•
Trading
• Day trading
• Swing trading
• Trading techniques
•
Trading
The term «trader» can literally be translated by
market operator; the English verb « trade » designates
the exchange and the trade.
The trader is a person who widely gives purchase and sell of
assets orders and financial contracts on an organised market
or by mutual agreement.
His activity consists in buying at a low price a devise, a bond,
a share or even an option which he anticipates the rising and
sells them when he anticipates their decreasing.
Trading is not an activity that suits everyone. To do trading
it is necessary to observe carefully and with pragmatism because
trading is not a challenge or a game.
No secret exists to earn money on the stock market.
The stock exchange should not be considered as a gambling game
where you only need to pull a handle to play. In fact, you cannot
enter the Stock Exchange without a minimum of method and strategy.
There are 4 ways to negotiate in Stock Exchange:
Short-term trading, there are three techniques of short-term
trading:
The day trading
where shares are bought and resold in a space of time that can
vary from a few minutes to a few hours and that never exceed
the time of the session. No positions are kept overnight (after
the closing of the markets).
The Scalping
which is another form of day trading which consists in speculating
on very short periods of time that can go from a few seconds
to a few minutes. It is the most aggressive way to negotiate.
Most of the « scalpelors » use leverage to increase
their size on the market.
The swing trading,
this technique consists in buying at first a bull trend and
to sell when the share is about to bend to go down again. This
period of trading spreads out on a few days or even a week.
This trading technique is more risky than than the Day-Trading
or the Scalping because of the information that can fall out
outside the opening hours on which you work on and the fluctuations
of the other stock-exchange scenes that are on other time zones.
But it is obvious that the risk being higher, the potential
earnings are generally more important.
Medium or long term investment:
it is more investments than real Trading.
The principle is to have a rising position on the value that
we hope it will go up in the weeks, months or years to come
and to let ride its positions for the time needed to reach its
goal.
For medium-term investments: the time horizon is from a few
weeks to a few months, without exceeding 6 months.
The reasons that justify the use of short-term trading are that
it is easier to predict a probable price for the five minutes
to come. Having a short-term relation with the market enables
to limit the risk to the length of the transaction. The learning
is fast because the « backlash » is faster and enables
you to rapidly correct your aim in case of bad decision.
Succeed in trading
To succeed, the trader has to be convinced of his chances to
succeed, he must never underestimate his own abilities. If he
doubts, then he will unavoidably fail. The trader must set a
strategy to win. In order to make the good Trading decisions
you need to stay focus on the running of your strategy.
The biggest enemies of traders are the lure of money, impatience,
the lack of emotional control, the lack of self-confidence.
The trader has to manage his stress, be relaxed and cool. The
trader is euphoric after a series of earnings and stressed after
a series of losses. It is necessary to learn to calm down at
first and then to be confident again. You should never open
a position just because you are bored and have nothing to do.
Mistakes and losses are one of the compulsory sides of trading
in every market. The fester you learn, the faster you earn money.
You should not blame either the others or the market for your
losses and your failures. The market is neutral; the trader
must not take him responsible for his mistakes.
The stock exchange world is not an easy field when you are a
novice. Indeed, it is important to get help, to receive stock
exchange advice in order to manage your operations at best.
But be careful toward the advice you hear by chance, or read
on the internet or seen on television. They can be a real deal
or they can lead to losses.