Trading Lessons You Need to Learn

Trading Lessons You Need to Learn

If you are a newbie trader then there are so many different things that you need to learn in order to be successful. This is true whether you are day trading, swing, trading or anything in between. And it also applies to all trading types, whether we’re talking about crypto currencies, forex, the stock market or commodities, the fact of the matter is that there are various trading lessons that you need to learn early on in your trading journey in order to be profitable.

Of course, as is the case when we first started trading, we also needed to learn these lessons and unfortunately we had to learn the hard way. Luckily for you, we already learned all of these trading lessons the hard way, so now we can convey all of this information to you so you don’t have to learn the hard way. If you read this article on the best trading lessons that you need to learn, then you can avoid making the same mistakes that all too many beginners make.

Trading Lessons for Success

What we want to do right now is to cover some of the most crucial trading lessons for success that you need to know in order to make money instead of lose it.

Consistency is Key

One of the biggest trading lessons that you will learn eventually is that consistency is key. Now what many beginner traders do is to choose one type of trading strategy or one type of indicator and then use that as much as possible. Now beginner traders will often win a couple of trades but then lose many more than they win.

Most traders will then move on to a different trading strategy because they think that the previous one didn’t work. Most traders will bounce back and forth between various trading strategies in the hopes that something awesome is going to come along people. The fact of the matter is that the trading strategies aren’t the problems.

Let’s face it, when you choose a trading strategy, you look it up online and you are going to use one that everyone else says is proven to work. This means that most trading strategies that you will utilize do actually work. The problem isn’t the trading strategies. The problem is you. You need to be consistent. Inconsistencies will lead to inconsistent wins and losses. Master a single trading strategy, make sure that it works and then if you like, move onto another one.

Your Strategy Needs to Have an Edge Over the Market

When it comes to the most valuable trading lessons that you need to learn. Although being consistent is of course very important, what you also need to realize is that you always have to have an edge over the market. The simple explanation here is that whatever trading strategy you choose to use over the long run, it needs to be profitable.

Or in other words, it needs to produce a positive result. The fact of the matter is that no matter how consistent you are, if your trading strategy does not produce a positive result in the long run, then you are going to end up consistently losing money.

Of course, in this sense, consistency is not a good thing. Now what you need to realize here is that it is possible to have an edge over the market with a low winning rate because your average gain is still at much higher than your average loss. But it is also possible to have an edge over the market if you have a higher loss than gain ratio because you’re winning rate is very high. Either way, you need to have an edge over the market and this is one of the most valuable trading lessons that we wish we knew when we first started trading.

Just Follow the Price

Yet another one of the biggest trading lessons that you need to learn as a newbie trader is that it’s usually best if you follow the price. If you don’t know how to do analysis or you just don’t have time to crunch all of those numbers, then what you should do is to follow the price.

If the price is moving higher, you should place buy trades and if the price is moving lower, you should place sell trades. Another piece of advice that you should follow is to always pay attention to the price no matter the fundamentals. Therefore, if you see that the price is going up, but you think that there might be a bearish reversal in the horizon, you should still follow the price, especially as a newbie trader.

There is No One Size Fits All Strategy

In terms of valuable trading lessons that you need to learn as a newbie, this one is perhaps the most important. The fact of the matter is that many traders think that there is some kind of one size fits all trading strategy which some people refer to as the Holy Grail. Sure, it’s some trading strategies are much better than others. This is true.

However, the fact of the matter is that every market is different, and every type of trading is different too. This means that a trading strategy that works well for Forex swing trading is probably not going to work well for cryptocurrency day trading. Each trading strategy is specifically designed for specific markets, and the sooner you figure this out, the better you will perform.

It’s Not a Get Rich Quick Scheme

The next of the Super valuable trading lessons that you need to learn is that trading is not a get rich quick scheme, but in fact is a get rich slow scheme. You can easily grow your trading account to 7 figures or even eight figures, but it does take a long time.

The fact of the matter is that slow trading, or in other words, placing many small investments, is much better than placing just a small amount of big trades in the hopes of making it big.

Sure, you could win a whole lot of money in a limited amount of time, but as soon as you lose a single big trade, the journey is over. Therefore, what you want to do is to take the slow approach, because if you engage in proper risk management, your chances of winning trades are much higher. It’s much better to make slow profits than it is to lose money. It’s as simple as that.

