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TRading and TrainingTRAINING ON TRADING CENTER

Traditional investors entering the world of derivatives are exposed to a great number of 'new' risks and they can lose their capital rapidly. Trading the Forex Exchange market, commodities or indices via CFDs, Futures and Options is very different than trading classic stocks or bonds. Learning about this new world and train hard before start trading is absolutely essential.

 

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1. The Top 10 Trading Rules

These are some important rules for all traders:

1) The Market is Unpredictable (don't try to outsmart the market, instead trade based on probabilities)nt 

2) Portfolio Diversification is Crucial (no matter if you are trading stocks or Forex or any other financial instrument)

3) “Smart-Money” can not be beaten in the Short-Term (widen your trading horizon)

4) Buy the Rumour and Sell the Fact (news is immediately incorporated in all asset prices)

5) Think about your transaction cost (the more positions you open the higher gets your transaction cost)

6) Emotional trading is catastrophic and trading by instinct usually misleads

7) Limit your capital leverage (high capital leverage means more risk and higher transaction cost)

8) Identify and follow the trend (trade only along with the master trend)

9) Cut your Losses and Run your Profits (don't be in a rush closing profitable positions)

10) Combine fundamental and technical analysis (fundamentals will tell you what to buy, and technical analysis will tell you when to buy it, and when to sell it)

 10 Stock-Market Rules

 

2. Identifying Chart Patterns

A chart pattern is a distinct formation on the chart of a financial security. There are many different types of patterns. When a chart pattern is confirmed –there is a high probability that a certain (upward / downward) price movement will occur in the near future. A chart pattern is not able to predict with certainty future price movements but is can indicate a high probable trade.


Two (2) Categories of Chart Patterns (Reversal and Continuation) 

There are two major chart pattern categories: the Reversal and the Continuation chart patterns. Reversal patterns are signaling the altering of the current trend while continuation patterns signaling the continuation of the current trend.


MAJOR REVERSAL CHART PATTERNS

1) Head and Shoulders Patterns

2) Double Tops and Bottoms Patterns

3) Triple Tops and Bottoms Patterns

4) Rounding Top and Bottom Patterns


MAJOR CONTINUATION CHART PATTERNS

5) Cup and Handle Patterns

6) Triangles Chart Patterns

7) Flag and Pennant Patterns

 Identifying Charts Patterns



3. The Leverage Formula

“Building a Simple Money Management System to Trade Derivatives & Forex”

Money Management is everything when Trading Derivatives. The way we manage our funds should always be oriented towards our current capabilities and our future expected needs. Any chosen trading strategy must be 100% compatible to the way we manage our trading funds. Our Trading Portfolio should be managed according to our individual risk profile but also according to our long-term goals.

The Leverage Formula

The leverage formula that is present in this analysis aims to provide a simple environment of understanding the attractiveness of each trade and therefore choose respectively the ideal leverage ratio. Here is the formula: 

 Optimal Capital Leverage = [ (P/L) * (1/Spread) * (R/2) ] %

 

More on TradingCenter Leverage Formula


4. Find Trading Books

You may find some interesting Trading Books here.

STOCK-TRADING BOOKS:  Find Stock Trading Books

FOREX TRADING BOOKS:  Find Forex Books

COMMODITY TRADING BOOKS Find Commodity Trading Books

 

5. Trading-Seminars Tips

Trading seminars can prove an effective method for improving your trading skills. Currently, you can trace a great number of trading seminars –and here are some tips to pick the best of them.

 Tips for Choosing the Right Trading Seminar

  

 

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