Day Trading CFDs – What Time-frame is Best to For You?

January 21st, 2011 admin

 

By far the most frequent issue I take note of all over trading Contracts for Distinction is what’s the best time frame when day trading CFDs. Nowadays we’ll check out the 3 most important variables to consider when having your ideal time-frame to trade CFDs.

1.What size wins compared in your losses are you currently just after?

2.Generally use 3 different time frames to trade securely

3.Share CFDs as opposed to Forex or index CFDs. The A variety of time frames to consider

What size wins in proportion for your losses are you after?

One of the most significant and disregarded component to day trading results is identifying the appropriate win:loss ratio or what many people refer to as risk:reward ratio. Each and every day trader needs to possess the notion firmly planted within their brain of how important it can be to find day trading opportunities exactly where the chance of reward would be at least 1.5 to 2 times the size of their risk.

By keeping this ratio firmly planted as part of your head it’s going to make sure you locate superior probability possibilities and totally disregard the really need to trade just for the sake of trading. Trading for that sake of trading not only loses you important money and time it can drain your confidence level towards the extent that you hesitate or are reluctant to leap on any other trade. In light of this you want to choose the time-frame that offers you ample prospect for profit the moment your setup has long been established.

Utilizing 3 various time frames to locate high probability day trades

It truly is important for day traders to possess a success ratio or have the probability of winning in excess of 60%. This comes as a result of trading over a short time frame hence reducing the chance of letting winners run. In order to find high probability set-ups that win more than 60% of the time you would be best to identify short term, medium-term and long-term time frames to put the chance of success in your favor. 

In case you trade making use of a thirty minute chart you’ll be best trading in the direction of the trend and having the 5 minute chart and one hour chart trending in the same direction as your 30 minute chart. The 5 minute chart will indicate the early set up, the hourly chart will make sure you are trading while using the most dominant pattern and also you can use the 30 minute chart to time your entry. The mix of 3 distinct time frames will set the odds of day trading success enormously in your favor.

Day Trading Share CFDs versus Forex trading or index CFDs. What time frames to consider

Based around the variety of CFD broker you employ and the charts they offer you accessibility to, you may find the most beneficial time frame for day trading share CFDs is usually to make use of the an individual minute chart for the initial 35 to 40 minutes, then move to the two-minute chart in the following two hrs and move into the close applying a 5 minute chart. When trading Forex trading or index CFDs you may obtain ample opportunity and liquidity applying anything at all from a one minute chart as much as a one hour chart.

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The Hustles and Bustles of the Swing Trading System

January 10th, 2011 admin

 

 

The society of today is indeed becoming more advanced each day. And in today’s competitive world, almost everybody wishes to put his or her own future into some sort of security.

Venturing into any form of business is one way of alleviating one’s lifestyle and condition. True indeed, there are various kinds of businesses which exist in the business world. But then, the trading system is of course one of the plenty of such kind and which in more ways than one really secures a lot of investment gains.

 

Getting into a trading system is such a fantastic and appealing opportunity. Almost everyone is hooked into venturing into the trading systems since all they think of is to be able to get the highest profit gains. But then again, rushing into the trading system is not that easy. You will need to spend a couple of millions of dollars for the capital and then for such expenses as seminars, tapes, and related courses. Before you plunge into becoming a trader yourself, you’ve got to know the ropes of it first.

Who would not want to be a millionaire? The trading system, when handled properly is by all means a fruitful venture. Now you should not be shocked with the thought that a lot of people are craving to go to several places and trade stuffs. If you want such success to be within your reach, make sure you have the right attitude in managing the trading system business.

Ever heard of the swing trading system? Now this forms part of the numerous types of trading systems present in the business arena these days. The swing trading systems obviously capitalize on the wavering experiences of the prices of stock commodities. Such trading style allows the coming of the returns in a matter of days or in about one up to two weeks. Amazing, isn’t it? Well this is the main reason why there are a lot of people who place great interest on this kind of trading system. Now the swing traders can go on with even short term movements without facing the fear of any tight competition arising from other big industries in the market.

Who can benefit much from the swing trading system? In actual reality, the swing trading system can be employed by any interested party. Moreover the part-time traders or those who are simply working at home can best get satisfied with this system. Why so? It is because unlike the day traders, these part-time and at-home traders are unable to keep a close pace with the day-to-day changes in the market. They are only able to take a glimpse of these things during their vacant schedule. Most of the times, they solely rely on newsletters and email alerts sent by the broker companies.

