Tuesday, August 19, 2014

Price and Profits in Trading

No matter what you trade stocks, Forex, Futures price movement is called a trend you have up trends and down trends.  As traders we identify the trend as the main direction of price movement.  The faster movements in the same direction of the trend are called the impulses.  The opposite movements against the trend are corrections it just depends on the buyers and sellers.  Most traders trade in the direction of the trend and attempt to enter into the impulses or at support areas.  The hardest part is realizing that how and why prices turn and move in markets has never changed, no matter how far technology advances it can change with news and volume. Faster and better number crunching will never be more important than knowing where banks and brokers are buying and selling.  Keeping things simple is the single greatest challenge for the average trader since they cannot place such large orders as they can.
Price and Profits