4 Most Profitable Trading Strategies Every Beginner Should Know MyrtleBeachSC News

Looking to get into trading but don’t know where to start? Or are you a seasoned trader but looking for new profitable strategies to add to your arsenal? If so, you’re in luck! In this blog post, we will discuss the four most profitable trading strategies every beginner should know. So whether you’re just starting out or looking for ways to improve your current trading strategy, read on for helpful tips and advice.

1. Trade with range bars

Range bars are a type of chart that shows high and low prices for a given time period. This type of chart is particularly useful for day traders, as it can help you identify potential entry and exit points. To trade with range bars, you will want to look for periods of consolidation followed by a breakout. Once you have identified a potential breakout point, you can enter a trade and set your stop-loss and take-profit levels. When trading range bars, you need to understand that the market is constantly moving and there will be times when the market does not move as expected. However, if you stick to your trading plan and discipline yourself to only take high probability trades, you can be successful with this strategy.

2. Trade with candlesticks

Candlestick charts are a type of chart that shows the open, high, low, and close prices for a given time period. They are called candlesticks because they look like candles, with the body of the candle representing the open and close prices and the wicks representing the high and low prices. Candlestick charts are useful for traders as they can provide valuable insight into market sentiment. For example, if a candlestick has a long body and a short wick, it shows that the market is bullish and prices are closing near the high. Conversely, if a candlestick has a small body and a long wick, it shows that the market is bearish and prices are closing near the low. Candlesticks can also be used to form patterns, which can give traders an indication of the next direction the market might be heading.

3. Trading with Fibonacci Retracements

Fibonacci retracements are technical analysis tools that can be used to identify potential support and resistance levels. Fibonacci retracements are based on the Fibonacci sequence, which is a series of numbers where each number is the sum of the previous two numbers. The most important Fibonacci ratios are 23.6%, 38.2% and 61.8%. These ratios can be used to identify potential support and resistance levels by drawing horizontal lines on a chart at the corresponding Fibonacci ratios. For example, if a stock is trading at $100 and falls to $95, that represents a 5% decline. If we then draw a horizontal line at the 23.6% Fibonacci retracement level, which would be at $97.30, this could act as a potential support level.

Similarly, if the stock goes from $95 to $105, that represents a 10% increase. If we then draw a horizontal line at the 38.2% Fibonacci retracement level, which would be at $102.60, this could act as a potential resistance level. Trading with Fibonacci retracements can be a profitable strategy if you can correctly identify potential support and resistance levels.

4. Trade with Pivot Points

Pivot points are technical analysis tools used to identify potential support and resistance levels. Pivot points are calculated using the high, low and closing prices of the previous period. There are several types of pivot points, but the most commonly used are standard, Fibonacci, Woodie, and Camarilla pivot points. Each pivot point type is calculated slightly differently, but they all provide traders with potential support and resistance levels.

To trade with pivot points, you will need to look for periods of consolidation followed by a breakout. Once you have identified a potential breakout point, you can enter a trade and set your stop-loss and take-profit levels. When trading with pivot points, it is important to understand that the market is constantly on the move and there will be times when the market does not move as expected. However, if you stick to your trading plan and discipline yourself to only take high probability trades, you can be successful with this strategy.

These are four profitable trading strategies every beginner should know. Although there are many other strategies, these four strategies provide a solid foundation on which to build your trading career. If you are new to trading, it is important to remember that success does not come overnight. It takes time, patience and discipline to become a successful trader. But if you’re willing to put in the work, you can succeed with any of these strategies.

comments

comments

Comments are closed.