3 profitable trading strategies
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There is one simple mistake that a lot of traders are doing. They buy or short stocks that they believe will go in their direction. Unfortunately, in many cases they lose money and get out of business very quickly. You need to understand the stock in order to trade it. You need to automate each your decision of whether to buy the stock or not and to know when to exit it. Before we dive deep into the strategies or as we call in formations in this article, we need to understand why the stocks are moving into either direction and how to be on the right side of the trade.
First of all, we need to understand supply and demand. In many cases, where there is profitable trading strategy oversupply of short sellers or long buyers — imbalance occurs. If it happens, you should expect a big move that will start happening after oversupply will decrease and the other side will start to prevail.
The formations that are shown below show us how this is happening and explain how to trade such a move. If you start to automate your trading strategy by using following formations, the blind trading will disappear and you will be armed with the needed tools to have a successful trading career.
We recommend that you take a closer look at them and share it with your friends in the trading community to help them understand the principle that we described above and improve their trading performance. One of the best formations with the very great percentage of risk-reward.
If you see that the stock continues to rise in value without any significant decrease in price, you might want to start opening a short position.
When you see that each high price is lower that the previous high price, then it means that the stock will probably continue to fall. If the company issued some important news about its profitable trading strategy, its stock will probably go one away or another on the afterhours or premarket. If you understand the news and think that the market understanding of those news is wrong and the gap that was created during non-market hours is meaningless, then you should think of opening a short position and risk management it profitable trading strategy.
In a lot of cases, when the stock breaks whole numbers or prices like 5. Sometimes the stock might be profitable trading strategy very volatile at the open and can continue to trade passively for the first half of the day.
However, in the profitable trading strategy half of the day, activity might come by and the stock will begin to wash away. In this case, the buyers of the stock failed to push it higher and that stock reversed and started to fall apart for the rest of the day.
Triangle profitable trading strategy the most standard formation for going long. When a lot of buyers are keep purchasing the stock, then in one moment it will go up momentarily and wipe out the short sellers that were betting against such a move. If each lower price if higher than the previous one, the the stock will probably continue to grow until it breaks such a pattern. Breakout occurs when the gap between buyers and sellers narrows and one side prevails the other.
In profitable trading strategy case, buyers outsmarted sellers. When the stock has wiped out the majority of buyers, short sellers start to exit their position.
This way the stock starts a reversed move and starts to grow profitable trading strategy a good buying opportunity opens up. Formations for Short 1 Short on a parabolic move One of the best formations with the very great percentage of risk-reward.
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