTrading.com
stock trading strategies?
1. Stock market day trading strategies begin with a plan and the discipline of the trader to follow a plan.
2. Day traders must have a strategy for risk, for money management, and for buying and selling stocks. Success is a result of applying all these rules, not just some.
3. Stock Market Day Trading: Risk Management
Risk management goes hand in hand with money management. Both try to limit the risk among several stocks as a diversification method and try to optimize the return per trade with an optimal bet. Day traders necessarily trade only a few stocks intensively because by the end of the day they must have sold their positions.
3. For details, please read at:
how long can a profitable day trading strategy last?
How often do you have to change your strategy if you want to last more than two decades trading for living if you find profitable one to start with?
I’ve been in the business for over 40 years, I know many floor and in house traders who have been very successfull years after years.
Trading is not always about making money, it also requires to protect the assets they have. Traders do not need to make money on every trade, but most traders have a strong money management plan in place which permits them to be profitable years and years.
All professional and successful traders have four major policies that they follow
1 – A written sound trading/investment plan with rules that will not only help you but more importantly protect you, mostly from yourself. Always use stops either to protect you on the down side or to lock in profits on the up side. Never trade on emotions, when emotions get involved walk away. Don’t try to out-smart the market, you’ll loose but if you always take what the market is willing to give you, you’ll be successful. Other words, you don’t trade against the trend since the market is always right. And NEVER trade on emotions, once you let emotions in your trades you will loose
2 – A written money management program is essential. Remember never invest 100% of your capital into any one security and never have 100% of your capital invested. Never go into a trade without knowing when and where you are going to get out of it. Never let a loss on a trade get greater than 8%-10%, always take you loss and walk away – don’t loose more than you need to and don’t be afraid to take the loss. Remember you never can get hurt taking a profit. Never average down, but you can average up.
3 – Traders must have sufficient trading/investment capital. Use your own money, there’s no need to go into debt so that you can trade and/or invest. Margin can be used but only with restraints, never let the account wall below 45% equity. Unless you fully understand margins you should not use it.
(this does not apply to floor traders)
4 – A full and complete understanding of the rules & regulations of the industry. If your going to play in the game be sure you know the rules of the game and always follow them.
Can you day trade on fundamentals rather then technicals?
I know day traders using technical analysis, but I find that I can do just as well by relying on fundamentals and keeping up with the latest news, I also look at moving averages.
Day trading based on news fall in different category and doesen’t belong to either fundamental or technical style of investing. News based trading is good and there are people who make money by following this strategy.
Trading on stocks which are fundamentally sound is a technique that all smart traders apply. At least here they doesn’t fall victim to sudden crash in prices.
Theoretically one should not practice day trade, but my personal experience suggest that there is nothing like right or wrong in stock markets at least.
Things which work is right. One just has to understand what he is comfortable at. For instance Warren buffett and Peter Lynch both were highly successful but both followed different approaches. Buffett is of the philosophy that one should not hold more than 10-20 stocks in ones portfolio while on the other hand Peter Lynch held more than 1400 stocks at one point of time while he was manger at Fidelity Magellan Fund.
Being 8 years in investing now, I would suggest one should listen to his heart and do what he believes in.
Best of Luck!
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