Название: Forex Trading Making Pip By Pip
Автор: Speedy Publishing
Издательство: Ingram
Жанр: Маркетинг, PR, реклама
isbn: 9781634281706
isbn:
Risk/Reward Ratio: You must adhere to some strict rules, and having an exit strategy is one of them. Most experts suggest a 1:1 ratio. What this means is: if your anticipated profit is ten cents, then you must put a loss limit at ten cents. The example here is: You bought 1000 shares at $20.00. You have a stop loss order in place for 1000 shares at $19.90. You also have a sell order at $20.10. These are called "simultaneous orders," one cancels the other when one is executed. You can do this manually, but it limits you if you want to trade several stocks at once.
The other form of scalp trading is known as "inside the box." It's really tough because you are going against professional market makers, and it can be more frustrating than profitable. You're attempting to take inside positions against the bid/ask prices. You're buying at a discount and selling at a premium - very hard to beat the pros.
Your limited risk and more frequent price moves make scalp trading very popular with day traders. Do yourself a favor, practice offline and learn how to use the tools so it becomes second nature - this will give you the best chance at being a successful scalp trader.
Chapter 7- Explain the Day Trading Strategy Known as Rebate Trading
It's no secret that the stock market can make you rich, but it can also make you broke. Seasoned traders who take a gamble with the stock market know what they’re up against every day, and they realize the potential downfall of any investment they make. There are many variables in the stock market; making it impossible to pinpoint any one reason why a stock may rise or fall. It could be a poor quarterly-earnings report, or a recent change in company policy that spikes the downward trend for a stock. One of the most important things is how much of it is being bought or sold; these volume numbers will keep it in the eyes of traders as a potential long or short buy, and increase the likelihood of an upward trend.
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