Trading Lessons for Newbies

The bottom line here is that if you pay attention to the various trading lessons that we have provided you with here today, your chances of becoming a profitable and consistent trader increased greatly. Remember folks, these are lessons that we wish we knew when we first started trading. Luckily for you, you can get right past making the errors and get right to trading the proper way.

If you need help day trading, and what you need is a comprehensive education, particularly on Forex trading, then the best place to be is the Income Mentor Box Day Trading Academy. At this time, the IMB Academy is the most comprehensive, user friendly, effective, and affordable Forex trading school out there.

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Best Trading Practices for Beginners

October 12, 2021October 15, 2021 AndyLatest News / Latest News / NewsLeave a comment

Best Trading Practices for Beginners

Of course there is simply no doubt about the fact that trading the market can be extremely profitable, and this is true whether you are trading crypto currencies, forex, the stock market or anything in between. However, with that being said, if you are a beginner who is just getting into the world of trading, then you are probably going to be making a whole lot of mistakes. Moreover, there are also some very good trading practices for beginners that you need to be aware of.

Many people just start training without any kind of training or education, and this is of course a problem because you really don’t know what mistakes that you need to avoid and what things that you need to do in order to be a profitable trader. What we’re here to do today is to take a look at the very best trading practices for beginners that will keep you safe and allow you to make consistent profits without too much risk. Let’s get to it and teach you how to be a consistent and profitable trader by talking about some of the best trading practices out there.

Best Newbie Trading Practices

Right now we want to talk about five of the very best trading practices that you, as a newbie, need to be aware of in order to be successful.

Don’t Tell Everybody

OK, so this might seem like a very odd trading practice, but the fact of the matter is that as a beginner trader, you really shouldn’t be disclosing the fact that you have started trading, especially not to friends and family. This might seem a little odd, but the reason for it is because when you start trading, the first thing that everybody is going to ask you is whether or not you are making money.

Sure, if you are a super profitable trader, then disclosing that you are becoming rich by trading is not a big deal. But with that being said, as a beginner you are likely losing money and in telling people as much is just not going to make you feel good. There’s just no point in telling people that you are starting off in trading because people end up being quite skeptical and they might destroy your motivation.

Don’t Trading Personally

When it comes to the best trading practices out there, one of the things that you absolutely need to stop doing is taking it personally. It’s really easy to blame the market for targeting you or to blame your broker for hunting your stop loss. But with that being said, when it comes down to it, there is nobody at fault here but you.

The simple reality is that the market is absolutely massive and there are billions of dollars floating around with thousands of players. There is absolutely no incentive for the market to hurt you or for your broker to care about you.

The simple reality here is that the financial markets are rigged and it’s always a lot easier to lose money than it is to make it. This is nothing personally whatsoever, and if you start getting emotional about trading, then chances are that you are going to end up suffering huge losses due to making emotional decisions as opposed to using rational and logical thought.

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Don’t Hit the Ground Running

OK, so many things in life will be beneficial if you hit the ground running, but with that being said, trading is not something that you should start off big. When it comes to trading, you absolutely need to start small and this means investing only minimal amounts of money into minimal amounts of trades.

If you start off trading with $50,000 then chances are that you are going to lose it, especially if you are a beginner. Just start with a small trading account because you don’t want to risk too much money on a single trade and you also don’t want to have to pay huge fees for large trading accounts.

Get an Education

As far as the best trading practices for beginners go, one of the most important things that you need to do is to get a trading education. Without the proper kind of trading education in training, you simply aren’t going to be profitable. The fact of the matter here is that trading, whether it is forex, crypto, currencies, or anything in between involves many different facets.

You need to know all about how to analyze the market, how to use indicators, how to read charts, and so much more. There are also many different kinds of trading, such as day trading, swing trading and more.

There are also many different markets that you can trade in, such as the cryptocurrency market, the Forex market, the commodities market, the stock market and more. The main point here is that you should join some kind of trading school or Academy in order to learn everything that there is to know before you start trading. The more you know, the better prepared you will be and the less risk you will have to deal with.

Risk Management is Key

Perhaps one of the best trading practices that you need to master as a beginner is risk management. First of all, this means knowing when to cut your losses and went to exit a trade when you are wrong. Moreover, this also means knowing how to use stop loss levels and how to set your stop loss levels at appropriate levels in relation to your trades.

