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 Trading Strategy
In financial markets, having a well-defined trading strategy is crucial for success. A trading strategy serves as a comprehensive plan that guides traders in making informed decisions, minimizing….
How to Build a Trading Plan?
Building a trading plan is an essential step for any trader, whether you’re a beginner or a professional. A well-constructed trading plan serves as a roadmap to guide your trading activities….
How to Create a Trading Strategy?
In our previous article, we discussed trading strategies and why having a strategy is crucial for success in trading. In this article, we are going to learn how to come up with a trading strategy….
How to Backtest a Trading Strategy?
In the ever-changing world of financial markets, traders are always looking for ways to gain an advantage and reduce risks. Creating a successful trading strategy needs careful planning….
How to Implement a Trading Strategy?
Earlier, we talked about trading strategy and trading plan. Now, let’s see how to implement a trading strategy. Implementing a trading strategy involves a series of well-defined steps….