Tag: successful trading

  • How to Find Big Opportunities in Investing

    How to Find Big Opportunities in Investing

    How to Find Big Opportunities in Investing

    Everyone would like to know how to find big opportunities in investing. That’s the point, right? One of the best ways is to notify where traders are overreacting to the news.

    By Guy Avtalyon

    To find big opportunities in investing, other traders’ extreme fears will help you. For example, traders reacted to news that brokers were cutting their fees. But did you notice a massive rise in their stock price? During the past few weeks, online brokerage stock took hits.

    Let’s go step by step. When Charles Schwab announced it would cut all commissions for all trading, E-Trade, Interactive Brokers and TD Ameritrade fell. This news sent brokerage stocks lower because the traders overreacted.

    In that period, for example, TD Ameritrade (AMTD) dropped from $48 to $33. The other brokerages experienced a decline in stock price too. Interactive Brokers (IBKR) fell from nearly $54 to almost $45, Charles Schwab Corp. (SCHW) dropped from $43 to $35, etc.

    The traders responded to news that brokers are cutting their fees. They had fears about brokerage future without that income and started to sell. But the point is to overcome the fears and recognize the opportunity. When you recognize the bottom in some stocks you actually can see great returns. And let’s take a look at our example again.

    What happened with these stocks a bit more after?

    Charles Schwab moved from $35 to $42, TD Ameritrade moved from $33 to $39, Interactive Brokers stock rose from $45 to $48, etc. How did this happen? There are no tricks. When some stock becomes oversold and gets stretched in one direction too quickly, too far, you will notice bounce back. That is exactly the time when you have to buy the stock. So, you are profiting while others are feeling fears. 

    It is simple to recognize when the stock dropped on extreme fears. How to find those big opportunities in investing?

    Key technical pivot points 

    Bollinger Bands

    Let’s say you noticed that traders picked a moving average of 20 with two regular deviations up and under that average. When a stock reaches or enters the lower zone, you can be sure the stock is oversold.

    RSI and W%R

    Use RSI to confirm the indicators that are higher. The oversold condition will appear when RSI goes to or below its 30-line, also when W%R (Williams’ %R) comes to or up the -80-line the stock is considered to be oversold.

    MACD

    Moving Average Convergence-Divergence is helpful and simple. It helps to confirm the info we get from previously mentioned indicators. MACD is calculated by subtracting the 26-period EMA from the 12-period EMA (Exponential Moving Average). 

    How to identify investment opportunities?

    You will need a bit of magic to find big opportunities in investing.

    These four indicators must be matched with one another if you want this to work. They have to be aligned. And moreover, you don’t want to rely on one indicator. You must have all four.
    So, what we had with brokerages in October this year? Just to be said, we can use other examples, but this is fresh. We saw the stock dropped due to the fees-pricing fight. Though, we saw the precise time of extreme fear and, at the same time opportunity.

    When you see the stock dropped to its lower Bollinger Band, it is a sign that the stock is oversold. Use historical data for that stock and you will find that whenever the lower Bollinger Band is reached or entered the stock turned and bounced back higher from that point.

    Use RSI to find big opportunities in investing

    But you have to check RSI also. Find the confirmation on what Bollinger tells you. If the RSI is a below-set line the stock is oversold. That the confirmation of Bollinger Band’s story. Check this info in historical data to have a sense of how the stock was performing in case it had lower RSI and if the stock moved to its lower Band.
    If you see the stock bounced back higher quickly that is the confirmation and you should buy. 

    And as we mentioned before MACD and Williams’ %R have to confirm the described condition to be sure you can trade with 85% of success.

    Examples of how to find big opportunities in investing

    The list is really endless. Big investments may come fro different fields, different companies. For example, some small but developing company can be a better choice than a famous brand.
    In case you don’t believe this, let’s see what stats tell us. Small companies are the spine of any national economy. That’s the fact. Small companies employ many people, actually the majority. So, it is easy to conclude that the can be a big opportunity to invest in.
    Just keep in mind before you invest in one of them to examine its potential for growth, financial strength. When you go through this process try to find out how passionate management is about business, sometimes that will tell how serious they are about future growth and the company’s future. Especially if you want to invest in some startup.

    Big opportunities in investing can be detected in up to 85% of cases.
    Put all these indicators together with extreme traders’ fears based on news, and you will see how to find big opportunities in investing.

  • Successful Forex traders – What are the characteristics of them?

    Successful Forex traders – What are the characteristics of them?

    2 min read

    successful Forex traders

    As we know almost 95% of Forex traders fails. But 5% have success.

    So what is it that puts these traders in the top 5 percent?

    Typical reasons such as experience, discipline, and fortitude?

    We’ve all heard about that. But what is it that really makes them spot?

    In this article, I’m going to analyze lesser-known characteristics that successful Forex traders have in common.

    When I say successful Forex traders I mean consistently profitable.

    Let me be crystal clear.

    So many people talk about whether anyone can consistently profit from trading Forex.

    I know because I made big research for finding proof on the internet. I found articles, testimonials, videos… And what I found is that is the truth.