Moreover, as a beginner, it is strongly recommended that you do not risk more than 1% or 2% of your total trading capital in a single trade. If you risk a whole lot of money in a single trade and the trade goes South, then you lose it all. Also remember that stop loss and position size are closely related as well.

Best Trading Practices for Beginners – Final Thoughts

The bottom line here is that if you follow the five best trading practices that we just talked about today, then your chances of becoming a profitable and successful trader who has the ability to make money on a consistent basis greatly increase.

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5 Trading Mistakes That Keep You Poor

October 8, 2021October 13, 2021 AndyLatest News / Latest News / NewsLeave a comment

5 Trading Mistakes That Keep You Poor

if you have just started out in the world of trading. Whether you are trading crypto currencies, forex, the stock market or anything in between, the simple reality is that there are a lot of rules and tips that you need to follow in order to be successful. Make no mistake about it because trading is not easy. Without the right skills and knowledge, you just aren’t going to be successful. Therefore, what we are here to talk about today are the biggest trading mistakes that keep you poor.

Now there are of course tons of mistakes that traders can make, but with that being said, some trading mistakes are much worse than others. Moreover, there are many trading mistakes that all too many newbie traders commit that they don’t even realize these are mistakes that keep you poor without you even realizing it. What we are here to do today is to take a look at the biggest trading mistakes that keep you poor and that you need to avoid at all costs.

Trading Mistakes That Keep You Poor

Of course there are plenty of trading mistakes that you might make, all of which could very well keep you poor, but with that being said, today we are here to talk about the biggest trading mistakes that you absolutely need to avoid at all costs.

Using Fixed Position Sizes

When you start straining, you’re probably going to be extremely concerned with things like candle stick patterns, trading indicators, and all sorts of technical analysis tools.

With that being said, what a lot of traders do when they see something nice, or in other words, a trade that looks like it has the potential to make a good profit, is that they will just place trades without paying attention to the position size. The issue here is that if you do not size your positions properly, your wins and losses are going to be very erratic.

The most important thing that you need to do here is to adjust your position size based on your stop loss. The tighter your stop losses, the larger your position size can be without risking too much money. Learning all about position sizing is an extremely important thing and not sizing your positions properly is one of the biggest trading mistakes that all too many newbies make.

Chasing Markets

Yet another one of the biggest trading mistakes that all too many newbies make is that they chase markets. In other words, some people will see that there is a huge bullish pattern happening and that it’s already been going on for quite some time.

So people think that they should place a buy trade now so that they don’t miss out on any more of the profits. However, with that being said, as is the case, all too often the market will reverse go into a bearish mode and cause you to lose money on your buy trade.

In other words, one of the biggest trading mistakes that newbies make is to buy near the highs when they should be looking to short a trade. Markets that are already near their highs are totally exhausted and will often make pullbacks. One of the most important things to lookout for here is an area of support when the market is in an uptrend.

Hesitating to Cut Losses

Perhaps one of the most biggest and most crucial trading mistakes that newbies make is that they hesitate to cut their losses. A lot of people, when they are suffering losses, might think that the market will rebound or that there will be some kind of pullback which will then lead to them making profits. Even if the trade is currently losing.

A lot of people think that they will look really stupid or look like idiots if they sell their position now only to watch the market reverse even higher.

People end up holding onto losing trades for way too long before they end up cutting their losses, but of course by that point the losses have amounted into something quite significant. A small loss of $100 can quickly amplify into a loss of $1000 if you don’t cut your losses. As soon as you see them happening. Don’t hesitate to cut your losses.

Attempting to Average Into Losses

Yet another huge trading mistake that many newbies make is to try to average into losses. In other words, if you are suffering a losing trade, some people will attempt to buy more of that same asset with the hope that it will then increase in value.

However, this is closely related to hesitating to cut your losses, because here newbies will actually buy more of the same asset in the hopes that it will average out their losses and maybe lead to a break even. The bottom line here is that you should never average into your losers because it often snowballs into something much worse.

Getting Useless Info From Others

Yet another huge mistake that so many newbies make when trading is that they try to get their trading information from sources such as Facebook, Twitter, an random trading forums.

We know that this next statement is about to sound critical, but the fact of the matter is that most of the people that you get your information from, especially on those forums and social media platforms, are stupid and misinformed people who don’t know the first thing about trading.

