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Trading styles
I’ve just finished watching the course on general trading basics, and I’m curious to know how did you decide which style (like day trading, swing trading, scalping, or investing) fits you best? Were there any signs that helped you realize what worked for you? I’d love to hear your experiences! 😁
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New comment 6h ago
Why Trading with the Trend is Essential
Trading with the trend gives us the advantage of aligning with the market's momentum. Essentially, when we trade in the direction of the prevailing trend, we are riding the wave, reducing risk and increasing the probability of a successful trade. Markets often move in trends—either upwards, downwards, or sideways. Identifying and trading within these trends is one of the simplest yet most effective ways to maximize profitability. How to Identify the Trend: One of the best tools to identify the trend is the 200 EMA (Exponential Moving Average). The 200 EMA smooths out price fluctuations, helping us visualize the overall direction of the market over a long period. Here's how you can use it: - Uptrend: When the price is above the 200 EMA, the market is in an uptrend. This signals that buying is the more favorable option. - Downtrend: When the price is below the 200 EMA, the market is in a downtrend, indicating that selling opportunities are more favorable. Example: In the chart below, we see the price moving above and below the 200 EMA. As long as the price stays below the 200 EMA, we should focus on short (sell) positions. If the price crosses and stays above, we should shift our focus to long (buy) positions. Key Takeaways: 1. Trade in the direction of the trend – It reduces risk and boosts success. 2. Use the 200 EMA – It simplifies the process of identifying whether we are in an uptrend or downtrend. 3. Be patient – Wait for confirmation before entering trades to avoid false breakouts.
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New comment 19h ago
Why Trading with the Trend is Essential
Understanding My Risk Tolerance
Hey everyone! 👋 I’ve been learning about risk management and how crucial it is in trading. After watching the course, I’m curious—how can I figure out if I have a conservative, moderate, or aggressive risk tolerance? I’d also appreciate any tips on how to manage risk effectively. Thanks in advance for your help! 🙏
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New comment 2d ago
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