How to start trading with a robot?

Key Success Factors – SECRETS TO WINNING IN STOCK MARKETS

Key Success Factors – SECRETS TO WINNING IN STOCK MARKETS

100 percent accurate buy sell software-

There are objective and subjective conditions for success. Objective refers to those that do not depend on the trader and are external.

In particular, the availability of the market itself and available for trading securities, the availability of the broker and competitive commissions, the availability of information and communication lines. Finally, the availability of sufficient funds for trade.

Let’s address to the subjective factors, depending on the player. Below, we identified five factors without which, in our view, it is impossible to achieve real success in the stock market. These are factors of success, without half of which the swing trader and short-term investor in the market have nothing to do.

These are the factors and the percentage of their impact on the ultimate success:

Correctly chosen strategy and availability of a trade plan – 20%

Correct risk management – 30%

Patience and discipline, ability to follow the plan of bidding – 15%

The skill is in the right place at the right time – 15%

Luck is 20%

Some tricks of successful trading

100 percent accurate buy sell software-

Professional speculators working on stock markets can make up to two dozen transactions or more per day.

The same is true for any player with the appropriate selection of the time period of observation.

On such a large number of visits to the market you can study the statistics of trade. This is very valuable information. They help to identify weaknesses and mistakes in trade and timely eliminate these shortcomings.

In general, there are two ways to increase the effectiveness of trading. The first is to increase the number of winning trades, that is, to increase the ratio of winning trades / unprofitable trades while maintaining an unchanged profit / risk ratio for one transaction.

The second possibility is to increase the average gain / average loss ratio. That is, to achieve the highest possible average winnings in relation to the average loss.

The first task is solved with the help of various “filters” that do not miss potentially “dangerous” transactions. As for the increase in the ratio of the average win / average loss, in our opinion this is exactly what should be the main goal of trading a novice investor.

And, basically, this task is solved with the help of a correct exit from the position and risk management. Below we give one vivid example, which illustrates how far the exit is more important than the entrance. And also we will offer two more ways to manage risks when trading in a trend and in a rage.

Hold or sell?

It is known that the most common mistake of a novice investor is to leave the profitable position too quickly and too long to be unprofitable. Very often the beginning player wants to fix the profit immediately, as soon as it appeared.

This is a false step, which significantly worsens the overall results of trading. The market often gives the player a chance to make a very profitable deal.

On average, among different players, the winning percentage can range from 0.1 to 2-5% on the trading capital involved in the transaction.Nevertheless, it is not uncommon for a situation where the gain is between 20% and 100% per transaction.

The search for such transactions is akin to finding gold nuggets in the gold-bearing layer – the task is as exciting as it is difficult and dangerous.

Sometimes there is an inverse error. The trader has been in a winning position for too long. A player who has accumulated unrealized profits can be enchanted to look at the price movement against his position and do nothing in the hope of reversal and continuation of the previous trend.

This is also a dangerous mistake, which is “treated” by timely movement, as well as unconditional and disciplined execution of the stop order. We have already discussed the problem of leaving the position in the previous section.

Let’s repeat once again: it is not enough to enter the position correctly, it is necessary to get out of it correctly.

The exit for successful trading is much more important than the entrance.

If the position is in the black, you can not try to limit the risks of losing existing profits from those profits that can still be received.

There must be a reasonable balance between the proportion of profit that you are willing to sacrifice now to make more profit in the future. It should be remembered that if the paper is in a trend, then no one will be able to determine with certainty the time to complete the trend and the price levels that can be achieved.

Beginning investors often think that the prices of the paper they bought have grown too much and will not be higher. This is a very common misconception. If the paper grew by 50%, then it does not interfere (if there is an adequate demand) to grow by another 50%, and then another 50%. The market periodically gives players the opportunity to earn a lot. It is necessary only to carefully treat such opportunities and not underestimate them.