Don’t go to Twitter for trading information. It’s no different than saying that it’s better to get your news from an actual news outlet rather than from a social media site. While some people using social media and who write on forums might very well be correct, the simple reality is that you have no way of knowing who is right and who is wrong.

You should never trade based on the opinion of others. You need to do your own research and analysis. Master a variety of trading techniques and learn how to use indicators so you can make your own judgments.

The Bottom Line

The bottom line here is that if you can avoid these five massive trading mistakes that ultimately newbies make, then you are well on your way to success. Of course, there is a whole lot that you need to learn in order to be a successful and profitable trader, but with that being said, if you manage to avoid the massive trading mistakes that we have talked about today, then you’re definitely on the right track.

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How to do Demo Trading

October 7, 2021October 13, 2021 Fabian FabianLatest News / Latest News / NewsLeave a comment

How to do Demo Trading

If you would like to start profitably, whether it is Forex, cryptocurrencies, the stock market, or anything in between, something that you may want to try doing is demo trading. For those of you who don’t know what demo trading is, it’s just like a great way to practice your trading skills without having to risk real money.

Now, with all of that being said, although demo trading does not force you to trade with real money, there are still certain risks involved. Moreover, there are also some crucial tips that you need to follow, because if you engage in this type of trading improperly, you will set yourself up for failure once you start trading with real money.

Today, we want to provide you with an in depth guide on demo trading, complete with all of the benefits and drawbacks that it comes with, the mistakes that you need to avoid making, and how to do it properly.

What’s the Story with Demo Trading?

Alright, so for those of you who don’t know what demo trading is, this is a type of trading that allows you to test out a trading platform without having to trade with real money. This could be for a standalone trading platform, or it could be a broker’s trading platform.

The bottom line is that this is all about trading without using real money, kind of like practicing your real estate skills by playing monopoly, but actually useful. In other words, demo trading involves using a trading platform just like you would with real money, but with virtual money.

This allows you to trade under real and live market conditions without having to put your own money on the line. As you can tell, this has the potential to be extremely beneficial for any newbie trader.

The Benefits of Practice Trading

Now, you might be wondering why you would actually try demo trading. After all, if you could trade with real money and make profits, why wouldn’t you skip the practice round and get right to the real stuff? Well, there are actually quite a few reasons why using a demo account for a trading platform is a good idea. So, what are they?

Of course, the biggest benefit of this type of practice trading is the fact that you get to test out a variety of trading platforms, thus allowing you to see which ones are functional and which ones are not. It’s all about being able to master the navigation and functions of a specific platform.
Moreover, the fact that you get to test out trading itself is a big deal too. Not only will you get a good feel for what trading is all about, but you’ll also figure out what type of trading is best for you, whether swing trading or day trading, or maybe scalping too.
It’s a great way to figure out what markets you want to trade on, whether the stock market, cryptocurrencies, commodities, Forex, or anything in between.
Demo trading accounts are also great ways for people to test out a variety of trading strategies to see what works and what doesn’t all without having to risk real money.

Certain Risks & Drawbacks

For all of the pros and benefits that demo trading accounts come with, there are also some very real dangers that you need to be aware of as well. Let’s take a look at the some of the drawbacks of this kind of practice trading.

One of the biggest drawbacks to demo trading is that you just don’t have any kind of emotional attachment to your money. So, you lose $10,000 on a demo trade, but of course, it’s not real money, so it doesn’t really hurt they way it should. With a real trading account, you will make corrections and change your strategy to stop losing, with a demo account, you might just reset everything and try again, all without making the necessary adjustments. This is a good way to develop bad trading habits.
People tend to just spend far too much time demo trading, and this changes the way people react to winning and losing trades. You’re just not going to respond the same way if you lose fake money as opposed to real money. Of course, there is also the simple fact that you won’t make any money either.
Another issue with demo trading is that you might not actually try to use any risk management strategies. If you don’t use risk management when practicing, you’ll probably forget to use it when trading with real money. If real money is not on the line, people are far less inclined to practice and develop good risk management strategies.

Demo Trading the Right Way – Crucial Tips

We want to finish things off by providing you with some of the most important tips that will allow you to practice all of your trading skills using a demo trading account without developing bad habits. Nobody says demo trading accounts are bad, but you do want to follow these tips in order to avoid the risks discussed above.

