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3 Day Trading Strategies That Work in 2014

Posted In Business - By Techtiplib on Wednesday, April 23rd, 2014 With No Comments »

Lots of investors and regular people are turning their attention to day trading as an excellent way to gain returns and increase their wealth. For people who are new to trading, it’s important to be well educated on the moves that the top day traders have used to build their success. Many of the most common pitfalls that new day traders fall into can be easily avoided by a little bit of research. The key to finding success at anything is to look at those who have gone before you and to learn from their trials, failures, and successes. There is no reason to try to reinvent the wheel. By studying the strategies of the most successful day traders, it’s possible to save yourself years of headaches and a lot of badly invested money. 

Study their history, investments, failures, successes, and even their habits. Here are just some of the day trading strategies that are currently being used by top traders of 2014.Day trading is not something that is going to disappear overnight. There is no good reason to invest right away. Many new traders will hear about a great option that has become available and feel impelled to invest as quickly as possible. This false sense of “limited time” can be the ruin of any new trader. While these “dream trades” will appear from time to time, an intelligent and well educated trader will avoid any move that seems to be too good to be true. Slow and steady is the only certain way to find success in trading. While it’s possible to make a lot of money from a single trade in a relatively short period of time, your goal should not be to seek out that opportunity. This has been the undoing of many a would-be day trader. In the event that an investment seems too good to be true, it usually is. You have to understand and be able to calculate the risks that are involved. If you are an inexperienced trader, you have twice as much reason to avoid doing this type of trading. Find out who has been successful and what they have done to achieve their success. Study their history, investments, failures, successes, and even their habits. Here are just some of the day trading strategies that are currently being used by top traders of 2014.

1. Range Trading – Range traders will trade sideways moving markets through the use of technical analysis. They identify price trading horizontally between the areas of resistance and support. It is critical that these values are found and comprehended before trading between them. Ranges most commonly occur during an interval of low volatility. The most important benefit of this method of trading is that traders can take advantage of a directionless trading strategy. Range traders will actually initiate the buy orders at support and the sell positions, when the price goes into resistance. In case of a breakout, risk can be completely understood in order to exit ranging positions. 

2. Retracement – Trend traders work to use strong directional market movements to their advantage. A good retracement trader will sit in waiting, before entering the market, until there is a pullback in the trend. Oscillating indicators can be used to help a retracement trader timing. Oscillating indicators utilize overbought and oversold levels to determine the timing of the market moving back towards the trend. 

3. Breakout Strategy – Breakout occurs when the price action rises above resistance or falls below support. Breakouts are oftentimes led by sideways movements or a consolidating pattern. For the more experienced trader, these conditions can be adapted to their trading plan in order to allow them to take advantage of a coming market move by using an entry order during the wait for a breakout. One of the top benefits of breakout trading is that these traders have the capability of trading with entry orders. This allows a trader to set entries to wait to enter the market until a price breaks through a pre-decided amount. The beauty of this method is that the trader does not need to be in front of his or her computer at the time of entering the market. Success is found through an entrance into the market during a price spike that is moving in the same direction as the momentum of the market.

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