Trade Trends

100 percent accurate buy sell software-

Open a long position on an uptrend paper possible at a time when there is a bearish signals and most of the weak players it seems that the movement is exhausted. Such signals occur two or three times during the development of the trend. It can take many days (if not weeks) before there are obvious bear signs of the end of the trend. During this time, stock quotes can grow very much, and it will be psychologically difficult to enter the market.

Therefore, it is better not to waste time waiting for them, but to try to enter the market earlier. Previously does not mean immediately. For example, this may be the condition for the intersection of prices of the centerline of the upward trend from top to bottom.

A good point of opening a position along the trend can also serve as the moment when prices approach a ten-day moving average,because it is there that many participants keep their protective orders for fixing unrealized profits.

Entering the game at these price points, you simply take the place of the player who decided to fix the profit. As the trend develops, more and more conservative investors will join the game and the price will more than once swing about the trend line with high probability.

Therefore, the first profitable position should be kept as long as possible. Up until the moment when a steady upward movement does not change into an explicit movement of quotations sideways and downwards, and prices will not go under the lower boundary of the rising trend channel.

As the trend develops, more and more conservative investors will join the game and the price will more than once swing about the trend line with high probability.

Therefore, the first profitable position should be kept as long as possible. Up until the moment when a steady upward movement does not change into an explicit movement of quotations sideways and downwards, and prices will not go under the lower boundary of the rising trend channel.

As the trend develops, more and more conservative investors will join the game and the price will more than once swing about the trend line with high probability. Therefore, the first profitable position should be kept as long as possible.

Up until the moment when a steady upward movement does not change into an explicit movement of quotations sideways and downwards, and prices will not go under the lower boundary of the rising trend channel.

Trade range in the preferred direction

Trade in the range in the preferred direction is another method of risk management when playing in the stock market. This method is similar to the just described trend trade, but it has its own peculiarities. For brevity, we will not repeat the techniques described above for trend trading, but will concentrate on the features and differences of work in the range from working in a trend.

We already know that if the quotes of the company are “locked” in the range, then the time for issuing securities from the corridor and the further direction of the price development are not known in advance. It is these factors that are the determining factors in the trading range.

It is known that most private investors lose money, trying to trade the range. Therefore, it is necessary to approach the range trading much more carefully and carefully than to trade trends.

Moreover, in order to avoid embezzlement of capital, we do not recommend playing in the range of novice investors.

Below we will talk about trade in the preferred direction, that is, about opening positions within the range, either only long, or only short.

Once again, we emphasize that since it is not known beforehand when and where the prices from the range will come, very good reasons are needed for choosing a certain direction of the range trading.

The essence of the range trading in the preferred direction is simple. Based on the fundamental and technical analysis, we are trying to predict the direction of the breakout of the range and pre-occupy a favorable position in the preferred direction at the best price.

The position opens with all rules for opening positions and risk management near the selected range boundary. Do not neglect and set a protective stop-order. When prices approach the opposite side of the corridor, part of the position (half) is closed and profit is fixed, and a part is held in case prices break through the range and rush in the planned direction.

If, after closing half of the position, prices return to their original boundaries, then the position in the direction of the alleged breakdown opens again and the cycle of trade begins anew.

This can be repeated many times, fixing and accumulating a small profit from speculation inside the corridor, until a real breakthrough takes place. If a breakthrough occurs in the planned direction, then half of the initial position will substantially increase the profit earned on the speculations inside the range.

If a breakthrough, in other words, happens in the opposite direction, then the accumulated profit will not give rise to significant losses.

In this, actually, the whole essence of the range trading in the primary direction consists. more than expectations, will happen in the opposite direction, then the accumulated profits will not give us significant losses.

In this, actually, the whole essence of the range trading in the primary direction consists. more than expectations, will happen in the opposite direction, then the accumulated profits will not give us significant losses. In this, actually, the whole essence of the range trading in the primary direction consists.

Leave a Comment

Your email address will not be published. Required fields are marked *