Online Trading Strategies
- Stock traders face many challenges and need proven trading methods to succeed.chart background image by Stasys Eidiejus from Fotolia.com
Online traders in the stock market have to deal with challenges in price volatility and huge swings in price action as a result of that volatility. As a result, it can be difficult to identify a viable trading method that meets these challenges while proving to be both reliable and profitable in the long run. Fortunately, there are three proven online trading strategies that have withstood the test of time and can help you succeed in online trading in the market. - In online trend trading, you want to enter the trade in the direction of the primary trend.calculator chart image by max blain from Fotolia.com
In online trend trading, you have the advantage of remaining detached from all the noise and chaos and concentrating on spotting trends on your stock charts. You can spot an upward trend by identifying a successive series of higher lows, followed by higher highs in the price action, and a downward trend by identifying a successive series of lower highs, followed by lower lows. You want to wait for pullback in the price action, then enter the trade in the direction of the trend. - Look for tight trading ranges for price support and resistance trading.graph 50 image by chrisharvey from Fotolia.com
When trading online, use your price charts to spot tight trading ranges in which price is trading between two identifiable price points. These trading ranges offer high probability trade setups where the lower price point serves as support where you can go long, and the upper price point serves as resistance where you can short the market. This is a highly successful online trading strategy that many professional traders use exclusively. - cyan stock graph drawing image by .shock from Fotolia.com
The most explosive online trading strategy is breakout trading. In breakout trading, you want to find a stock that is trading in a very tight trading range between two price points, and then enter a position as the stock trades through the upper or lower price point on high trading volume. The price will move very quickly, giving you the potential for very fast windfall profits.
Online Trend Trading
Online Support and Resistance Trading
Online Breakout Trading
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