You absolutely need to develop a trading plan, and this needs to be the same plan you will use for real and live trading. So, you need to figure out what your trading method and style is, what markets to trade, the timeframes to trade on, when to exit to take profit, when to exit to stop losses, and how to apply position sizing.
You also definitely want to employ a solid routine, one that will allow you to check your charts, place trades, and keep track of them, all without interfering in your daily life. You could look for opportunities early in the morning, trade from morning until noon, and then spend the evening reviewing results.
You should also base how long you engage in demo trading for on what type of trading you are engaging in. If you are day trading, which is a high frequency type of trading, then a month or two will do, but if you are practicing swing trading, you might want to use a demo account for 3 or 4 months. You need to practice for long enough until you have ironed out all of the wrinkles.
All of that being said, the biggest tip here is to spend as little time as possible demo trading, just enough until you feel comfortable enough to start risking real money. This is the best way to figure out how you will react to both winning and losing money, and it’s the best way to build confidence. Remember, always start with very small investments, then once you start winning some trades, you can move up. Of course, you want to start real trading as soon as possible because it’s the only way to actually make money.

The Bottom Line on Demo Trading

The bottom line here is that you should definitely do some demo trading before risking real money, but that said, you do want to follow the tips that we have outlined here today, in order to avoid those risks and drawbacks that we discussed earlier.

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Best Indicators for Swing Trading

October 5, 2021 AndyLatest News / Latest News / NewsLeave a comment

Best Indicators for Swing Trading

If you want to become a profitable trader, then one of the things that you need to master are the different types of trading. Of course, day trading is one of the most popular type of trading out there which involves placing trades that generally only last for a single day. Now the type of trading that we are here to talk about today is swing trading. In case you have no idea what swing trading is, no worries because we will explain this below in great detail.

Now what we are really here to do today is to talk about the best indicators for swing trading. In case you don’t know what indicators are no worries, because this is something else that we will explain today. The bottom line is that you do need indicators in order to be a profitable trader, and this goes for all types of trading. Whether we are talking by day trading or swing trading. Let’s get right to it and figure out what swing trading is, what indicators are, and what the best swing trading indicators out there are at this time.

So, What is Swing Trading?

OK so I’m like day trading that generally sees trades only being open for a single day. So in trading is a much longer type of trading. Or in other words, trades can last anywhere from a couple of days up to a few months. As you can see, this is a much longer term type of trading that generally involves buying low and selling high.

The aim is to buy a stock asset or security as low as possible and then sell it as high as possible for maximum profits. Of course, these huge profits is something that many people are attracted to. But with that being said, swing trading does leave you vulnerable to overnight and weekend risk. However, the bottom line here is that swing trading can of course be extremely profitable.

What’s an Indicator?

Something else that you need to know here is what an indicator is. For those of you who don’t know, an indicator in trading are statistics that are used to measure current market conditions as well as to forecast future economic trends and financial conditions. When it comes to trading and investing, indicators usually always refer to specific technical charge patterns derived from the price, volume, or open interest of a given security.

Technically speaking, there are four different types of indicators out there, and they all provide you with different types of information. The four different types of indicators out there are volume, momentum, trend, and volatility indicators. These are all important pieces of information that traders should be aware of when it comes to placing profitable trades. Of course, with that being said, what we are here to talk about today is what the best indicators for swing trading are.

Some Swing Trading Indicator Criteria

Before we take a look at the best swing trading indicators out there, we do want to provide you with some criteria that will help you choose the best indicators for this type of trading.

One of the most important factors to lookout for when choosing an indicator for swing trading is that it is actually easy to understand. These are tools that you need to be able to understand in order to make profitable trades, so if you can’t understand what is going on, then it is a useless indicator. In other words, you need indicators that are simple.
Yet another thing to lookout for here when choosing an indicator for swing trading is that you want to use indicators that provide you with different types of information. The more pieces of information an indicator can tell you, the less indicators you need to have open, and this makes things less confusing. Generally speaking, you want indicators that can do three things at the same time, which include determining your entries, determining how you will take profits, and determining your stop loss.
The other thing to lookout for here is that you get swing trading indicators that are free to use. There are plenty of free indicators, so there is no point in paying for anything.

The Best Indicators for Swing Trading

Alright, so now that we have figured out what swing trading is, what indicators are and how to choose the best indicators for swing trading. Let’s figure out what the actual three best indicators for swing trading are.

