Wednesday, October 5, 2011
Basic Index Trading
Stock Trading Index or so-called Index trading course, known to have high levels of volatility, even higher than Forex trading. Unlike many forex traders that we have encountered in Indonesia, the number of Index Traders still relatively small. With high levels of volatility, not all traders are able to become a Trader Index.
Trading Index is better suited for high-risk large traders who dare to risk is high. But with enough knowledge, any trader could have to feel the Index Trading profit from this. For that I'll review a few tips that might be useful for you as an initial step to study the Trading Index.
Index Trader Indonesia
Based Blogwalking I have done, the Index Traders in Indonesia like the majority of trading on Hangseng Index and the KOSPI. The rest they choose to trade in the NIKKEI Index and Dow Jones.
Why are they so interested in Hangseng Index? On average their answers together, Hangseng Index has a high volatility among all other products Index trading or forex trading, so that very large profits on offer in the category of day-trading.
The small number of index traders in Indonesia is probably caused by a lack of brokers who offer products Index funds are affordable. Index for trading products through local brokers require a minimum of 50 fund up to 100 million dollars. Usually the index traders outsmart the search for foreign brokers that provide the initial deposit, as well as an Introducing Broker to use intermediaries.
Basic Index Trading Tips
For those of you who have been accustomed to trading in forex and stocks, I am sure you will feel the difference is striking when you try to jump into the index trading. With high levels of volatility, then the adrenaline will be encouraged to follow our "wildness" Index chart movement. It is very important for you to always remember the following:
Index market often move with the trends that tend to be short. I think the type of swing tradinglah the most efficient market for trading in the Index. Swing trading is not trying to predict the length of the trend going, but has a goal to maximize profits at the time of the trend and retracement. In order to run a successful swing trading, then we should be able to determine the reference entry points and exit points quickly.
Problems that often happens is that many traders do not have enough capital to withstand margin should be profitable position.
Let's look at the following example:
A trader must bear floating loss of 37 ticks or the equivalent of $ 1,850 on regular account according to the analysis before moving trend that we plan and become profitable. Many traders are not able to hold the floating loss of that size, although they believe that the position taken will be profitable. To that end, the choice of a mini account is probably more suitable for those who do not have the capital or large margins that the new traders start trading Index.
Moving average crossover (the intersection of the moving average indicator), often used to determine entry points and exit points. Since the intersection of MA can be used as a sign of starting / end of a trend. But if we just rely on the intersection of MA lines only, then we will find the false signals. It needs to be added to other indicators such as Stochastic and MACD to further ensure the trend going. Do not forget to always use stop-losses which the previous day's High and Low can be used as a reference.
Trading Index is better suited for high-risk large traders who dare to risk is high. But with enough knowledge, any trader could have to feel the Index Trading profit from this. For that I'll review a few tips that might be useful for you as an initial step to study the Trading Index.
Index Trader Indonesia
Based Blogwalking I have done, the Index Traders in Indonesia like the majority of trading on Hangseng Index and the KOSPI. The rest they choose to trade in the NIKKEI Index and Dow Jones.
Why are they so interested in Hangseng Index? On average their answers together, Hangseng Index has a high volatility among all other products Index trading or forex trading, so that very large profits on offer in the category of day-trading.
The small number of index traders in Indonesia is probably caused by a lack of brokers who offer products Index funds are affordable. Index for trading products through local brokers require a minimum of 50 fund up to 100 million dollars. Usually the index traders outsmart the search for foreign brokers that provide the initial deposit, as well as an Introducing Broker to use intermediaries.
Basic Index Trading Tips
For those of you who have been accustomed to trading in forex and stocks, I am sure you will feel the difference is striking when you try to jump into the index trading. With high levels of volatility, then the adrenaline will be encouraged to follow our "wildness" Index chart movement. It is very important for you to always remember the following:
- Think and act quickly.
- Have sufficient capital margins to always survive.
- Has the entry point and exit points before doing the open position.
- Having a trading plan is tight and very, very disciplined.
- Keep your emotions, so do not be too greedy.
Index market often move with the trends that tend to be short. I think the type of swing tradinglah the most efficient market for trading in the Index. Swing trading is not trying to predict the length of the trend going, but has a goal to maximize profits at the time of the trend and retracement. In order to run a successful swing trading, then we should be able to determine the reference entry points and exit points quickly.
Problems that often happens is that many traders do not have enough capital to withstand margin should be profitable position.
Let's look at the following example:
A trader must bear floating loss of 37 ticks or the equivalent of $ 1,850 on regular account according to the analysis before moving trend that we plan and become profitable. Many traders are not able to hold the floating loss of that size, although they believe that the position taken will be profitable. To that end, the choice of a mini account is probably more suitable for those who do not have the capital or large margins that the new traders start trading Index.
Moving average crossover (the intersection of the moving average indicator), often used to determine entry points and exit points. Since the intersection of MA can be used as a sign of starting / end of a trend. But if we just rely on the intersection of MA lines only, then we will find the false signals. It needs to be added to other indicators such as Stochastic and MACD to further ensure the trend going. Do not forget to always use stop-losses which the previous day's High and Low can be used as a reference.
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