The best time to adopt the swing trading system is when the market is stable and the prices are not oftentimes fluctuating. When it is done in the best times, there are certainly lower risks and fast returns can be expected at once. Bear in mind that the swing trading system will not prosper in a bearish or bullish market. So you have to be careful in all your dealings with other customers. If you want to end up successful, then get the attitude!

 

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Applying The Best From Swing And Trend Trading

December 31st, 2010 admin

 

Trend trading is a trading approach that offers the potential to reap greater profits by capitalizing on large market moves. There are two main concerns dealing with trend trading; either the market is trending upwards (bull trend) or trending downwards (bear trend). For the trend trader to profit, it is important to correctly identify the trend before a trade is placed.

When it comes to trend trading, once the trade has been placed, the trend trader will usually stay in the trade until such time that it appears the overall trend has changed.

Trends occur at different time frames and can be seen on various time-frame charts. A trend trader, being more a long-term trader where trades usually last a few weeks or more, will likely define a trend from analyzing a daily or greater time-frame chart. Minute charts may be used for fine-tuning entry, they certainly would not be used for determining the trend.

The time-frame of the charts used is very important to the trend trader. If the trend is being defined on a weekly chart, it is the weekly chart that should be used to determine when the trend has ended as well. By doing this, the trader is not exiting a weekly or greater trend just because the trend has changed on the lower time-frame daily chart.

There are many counter-trend moves that occur within a complete trend move. These are usually seen on the lower time-frame charts in respects the time-frame used to define the trend. For example, if a weekly chart is used to define a bull trend in the SP500 market, there will be moves against this bull trend that will be easy to see on a daily time-frame chart. The trend trader would normally stay in a trade even when the market is moving against the position, as it is expected to recover soon if the trend is still intact.

Trend traders often use indicators such as the moving averages to determine when to enter and when to exit. For example, a trend trader may buy when the 50-day moving average is greater than the 200-day moving average, and sell when the 50-day moves below.

For most traders, staying in a trade when the market is making a move against the trend direction is difficult to do. You really have to stick to your guns and avoid reacting to the market as it moves to erode your accumulated profits if you want to be successful as a strict trend trader.

The other type of trader to consider is the Swing Trader. Swing traders usually trade off the daily time-frame or lower (minute charts). Swing trading is all about following the market’s most likely current direction. For new traders, swing trading can be a more effective approach due to the shorter period of holding a trade and usually less exposed in risk capital. Swing trading is considered by many to be an easier and less stressful way to enter the markets.

The swing trader will usually go long when the short-term market is confirming a swing bottom and looking to move up, and going short when the market is confirming a swing top and looking to move down. Thus while the trend trader may be holding a long based on a bullish weekly trend, the swing trader could be either long or short during this same period because of the direction the market is currently moving in the lower time-frame.

With trend trading, the cons are clear. You must allow for possible large moves against your position when the trend is in a counter-trend phase. With swing trading, the cons are also clear. While the overall market is trending in one direction, the swing trader will at times be trading against this trend which is often wrought with greater risk than trading with the overall trend.

Therefore, when considering the negative aspects of both trend trading and swing trading, why not simply use the best of both?

In order to do that, it is important to determine first the overall trend direction much like the trend trader would do. So if you do so based on moving averages as in the earlier mentioned example, then all your trades should only be in that direction. Therefore, if the trend happens to be bullish, take long trades off swing bottoms and look to exit off swing tops rather than shorting them.

Several years ago I wrote a training document called the Guidelines that does just as I have described in this article. We first identify the current weekly trend based on the most recent formation of a weekly swing top or bottom in relation to previous weekly swings. Once the direction is determined, we look to only enter the market going ‘with the trend’.

While swing traders will usually apply two or more indicators in an attempt to determine when the short-term swing is occuring, I like to use mathematically calculated ‘turn dates’ that provide the date as to when these swings are most likely to occur. Once this is known, we simply allow the market to confirm the swing which signals the trade entry.

Note these words found on page 11 of the book “How to Make Profits Trading Commodities” by W. D. Gann.

“THE BEST WAY TO TRADE: The most money is made by swing trading, or in long pull trades, that is following a definite trend as long as the trend is up or down…Wait for definite indications that it is going higher or lower, before you take a position for a long pull trade…get out when you get a definite indication that the market has reached a turning point and that the trend is changing.”

So in order to get the most of your trading and to keep your risk as low as possible, look to determine the overall trend first and then only trade off swings in that direction.