The Zig Zag

If you need an indicator that can help you determine the market structure and will instantly plotted out for you. Then the zigzag indicator is a great one to consider. This indicator works by plotting points on a chart. Whenever a price reverses by a percentage that is greater than the pre chosen variable. This is a great indicator for identifying price trends and it helps to eliminate random price fluctuations and attempts to show trend changes. With that being said, this is an indicator that you want to use in conjunction with price action.

Donchian Channel

Specific indicator is ideal for helping you to visualize both the lows and highs on your chart. Depending on the specific time period that you want to look at. It’s all about being able to determine the highest high and the lowest low over a certain amount of time. It’s a great indicator to use because it tells you where potential buy and sell trades are. As you can see on a chart, it looks a lot like a channel with the lower channel being a reference to buy and in upper channel being a reference to cell it’s almost like support and resistance. With that being said, using trending indicators such as moving averages in conjunction with this indicator is recommended.

OHLC

This stands for open high, low close, and it helps us to visualize the lows and highs of a daily candle no matter the time frame. When you see the price forming a bearish candle from the previous day’s highs, you can go short. On the other hand, when you see the price forming a bullish candle from the previous day’s lows, you can go long. This is an important indicator to use because it will provide you with information about trend reversals from daily highs and lows.

The Best Swing Trading Indicators – The Bottom Line

Now that you have a basic understanding of what swing trading is, as well as what indicators are plus how to choose the best indicators for swing trading, you should have no problems finding the best possible options for you. We have already listed three of the very best swing trading indicators out there, but there are of course more.

Remember folks, if you need help day trading, and what you need is a comprehensive education, particularly on Forex trading, then the best place to be is the Income Mentor Box Day Trading Academy. At this time, the IMB Academy is the most comprehensive, user friendly, effective, and affordable Forex trading school out there.

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Trading with the RSI Indicator

October 4, 2021October 4, 2021 AndyLatest News / Latest News / NewsLeave a comment

Trading with the RSI Indicator

If you are just getting into the world of trading then one of the most important things that you need to be able to master are indicators. When it comes to trading, indicators are extremely useful tools that can provide you with many different types of information. Ultimately, these indicators help you place the most profitable trades possible. What we’re here to talk about today is trading with the RSI indicator. The RSI Indicator is indeed one of the most popular and useful indicators out there.

Now, the fact of the matter is that although the RSI indicator is extremely useful and fairly easy to use, many people actually get it wrong. What we are here to do today is take a much closer look at the RSI indicator to see exactly what type of information it provides you with and how to use it. We also want to take a look at a big mistake that many traders make when using this RSI indicator, and how to avoid this mistake. We’re also going to provide you with many other useful tips for trading with the RSI indicator that you need in order to be successful.

What is the RSI Indicator?

The RSI indicator stands for the relative strength index. Now, in terms of what type of indicator it is, this is a momentum indicator. It was first created by a man named J. Welles Wilder. What you need to know here is that for this particular indicator is designed to measure the momentum or the speed of a price movement.

Some people might refer to this indicator as an oscillator because it oscillates between 0 and 100. What it means here is that the faster a price goes up, the higher that RSI value will be, and the other way around. In case you are wondering what the formula for calculating the RSI is, it is the following.

100 – 100/[1 + RS]

Keep in mind that for this formula, RS stands for the average gain/average loss.

How it Works

As you can see, the formula for the RSI indicator is actually fairly simple. We only slightly confusing thing might be the RSI calculation, which is of course the average gain divided by the average loss. What is important to note here is that the RSI indicator will go up when the average gain is very large, or when the average loss is very small.

Something that isn’t course important for you to know is how the value of the average gain goes up, and this is actually quite simple, so when the price of a security moves upwards very quickly and there are little or no pullbacks, the average gain is going to be very large because that price is making positive gains and that leads to a higher RSI value.

On the flip side of the coin, if the price falls very quickly and there are little or no pullbacks, the average loss is going to be very large because the price is making negative gains, and that leads to a lower RSI value. What is also very important to note is that both the average gain and the average loss can be easily manipulated by changing the settings of the relative strength index indicator. For instance, if you use a five period RSI, then the average gain, an average loss will both be based on the last five candles.

