Position trading is a trading strategy that focuses on holding positions in securities like stocks, currencies, commodities or cryptocurrencies for an extended period of time ranging from a few days to several months. Unlike day trading which aims to profit from short-term intraday price movements, position trading targets longer term trends that play out over […]
Margin trading allows for larger position sizes and profits, the amplified risk from leverage must be properly managed. Strong risk controls are essential to this strategy’s success over the long run. A few key considerations include: Margin traders must balance risk versus reward, employ sound money management practices, and avoid becoming overly exposed to any […]
What is a Breakout Trading Strategy? A breakout trading strategy involves identifying when the price of an asset breaks above or below a defined range and entering a trade in the direction of the breakout, with the goal of profiting from the momentum of the new trend. A breakout occurs when the price moves past […]
Traders seek every possible advantage to navigate the complexities and make informed decisions. One powerful tool in their arsenal is the analysis of candlestick patterns. These visual representations of price movements provide invaluable insights into market sentiment, trend reversals, and potential trading opportunities. Among the myriad candlestick patterns, seven stand out as essential knowledge for […]
Are you interested in starting your journey as a trader but not sure where to begin? Creating an account with TradeXN is a great first step to getting started with trading stocks, currencies, commodities, and more. TradeXN is a leading online brokerage that offers traders access to global markets with competitive fees and powerful trading […]
Traders and investors constantly seek strategies to capitalize on market movements and maximize returns. Among the various approaches, momentum trading has emerged as a popular technique that exploits the continuation of existing trends. By identifying and riding the waves of price movements, momentum traders aim to profit from the inherent momentum embedded within securities or […]
Swing trading emerges as a compelling strategy for traders seeking to capitalize on short-term price fluctuations. Unlike day trading, which involves frequent buy and sell positions within a single day, swing trading encompasses holding positions for several days to several weeks, aiming to capture market swings and maximize profits. However, to excel in swing trading, […]
Key Takeaways Technical Indicator: Average True Range (ATR) goes beyond simply measuring volatility; this technical indicator provides actionable insights that can be applied directly to trading decisions. Here are some practical examples of how the ATR can be used to enhance trading strategies: 1. Identifying Breakout Entries: Breakout trading strategies aim to capture the initial […]
The Parabolic SAR, often abbreviated as PSAR, is a trend-following indicator that plots a series of dots or parabolas on a price chart. These dots, positioned above or below the price action, represent potential reversal points and facilitate the identification of trend direction. Formula: The Parabolic SAR is calculated using a complex formula that involves […]
Key Takeaways Lack of a Trading Plan Having a clear trading plan is crucial for any forex trader who wants to be successful long-term. A trading plan provides structure and guidance during volatile market conditions when emotions run high. It defines the criteria you will use for entries into trades, where you will place stop […]
How to Read a Cryptocurrency Chart
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Key Takeaways Cryptocurrency charts provide a wealth of information to analyze market trends and trader sentiment over time. Each data point shows the price movements throughout each period, whether that be hourly, daily or weekly. For traders, being able to interpret charts is essential to formulating an edge. Candlestick charts are the most commonly used […]
Investing in the stock market can be a rewarding endeavor, but it requires more than just capital. To truly succeed, you need to build a consistent trading habit. In this article, we’ll explore three key strategies to help you develop that habit and make the most of your trading journey. Key Takeaways Before diving into […]