Forex Trading Money » scalper http://virtualmakemoney.com Forex Trading Money Tutorial Mon, 13 Feb 2012 09:14:43 +0000 en hourly 1 http://wordpress.org/?v=3.2.1 The Swing Trading Guide http://virtualmakemoney.com/the-swing-trading-guide.html http://virtualmakemoney.com/the-swing-trading-guide.html#comments Fri, 31 Dec 2010 07:36:35 +0000 randi http://virtualmakemoney.com/?p=477 Trading stocks using technical analysis can be profitable if you understand the secrets that professional traders know,you will learn a simple swing trading strategy that will enable you to run circles around the novice traders that you will profit from.

What Does Swing Trading Mean?
A style of trading that attempts to capture gains in a stock within one to four days. Swing traders use technical analysis to look for stocks with short-term price momentum. These traders aren’t interested in the fundamental or intrinsic value of stocks, but rather in their price trends and patterns.

Currency trading, forex trading and stock trading can sometimes be frustrating and difficult, especially if you are just starting out.  It is far too easy to become overloaded with information and feel lost or confused.  Wouldn’t it be great if you could discover what the professional swing traders know and what tools, tips and indicators they use so you could put yourself on the path to trading successfully?

To be successful in the markets you really just need four things.

  • A brokerage account
  • Trading capital
  • The discipline to follow a plan
  • A proven trading plan (this is where I come in)

But this description of swing trading is a simplification. In reality, swing trading sits in the middle of the continuum between day trading to trend trading. A day trader will hold a stock anywhere from a few seconds to a few hours but never more than a day; a trend trader examines the long-term fundamental trends of a stock or index and may hold the stock for a few weeks or months. Swing traders hold a particular stock for a period of time, generally a few days or two or three weeks, which is between those extremes, and they will trade the stock on the basis of its intra-week or intra-month oscillations between optimism and pessimism.

Other major styles of equity trading:

  • Scalping – The scalper is an individual who makes dozens or hundreds of trades per day, trying to “scalp” a small profit from each trade by exploiting the bid-ask spread.
  • Momentum Trading – Momentum traders look to find stocks that are moving significantly in one direction on high volume and try to jump on board to ride the momentum train to a desired profit.
  • Fundamental Trading – Fundamentalists trade companies based on fundamental analysis, which examines things like corporate events such as actual or anticipated earnings reports, stock splits, reorganizations or acquisitions.
  • Technical Trading – Technical traders are obsessed with charts and graphs, watching lines on stock or index graphs for signs of convergence or divergence that might indicate buy or sell signals.

Swing trading is actually one of the best trading styles for the beginning trader to get his or her feet wet, but it still offers significant profit potential for intermediate and advanced traders. Swing traders receive sufficient feedback on their trades after a couple of days to keep them motivated, but their long and short positions of several days are of the duration that does not lead to distraction. By contrast, trend trading offers greater profit potential if a trader is able to catch a major market trend of weeks or months, but few are the traders with sufficient discipline to hold a position for that period of time without getting distracted. On the other hand, trading dozens of stocks per day (day trading) may just prove too great a white-knuckle ride for some, making swing trading the perfect medium between the extremes.

Incoming Forex terms:

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]]> http://virtualmakemoney.com/the-swing-trading-guide.html/feed 0 Is it true that all Metatrader and Retail Brokers are Scammer? http://virtualmakemoney.com/is-it-true-that-all-metatrader-and-retail-brokers-are-scammer.html http://virtualmakemoney.com/is-it-true-that-all-metatrader-and-retail-brokers-are-scammer.html#comments Sun, 24 May 2009 16:26:56 +0000 admin http://virtualmakemoney.com/?p=64 I agree that per definition all retail brokers are scammers. But that’s per definition only.

We, people who have less than $10,000,000 (ten million dollars) are considered as retail traders. And we are only allowed to trade using retail brokers. We are not allowed to trade in institutional broker. If all retail brokers are scammers, then we are all doomed.
In fact, there are people who have been living comfortable by trading full time, and their account size is nowhere near 10 millions.

I also don’t think that ECN brokers are also doing this. ECN gains no profit / loss by playing with our account. What ECN wants is that you trade more lots. Of course there is a case that if you are counted as 1 of the people with the biggest profit, then the ECN will let the market marker play with your account. But, I think that is your fault also. Why? Because in a big and reputable ecn brokers, there are many successful trader, so your account is not sticking their eyes. If you are choosing a small ecn broker, that is your problem and your fault imho.

What I find true, is that all small traders have the highest risk in this industry. If you are investing, but not trading, in this market, you could survive. If you are trading, you have less chance to survive.

e.g. You are a scalper, you take profit for 10 pips and your stop loss is 7 pips. Because you are successful scalper then your broker is playing with you. They play with slippage between 3 – 5 pips. Your 10 pips take profit become 5 pips profit, and your stop loss become 12 pips stop loss. In some of the EAs here, the TP is 5 pips and SL is 35 pips. After the slippage, the TP would be 0 pip and the SL would be 40 pips. Imho, you’re lost and doomed.

e.g. You are a long term investor, your take profit is 400 pips and your stop loss is 100 pips. Because you are a successful investor, the broker is playing the slippage card, between 5 – 7 pips (of course if the slippage is too large and you still use that broker, then you should move. If not, that’s your fault). Your take profit become 393 pips and your stop loss become 107 pips. Imho, you still win.

That is why, I try to avoid any kind of scalping trading system or EA. I don’t even want to test them. I don’t even download them, it’s a waste of disk space. If it has a good indicator, I’ll download, but I’ll never use the system / EA. Imho, scalpers are at the lowest of the food chain and should really take good care of oneself.

In fact, there are many scalpers who would argue with me about this matter. So, to state that all retail brokers are scammers, is not appropriate IMHO.
After all if all retail brokers are scammers, where should we trade?

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