    Anyone can make consistent profit trading Forex and don’t ever let anyone tell you something different.

    And what did I find?

    What’s the secret to success?

    I have to say, the only secret is that there is no secret.

    But there is a piece of advice that will fully determine whether or not you are profitable. It’s a kind of habit.

    Every single successful Forex trader has it in common, and it’s not something you can negotiate.

    Successful traders never give up!

    I know because I found the stories.

    The ones about how some man tried for 3 years to make this Forex thing work, but with poor result. And he thought he just wasn’t for it. He failed because he didn’t recognize that his breakthrough moment was waiting for him just around the corner.

    That is the problem.

    There are so many traders who were fighting for years and suddenly took a break just before they made progress.

    I know, they were exhausted by a large number of failures. But if they had a couple of trades more, they would have succeeded.

    Never give up! This applies to all important things in life, but it’s never been truer than it is when it comes to becoming a successful Forex trader.

    They don’t “lose”

    Ok, every Forex trader has losses. That’s true.

    But, there is some difference between how the novice trader loses and how the successful Forex trader loses. What makes this difference? 

    In one word –  mindset.

    Most novices in the Forex market view a loss as a bad thing.

    Oh, no! It’s only one step on your way to winning.

    The successful trader doesn’t view it as bad or wrong. It’s not a penalty because the Forex market isn’t able to do such things.

    Forex market doesn’t know where you entered the market or where your stop loss was.

    So, where you find a possibility to be punished? Nowhere, it is completely impossible.

    Yes, I know! Making money is much more enjoyable than losing money.

    If your trade doesn’t go your way doesn’t mean you should take it personally or emotionally. Stop to think like this and prevent this hole to be deeper! The successful Forex trader has the mindset that a loss is simply feedback.
    successful Forex traders
    Losses are useful, they are very good teachers, they can be a powerful way to learn. Even a trade that ends up as a loss can be the right decision. How is that possible? If you’ve defined your edge, and the setup met all of your criteria to enter the market, then you did all you can do. The rest is up to the market. But some days the market just doesn’t play along. It isn’t your fault.

    Instead of giving up, you should ask yourself “would I take this same setup again next week if it presented itself?”

    If your answer is YES you are on the right path. But every time your answer is NO, you need to take a step back, figure out where something went wrong and correct it for the next trade.

    Each loss is an investment in your trading education. This is a constructive way of spending your own money. It is an investment with the best Forex trainer in the world – the market.

    They use price action

    Actually, they are using some form of price action as part of their trading strategy.  Because price action plays a major role in any strategy.

    It can develop and make stronger any trading strategy by providing areas to watch for potential entries as well as profit targets.

    A successful Forex trader has defined edge.

    Why the edge is so important?

    An edge is everything about the way you trade. An edge can help you to put the odds in your favor.

    Edge is a combination of the time frame you trade, your risk to reward ratio, the key levels you’ve identified, the price action strategies you use, etc.

    It is also important for your pre and post-trade routine. How do you handle losses or what do you do when you win? All of this, make up your trading edge.

    You don’t have to master all of these factors that make up your edge at once or to start putting the odds in your favor.

    It is better to master one set of factors and then leisurely expand to others to further clarify your edge.

    What are the characteristics of successful traders? 3

    This should be the favorite way to learn. Become a master of two or three factors. You’ll find much less stressful than trying to become good at twenty factors. When you’ve mastered three or four things, expand the others to put together the odds in your favor.

    Successful Forex trader never tries too hard.

    Because the successful forex traders know, trying hard is a sign that something isn’t right. Trying to force a trading strategy to work will only lead to destructive behavior, such as emotional trading.

    I remember the story of my friend when he first started trading Forex. He was spending countless hours studying setups. He spent hours and days and weeks doing so, ending up taking a completely different trade setup only to watch the original setup move in the intended direction without him.  

    He was trying too hard to make it work. As soon as he stopped over-analyzing trade setups and trying to make them work, his profit curve started to rise.

    Now he is spending 20 minutes per day looking at his charts. 

    They think in terms of money risked.

    You’ve never met a successful Forex trader who didn’t know how much money they were risking on any given trade.

    Surprising, the small number of traders don’t think about how much money is at risk before opening a trade. This is because they’re using an arbitrary percentage to calculate risk, such as one or two percent of their trading account balance.

    The trader’s only interested in how much money is at risk – they could care less about the percentage. They always define their risk in terms of money.

    They may use a percentage as an entrance of how much they’re allowed to risk, but when it comes to fully accept the risk before putting on the trade, they think only about money.

    And successful Forex traders know when to walk away.

    Walking away can be especially difficult after a trade. Our emotions are running wild and often take the best of us. Taking a break after a win will allow your emotions to settle. After the win, you may feel excited and proud of yourself.

    Yeah, you have every right to be. But pride and excitement are inadmissible in the Forex market.

    After a loss, you can go straight to the trap if try to go through the charts again looking for a new setup. Remember, your loss in some trade is just feedback. Take it as a signal to look at what you could have done differently. Successful Forex traders never do that.

