3 Proven Swing Trading Strategies

Swing trading refers to the trading on the basis of fluctuations or swings in the market. So what is swing? A swing is depreciation or appreciation in the value of a currency pair in the market. Simply put, swing is a upward or downward Trend in the value of something. The best way to profit from swing trading is by exiting before the opposing pressure sets in. Typically, opposing pressure refers to traders who are trying to sell their stock, currency pair etc. So it is best to exit before a down swing, or enter at an upswing. So keeping this core idea in mind, here are 3 swing trading strategies for swing trading.

Stuck In A Box

This is usually done when the prices of the stock or currency pair is stuck inside a range. Here, what you can do is, let the price fall below the lowest point. This way, after sometime, the trend will start to reject the lower prices. This rejecting trend of lower prices will increase the price of the stock or currency pair and you can exit at a high point. As a swing trader, the aim is to exit before a downtrend, and hence it is important to review previous similar data. If previous data shows resistance, it is best to exit at the highest point achievable.  

Catch The Wave

This is generally used when the market is on an upswing or an uptrend. Again, the idea is to ride the wave and exit before the opposing pressure sets in. An upswing has 2 portions: a small wave of depreciation followed by a long wave of upswing. It is best to exit before the upswing at a particular stage succumbs to traders who are looking to sell (the opposition pressure).

Fade The Move

This is usually a riskier way to go about swing trading, but it is profitable if you know what you are doing. This is also done on an upswing that can drastically contrast and fluctuate and therefore a riskier path is better. Fluctuations are difficult to predict, but it is possible to do so with the help of previous charts and graphs. This can really up your chances of exiting right before traders decide to sell. Since the idea is to fade before the upswing, it is one of the best ideas to go for in a fluctuating swing trade....

25 May, 2020 No comment

6 Success Tips for Stock Trading

The stock market is among the most popular trade markets for investors and traders that offers several opportunities to grow money. You can learn stock market trading and invest in the market on your own or take a trade broker’s help to invest your money. With several online trading platforms available today, you can trade easily and manage your trades all by yourself. It is important that you learn the right strategies and approaches for stock trading to make maximum profits. These trading tips are useful for online trading success.

Find a trading style

Choose between day trading, short-term trading, and long-term trading. Day trading starts in the morning and ends at the end of the day. Short-term trades are kept for a few days, and the long-term trades can last for weeks and months. Pick the right trading style according to your time and your requirements.

Adjust your trading habit

Implement ways where you can manage your trades alongside the rest of your life. Day trading can require the entire day to sit in front of a computer, while the long-term trades do not require much attention. The shorter the trading time frame you have, the more intense it will get. Pick your trading style according to maximum success while managing your other tasks with ease.

Find a like-minded broker

You need a broker who can understand your requirements and provide you with the right trade options. The reliability of a trader also depends on their style of trading and the technology they use to place their trades. Day trading is the most expensive when it comes to paying the broker’s fee. Make sure to discuss the fee and payment option with your broker before investing with them.

Find a universal trading method

No matter what style of trade you pick, your strategies and method should work for all of them. Use an online platform to monitor all your trades and be present at the right time to take out your investments when the market starts going down in any trade.

Find the best stocks

Never settle for less when you are investing in trades. You need to find the best stock available in the market to invest in. It takes a lot of research and advance skills to find the stocks that will guarantee profits. If you are a beginner in stocks, take help from a professional. Avoid the big brokerage firms and mutual funds as they will always keep the best options for their dearest clients.

Sell at the right time

Always know when you want to sell your stocks. If you keep them any longer than the threshold you fixed, you will only make losses in the long term. It is a more sensible way to manage your money in the stock market. Do not let your gains disappear in negligence. Set your take-profit and stop-loss limits before investing....

12 November, 2020 No comment

Basic Rules for Investing in the Stock Market

Investing in any financial market follows a great sense of risk, risk factors, as well as advantages. In a time when the inflation rates are at its, peak, it gets incredibly daunting. It is a no brainer that the process of investment of any form, helps us upgrade from a dormant savings account, which will in-turn help in the long term as well as the short term goals. In addition to this, it also helps in:

• Times during the inflation of rates
• Accumulate wealth overtime
• Secure financial costs, both short terms and for long term goals.

