This is a trading systems guide which I hope will give you an insight into the trading world and how systems can work for you. There are many, many trading systems out there that, if used correctly, can give you a good return on the financial markets. There are also some very poor systems that will lose you money hand over fist if you are not careful.
Let us first look at the types of systems there are. For one we have the trading systems that rely on charts, of which there are many. Financial charts can be used in a number of ways, and various parts of the charts can be analysed to provide entry and exit points in a trade. A system may use pivot points which can be drawn onto the charts, which will hopefully show where a trade is likely to reverse, it can use the two or three moving averages to pinpoint which way the trend is likely to be. There are also stochastics to look at on a chart, and these give an indication of the direction a certain currency pair is likely to be heading and also an indication of whether a currency pair is either overbought or oversold.
The financial charts can be looked at in different time frames, and the most popular of the time frames are the 5 minute charts, the 10 minute charts, the half hour charts and the hourly charts. The candle on the chart indicates the direction of the currencies, so any given chart if the last candle is green it means it is rising and if the last candle is red it means it has fallen in the last time period. Trading systems can use one or a combination of these indicators to try to work out the future direction of a currency pairing.
There are also software trading systems that have proliferated during the last few years. This software will often give you a signal, or a beep on your computer, or an email, when a trade is generated by the software system. Another signal will indicate the end of the trade.
Another fashionable invention has been the trading robot, and this as it implies does all your trading for you. It automatically places and closes trades according to how it has been set up and what indicators it is working on. I have not been impressed with the ones I have come across so far and am yet to be convinced of their validity.
If you want more information on trading systems and the opportunity to obtain a brand new trading system at no charge then please go to http://www.tradingstrategiessite.co.uk/.
No comments:
Post a Comment