subject: How to trade forex and stocks successfully [print this page] How to trade forex and stocks successfully
Why is trading in the financial markets always seem to be an unsolved mystery? Well, in the first place this is a misconception that most of us have. It is indeed an achievable goal to make money from the markets provided we are strict about a set of rules.
Mental discipline, money management and the right analysis tools. If you have these three and know how to implement them, be sure that you are going to be a winner in the markets. However, this article is specifically dedicated to the technical tools that one ought to use while trading.
Hundreds of software applications, robots and indicators are available in the market that claim big, but have you ever heard of any trader who actually made it big by using any of these? Take the fact. They are fake. Even if there would be one that actually worked, the fundamental structure of any financial market would make it impossible to work. The market runs on a 'zero sum game' theory. For someone to win, someone else has to lose equally.
Over the years, I tried using mathematical tools to analyze the markets and tried predicting its movements. While I was successful in many occasions, never did I find a completely fool - proof method. It was then that I realized that market movements primarily depend on the forces of demand and supply, which in turn depends on the personal views of millions of traders worldwide. How could a software read all their minds? Finally I concluded that the best way to judge market moves would be to detect trends and their changes on whatever scale it may be.Detecting early is the key to success. It was then that I started experimenting with hundreds of technical tools and mathematical equations that would be the first to detect any changes in the trend of an instrument. And, I was successful. Although improvement has no limits, I am quite happy that my hard work paid off with the tool that I currently use and publish at myblog for my visitors
The second tool that I decided to use was the Camarilla Equation. The Camarilla Equation is basically an equation which gives us a set of ten resistance and support levels labelled L1 through L5 and H1 through H5. I observed that trading instruments of all kinds and sorts respond very accurately to these levels and hence concluded that these levels were far more effective than the other pivot point calculations available. Eight of these levels are widely available on the internet, though I am not sure about how accurate they are. However, the remaining two, which holds the promise of the highest profits, remains undisclosed on most websites. While I take utmost care in calculating each level very precisely and openly publish all the ten levels, I find it to be a very effective tool that has enhanced my profitability from trading the markets.
Hence, my trading got better with these two:
Early detection of trend changes
Awareness of possible support and resistance levels (the effective ones only)
Hope it helps all of you. Happy trading!!
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