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Thursday, 24 June 2010 07:05 |
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Everyone knows that before making the first deal a person must have a trading plan or in other words he should know when to enter a trade, when to quit it and when to stay out of the market. These three points are determined by chosen type of analysis that you prefer.
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Frankly speaking, it is not crucial which method or principle you will use to define direction of price movement. Just pick the one you think is the most suitable for you personally. This may be a combination of different methods either. There is no Holy Grail among all of them that is the best and has 100% profitability. If it existed, somebody would have earned all the money in the world already. |
Your chosen type of technical analysis serves only as an instrument of creating your plan of buying low and selling high. There should be no gambling and emotional decision making but only determined signals. And you know that your plan is good if more than a half of your trades are successful or at least you get more profits than losses. But just don't expect to find ideal trading strategy which is right all the time. You can't avoid failed trades completely. Sometimes dozens of signals of different trading theories tell you that the price will grow but the next minute it falls. However, we can expect that these signals work in, let say, 75% of cases that makes them valuable.
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As was mentioned before, you have to create all those three rules which will tell you when to buy, sell and simply watch. This process will take some time and certain efforts of your brain but everything depends only on you. After that you have to test and improve your plan. This process usually never ends. Analyse all your failures in the market and make changes in your trading. It doesn't mean that it is necessary to change the chosen type of technical analysis. Take a large amount of trades and calculate the percentage of good and bad deals as well as gained profits and losses. If you see that overall you lose money, then your trading signals need to be revised until you get positive results in the market. |
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Tuesday, 15 June 2010 06:46 |
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Yesterday's bar of Brown & Brown Inc (BRO) broke the resistance line of the channel where the stock was fluctuating during the last several months. This may become a proper moment for CFD trading. |
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Saturday, 05 June 2010 18:05 |
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The latest price movements of Agree Realty Corp (ADC) may be intersting for speculators with bearish sentiments and their CFD trading strategies. The stock experienced a sharp fall not so long ago and then moved up to the resistance line shown on the chart below. |
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Sunday, 30 May 2010 20:06 |
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After a break for a couple of weeks we continue to analyse the market searching for "tradable" stocks (CFDs). Today is time to pay attention to Res-Care Inc (RSCR) and signs on its daily chart presented below by CFD Dealing. |
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Wednesday, 09 June 2010 20:39 |
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The last trading session of Bancorp Rhode Island Inc (BARI) can be characterised like a total sell off. After uncertain fluctuations in May the stock left that zone and even created a gap from the yesterday's closing price. See the chart below provided by CFD Dealing. |
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Wednesday, 02 June 2010 13:09 |
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Price consolidation usually gives us a signal about further movement of a stock which can be defined after the price leaves the consolidation zone, especially when it happens in the form of Triangle. Hershey Co (HSY) demonstrates this case. See the chart below. |
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Saturday, 08 May 2010 18:13 |
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RealNetworks Inc (RNWK) performed a sharp decline the last two months. Recent sell-off, experienced by the whole stock market, led RNWK further down to its weekly trendline and now it is time to watch this stock closely. See the charts below. |
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