 

Basic golden rules of investing in the stock market

Although there are various schemes like mutual funds, goal loans, provident funds, etc., for some reason, stock market investment still holds the upper hand in the world of financial investments. However, when these rules mentioned below are carefully followed, it can lead to a smarter and safer investment.

• Focus on long term goals: All of us have heard of the golden rule of entering the market when it is down and taking the exit door when the rates are high. Although this method helps in making quicker profits, the stock values are generally cheap, and the price rises adequately for sharing at a higher price. Instead of thinking of short term goals, you ought to make plans accordingly for long term benefits, hence enhancing the services.
• Buying and selling at the right price: Buy stocks only at the prices you're comfortable in paying. Skip the ones that you cannot afford or exceeds your limit. This also applies to selling your stocks. If you feel you can get good returns for your purchase, don't hesitate to sell them right away when the market value is appropriate.
• Diversification: One of the oldest or an old-age strategy for the stock market investment lies in diversification- in other words, don't put all your eggs in one basket. Investing just in one company or one stock can leave you bankrupt if the company falls or does not do well in the market. Hence, investing in various platforms brings diversification and can also prevent your account from depreciating values in the long run.

Keep tips and rumours at arm's length: For any financial investment in the market, there exist a lot of suggestions, strategies and rumours from all sides. Although some tips might be beneficial for you, most of them are just myths and rumours. That's why we have included this point in the list so that you do not fall prey to such beliefs. Always do your homework and have the right knowledge with what you're investing in. By doing so, you can prevent your status in the market and also secure a better position by making informed decisions....

22 October, 2020 No comment

Best Kept Secrets of Stock Market

The stock market always finds new ways to surprise investors with opportunities that guarantee them quick or long-term profits. The traders and investors are always looking for new tricks to crack how the stock market works. Learning about stocks requires skills and speed, or you will be left behind in finding the best deals. As a beginner, you will find so many new things brainstorming you all at once. To help you better understand the stock market, here are some best-kept secrets that only a curious trader can reach. These stock market secrets will help you improve your investments and make profits.

Value business quality

The biggest mistake that beginners commonly make while investing in stocks is falling for big and attractive shares. Instead, you should be focused on investing in the quality of companies. When you invest in a company, imagine it as opening your own company. If you feel the company will provide for the need of the future, it is the right choice for you. Check for the consistency, product sales, competition of the product in the market, and customer management of the company before you plan on investing. If your company can promise you all these factors, you can successfully invest in the stocks.

Pick long term investments

The right way of investing in the stock market is to find the stocks that can promise you long term profits. Stock is the most rewarding if you plan to invest in it for ten years or more. However, if you really want to make quick trades, you can pick the day trading options like a forex that offer faster returns. Some of the best stock market shares require a long time to nurture. If you take out your money too early, you can regret the decision in the future.

Always keep options

The right strategy to invest in stocks is to always have more than one option. In case one of your companies crash, you can still recover your losses from the company that does well. There are plenty of businesses in the stock market to choose from. You need a thorough study of the market before you can plan on investing in one of the stocks.

Check the management

When you pick a company, take a quick inspection of the resources that the company has. Check for its manpower, technology, and materials to make sure that it has long term goals. This management efficiency can soon reap you better results on capital. If the management is not capable of managing its resources, the chances of the company’s collapse are higher. Any wastage of resources is a warning signal for you to take off your interests from the company....

23 September, 2020 No comment

Five myths about insider trading

The thing about insider trading is that the definition of its legality can be ambiguous in various countries, but what is it anyway? Insider trading is buying and selling of a company's stock by anyone, who has anyhow access to the non-public information. This information can be turned out to be important during the investment. If the information is still non-public, it can be deemed as illegal. Access to the exclusive non-public information gives the insider advantage in the investment and allows him/her to influence the company stocks.

