PROFESSIONAL TRADING

MOVING AVERAGES Moving averages have long been in use when doing technical analysis, and many traders love them because they offer a great system of filtering the ‘noise’ on the market from the price fluctuations that are random. It is a type of indicator that follows a trend also referred to as ‘lagging indicator.’ It is an excellent indicator when you want to keep track of the price action in the market smoothly . There are two types of moving averages - Simple Moving Average (SMA) and Exponential Moving Average (EMA). SMA-Simple Moving Average This moving average is arrived at after calculating the average price of a stock over a specified period. For example, you can choose the prices of ten days and then sum them up and divide by ten to get the 10 days moving average. The popular ones are 20, 50, 100 and 200 days moving averages. EMA-Exponential Moving Average This moving average tends to apply extra weight on the most recent prices to minimize the lag. Th...

Some tools that are used in technical analysis by technical analysts! CHARTS There are three major charts that are popularly used by technical analysts when carrying out technical analysis. These are line charts, candlestick charts & bar charts. The chart of choice will be dependent on the information they want to get as well as the goals they want to accomplish. But, the most important, most effective and most scientific charts are candlestick charts. Line Charts To many investors, the closing price will always be of importance as compared to the opening price because it is the determining price of how your trade did. Line charts are excellent at monitoring the closing price of the market over a specified period. The line chart will only show the closing prices. A line chart is arrived at after joining together all the closing prices within the specified timeframe. It is the easiest chart to use when trying to spot trends. Candlestick charts Candlestick c...

Professional Trading is all about a platform, where everything culminates and comes together as a whole. The science of trading is the heart, soul and the fundamental secret behind trading. If you do not have sufficient knowledge about this area of the trading world, you can never become a successful trader. It comprises all the technical guidance and secrets you’ll ever need to know to be successful in trading. Try to get in-depth and firsthand knowledge into what makes a successful trader! The constituents of Science of Trading:- TECHNICAL ANALYSIS “THE ILLUSION OF RANDOMNESS GRADUALLY DISAPPEARS AS THE SKILL IN CHART READING IMPROVES.” -         - John Murphy        Technical analysis is a methodology for carrying out an analysis of the market and entails the study of a market’s past data in a bid to predict the direction of the prices. The data studied is the price as well as volume. Many analytical tools are used ...

Always remember, knowledge is power. The only way to the successful & profitable trading is through Knowledge & Discipline. For knowledge, get yourself education & training. For discipline, get yourself a mentor & coach.  A lot has been said when it comes to trading. A lot has also been taught concerning the same. The insight I have gotten in my many years of analysis & training has shown me that there is more to trading than just education & training. Other than that, trading is also an art that depends on your psychological state of mind. With a sober mind, you will be in a better position to apply the elements of that science for a professional and profitable trading career. Over time, I have discovered that you will not have the desired outcome if these three parts of trading are not in balance. One cannot do without the other because it will be an incomplete recipe. Every part is vital and needs to be carefully observed. Throughout your...