Trades - Trading Strategies - Short - Term - Day Trading

http://www.1mtx.com/markets-trades/en/index.php?language=en&menu=TRADES&punkt=Trading_Strategies&punkt2=Strategies&index=Short-Term#StrategiesShort-Term A Trading Strategy is a predefined set of rules to apply. A trading strategy wraps trading formulas into automated order and execution systems. Trading Strategies: Short-Term A Trading Strategy is a predefined set of rules to apply. A trading strategy wraps trading formulas into automated order and execution systems. Day Trading News Playing Scalping Swing Trading more » ...more Links ! ...| Reports | Analysis | Opinions | Comments |... ...Take a Break...Just Relax... Advanced computer modeling techniques, combined with electronic access to world market data and information, enable traders using a trading strategy to have a unique market vantage point. ... » cont. below Latest Updates... Latest Data: Most Active NASDAQ Today's Events NYSE Latest Updates... »» ...Traders, investment firms and fund managers use a trading strategy to help make wiser investment decisions and help eliminate the emotional aspect of trading. Day Trading Day trading refers to the practice of buying and selling financial instruments within the same trading day. Day traders usually (not necessarily always) are closing all positions before the market close of the trading day. Some of the more commonly day-traded financial instruments are stocks, stock options, currencies, and a host of futures contracts such as equity index futures, interest rate futures, and commodity futures. Momentum Traders: This style of day trading involves identifying and trading stocks that are in a moving pattern during the day, in an attempt to buy such stocks at bottoms and sell at tops. Day trading used to be the preserve of financial firms and professional investors and speculators. Many day traders are bank or investment firm employees working as specialists in equity investment and fund management. However, day trading has become increasingly popular among casual traders due to advances in technology, changes in legislation, and the popularity of the Internet. » more (Characteristics: Trade Frequency; Profit and Risks; History) Risk: Day trading is considered a risky trading style, and regulations require brokerage firms to ask whether the clients understand the risks of day trading and whether they have prior trading experience before entering the market. » Day Trading (warnings and tips - SEC.gov) In addition, NASD and SEC further restrict the entry by means of "pattern day trader" amendments. Pattern day trader is a term defined by the SEC to describe any trader who buys and sells a particular security in the same trading day (day trades), and does this four or more times in any five consecutive business day period. A pattern day trader is subject to special rules. The main rule being that in order to engage in pattern day trading the trader must maintain an equity balance of at least $25,000 in a margin account. » Pattern Day Trading Rule (PatternDayTraderRule.com) Day Trading News Playing Scalping Swing Trading more » ...more Links ! ...| Reports | Analysis | Opinions | Comments |... ...Take a Break...Just Relax... ^ top News Playing Playing news is primarily the realm of the day trader. The basic strategy is to buy a stock which has just announced good news, or short sell on bad news. Such events provide enormous volatility in a stock and therefore the greatest chance for quick profits (or losses). Determining whether news is "good" or "bad" must be determined by the price action of the stock, because the market reaction may not match the tone of the news itself. The most common cause for this is when rumors or estimates of the event (like those issued by market and industry analysts) were already circulated before the official release, and prices have already moved in anticipation--the news is already priced in the stock. » Noise trader (wikipedia) Day Trading News Playing Scalping Swing Trading more » ...more Links ! ...| Reports | Analysis | Opinions | Comments |... ...Take a Break...Just Relax... ^ top Scalping Scalping originally referred to spread trading. Scalping is a trading style where small price gaps created by the bid-ask spread are exploited. It normally involves establishing and liquidating a position quickly, usually within minutes or even seconds. Scalping highly liquid instruments for off the floor Daytraders involves taking quick profits while minimizing risk (loss exposure). It applies technical analysis concepts such as over/under-bought, support and resistance zones as well as trendline, trading channel to enter the market at key points and take quick profits from small moves. The basic idea of scalping is to exploit the inefficiency of the market when volatility increases and the trading range expands. Market Manipulation: Scalping in this sense is the practice of purchasing a security for one's own account shortly before recommending that security for long-term investment and then immediately selling the security at a profit upon the rise in the market price following the recommendation. The Supreme Court of the United States has ruled that scalping by an investment adviser operates as a fraud or deceit upon any client or prospective client and is a violation of the Investment Advisers Act of 1940. Scalping differs from pumping and dumping in that a pump and dump does not involve a relationship of trust and confidence between the fraudster and his victims. » more (How scalping works: Playing the spread; Principles) » more (Factors affecting Scalping) Day Trading News Playing Scalping Swing Trading more » ...more Links ! ...