Regulation:

The popularly held belief is that you need regulation. There is however no security like that. A corporation can come out of regulation and allow the insiders to continue trade. If the state succeeds in enforcing the regulations more extremely, there is no other way around it.

Impact:

Due to the presence of Insiders in the market, no harm is caused to the market makers. They don’t need to manage or adjust their spreads to brace for the impact. So, the myth of charging more is nothing but a myth, but to start with, trading is not a Second game.

Insider trading serves no valuable reward function:

The bonuses come out of shareholders' pockets and there is no doubt about that. To encourage innovations like finding lightning in a bottle, and more hard is to devise an efficient compensation plan. Having awarded people indulging in Insider trading is always a boon. Any type of trading pushes the price in the right direction, the only thing to know about the step is that – whether it was right or wrong?

Criminalization:

The right to trade information can be restricted in many ways, however, this is not to create any impact on the corporate employees, who are paid decent sums to compensate for their losses. Options like an increase in executive salaries, bonuses, and stock options have been there for a longer period. As the governments across the world tighten their grip over the markets, this will surely have an impact on Insider Trading also.

Definitions:

The law is dependent on State definitions. However, neither Congress nor SEC has stated or defined “insider information”. IN matters of legality, there are no red zones to fall to be included in the violation area. Having said that, the laws are subject to change, and ambiguity is just a matter of years.

Conclusion:

Insider information gives the Insider a radical advantage in trading. With this advantage, you can influence the stocks of the company. A typical Insider can make more profit than usual traders as he has access to the information that is not public. This is termed as illegal in some countries as the advantage seems to be unfair to other traders who don’t have access to such information. Insider traders are also a legal affair in companies where corporate Insiders sell and buy shares within their company with the security laws.  However, it’s advisable and wise to research Insider trading before going forward with it.  ...

05 May, 2020 No comment

Golden Rules For Trading In The Stock Market

Investing in the stock market has become one of the most exciting ways to make money off an investment. Although certain firms do not use it, the majority of the stock market trading goes through a stock broker, which is a firm that handles exchanging the stock for you. Hence, it can be said that the stock market is a rather expensive market to invest in because apart from the stock, you will need to pay an amount to the stock broker as well. However, this can be seen more as an investment than an expense because the returns on stocks is considerably high. But there are certain rules that need to be followed while trading stock.

Brokers

Do not think of investing with an unregistered broker, it might be an attempt at fraud. You have to be extremely careful while choosing a broker, and run thorough background checks before running opening an account with one.

Proper Research

Before investing, make sure that you have done all the proper research. You have to keep an eye on the market and understand changes which can potentially affect your stocks.

Choosing The Right Ones

This might seem obvious, but it is one of the most important ones. Choose stocks that have high liquidity, preferably blue chip stocks, to invest in, because otherwise you might get stuck at one position and succumb to losses.

Responsible Risk Taking

You must always have an idea on how much money you have, because you can only lose what you have. The stock market isn’t the right place to start gambling, and it definitely isn’t in anyone’s great interest. So unless you have enough money to play golf on a private yacht, you need to set your priorities straight and take your risks responsibly.

Do Not Take Hasty Decisions

Hasty decisions are the last thing that you want to do in the stock market, because a slight miscalculation can lead to you losing much more than you intended. Learn the flow of the market, ride the uptrends and make your decisions with precision.

Do Not Let Emotions Get The Best Of You

In such a risky business, you should always keep your emotions in check. It is inevitable that you will incur losses. This may be because of wrong timing, poor decision making skills or simply bad luck. You cannot let that affect your decisions, because the results could be catastrophic.

Employing Stop Losses

This is probably the best way to stop yourself from dropping too low or falling too short. Stop losses are less about gaining more money and more about saving yourself from too much of a loss, hence retaining the profits that you made so far in the trade....

30 August, 2020 No comment

Golden Rules of Stock Market Trading

When you plan to make your first investment in stocks, it is essential that you get some right advice from a professional in trading. You cannot invest blindly and expect huge profits every time just because you were lucky the first time. Find a trading style and use these golden rules to always keep yourself safe and profitable while investing in stocks.

