Consistent profit is something all traders want and so wonder if it is really true that learning this ten minute swing trading strategy can help you do this?You would think that to make a fortune you would need to put in hours and hours of hard work a week, but there are many stories that disprove this, showing how traders can make a fortune without putting in these hours. Instead of looking to make a profitable trade within a short 24 hr basis, swing traders will look to do so on a weekly basis. This makes it possible to have a daily 10 minute swing trading strategy.
Day trading can take up a lot of time, which is why swing trading can open up so many advantages for among other things, it saves you a lot of time. The swing strategy can really save you time, ensuring that you spend minutes instead of hours at your computer. You have to become many things when trading, one such thing is disciplined.Trading everyday can actually do more harm then good and this is something that new traders must realise.
You can find many trading courses online that all claim to have the best strategy, but a new course is due for release in early November, called Ultimate Swing Trader, may well prove to be the best yet.
For right now, we should take a closer look at the art of swing trading
With this in mind you should start by taking account of the time you spend on trading.Failing to make a consistent profit is more often than not caused by the fact traders are over trading. Too many traders want action constantly and so jump head first again and again into trades without thinking.What happens next can change in a number of ways. Many traders end up losing more and more money when they try to win what they have lost back, which most obviously is not the best way forward. Or worse still they give up all together!
As having self discipline is vital for traders, it is a real bonus that you are taught this.Day trading can mean that you never get to leave your screen whereas swing trading means that you only have to check your charts at certain times. As simple as it sounds, trading at one time of the day is actually fairly hard at first, but you will teach yourself excellent discipline.
For more information on swing trading and a closer look at the new 10 minute strategy please read my Ultimate Swing Trader review.
It is widely known in the currency trading world that the trend is your buddy and any currency trading strategy based around following a trend, like No Loss Robot, is probably going to be both simple and effective.
It is easy to make trend lines on any currency exchange chart, but most folks prefer to use candlestick charts for this because the candlesticks are such a clear visual signal. When trend lines are forming, you may use them as a signal to sell or buy the currency pair.
Step one in using trend lines for a foreign exchange currency} trading technique is to ascertain whether the market is rising, falling or is stable inside certain parameters. Of course there will always be fluctuations, but at certain times you’ll see clear patterns.
1. If the price is going up
If the price is going up, first draw a straight line thru the highest highs on the chart. This line will be sloping upward. Then draw another line thru the lowest lows on the chart. If this line is also going upward and is roughly parallel to the 1st, you have an rising trend.
You can then use these two lines as support and resistance lines. This means that you can assume that while the trend continues, the price will remain in the area between these 2 lines. any time that the price hits the top line you might sell, on the presumption that it will fall back. In a way this strategy means going against the trend, but you would only hold that position for a little while.
or, any time that the price hits the base line you might buy, on the assumption that it will soon rise again. In this case you follow the trend which is frequently a better strategy. However, you should bear in mind that there will at some particular point be a true reversal and you may be caught out by this.
2. If the price is falling
If the price is going down, you can follow a corresponding methodology to the prior system. The lines you draw will be going downward but you would still buy when the price hits the lower line and sell when it hits the upper line.
3. If the price is stable
If the price is actually not going anywhere, then the lines that you draw thru the highest highs and the lowest lows will either be horizontal and parallel to one another, or they’ll be converging ( drawing closer together ) or diverging ( drawing apart ). If they’re horizontal, you could use them as support and resistance lines in the same way. If they’re diverging, it’s not a fun time to trade. Wait for a trend to form.
If the lines are converging, they may indicate a breakout. In this example you should not treat the lines as support and resistance lines but wait for the price to go beyond either of them and continue in that direction. So if the price breaks above the higher line you would buy, expecting it to continue in that way for a bit. Equally, if the price breaks above the lower line, you would sell.
Like all forex systems, these aren’t warranted. There is always a chance of trades going against you, so you should check your signals against other indicators and always use stop losses. Always try the system in a demo account before going live. These steps will help you to develop a successful currency trading plan.
Bonds are one of the main stream types of investment along with stocks and real estate, and if you want to learn how to trade bonds make sure that you get a good education in the subject 1st. There are certain things you must understand about bonds before you start investing in them. Not fully understanding these things may cause you to purchase the wrong bonds, at the wrong maturity date.
Like all investments it is important to learn about what you are investing in, and certainly don’t just take the advice given to you by a bond seller without checking it out 1st yourself. The three most important things that must be considered when purchasing a bond include the par value, the maturity date, and the coupon rate.
The par value of a bond refers to the amount of cash you will receive when the bond reaches its maturity date. In other words, you will receive your initial investment cash back when the bond reaches maturity.
The maturity date is of course the date that the bond will reach its full value. On this date, you will receive your initial investment, plus the interest that your money has earned.