Therefore, what is important for you to know here is that the lower your RSI setting periods are, the more sensitive the indicator will be to recent price movements. Moreover, if you use a longer time period for the relative strength index, then the price will not be as sensitive to the motions and movements.

The RSI Mistake that Many Make

Something else that is important for you to know is that when the relative strength index is below 30, an asset is considered to be oversold. If the relative strength index is over 70, then an asset is considered overbought. So when the RSI indicates that an insecurity is oversold, many people think that the market can’t possibly go any lower, so they hit the buy button and go along.

Well, this can actually be a big mistake. This is because the RSI indicator actually measures the momentum of a market. It’s important to note that the RSI, if it is oversold, it signals that there is a strong bearish momentum, and if it is overbought then there is a strong bullish momentum.

Therefore, the big mistake that many traders make is blindly making a buy trade because there is strong bearish momentum or many people also hit the sell button because of the price seems way too high. The bottom line here is that don’t make the mistake of buying a security just because the RSI says that it is oversold, because the bottom line is that it can always be more oversold.

Using the Relative Strength Index to Win Trades

Technically speaking, the relative strength index indicator measures the average gain to loss ratio over a certain period of time to help determine the momentum in a market. A simple example of this is that if the relative strength index is above 50, it means that the average gain is greater than the average loss. So how exactly can you use the RSI indicator to help you win trades? Well, the bottom line is that the RSI indicator makes for an awesome trend filter that will provide you with information on whether you should buy or sell. Follow the examples as listed below in order to place the best profitable trades.

A great idea is to adjust the period you are 200. So, you can easily identify the average gain versus the average loss over a very long period of time.
If you see that the 200. Relative strength index is over 50, then the market is very likely in an uptrend, so you want to place buy trades, and on the other hand if the RSI is below 50, then the market is likely trending downwards, which means that you want to place sell trades.

Bottom Line on the RSI Indicator

Although there is of course a lot more information about the relative strength index, or RSI indicator, that you need to know, the bottom line is that we have provided you with a basic foundation of knowledge that you should be able to build upon. Keep in mind that the RSI indicator is one of the bold best momentum indicators out there, and it can help you enter trades with great confidence.

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Stock Trading Mentor Box + UPSI

September 28, 2021 Fabian FabianLatest News / Latest News / NewsLeave a comment

Stock Trading Mentor Box + UPSI

OFFICIAL LINK HERE

If you know what you are doing, then the stock market is one of the most profitable markets out there. Of course there are many different stocks to invest in and to trade with. Now, with that being said, the key takeaway there is that you do of course need to know what you are doing. If you don’t know what you are doing, you are not going to be successful with stock market trading. And this is where Stock Trading Mentor Box comes into play.

Of course, we’re going to take a much closer look at Stock Trading Mentor Box today and what it incorporates. The simple reality here is that without the proper kind of education and training for stock market trading, you just aren’t going to be successful. There are too many factors to account for and too many pieces of knowledge that you need to know in order to trade profitably. Stock Trading Mentor Box is an educational service that can teach you everything you need to know about stock market trading.

However, this stock market trading Academy is not the only thing that we are here to look at today. When you join Stock Trading Mentor Box, your membership also comes with a very special trading tool included for free. This special trading tool is the UPSI or the Ultimate Profit Scalping Indicator. An awesome indicator that you can use in order to trade the stock market and much more with relative ease. Let’s get to it and see what Stock Trading Mentor Box as well as the Ultimate Profit Scalping Indicator can do for you.

A Lowdown on Stock Trading Mentor Box

Alright, so the first thing that we want to do here today is to take a closer look at Stock Trading Mentor Box to see exactly what it can do for you. Remember folks, it’s all about helping you become the best possible stock market trader that you can be.

What is it?

Alright, so first and foremost Stock Trading Mentor Box is one of the world’s most popular and trusted stock market trading schools out there. In layman’s terms, this is a school that will provide you with all the necessary tools, skills, and knowledge in order to be a profitable and successful day trader that can make profits on a consistent basis without risking too much.

What is also important to note about this particular stock market trading school is the fact that it is of course 100% online. This means that you can trade from the comfort of your own home without ever having to get up off of your couch. On that same note, what’s also beneficial about this stock market. Trading school is the fact that you can learn on your own time.

Sure, some people finish the curriculum in just a couple of weeks, but if you choose to do so, you can take a couple of months or even more. The bottom line here is that once you are a member of this stock market trading school, you have lifetime and unlimited access to the full course curriculum.