Check broker’s license

You must always make sure in stocks that you are relying on a registered broker for your investments, no matter how skilled they are. Check the background reputation of the broker and ask for a portfolio before you open an account with them.

Never listen to rumors

Always find the source of your information before you make any rushed decisions. Never trust the words spoken by others while investing. You must have the proper research done on the stocks and always get the latest stats of the stock before investing. Always have researched proof to back your investments rather than trusting rumors.

Pick the right stocks

To make quick profits, you will need highly liquid stocks and day trades. If you are investing to gain long-term profits, make sure that you put your money in a stable stock that can promise constant growth.

Learn to take risks

Taking risks in the stock market is a sign of a healthy trader. You cannot always play safe and expect to make profits. Find out your risk potential and invest in it if it suits your requirements. Be wise while taking a risk and invest no more than what you can afford to lose.

Do not get greedy

Always have a clear head and a calm personality while dealing in stocks. You do not have to get greedy and play your cards right to make slow but steady profits. Take help from an expert if necessary. Do not rush the decisions if you only see high rewards without any research.

Do not get emotional

Always have realistic expectations from stocks. Never estimate the profits that are impossible to attain. Never let your emotions affect your determination to become a professional trader. Be rational at all times, and follow your strategy.

Learn about the company

Learn about the company that you want to invest in. Check out their balance sheet, future projects, potential, and several other factors that can impact the market as well as make changes in your trade. If you find a company not profitable enough, switch it without having a second thought.

Hedge your positions

Just like the recession of 2008 and the current pandemic situation, several political and economic factors can affect your investments. Make sure that you hedge your positions to keep your money safe even at times of high crisis....

22 July, 2020 No comment

Insider Trading Rules That Do Not Apply To Congress

What is Insider Trading?

Insider Trading involves the trading of a public company’s stock by someone who has inside information which is not available to the general public about that particular stock. This knowledge is usually known only to the high ranking officials of a particular company. This information is known as insider information and is only legally available to the highest-ranking corporates of a company. However, it is illegal to be found in the hands of other officials inside the company or if a public person knows about it.

Do Members of Congress Know the Stock Rates and Can They Use This Information?

The Stop Trading On Congressional Knowledge (STOCK) Act prohibits members of Congress from using insider information for personal gain. However, the members of Congress, as individuals, are allowed to trade. It is possible for members of Congress to note stock rates before they increase or decrease. Ine disadvantages public stockholders and increases distrust among the general public.   However, there is a clear dilemma here. It is quite difficult to make out if Members of Congress use non-public information for the stock market exchange. Just because the Stop Trading On Congressional Knowledge Act prohibits the members of Congress from using non-public information for stock exchange does not mean they don't. There is often a large amount of money on the line, and the risk of getting caught is very low. A study conducted by the New York Times suggested that almost a quarter (or 25%) of all public company deals involve some kind of insider information. The Security and Exchange Council (SEC) can only do so much with so many resources, and so, they pursue the cases large enough or those that they consider legally viable. Also, the legal system may take years to arrive at litigation regarding cases like these.   On February 13, 2020, Senator Richard Burr, chairperson of the Senate Intelligence Committee, sold a large number of his shares, gathering something between $628,000 and $1.72 million USD. Roughly a week later, the market crashed. Senator Kenny Loeffler started selling her personal holdings on January 24, the day after an all-Senate meeting. Interestingly, her husband is the chairperson at the New York Stock Exchange. The most frustrating part is that they can simply say that they got lucky and get away with it.  

CONCLUSION

So like stated before, it is quite difficult to convict members of Congress for insider trading. The only way to stop insider trading is by prohibiting Congress members from stock trading....

01 June, 2020 No comment

Overview of the law of Insider trading

There have been various laws to regulate the trading but due to various complications, either they never saw the light or were never implemented as it was supposed to be. The history goes as far as 1934 when the first law was passed, but the recent developments have been appreciable especially by the Obama administration that took radical steps to combat Insider trading. With the passing and signing of the STOCK law into the legislation, it allowed for a whole new dimension in the trading market.

What is Insider trading?