| Reports | Analysis | Opinions | Comments |... ...Take a Break...Just Relax... ^ top Swing Trading Swing trading sits in the middle of the continuum between day trading and trend following. Swing traders hold a particular stock for a period of time, generally between a few days and two or three weeks, and trade the stock on the basis of its intra-week or intra-month oscillations between optimism and pessimism. The first key to successful swing trading is picking the right stocks. The best candidates are large-cap stocks that are among the most actively traded stocks on the major exchanges, for example, Intel, Microsoft, and Cisco Systems. In active markets, these stocks will swing between broadly-defined high and low extremes, and the swing trader will ride the wave in one direction for a couple of days or weeks, only to switch to the opposite side of the trade when the stock reverses direction. It should be noted that in either of the two market extremes, the bear-market environment or bull market, swing trading proves to be a rather different challenge than in a market that is between these two extremes. In these extremes, even the most active stocks will not exhibit the same up-and-down oscillations that they would when indices are relatively stable for a few weeks or months. In a bear market or a bull market, momentum will generally carry stocks for a long period of time in one direction only, thereby ensuring that the best strategy will be to trade on the basis of the longer-term directional trend. » more (wikipedia) Risks : There is a risk that prices will break the channel and that swing traders buy or sell at the worst time. » Swing Trading Strategy (theStockBandit.com) Day Trading News Playing Scalping Swing Trading more » ...more Links ! ...| Reports | Analysis | Opinions | Comments |... ...Take a Break...Just Relax... ^ top ...more: Trend following - Contrarian - Range trading Trend following, a strategy used in all trading time frames, assumes that financial instruments which have been rising steadily will continue to rise, and vice versa with falling. The trend follower buys an instrument which has been rising, or short-sells a falling one, in the expectation that the trend will continue. » Trend following (Definition; Considerations; Trend followers). Contraria, a market timing strategy used in all trading time frames, assumes that financial instruments which have been rising steadily will reverse and start to fall, and vice versa with falling. The contrarian trader buys an instrument which has been falling, or short-sells a rising one, in the expectation that the trend will change. Range trading: A range trader watches a stock that has been rising off a support price and falling off a resistance price. That is, every time the stock hits a high, it falls back to the low, and vice versa. Such a stock is said to be "trading in a range", which is the opposite of trending. The range trader therefore buys the stock at or near the low price, and sells (and possibly short sells) at the high. A related approach to range trading is looking for moves outside of an established range, called a breakout (price moves up) or a breakdown (price moves down), and assume that once the range has been broken prices will continue in that direction for some time. Chart example of support and resistance trend lines Chart example of support and resistance trend lines Day Trading News Playing Scalping Swing Trading more » ...more Links ! ...| Reports | Analysis | Opinions | Comments |... ...Take a Break...Just Relax... ^ top » ...more Links ! » ...more Links » Putting Elliott Wave to Work in the Markets (elliottwave.com) » What is the Wave Principle? (elliottwave.com) » Elliott Wave Theory (elliottwavetechnology.com) » Day Trading Strategies For Beginners (investopedia.com) » The Trend is your Friend (tradersedgeindia.com) STOCKS GLOSSARY A - Z Terms - Definitions - Exchanges TRADES GLOSSARY A - Z Terms - Definitions Day Trading News Playing Scalping Swing Trading more » ...more Links ! ...| Reports | Analysis | Opinions | Comments |... ...Take a Break...Just Relax... ^ top ...| Reports | Analysis | Opinions | Comments |... | Reports | Analysis | Opinions | Comments | Grand Strategy There are four broad market participants in theater. They are: Long-Term Investors Position Traders Swing Traders Short-Term Traders To launch successful campaigns, one must first reconcile the basic characteristics inherent to each of the four disciplines, and develop their strategies accordingly. ..." Read more » (by Joseph Russo - Safehaven.com; March 25, 2007) Momentum Trading with Discipline To engage in momentum trading, you must have the mental focus to remain steadfast when things are going your way and to wait when targets are yet to be reached. Momentum trading requires a massive display of discipline, a rare personality attribute that makes short-term momentum trading one of the more difficult means of making a profit. Let's look at a few techniques that can aid in establishing a personal system for success in momentum trading. Techniques for Entry ... Read more » (by Jason Van Bergen; INVESTOPEDIA.com) What are the 5 Biggest Mistakes Traders & Investors Make! Trading against the major trend Holding losing positions too long Exiting profitable trades too early Trading too big Trading too often Why do 90% of all traders make these mistakes? ... Read more » (tradersedgeindia.com - website) Day Trading News Playing Scalping Swing Trading more » ...more Links ! ...| Reports | Analysis | Opinions | Comments |... ...Take a Break...Just Relax... ^ top Financial reporters from major television news networks deliver live updates from the Nasdaq MarketSite Studio. » Slideshow: StockExchange (flickr.com) Take a break... ...Take a Break...Just Relax... NYMEX Floor Trading NASDAQ MarketSite Live Webcam ...just relax... Which is the best strategy? Which is the best strategy? ADVERTISEMENT Day Trading News Playing Scalping Swing Trading more » ...more Links ! ...| Reports | Analysis | Opinions | Comments |... ...Take a Break...Just Relax... ^ top Sources: Wikipedia; Safehaven.com; INVESTOPEDIA.com; tradersedgeindia.com; .1MTX 2007