Rick Ratchford is an analyst, trader, author and speaker specializing in the forecasting of market tops and bottoms in the Futures and Commodities, Forex markets.

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What Makes Forex Swing Trading So Popular

December 21st, 2010 admin

 

 

Forex swing trading is a very popular form of currency strategy that is widely used by beginning as well as experienced traders. It is a strategy that requires the trader to open positions for between ten and fifteen days. Each trader will define Forex swing trading in different ways and there will also be variance in the duration that a trader holds their position.

 

Capturing Reactions

Forex swing trading aims to capture reactions within important trends (which can be bearish or bullish) with a view to seeking and take full advantage of trades that generally stay open for few days or an entire week. This makes this form of trading a short term method.

 

Basics of Forex Swing Trading

This form of trading is generally carried out between two different levels: support as well as resistance levels that are known to exist within a key trend. Traders will need to keep a very close watch on the prices which can move in support or in resistance and then by taking an opposite viewpoint they can execute signals in the opposite direction.

 

Confirm a Swing Trade

It is important for the trader to not just take a position and then wait for support/resistance levels to hold. Instead, they will need to look for confirmation which means acting on turns and waning price momentum shifts that confirm either support or resistance will hold after which they will only need to execute trades based on these holding positions.

However, true swing trading is more about looking for range patterns than depending on trends. In fact, the trader will be looking for formations that can either be consolidation or even continuation and they are sure to exploit in a safe manner.

As and when prices start to swing between the two different ends of a range within a defined formation, the trader can exploit these movements and earn profit in the short term and must exit as soon as the formation shows signs of breaking down.

 

Safe Trading

Forex swing trading is safe because the trades are executed over a short period of time. As the trader looks to find a range pattern that they can exploit, there is already an established maximum amount of profit or loss that they will be dealing with. In the absence of shocks, they can control the amount of risk they take as well as the amount of reward that they can earn.

It is also important that the trader learns to place stop loss orders which have to be placed behind resistance/support levels. The trader must also operate with the help of a fixed target in mind. This target must generally be a little above the resistance and/or support that lies in the same direction in which they are making their trades. As soon as the prices reach the target level, the trader will then book their profits.

Swing trading is best suited for use when conditions are volatile and when the trade is done in liquid currencies. The EURO, British Pound, Yen, Canadian/Australian dollar and the Swiss Franc are ideal currencies in which to trade with the Euro and YEN being worth focusing on.

Other factors that need to be taken into account before entering into Forex swing trading include impact of commission and lastly be sure to keep things as simple as possible.

 

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Best Forex Trading Indicator for Swing Trading

December 11th, 2010 admin

Best Forex Trading Indicator for Swing Trading

 

Here we will look at the best forex trading indicator for swing trading this is for trading into overbought / oversold areas within the major trend. Here we will look at how to do this, with the stochastic indicator and show you a simple powerful method for big profits.

Swing trading is easy to do, logical and easy to understand and can be very effective. The stochastic indicator combined with valid support and resistance gives you a robust simple strategy you can learn quickly than can be highly effective in making big forex profits so here it is.

 

An Introduction

George Lane developed the stochastic indicator which was based on the premise that in an up-trend, prices tend to close near their highs and of course in a down-trend the reverse occurs, prices tend to close near their lows.

This simple logic is the basis of the stochastic indicator but despite its simplicity it’s a powerful tool.

The stochastic should, in our view, be used in association with areas of support and resistance and be used to enter positions when price momentum wanes in an up-trend below resistance and strengthens in a down trend above resistance.

The Mathematics

If you are technically minded, the stochastic calculation is outlined below. If you are not don’t worry, as most major chart services plot the stochastic and you can simply see the set ups visually – here it is:

The stochastic is plotted as two lines %K, a fast line and %D, a slow line.

The %K line is more sensitive than %D

The %D line is a moving average of %K.

The %D line then triggers the trading signals.

The lines are plotted on a scale of 1 to 100.

“Trigger” lines can be drawn on stochastic charts at the 80% (overbought) and 20% (oversold) levels. A signal is then generated when the stochastic lines cross.

The Stochastic can help you enter trading signals in a number of ways and here we have outlined the 3 major ways you can use it in a swing trading strategy.

As an Overbought Oversold

When the 20% and 80% trigger lines are crossed look to do the following in terms of initiating your trading signal. Take a long position and buy when the stochastic moves below 20% and then rises above this level. On the other hand take a short position and sell, when the stochastic rises above 80% and then comes back below this level.

