Online Trading Academy has its roots in the largest trading floor in the Western US, founded in by Eyal Shahar. Independent traders needed training to be successful in their investments, and soon a teaching model was born.
Enriching lives worldwide through exceptional financial education. Which stocks you trade is going to depend on a number of issues, including your level of experience, how much capital you have available, and what style of trading you are doing time horizon — day trading , swing trading, position trading, investing.
Your criteria for how to pick stocks should be written down as part of a trading plan see Risk Management for more details on developing a plan. Your trading plan is dynamic, and, thus, will evolve as you continue to learn and uncover your strengths and weaknesses.
Also, your personality type will play a part in the types of stock you trade. For example, if you are 23 years old, grew up on video games, have a fast mind and need to have a lot of action to stay focused, then short-term, aggressive scalping may be right for you. On the other hand, if you are 65 years old, like to think things through before making a decision, and just want to make a little extra spending money each month, then maybe swing trading low volatility stocks might be more appropriate.
Swing Trading Strategy | Learn a Simple Strategy for Trading Stocks
Whatever decision you make, be sure to think it through. You need to understand that stocks have different levels of volatility and velocity of price movement.
By using tools such as Beta, Level I and Level II information, you should be able to see which is the hare and which is the tortoise. Determine what degree of risk you can live with and afford. Focus on creating a stock picking strategy that is designed to preserve capital and control risk. The most important objective should be to preserve capital.
There is a whole spectrum of stocks to trade, each with different levels of volatility, price, and volume characteristics. Start out by minimizing risk. As your skills, experience and success increase, you can expand risk associated with the stocks you pick to trade. You need to analyze and calculate, not gamble.
Just like starting or growing a business, a plan is essential to success. Whatever stock picking strategy you decide over the long term, start out by trading just one stock. Watch, study and learn that one stock.
Each stock has its own personality and characteristics.
Introduction To Swing Trading
Study the charts at numerous time frames - intraday, daily and weekly. Over time, begin to add one more stock, and then another, and so forth.
Do not change your criteria during the trading day — only when market is closed. Stick with your plan. This leads to a general breakdown of discipline. Your browser Internet Explorer 8 or below is outdated and no longer supported. Please upgrade your browser to improve your experience. Celebrating 20 Years Transforming Lives for Two Decades Online Trading Academy has its roots in the largest trading floor in the Western US, founded in by Eyal Shahar.
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