Trading lesson – Oct-25-2019

Stock trading with a trend is a common strategy used by many professional traders in big funds and the best private traders that trade for a living.  Trend following or trend trading is a trading strategy according to which one should buy an asset when its price trend goes up, and sell when its trend goes down, expecting price movements to continue.

There are a number of different techniques, calculations, and time-frames that may be used to determine the general direction of the market to generate a trade signal, including the current market price calculation, moving averages, and channel breakouts. Traders who employ this strategy do not aim to forecast or predict specific price levels; they simply jump on the trend and ride it. Due to the different techniques and time frames employed by trend followers to identify trends, trend followers as a group are not always strongly correlated to one another.

All these profitable traders use several rules that help them to make money on stock markets. One of the first rules of trend following is that price is the main concern. Traders may use other indicators showing where price may go next or what it should be but as a general rule, these should be disregarded. A trader needs only be worried about what the market is doing, not what the market might do. The current price and only the price tells you what the market is doing.

What are major trend directions for trading strategies? Should you prefer long swing trading or short stock market strategy? How does the neutral situation for trading look like?

Check out the market stock trading trend strategy rules.

Trading lesson – Oct-18-2019

iShares is a family of exchange-traded funds (ETFs) managed by BlackRock. The first iShares ETFs were known as World Equity Benchmark Shares but have since been rebranded. They are the largest issuer of ETFs in the US and globally. Have you ever thought of how to use them effectively for ETF trading strategies?

As a daytrader, you can use most liquid iShares funds to daytrade these stocks. The list of ETFs for day trading will include most liquid exchange-traded funds, eg. Russell 2000 Index Fund or the S&P 500 Index Fund.

As a swing trader and position trader, you need to select and categorize funds, eg. technology-related or non-technology sector ETF funds. This strategy is based on using technical analysis of stock charts.

Still wondering how to picks best ETF funds for trade? Read more in my article and discover how to trade iShares ETF.

Trading lesson – Oct-11-2019

A low-cost or cheap online trading is one of the topics discussed in every forum about online stock trading. Cheap stock trades are not only about commissions paid to swing or day trading online broker. Fees. I do not like them and surely you do not either but the price per trade is not the most important part of trading. The stock trade execution is one of the business costs and every business has its own expenses.

The most important low-cost stock trade rules are connected with risk management and money management generally. You have to understand that low-cost stock trade is trade with proper risk management and cheap stock trades are based on minimal risk. Do not remember that low-cost stock trade could be achieved only by keeping your losses small.

Find out how to make a low-cost stock trade for cheapest online trading.