    The key to becoming successful isn’t about eliminating emotions after a loss, it’s about channeling them in a way that will make you a better trader.

    And let’s go to the top of this article.

    The only way you can fail at becoming a successful Forex trader\ is if you give up. The next time you lose a trade just remember that not giving up is the #1 key to becoming a successful Forex trader.

    And you know what?

    Becoming a successful Forex trader is a marathon, not a sprint. So, keep it in your mind!

    Risk Disclosure (read carefully!)

  • What Are The Best Days For Forex Trading And Why?

    What Are The Best Days For Forex Trading And Why?


    Trading time, the market is open for five days throughout the week.

    By Guy Avtalyon

    The best days for trading Forex… I’ll stop here and give to you some explanation. Most forex traders are more successful during the late US, Asian, or early European trading sessions – essentially 2 PM to 6 AM Eastern Time (New York), which is 7 PM to 11 AM UK time.

    If you are a newcomer you would like to trade every second of every day. We know all about that. Our case: We figured the more active we were, the more money we would ultimately make. It so-called addiction to trading! (more about this kind of addiction you can find HERE)  Frankly, we all are probably yet, but we know how to handle it. We hope.

    But after many years we figured that making money in this business isn’t about quantity, it’s about quality. So, you must find the best days for trading Forex.

    Well, you decided to become involved in Forex trading.

    Good!

    But you must have taken to attention the fact that market volatility does not remain constant during the day. Proper timing may be the crucial aspect of successful short-term trading.

    You have to be sure when are you going to trade.  When is the best trading time? Because engaging the marketplace during periods of maximum participation increases the efficiency of trade execution. As well as the probability of recognizing the opportunity. 

    The market is open for five days throughout the week.  But volatility is subject to change during any given time span: a month, a week, or a day.  If you are aware of patterns, according to which this volatility changes, you can modulate your trading strategy. And you’ll be able to take the maximum profits from trading are gained.

    OFC, if you know which trading time is producing favorable setups, you’ll know whether to stay on the sideline or begin searching for new opportunities.

    That’s the goal!

    If you trade the 5 or 15-minute charts, it is important to have many varied parts of sessions throughout the day. But if you want the switch to a higher time frame such as daily time frames, these sessions become less important.

    But instead of concerning intraday sessions, let be more focused on the day of the week because the Forex market never closes, and the currency pair can open on Monday at a different price from where it closed on Friday. It is called the weekend gap. If you aren’t cautious, you can get grasped on the wrong side and not even your stop loss will save you.

    But let’s go to the object of this post, what is the best trading time.

    The most quality setups realize between Tuesday and Thursday. The middle of the week is the “sweet spot” for finding profitable ideas because this is the time when most action happens.

    Why the best days for trading Forex is the middle of the week?

    On Tuesday, volatility is 20 to 30% higher than on Monday. But it is followed by Wednesday’s moderate decrease, which occurs due to swaps. This can be described as an exchange of assets between traders. What happens at a certain predefined trading time.

    During the swaps, traders who keep holding their positions agree to exchange their investments or financial instruments at a preset price. Sometimes, a triple swap is collected, as Wednesday evolves into Thursday, and traders keep their day’s positions open. Traders are getting back to work on Monday, after the weekend, so things move a bit slower. When the market opens on Monday, there’s a high level of uncertainty about what direction each pair will go on that week.

    For this reason, try not to trade on Mondays. The only exception is if there is a highly favorable opportunity that you just can’t let pass up. Fridays are when traders begin to pack up for the weekend, they exit positions in preparation for their two days of rest.

    The best days for trading Forex: Mondays and Fridays aren’t a time to relax.

    It is the best time to analyze the market, update the watch list, and make yourselves ready for new opportunities.
    Positions last from a few days to a few weeks, but they almost always include at least one weekend in the process. And it can cause a dilemma for most traders.

    You must hear many tips on how you have to avoid holding positions over weekends due to gaps that can form on Monday. But if you place a trade on Wednesday or Thursday, that’s difficult.

    What are the best days for trading Forex?

    You can do two things to protect your capital when heading during a weekend.

    The first is to make yourselves aware of any events on the calendar. If you have Euro exposure on Friday and you see, for instance, it will be some referendum in Spain or elections in Italy over the weekend. It’s probably a good idea to exit the position. You have to be aware of when certain events are taking place. Even political.

    The second thing you have to do is to make a decision based on where the trade is in its lifecycle. Is it trading near your entry or are you up 150 pips by Friday’s close?

    What is smart to do?

    In the first example, you have a 100 pip buffer between current prices and your entry. Sticking with the position could be the right move.

    In the second example, you don’t have a buffer. If the pair opens next week near Friday’s close, chances are you’ll be able to secure the same entry

    Optimal time in which to enter or exit a given market is the exercise for traders. For some traders periods of enhanced liquidity and volatility may be desirable, others may see plenty of risks.

    Individual capital resources, risk tolerance, and style of trading must be taken into consideration when deciding on the best time of day or week to trade