Stochastic Crossovers Against the Trend

This is a highly reliable signal

You can buy when the %K line rises above the %D line and sell when the %K line falls below the %D line.

The most reliable or high odds crossovers occur when the %K line intersects after the peak of the %D line.

Stochastic Divergences

Divergences between the stochastic and the underlying price trend warn that a potential price change is on the way and are a great leading indicator for your trading signals.

For example, if prices are making a series of new highs and trending upwards and the stochastic moves lower or crosses to the downside then price momentum and velocity is weakening and the reverse occurs of course in a bear market.

Why It Works

The reason it works and we consider it the best forex technical indicator for swing trading is based upon human psychology.

A long term price trend does not just go in a straight line – there are peaks and troughs along the way. Forex traders will push prices to far too quickly and prices then return back to fair value. It is these moves within long term trends, that swing traders want to catch – so by combining the stochastic with simple support and resistance is very effective.

If you are new to forex trading then swing trading with the stochastic gives you a simple method which works and the stochastic is the best forex technical indicator to use and while there are others, using the stochastic wisely, with support and resistance lines, can make big consistent profits.

 

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Swing Trading for Beginners

December 1st, 2010 admin

Swing Trading for Beginners

 

Here we want to outline why swing trading is an ideal form of trading for novice traders and those who lack patience.

Many forex traders look at long term trend following in forex and think that it is the most lucrative way to make money, after all the big currency trends last for weeks and months and if you can lock into and hold them, then you can make stellar profits.

The problem is:

Most traders are not mentally equipped to do this and cannot get the right mindset to trend follow. Swing trading can be just as profitable and for beginners in particular, swing trading is the better place to start.

Lets look at why.

Long Term Trend Following V Currency Swing Trading

The hardest form of trading to master not from the point of view of method – but from the point of view of adopting the right mindset is long term trend following as we have just stated.

If you look at any Forex chart, you will see Forex trends that last for months or even years yet, only a small minority of forex traders have the discipline and correct mindset to hold these trends and milk them for their full profit potential.

All traders want to make big gains but capturing them is the hardest bit.

If money is important to you, (as it is to most forex traders) then your emotions will be present and they will play havoc with your discipline, in your quest to hold these trends.

When counter trend moves come, they will reduce your open equity profits (sometimes by thousands of dollars quickly) and the losses in open equity can frighten you to take profits early.

Most traders get excited and nervous when they get a profit and the bigger the profit gets; the more tempted they are to bank it before it gets away. Most forex traders end up banking early and getting a small or marginal profit, when they could have had a huge profit.

That is why swing trading for beginners is the best strategy to try first – it requires less discipline and is less demanding, in terms of your mindset and attitude.

 

Swing Trading for beginners Advantages

The aim is to catch reactions within major trends which normally last around a week and profits can be taken quickly.

Swing trading forex trends is exciting, there are plenty of trades and you know if you are right or wrong quickly – this makes it easy on the mind and psychologically better for most forex traders especially novice traders.

Swing trading is the best form of short term trading that works. Day trading sounds great in theory – but in practice does not work as the data is not valid, whereas it is in swing trading.

We have all ready given the basics of what swing trading for beginners is and in this section why it is a great method to trade and can be very profitable part of your forex trading strategy.

Next we need to design a forex trading system for swing trading and this is simple:

You can get a swing trading system together in a few days – that is robust, offers great risk to reward and is easy to understand, so you can execute your trading signals with confidence and discipline.

Now we are going to look at building a swing trading for beginners system – so click the link here swing trading in forex and let us get started.

 

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Swing Trading in Four Simple Steps

November 21st, 2010 admin

 

Here we are going to look at swing trading in forex from the standpoint of building a simple forex trading system, based on catching swing trades which is easy to understand, easy to apply and even better, can make big forex profits.

Here is your guide to a swing trading in forex with a system designed to make regular capital gains, whilst at the same time keeping losses to a minimum

Step 1 – Spot Support and Resistance

You need to use trend lines and spot areas of support or resistance to trade into.

 

Look for 3 tests or more – the more tests there are of course, the more valid and important the level will be.

Now you have spotted the opportunity, you need to time your trading signal and correct timing is crucial to success.

Step 2 – Trade with Price Momentum

Many traders simply like to go short into resistance or long into support, as it’s tested but this will never work.

If you do this, you are guessing or hoping the level will hold and the market will not reward you for this.

You don’t have the odds on your side and you will end up a loser.