Insider trading is regarded as an unfair means to gain an advantage in trading. It uses the information that is non-public and helps to gain the advantage. This information is very crucial in influencing stock prices. Having said that, there can be a difference between legal Insider trading and illegal Insider trading. The legal trading involves corporates and employees of a company trading equities.

Insider trading Act

The Insider trading act is known as Stop Trading on Congressional Knowledge (STOCK) act. The act was brought in by the Obama administration in 2012 to combat Insider trading within the Congress. It doesn’t exempt anybody from the law and also puts ethical obligation son the vice-president as well as the President. The laws make it illegal to share non-public information that has the capacity and power to influence stock prices. Though the rules in the United States are strict, this can be different in a country like Japan but as the United States tries to hold its grip on the market, it can be expected that other countries will follow the suit.

Will the insider trading information be expanded?

The legal definition of Insider trading is a broad one that allows it the flexibility to be expanded. As situations may arise in the future, the current laws of Insider trading seem to be flexible enough. Though there is a variation on how the law applies to the congress which can be attributed to a legal loophole that is currently there, in general, the law is strict in its application and doesn’t spare anyone.

Falling for it:

Dealing in securities can be complicated but one needs to be sure that the information that they are receiving doesn't violate any agreement. In case of a doubt whether the information is public or not, it’s better to consult authorities. Trading under legal boundaries is beneficial in the long run.  

Violation:

The STOCK Act is severe in its application that doesn’t even spare the top-level executive employees. Though the law can be misinterpreted due to some legal loopholes in some situations, it is one of the well-thought-out legal regulations. However, as the US government is tightening its hold on the market and the need to regulate the activities arise, the Stock act is likely to go through changes when the market fluctuations make the Act smooth in the future.

Conclusion:

The Stock act prohibits the trading of non-public information for personal profits. However, there is a difference as to what constitutes illegal and legal Insider trading, and based on that, the law applies.  ...

20 April, 2020 No comment

What is Insider trading and how to avoid it?

Insider trading is an advantageous form of trading. In other words, it’s the buying and selling of stocks by a person that has access to information that is not public. This information can be used to influence trading decisions as well as manipulate prices. Though there is a certain restriction in some countries, the other places can be ambiguous. Depending upon the country you live in, the laws can change. However, in the US, the recent law passed in 2012 restricts not only Congress but also puts ethical obligations on Vice-president and the President on the sharing of the information.

What is Insider trading?

The legal definition of Insider trading is broad and its flexibility is what will help Congress to expand it. To put it in layman’s terms, it’s the buying and selling of Company stocks by an individual who has access to any material information that non-public. This information can highly affect the value of stocks in the market. It gives the trader an advantage against other traders.

Why is it illegal?

Nobody is immune to the Insider trading laws in the US which prohibits insider trading by the Congress, executive-level employees as well as outs restriction on the president also. The Stock act was passed by the Obama administration on April 4, 2012, to combat Insider trading. It’s considered unethical and unfair to other traders as the they have access to the non-public information that will run ahead in the market. However, the law applies to everyone, the way it applies to the Congress differs. This is an unintentional legal loop where all other laws have created a whirlpool. The flexibility of the STOCK law will surely help Congress to expand it in the coming future. Though there can be a variation in other countries where the regulations can be strict and even in some places it can be ambiguous.

How to avoid it?

You need to be careful when dealing with securities. Don’t indulge in behavior that may provoke the other person to reveal confidential information while you are conducting a trade or if you are unsure whether the information is public or not, contact the authorities. Check your sources of information before you conduct a trade. You can be a holder of confidential information, make sure not to accidentally or intentionally get it out. Trade under the legal boundaries and educate your team to do the same. This will keep you in the legal circle and help you grow with trading.

Conclusion:

Insider trading laws in the US are very strict. Though the initial law was passed in 1934, the recent one came in 2012. There is a however different application so the law, but as far as avoiding is concerned, one should be careful not to accidentally indulge in it. This can be only be done when the traders are aware of not just the law but also is careful what sort of information is he receiving....

10 May, 2020 No comment