Every single person who has entered the trading arena has tried to find a trading system that generates consistent profitability for them. Here is a look at a few of the methods that most people try as they grow as traders:
Random Entry - Most people hear that "buy and hold works" so they just buy whatever they want and assume that it will eventually go up over time. This works well if you buy into a bull market, but what happens if you just happened to buy at the top right before a bear market? You'll probably be losing money for a few years which is something that will be especially disheartening to beginners.
Indicators - There are literally hundreds of trading indicators out there. Indicators are other studies that appear on your charts that give different values based on what price is doing. Nearly every trader thinks that indicators are his secret to success... until he realizes they don't work (some people never realize this, however, and spend their lives looking for that one magic indicator that does work, and losing their money in the process). There are tons of indicators to choose from, but ask any experienced trader and they will likely tel you that none of them, alone or together, actually work.
Martingale - Most traders go through this stage, and usually they initially think it is the magic pill they are looking for. They buy some stock. If price goes down, they buy more. If price goes down, they buy even more. And so on and so on. Each time they buy more, it lowers their average cost, so that it takes only a small upward move to break even and then make a profit. And this strategy can be alluring because it produces profitable trades every single time... until one time when prices moves against you just a little bit too far and you lose all your money.
Harmonic Trading - Some of the traders who haven't become discouraged after failing with all the above methods may move on to harmonic trading. Harmonic trading uses repeating patterns in the price to estimate future movements based on historical patterns. In other words, if price does x, then it may be likely to do y because most of the times in the past when it did x, y followed.
Harmonic trading also uses specific entry and exit and stop loss points so that there is no ambiguity, which is a problem with many of the "systems" that one encounters online.
Where To Buy Karaoke Machine Rental Michael Kors Logo Rain Boots Discounted
