BUILDING STRATEGIES FOR TRADING
The only way to be a successful trader is by always following a trading plan.
This module combines everything you learned before to craft a effective trading plan.
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Prerequisites : Solid understanding of financial markets, technical analysis, fundamental analysis, trading psychology & risk management.
What is Market Sentiment?
It is widely recognized that trading is a zero-sum game. for every winner, there is a loser. Also, It is a commonly acknowledged fact that the majority of individuals in trading tend to be wrong….
Different Types of Trading Strategies
There are two types of trading strategies: momentum strategies and mean-reverting strategies. Any trading strategy you decide to use will fit into one of these categories. In this article, we’ll explore….
How to Screen Stocks for Trading?
Not every stock works for all strategies. The tricky part is that some strategies do well with certain stocks but not with others. So, picking stocks that match our trading plan is crucial….
What is Efficient Market Hypothesis?
The Efficient Market Hypothesis (EMH) is a theory in finance, that provides a framework to understand how financial markets function and how asset prices are determined. Developed….
What is Liquidity in Trading?
Liquidity is a fundamental concept in finance that describes the ease with which an asset can be bought or sold in the market without significantly impacting its price. It is the lifeblood of financial….
What is Market Making?
Market making is a critical function in financial markets, primarily aimed at ensuring liquidity. Liquidity, the ability to quickly buy or sell assets without causing significant price changes….
The Importance of ECNs
In the fast-paced world of financial markets, the Electronic Communication Network (ECN) stands as a pivotal mechanism facilitating seamless trading operations. Born out of….
Smart Order Routing and HFTs
In our previous article, we talked about ECNs. ECNs act as an exchange for buying or selling stocks. I suggest reading that post to understand the following concepts better….
What are Dark Pools in Trading?
In our previous discussion on ECN & SOR, we explored how these platforms can expose traders to the risk of front-running by high-frequency traders. When using ECNs, there is a possibility….
Opening Price of a Stock
Sometimes when you look at a stock price chart, you’ll notice gaps between the daily bars. This happens when the stock starts trading at a price that’s higher or lower than where it closed….
Technical Analysis vs Fundamental Analysis
In the world of trading, two primary schools of thought guide traders and investors: technical analysis and fundamental analysis. Each method offers distinct approaches to evaluating securities….
Swing Trading vs Day Trading
In the world of financial markets, trading strategies are as diverse as the traders who employ them. Two popular approaches are swing trading and day trading. Both strategies aim to profit….
Importance of a Trading Strategy
A robust strategy provides direction, risk management, and consistency, enabling traders to make informed decisions and pursue success.
Building a Trading Plan for Your Strategy
Learn how to outline your goals, risk tolerance, strategies, and rules to guide your decisions and maximize profitability in the financial markets.
How to Implement a Trading Strategy?
Discover the step-by-step process of effectively implementing a trading strategy. Learn how to monitor performance, and adapt to market.
How to Create a Trading Strategy?
A trading strategy is a predefined plan or approach that traders use to make decisions about buying and selling financial assets
How to Backtest a Trading Strategy?
By simulating trades under past market conditions, traders can gain insights into the strategy’s strengths, weaknesses, and overall effectiveness.