With swing trading in forex (or any other method of trading for that matter) you need to trade the odds and get them in your favor and this means getting confirmation. You need to trade with confirmation of price momentum on your side BEFORE you execute your trading signal.

You therefore need to wait for a test of support or resistance.

Then Wait

Watch for the currency to turn away from support or resistance with accelerating price momentum and THEN execute trade.

You are trading with price momentum and the odds are in your favor.

Sure you won’t catch the turn exactly and you miss a bit of profit – but if you trade this way and grab 60- 70% of the potential overall profit, you will make a lot of money and this is the aim of any forex trading system.

Which Indicators Are Best?

Try these:

The stochastic and the Relative Strength Index (RSI) as a good pair to start with.

We don’t have enough time to explain them in detail here – but these are superb momentum indicators.

There are many others – just pick and choose a few you like best but don’t use too many – up to 3 is fine.

When swing trading in forex, your system should be simple and robust – if you complicate it you will lose, as there will be too many elements to break.

Step 3 – Stop Reverse on Breakouts

For example, if you are trading into resistance that is at a market high, you may want to use a stop reverse upon a break.

Most major trends start from new market highs NOT market lows.

If prices break out go with the break.

The initial breakout of strong resistance, will see stops hit and new trend followers kick in and by taking the turn, you can go with this momentum.

Be careful – you should only do this into strong resistance that is considered valid by the market participants. This will ensure you don’t get caught trading false or weak breakout trades.

Step 4 Take Profits Too Soon

When swing trading in forex, your profits can disappear quickly, so you need to make sure that you get them in the bank, when the risk reward is in your favor – before recoil in price sets off a counter move.

Take your profits early and by this we mean.

BEFORE they test the next level of support and resistance.

Your aim is to “hit and run”, the closer the trade moves to a target the more chance you have of a reversal so get out early. You may miss some of the move – but as we said earlier (on getting into the trade) that doesn’t matter – your aim is 60 to 70% of the overall profit potential.

If you can do this regularly, you will make you a lot of money and ensure your forex trading strategy is successful over the long run.

Other points in relation to a successful swing trading method we covered earlier in other sections – but their important so to repeat:

Only trade liquid, volatile major currencies and pick a broker that offers you tight 2 – 3 pip spreads, so they do not impact on your overall forex profits.

A Simple Way to Make Big Profits!

Swing trading in forex is simple to learn, easy to apply and requires far less discipline than longer term trend following. It’s also exciting, fun and ideal for either novice traders or seasoned market veterans – learn and enjoy forex swing trading today

 

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What’s Fibonacci Forex Trading?

November 11th, 2010 admin

Fibonacci forex trading is the basis of many forex trading systems used by a great number of professional forex brokers around the globe, and many billions of dollars are profitable traded every year based on these trading techniques.

Fibonacci was an Italian mathematician and he is best remembered by his world famous Fibonacci sequence, the definition of this sequence is that it’s formed by a series of numbers where each number is the sum of the two preceding numbers; 1, 1, 2, 3, 5, 8, 13 …But in the case of currency trading what is more important for the forex trader is the Fibonacci ratios derived from this sequence of numbers, i.e. .236, .50, .382, .618, etc.

These ratios are mathematical proportions prevalent in many places and structures in nature, as well as in many man made creations. Forex trading can greatly benefit form this mathematical proportions due to the fact that the oscillations observed in forex charts, where prices are visibly changing in an oscillatory pattern, follow Fibonacci ratios very closely as indicators of resistance and support levels; maybe not to the last cent, but so close as to be really amazing.

Fibonacci price points, or levels, for any forex currency pair can be calculated in advance so that the trader will know when to enter or exit the market if the prediction given by the Fibonacci forex day trading system he uses fulfills its predictions. Many people tries to make this analysis overly complicated scaring away many new forex traders that are just beginning to understand how the forex market works and how to make a profit in it.

But this is not how it has to be. I can’t say it’s a simple concept but it is quite understandable for any trader once he or she has grasped the basics and has had some practice trading using Fibonacci levels along with other secondary indicators that will help to improve the accuracy of the entry and exit point for every particular trade.

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Short Selling – An Overview

October 27th, 2010 admin

 

‘Shorting’ or short selling refers to the selling of a contract, a bond or stock or a commodity that is not directly owned by the seller. When practicing short selling, a seller is committed to purchase the stock or commodity previously sold.

