Styles and methods of trading
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    Super Moderator Gulfstream's Avatar
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    Styles and methods of trading

    Trading style is unique for every trader. Style of trading on the stock exchange depends on the initial experience of money management and the value of money in his life.

    There is a variety of trading styles, but that does not mean that traders are unable to go against their natural preference, and does not imply that the choice cannot be changed.

    There are many ways to describe the style of trading. Some people define it by the markets in which they trade, or by currencies and commodities that they trade. Others use fundamental or technical division, some people characterize it by the type of trade such as spreads or options.

    Here are the different styles and methods of trading:
    • Scalping method
    • Momentum trading
    • Technical method
    • Intermarket spread trade
    • Arbitration trading

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    Super Moderator Gulfstream's Avatar
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    Scalping method

    The scalping method means buying and selling a trading tool many times during the day with a small surplus, which in general is a huge profit. This method is not based on windfall profits, while at the same time the possibility of loss is much less, so it's a fairly safe method.

    Traders increase profits on small movements at scalping and trade, analyzing one - five minute intraday charts, with a few minutes duration of positions, and very small profit per one transaction. Open positions are never carried over to another day.


    Momentum trading

    The basic idea of momentum trading consists in the following thing: the rising market tool will continue to rise, and the falling one will continue to fall. Momentum trading requires some of the most common analytical skills.

    The basic principle is that you do not buy the stock at the minimum and sell at the maximum. If you do not buy it until you see that it starts rising, then it means that you have missed the opportunity to buy it at the very bottom. Similarly, if you do not sell the tool until you see that it is falling, then you’ve missed your chance to sell it at the very top.

    The main technical indicators are dynamic ones which accumulate net change in prices of a tool closure within series of certain periods of time. Control line is constructed as a tandem line to a price chart and shows the zero axis. Positive values show the supported upward movement, while negative values indicate a potentially supported downward movement. Upward or downward trend of indicator shows the "strong move" of the tool.

    When the trader is sure that he has identified a strong movement of the stock, he is making the deal. Skipping the first one or two ticks of movement does not matter, because he is ready to make a purchase (or sale) in one of the following periods of the impulse.

    The momentum trading is also fraught with dangers that could easily destroy even the well-disciplined and well-informed trader. With proper understanding of the technology, sufficient knowledge of the risks and willing to accept accidental loss, momentum trading can be attractive for aggressive traders who like to balance on the edge.

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    Quote Originally Posted by Gulfstream View Post
    Scalping method

    The scalping method means buying and selling a trading tool many times during the day with a small surplus, which in general is a huge profit. This method is not based on windfall profits, while at the same time the possibility of loss is much less, so it's a fairly safe method.

    Traders increase profits on small movements at scalping and trade, analyzing one - five minute intraday charts, with a few minutes duration of positions, and very small profit per one transaction. Open positions are never carried over to another day.
    I used to use this scalping method in early of trading. Scalping provide me to collect quick profit. Although it is just small pip, but it makes me happy. Scalping forced me to times up the lot. Collect the tiny pip but in larger lot. I can no bear to stand with larger lot. I can not stand the pressure.

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    Quote Originally Posted by aris90 View Post
    I used to use this scalping method in early of trading. Scalping provide me to collect quick profit. Although it is just small pip, but it makes me happy. Scalping forced me to times up the lot. Collect the tiny pip but in larger lot. I can no bear to stand with larger lot. I can not stand the pressure.
    It is good to hear that you have adopted the trading of the scalping above al the trading systems in the market, but this baffles me so well on how you are doing this. Would you will tell me the strategy you are using with the scalping system, because I have being trying to find success scalping ways , but still see none.

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    [lang=id]i used scalping methods for trading . some reasons for me to use it because it is most reliable for me, and also i do not need to spend much time for tradng, just make several pips and leave it, it makes me feel relevant to trade with always pay attention for the target[/lang]

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    Registered user mohabbat's Avatar
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    Quote Originally Posted by samprazaan View Post
    [lang=id]i used scalping methods for trading . some reasons for me to use it because it is most reliable for me, and also i do not need to spend much time for tradng, just make several pips and leave it, it makes me feel relevant to trade with always pay attention for the target[/lang]
    yes this is very good style, and I also scalper but I am follow to long term trading always and it is my best trading style. but some time I am try to make some pips by scalping when I get conformation about trend. otherwise time spending not bad for making good amount so I am try to invest long time.

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    Don't loss you hope.

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    sometimes.trader who use scalping will set the lots size with higher number to get big profit in a short time with several pips only..usually many newbies will do it but unfortunately hey do with lack of knowledge..buf for them who have enough knowledge..scalping is the faster way for making profit

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    Quote Originally Posted by newentry View Post
    sometimes.trader who use scalping will set the lots size with higher number to get big profit in a short time with several pips only..usually many newbies will do it but unfortunately hey do with lack of knowledge..buf for them who have enough knowledge..scalping is the faster way for making profit
    well it is actually wrong for traders to think they can quickly make fast money from this business by scalping. Scalping is not reliable, and it is not different from gambling. The only way that scalping can work is when small lot size is used to scalp.

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    Trader meansyouup's Avatar
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    Quote Originally Posted by Gulfstream View Post
    Momentum trading
    to work with the chance on managing the deeper on analytics as appealing the different signals on returns as working with the good helps of the different technical and fundamental analytical system to helps on supporting decision as entering to gains with the longer pips on completion.

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    Quote Originally Posted by Gulfstream View Post
    Momentum trading

    The basic idea of momentum trading consists in the following thing: the rising market tool will continue to rise, and the falling one will continue to fall. Momentum trading requires some of the most common analytical skills.

    The basic principle is that you do not buy the stock at the minimum and sell at the maximum. If you do not buy it until you see that it starts rising, then it means that you have missed the opportunity to buy it at the very bottom. Similarly, if you do not sell the tool until you see that it is falling, then you’ve missed your chance to sell it at the very top.
    I think this type of trading like momentum matches the characteristics I have. I prefer the opportunity that I can get by being patient and not wanting to invoke the opportunity that is not visible. of course I also like to do other styles but not too interested in scalping because I often get stuck in the market when scalping. I do not know what's wrong, maybe my level of understanding about scalping is not enough.

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