We start doing seriously and discovering some styles and techniques to start trading online although we are at the beginning of this new business. The first aspect we will deal with is the so-called Position Trading.
Among the operational techniques still in vogue, position trading is one of the most used, by traders who are defined as more "relaxed", or who want to worry initially as little as possible about the time spent online.
In fact, thanks to this style, the trader is not forced to be linked to the performance of the financial markets and can follow the activity at a distance.
According to the official definition (or almost), the trading of position is precisely a financial intermediation activity, which sees the alternation of positions both upward and downward, in the medium and long term. This means that thanks to this strategy, the apprentice can go and make the appropriate settings, to go and manage operations of what is called trend following in jargon.
This means being able to follow the evolution and direction of the market from a general point of view, without going into the specific detail of a given market.
As far as the purely operative side is concerned, those who trade position aim to study through specific analyses, the financial market but more from the point of view of the direction they intend to take or are taking. In this case, the trader does not go to determine assumptions or investments through specific calculations or by studying signals that anticipate a change in trend.
All that is done by those who adopt this style is to recognize a certain stage of the market, and then choose an order related to the sale or purchase of a certain financial product. In this way, you can act according to the direction of the market, taking care to safeguard your investment through so-called stop losses.
The next step is to liquidate one's operating positions, after having waited for the trend of the investment made to produce, in its final phase, phases of uncertainty. These phases are determined by having bought or sold in an excessive manner: hence the need to liquidate all positions while waiting for the trend of the price market to travel in a new, well-defined direction.
Gaining profit thanks to position trading is a consequence of having been able to manage the trend wisely, through the correct cut of any losses before they assume such a size to heavily affect their capital. The same applies to the focus on investments that are promising decisive profits.
This kind of attitude, or rather of online investment strategy, is undoubtedly the most suitable for those who want to contain the costs of brokerage, although at the same time the trader must manage everything with the utmost patience and especially have determination in making choices at the right time.
In addition to the equity markets, this technique can also be applied in a number of contexts where the maturities are longer: we are talking about the case of trading for currencies and commodities. In fact, position traders usually "play" with durations of several days, if not a few months. Throughout the life of the trend under consideration, we try to always keep the position open to practice this strategy correctly.
We are talking about any object characterized by a primary use. In practice they represent all those values without which our day would not make sense. Mainly linked to the food market, this market is one of the oldest and most flourishing of all time (it was the Stock Exchange that acted as a guarantor against the poor harvests that often plagued the various producers or farmers).
Investing in these products offers quite high returns when it comes to real goods, influenced by the law of supply and demand. Investing with derivative strategies on underlyings such as our commodities can provide competitive advantages that should not be underestimated.
On the site Commodities Trading you will find a series of tools available free of charge, which are the brainchild of Giancarlo D'aglio. Some examples? Here they are:
Apps for online trading are many, and it is difficult to find the ideal solution without wasting time with non-functional applications. So, we try to make it clear by recommending a range of trader applications to download and test directly with your strategies.
A safe investment comes from a valuable material: exploiting diamonds in investment guarantees savers a good profit margin that they can exploit in the long term. We try to understand better how this system works with little risk and good profits over the months.
Parabolic Stop and Reversal (Sar) refers to a trading system based on price and time. In the graphic aspect, it is represented by a succession of points above or below the prices, takes its name from the parabolic form that outlines in the graph. The succession of points of the Sar in the chart if it is built below prices means that it is in bullish trend, on the contrary if it is built above it is in bearish trend.
Let's start immediately with a nice definition. In financial jargon, the option is an asymmetric derivative instrument which, in simple terms, translates into a contract with a non-binding clause to buy or sell the security on which the option has been subscribed. The security in question - which may be a share, a pair of currencies, a commodity or another financial product - is called an "underlying instrument" and can be subject to a call or put option (also known as a put and call option).