| | | |  | Trading is about finding a profit pattern based on TA and executing on it. The stock market is constantly moving up and down. A trader shouldn’t trade on every move of the stock market. Successful and profitable traders are trading only on well defined and profitable patterns. A losing trader usually trades on the emotion, such as “该涨了” or ”该跌了” , and tries to make profit on every move of the stock market.
It is essential to for traders to find a profitable pattern using TA in traders’ favorable trading time frame.
For a day trade, it is 5 minutes, 15 minutes or 30 minutes.
For a swing trade, it is mainly based on daily chart.
For a position trade, it’s mainly based on weekly chart and daily chart.
It is very important that your trading execution is based on the identified pattern in the specified trading time frame. Otherwise, the trade won’t work. A profitable pattern for a day trader could be a losing pattern for a swing trader，and vice versa.
If you hear somebody’s recommendations to buy or sell, it is critical for you to ask two questions.
1 What’s the profitable pattern your trading is based on?
2 What’s your specified trading time frame?
If you can’t find a profitable trading pattern, you shouldn’t make a trade. If the pattern is not clear, then you should wait and give more time until the pattern confirms. The big red stop sign is “NO PATTERN and NO TRADE”.
Following are several major profitable patterns and trading strategies associated with them.
Up Trend: The main character is higher high and higher low. Resistance becomes support. The trend has four stages: Forming a trend, middle course, later phase and trend broken: Buy on the dip until the trend breaks.
Down trend: The main character is lower high and lower low. Support becomes resistance. The trend line has four stages: Forming a trend, middle course, later phase and trend broken: Sell on the bounce until the trend breaks.
Trading range: Well defined high base and low base. Buy low and sell high
Break out: A break through over the high level consolidation. High volume is the key word here to avoid possible fake head. Buy at the break out
Break Down: Break through the low base. Volume is not critical. Sell at the break down
Ascend triangle: Buy at trend line.
Descend triangle: Sell at trend line.
A trader usually uses some trading software to scan the stocks based on searching criterions to find the potential profitable patterns. Traders then hand pick the best candidates and add them to the watch list.
| The most profitable trading tool with the best reward/risk |
| | | 来源: walker789 于 10-05-22 20:34:16 [档案] [博客] [旧帖] [转至博客] [给我悄悄话] | | | |
| | | | | | | It's spread trading.
Trader case 1.
If the stock keeps the current value or below within next 4 weeks, the bear spread gives the trade 70% return. If the stock goes up $4.2, the bear trade won't lost money either.
It breaks the conventional trading rules. You need market goes up a lot to make a big money. | |
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