November 9, 2011
- in Uncategorized by schooloftrade
Different Trading Strategies for Different People
Different Trading Strategies for Different People:
There are many different ways to make profit as a trader, and here are the most effective trading strategies to fit the needs of different types of people who use them.
· Scalping Trading Strategy
o 5-100 trades a day
o Looking for small changes in price with large orders to make money with small moves
o Strong command over tape reading and market personality
o Predetermined stop and target, does not use a runner.
o Trade highly-liquid markets for the best results
§ ES = highly liquid
§ Bonds
§ Eurostoxx
o 3 obstacles for Scalpers:
§ Over-trading and getting off the plan
§ Too many trades, commission is too high
§ Don’t see the BIG PICTURE so they buy into the highs or sell into the lows
· Intra-day Trading Strategy
o 3-20 trades per day
o Never holding overnight
o Looking for the intra-day support and resistance to buy the lows and sell the highs
§ HOD/LOD
§ PHOD/PLOD
§ Double-tops and bottoms
§ Price channel, price wedge
o Try to manage the trade to maximize the most profit on each move.
· Position Trading Strategy
o not going to be a week-long trade, and will likely not be flat overnight the first night.
o These are OBVIOUS patterns, no hunting for the hidden patterns
o I want to be confident in the stops and targets b/c I’m holding this trade till its finished, so need the pattern to be perfect.
o Obstacles that you deal with:
§ Tomorrow’s news
§ Unforeseen situations that may develop
§ You need much wider stops, and this may be too risky for your account
· More than 5% risk on your account per trade is just very risky
§ You need to be in the RHYTHM of swing trading.
· Swing Trading Strategy
o Taking trades that last more than 2-3 days
§ Might be a week, month, year
o These are OBVIOUS patterns, no hunting for the hidden patterns
o I want to be confident in the stops and targets b/c I’m holding this trade till its finished, so need the pattern to be perfect.
o Obstacles that you deal with:
§ Tomorrow’s news
§ Unforeseen situations that may develop
§ You need much wider stops, and this may be too risky for your account
· More than 5% risk on your account per trade is just very risky
§ You need to be in the RHYTHM of swing trading.
· Automated Trading Strategy
o The computer does it all for you
o 100% Fully-Automated
§ Gets you in, gets you out
o Part-Automated
§ Computer-assisted trading
§ Gets you into the trade
· Computer scans for the patterns
· Uses the rules always
· No emotions
· Never misses an entry
§ Lets YOU manage the profit
· Use our human intelligence
· Find the best profit target and stop
o Completely scale able
§ Trade 1 contract and as soon as I make enough in profit I can trade 2 without any emotions
§ I can trade many hundreds of markets
§ 90 days at a time we can optimize to fit the current markets
· Walk-forward in NT7 allows me to optimize and then test on LIVE market environment
o Obstacles:
§ Need to have the margin for each contract in your account
§ You need to learn how to use the system
· Concierge service our support team will do 100% of the work for you!
§ Need to know how to load the template
· We give you the settings to use
Trading Strategy using a Price Wedge