Short selling stocks means to take the stock from a broker on loan and sell it off to an individual else. This is done so that the seller buys back the stock, when the price falls. The shares are returned to the broker from whom they had been initially borrowed. The shorting profit or the difference in price goes to the seller. Short selling of stocks is really a method employed by investors to capitalize on a probable decline in the stock price.

To realize this far better, let us consider a organization, say, ABC whose shares currently sell at $12 each. A short seller borrows 50 shares of ABC and then sells those shares to someone else at $12 per share, for a total of $600. Now, if in future the price of shares of ABC falls to $10 per share, this short seller would then acquire back those 50 shares at $500 ($10 multiplied by 50 shares), send back the shares to the original owner/broker and make a profit of $100.

Short selling is risky, if the price per share goes up instead of declining, as expected. Suppose the price per share of ABC goes up to $15 per share, then the short seller will need to cash inside the previously sold 50 shares at $750, return the shares to the original owner and incur a loss of $150.

Shorting is really a transaction accomplished on margin. Most brokers don’t agree to short selling stocks below $5. This enables the investors and short sellers to indulge inside the high-risk trading of stocks.

Some of the following marketplace situations may help to predict a fall in price of stocks: -

- Market indexes coming near the prior resistance levels.

- Market trend showing technically overbought levels.

- Restlessness just before the announcement of a state’s government.

- Market vulnerability throughout scandals.

Huge volume selling of stocks typically result in short-term high profits. However, you can find specific guidelines to be followed for effective short selling. They’re:

- All stocks are not ‘short’ able. Typically, brokers inform a seller regardless of whether a stock could be employed for short selling or not.

- Sellers need to open a margin account for short selling. This depends on the minimum balances and money reserves. Sellers are needed to sign a contract agreement with the brokers to open a margin account. This agreement clearly states that a seller will follow the rules and regulations stated by the broker.

-Target bad-performance, overpriced companies, since the probability of a fall in the share price involves lesser risk.

- Traders and short sellers ought to use stop orders to protect their capital from loss. Typically, brokers stop a seller from suffering loss that is higher than the principal. They might either compel the seller to quit the transaction or they could deposit funds to improve the seller’s capital.

The short selling of stocks involves a great deal of discipline. Sellers need to be proactive, alert and disciplined when shorting stocks.

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Avoid Trading The Wrong Market

October 20th, 2010 admin

 

If you know the pitfalls of trading, you can easily avoid them. Small mistakes are unavoidable, such as entering the wrong stock symbol or incorrectly setting a buy level. “But they are forgiven, and with luck, even profitable. What you have to avoid is the mistake due to poor decisions and judgements rather than simple errors. This is the “fatal” error that destroys the entire trading careers instead of just one or two trades. To avoid these pitfalls, you have to watch yourself closely and stay diligent.

Think of trading mistakes like driving a car on icy roads: If you know that driving on ice is dangerous, you can avoid traveling in a sleet storm. But if you do not know about the dangers of ice, you can run as if there was no threat, only to realize your mistake when you’re already off the road.

Too many traders are stuck on a single market. They can only trade FOREX USD EUR, or the E-mini Russell, or the E-mini DOW, or only certain stocks, etc. While they may feel a certain sense of competence or mastery over this market, no one, no matter how experienced they are, predict what will happen all the time. These people set themselves up for disaster, as it inevitably will come a time when they will make a mistake. And without diversity in their business, they will lose everything they have worked so hard to win.

The essential factor to selecting a market is not looking for one you seem to understand better than the others. There will always be something of an illusion. But there is one market, you can always depend on: The one that moves. You know you should buy if the market goes up and sell when the market goes down. A moving market will always be profitable, even if you’ve never traded a single share there before.

Pay attention to the trend lines, both in the markets you are trading and the markets you are considering. If one of your markets is consistently choppy or just moving sideways, get out of it and move on to another. If you think of successful trading is mostly important linked to trending markets rather to a market, because with a trend, whatever market you are in, so you’re thinking successfully.

The key, of course, is that you have to keep an eye on the markets where you are not currently trading. Keeping your options is just as important as watching what you’re familiar with. This is where research and experience come into play. Learn in a number of markets (and how to find out about them) takes time. But do not let that discourage you. Nor feel you have to understand each option at the very beginning. Pick some different markets to actually trade, but also choose some just to look at. That way you can see how your trades are working and you can also compare this activity to markets you may not know much about (yet).

The only way to learn about what markets are good and bad for you to see them. When you watch a variety of markets you will acquire the knowledge you need to use when it is time to shift gears and find the elusive movement trend.

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