Discovery the best trading ideas for you is a combination of understanding how trading works as well as which trades work best for you. Each trader has a different emotional make up as well as access to different kinds of information. As a result, no one successful trade idea will be successful for all traders but different trades will work for different traders. We will focus exclusively on day trading and the various means of generating ideas.
The firm's main research and development office is based in Tel Aviv Israel. It originally specialized in Forex and indices spreadbetting and CFDs but has recently expanded in stock trading also.
At the time of writing, eToro has 2.2 out of 5 star on Trust pilot. The comments suggest that the platform offers some impressive features but withdrawing money can be difficult. Having said that, some of the negative reviews appear to be rants rather than constructive criticism. This can be examples of traders losing money through their own recklessness rather than eToro's fault. You should therefore take this reviews with a pinch of salt.
“the platform offers some impressive features but withdrawing money can be difficult.”
76% of retail investor accounts lose money when trading CFDs with this provider.
OANDA is a global financial services company providing advanced currency solutions to both retail and corporate clients all over the world. In this article, we are going to review this broker’s trading options, tools, platforms, spreads, commissions, security measures, and educational resources to help traders make the right choice.
76.6% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing
AvaTrade offers a wide variety of trading solutions (spread trading, CFDs, and social trading), and peace of mind with its comprehensive regulation, covering the EU, Australia, Canada and South Africa. Clients can use a variety of platforms for discretionary and automated trading.
76% of retail investor accounts lose money when trading CFDs with this provider.
Offers multiple asset classes, platforms, and regulated in a variety of regions. Caters for a global audience. Awarded with the Highest Overall Customer Satisfaction Award for 5 years running - Investment Trends CFD Report 2015.
A standalone copy-trading ecosystem, providing equities, foreign exchange, commodities and cryptocurrencies markets. Provides a global selection of brokerages.
Pepperstone is a global regulated broker that provides its clients with the latest technologies for trading multiple assets such as Forex, indices, cryptocurrencies, stocks, ETFs, and commodities. This article provides an overview of its trading platforms, tools, fees, protection measures, and other aspects to help traders make a more informed decision.
What are trading ideas?
Trade ideas can be predictions, market analyses or trade set-ups based on concrete market conditions. There are many areas of technical analysis, some are basic, others more sophisticated and all are supported with intelligent drawing tools, many bar styles, lots of data and a host of indicators. Ideas can relate to any asset class like currencies, stocks or futures or any trading method like harmonic patterns, wave analysis or chart patterns. Often traders use a combination of several methods and look for confluence and increase their odds. There are also ideas on risk management, trading psychology and trading plans. Regardless of the method you use, it's indisputable that the cycle of creating, sharing, collaborating and learning based on well thought out ideas will help you improve your trading skills.
Recognised day trading strategies...
Day Trading is the simple act of buying stocks with the intention of selling them for a higher price. As markets have developed so have some day trading strategies which generates ideas and opportunities to trade off. Working out what day trading strategy is best for you, will help you generate profitable trading ideas.
Momentum trading
Momentum trading is about identifying a security that is showing a distinct trend and profiting from trading with the momentum of this security. It is one of the oldest trading strategies around. It can be simple to enact as you pick a security that shows a trend in a particular direction. You should be aware that this trend could reverse at any time.
Price Action Definition
Price action is a broad term meant to indicate any movement in the price of a stock that is the product of some technical or fundamental factor. The concept is to identify drivers behind past, current and future price movements. You can then make successful trades by reading price action movements.
Volatility
Traders can benefit from a volatile market as it helps to create opportunity. Traders often overreact to unexpected bad news. This leads to the value of an investment falling too far versus its intrinsic value. This provides the opportunity to buy an asset which is temporarily undervalued. You therefore benefit when the price of that asset snaps back to its intrinsic value.
The less sexy but equally important
Trading ideas can also come from some less sexy but equally important areas such risk management, trading psychology and trading plans. A risk-based trading idea is where you seek to mitigate the downside risk rather than focusing on the perceived opportunity. Trading psychology has gained increasing coverage in recent years - rightly so - and is concerned with a trader knowing their emotional make up and avoiding placing emotionally driven trades. A trading plan will allow for the creation of a strategy. This can then be used when the right conditions are met.
Conclusion
There are many ways of generating trading ideas. As a trader you will need to learn to focus on the ones which are the most profitable for you. Understanding which ideas do not suit your trading psychology or style is important, as not losing your capital in the first place is key. Volatility will always be a source of trade ideas. Through experience and practice, you will learn how to see it as a friend. No matter how attractive a trade is, the market can be the devil itself and go against you! Applying some sensible risk management techniques such as limiting your position sizes to 1% of your portfolio will ensure than any trading idea which do not prove sound will not impede your trading ideas which prove to be winners!