Corporate and State and Local Government bonds can be “called” before they reach their maturity, at which time the corporation or issuing Government will return your initial investment, along with the cash that it has earned thus far. Federal bonds can not be “called”.
The coupon rate is the interest rate that you will receive when the bond reaches maturity. This number is written as a %, and you must use other information to find out what the interest will be. A bond that has a par value of say 00, with a coupon rate of 5% would earn 0 per year until it reaches maturity.
Because bonds are not issued by banks, many people don’t fully understand how to go about buying one. There are 2 ways this can be done.
You can use a broker or brokerage firm to buy them for you or you can go directly to the Government. If you use a broker, you will more than likely be charged a commission fee. If you want to use a broker, you should shop around for the lowest commissions!
Purchasing directly through the Government isn’t nearly as hard as it once was. There is a program called Treasury Direct which will allow you to buy bonds and all of your bonds will be held in one account, that you will have easy access to. This will allow you to avoid using a broker or brokerage firm.
More advanced traders may try to buy and sell bonds to take advantage of the price movements, you can even swing trade them. But this is a very risky business if you don’t know what you are doing, you will need to take a swing trading course if this was something that wanted to, but again most people just buy and hold.
Although it may seem obvious to most stock market swing traders there are a number of simple rules that you can follow which will ensure that you have more success when buying stocks:
In the USA stock market there are 3 major indexes which are each made up of a basket of stocks, they are the S and P 500 (also known as the S&P500), the DOW 30 and the Nadaq 100. These indexes generally only contain major blue chip stocks, as long as you buy from these 3 groups you will at least know that you are getting a well known solid stock.
For example the DOW 30 contains major industrials and large multinational stocks such as Home Depot (HD) and Johnson and Johnson (JNJ) whereas the Nasdaq 100 mainly contains techical companies such as Apple (AAPL) and Miscrosoft (MSFT).
Always buy a stock that is liquid, this means that it is a highly traded stock, this will enable you to quickly buy and sell at the price you want without having a delay. You will also get a smaller spread, thats the difference between the BID and ASK price of the stock. For a stock to be considered highly liquid it should trade at least 500,000 shares per day, ideally even more.
It is best to avoid stocks that are bellow as this usually means the company is in trouble, although with the bear market of 2008 there have been a lot of good stocks at bargin prices between and . Avoid buying a stock below at anytime.
Another consideration is options, does the stock has options?, this will be important if you want to trade options around your stock, such as a covered call, or you may want to buy a PUT option in order to protect your stock.
Be very cautious about buying a stock just before it’s earnings are released, stocks often drop significantly if they come out with a poor report. Earnings are released 4 times a year with one of them being the annual report.
If you are going to trade options make sure that you learn how to trade by getting some good education. There are many swing trading strategies that work well with stocks in todays volatile markets.
One of the most popular technical analysis indicators is the simple moving average also known as SMA, if you learn how to use these correctly they can be a very useful tool to help you to make good trading decisions.
The 50 simple moving average, or 50 SMA, is simply the sum of the last 50 readings for each period, divided by 50, this is a moving window, as time moves on so does the average. Notice that I used the term period because this indicator works on any time period in exactly the same way.
It can be used on monthly, weekly, daily, hourly, 30 minutes, 10 minute and on whatever time period you want to monitor and trade. Although the SMA is the most commonly used there is also the exponential moving average or EMA. This is a weighted version of the formula using the mathematical exponent function to give more weight to the more recent values, this has the effect of making it a much faster average that many traders like.
The truth is that it probably does not matter if you used the SMA or the EMA, what does matter however is that you use one or the other and then be very consistent with it. Do not switch between them, it is more important that you trust your chosen indicator then a slight difference in its value.
The simple moving average is primarily used to determine what the current trend of the stock is, depending on the value used it could be a short term, medium term or long term trend. An important point to note is that moving averages are really only useful when the stock is trending, if the moving average is flat, i.e. horizontal on your chart it can become very choppy, this is a good time to not trade.
The general rule is that if the chart price is above the SMA the trend is up, if below the trend is down. This is very important to know because it forms the basics of trend trading and trading with the trend.
For the short term trend many traders like using a 5-8 SMA or EMA, here is a trading secret, never trade again the direction of the short term tend, this is really just common sense when you think about it.
Moving averages can often act as support or resistance, many traders use the 15, 21 or 30 SMA for this purpose.
There are a number of other very important moving averages that you need to know about, these are the 50, 100 and 200 SMA, and this mainly applies to the daily and weekly charts. A lot of big players in the markets, the mutual funds, investment banks etc use the 50 and 200 SMA as support and resistance, if they decide to buy or sell based on these you need to follow suite, the 100 to a lesser extent. These are very useful averages to watch if you trade EFT’s like an Oil ETF.
A useful tip is that when a stock breaks through one moving average it will often move all the way to the next, for example, if a stock breaks the 30 SMA it may move to the 50 before finding some support or resistance.
