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Trading Basics
When things don't go well in any sort of endeavor, time honored advice is typically to get back to the basics. Better advice in stock trading, options trading, or commodity trading is to stick to trading basics from the start and not need to "get back to" trading basics. So, what are trading basics? The basics of trading are to work from a plan and to work the plan. The plan in trading basics is a well thought out and frequently tested trading strategy. Successful trading requires a knowledge of the fundamentals for trading stocks, trading options, trading commodities such as gold futures and oil futures , or trading futures in such exotic entities as futures on interest rates. It also requires technical analysis tools such as Candlestick chart analysis in order to take advantage of a breakout gap, full scale stock price reversal, or to sell stock at the top of a trading cycle.
A good trading strategy includes taking the time to learn how to do and routinely carry out fundamental analysis. It includes learning how to do technical analysis with Candlestick analysis in order to anticipate and profitably trade changes in stock prices, commodity prices, or futures prices. Starting with the trading basics puts traders in the position to make money in trading. Carrying on with trading basics brings the trader closer to profitable trading. Besides learning the basics of fundamental and technical analysis the trader needs to learn and use the trading basics of using a trade station, making trades in a timely manner, and simply being there when the trading action starts.
2. When things don't go well in any
sort of endeavor, time honored
advice is typically to get back to the
basics.
3. Better advice in stock trading,
options trading, or commodity
trading is to stick to trading basics
from the start and not need to "get
back to" trading basics.
4. So, what are trading basics? The
basics of trading are to work from a
plan and to work the plan.
5. The plan in trading basics is a well
thought out and frequently tested
trading strategy.
6. Successful trading requires a
knowledge of the fundamentals for
trading stocks, trading options,
trading commodities such as gold
futures and oil futures, or trading
futures in such exotic entities as
futures on interest rates.
7. It also requires technical analysis
tools such as Candlestick chart
analysis in order to take advantage
of a breakout gap, full scale stock
price reversal, or to sell stock at the
top of a trading cycle.
8. A good trading strategy includes
taking the time to learn how to do
and routinely carry out fundamental
analysis.
9. It includes learning how to do
technical analysis with Candlestick
analysis in order to anticipate and
profitably trade changes in stock
prices, commodity prices, or futures
prices.
10. Starting with the trading basics puts
traders in the position to make
money in trading.
11. Carrying on with trading basics
brings the trader closer to profitable
trading.
12. Besides learning the basics of
fundamental and technical analysis
the trader needs to learn and use the
trading basics of using a trade
station, making trades in a timely
manner, and simply being there
when the trading action starts.
15. The new trader will need to dedicate
an amount of time to learning about
market and what is traded.
16. He will need to deep in touch with
market news for stocks, bonds,
options, and the rest.
17. For the beginning trader who
envisions successful trading as
executing trades via clicks of a
mouse trading basics will require
that he learn how to devote a portion
of his time to the homework
necessary for successful trading.
18. No matter what equity a trader is
trading he will find that the market
moves when the market decides to
move.
19. Traders profit from following the
market, doing technical analysis, and
executing timely trades.
20. This means that when the trader is
not "doing his homework" he needs
to be at the trade station following
the equity which he is trading.
21. The last of the trading basics
mentioned here the periodic review
of trading results.
22. This is not the least important of the
basics; it is the most essential to long
term success.
23. No one is capable of setting up a
trading strategy for all seasons.
25. A trade needs to review his results
and then review his trading process.
26. It is by doing so that the trader gets
better at predicting stock price,
learns how to spot a stock market
correction, and learns to avoid
overpriced stock.
27. It is by following the basics that the
trader comes to long term success.
