Knowing whether the market is trending or moving sideways can help a trader determine what type of system they should use to enter trades. For example, if the market is choppy with lots of sideways action, entering a trade based upon a trend following system such as moving average crossovers can result in the trade being quickly stopped out.
Tag Archives: trades
USD Lower, Existing Home Sales Rise 10.1%
The USD starts the week sharply lower as equity markets rally and gold trades at a new record high. The initial catalyst for the surge in the equity markets and gold were linked to dovish comments from the Fed’s Bullard. Bullard called for the Fed to extend its asset purchase…
Taking It On the Chin and Learning
Traders who want to be successful must believe that they are responsible for the outcomes of their trades – both losers and winners, says Bob Prechter. They particularly have to learn how to deal with losses, since losses are part of the trading terrain. You’ve got to be able to…
Trade the break-out, trade the bounce, or wait for a perfect signal
Trading the bounce from a recent price reversal that is hitting major support, will more times than not be more reliable than trading the break-outs to new highs. Contrarian trading the bounce tends to create more trades you are already in as the new break-out occurs at the other end;…
Top 10 Mistakes Traders Make
Achieving success in futures trading requires avoiding numerous pitfalls as much, or more, than it does seeking out and executing winning trades. In fact, most professional traders will tell you that it’s not any specific trading methodologies that make traders successful, but instead it’s the overall rules to which those…