Who is it for?

Alright, now something that you might be wondering is whether or not Stock Trading Mentor Box is right for you. Well, all you really need to ask yourself is whether or not you know how to trade stocks and whether or not you like making money. If you don’t know how to trade stocks, but you like making money, then Stock Trading Mentor Box is definitely the right choice for you.

Remember folks, this particular stock market trading school is all about teaching you the relevant skill, but you need to be a successful trader. Now, in terms of who it is actually designed for it, we would say that it is designed primarily for newbie traders who don’t have the first clue about trading. After all, this court starts off with the most basic terminology and concepts to provide you with a good ground foundation that you can then build upon.

Yes, the course then does build upon the basics and will provide you with all the tools that you need for success. Now, with that being said, trading does change and evolve, which means that even seasoned professionals could probably gain something from this course. There’s always something new to be learned.

What Will You Learn?

Alright, so one of the most important things that you probably want to know about Stock Trading Mentor Box is what you will actually learn. Now we don’t want to go through the whole course curriculum because it’s quite a long run, but without being said this course does consist of over 50 full length video tutorials.

As mentioned above, the course starts out with the most basic terminology and concepts that you need to know in order to provide yourself with a good framework or foundation to Start learning. Of course, then quickly progresses to some of the more advanced and most complex trading strategies and more. Whether we’re talking about identifying entry points and exit points, identifying the best trades to make, using charts, using indicators, learning about the best trading strategies and more, these are all things that you will learn at stock trading, mentor, boss, and everything in between too.

When it comes down to it, this course will teach you quite literally everything that you need to know in order to be a self sufficient, profitable and consistent stock market trading professional. Just take a look at the screenshots that we have included here for a good idea of what exactly this course includes. Now what we do want to say is that those video tutorials are all full length tutorials that can last anywhere from 10 to 30 minutes and they are taught by none other than Andrew himself. Something that we are about to talk about below.

Who Teaches it?

Yet another important thing that you probably want to know about this Stock Trading Mentor Box stock market trading school Is who the actual leader of it is. Well, the leader of this stock market trading school is none other than Andrew A.

Now you might know Andrew aid from his YouTube trading channel, aptly named Andrew’s trading channel now Andrew’s trading channel is a 100% free online resource that you can access through YouTube and it contains literally thousands of trading guides, reviews of programs, informational tutorials and much more. If you need to learn about fairly random concepts and strategies, and you also want to get a good feel of what Andrew is all about, then we definitely recommend checking out his trading channel.

With that being said, Andrew is of course a well established trader who has been in the business for well over a decade, and he makes a full time living by trading part time. He is an extremely successful trader who is well versed in stock market, Forex, cryptocurrency, and commodities trading.

Not only is he a fantastic trader, but he also makes for a really good teacher who knows how to convey difficult market concepts in ways that are easy for newbies to understand. All of his videos and tutorials are designed in such a way that even somebody who has never heard of trading before can easily learn.

Now you might also know Andrew from the Income Mentor Box Day Trading Academy, which is an equally reputable and popular Forex trading school that has actually been around for a bit longer than Stock Trading Mentor Box. Income Mentor Box has been extremely successful in the last couple of years and we expect nothing different for Stock Trading Mentor Box.

VISIT ANDREW’S TRADING CHANNEL

The Cost of STMB

Alright, so we assume that something else that you would like to know about Stock Trading Mentor Boxes, how much it costs. Well, this course costs $399. Now that is a one time fee. And no, there are never any additional recurring or hidden fees. You paid $399 a single time and then you are a member of this academy for Life, and this means that you have full access to all course content for as long as you live.

People $399 might seem like a lot of money to spend, but the fact of the matter is that you can make back many times more that amount in just a single day of stock market trading. As long as you know what you are doing. We think that this is a very reasonable price to pay.

Moreover, as you are about to find out Stock Trading Mentor Box also comes with the free trading tool included, which is of course the UPSI or ultimate profit scalping indicated, which is at this time one of the most useful stock market and forex trading indicators that you could possibly use at this time.

All About the UPSI Indicator

OK, so we did mention that this Stock Trading Mentor Box Academy did come complete with this UPSI indicator, otherwise known as the Ultimate Profit Scalping Indicator. So what exactly is it? What does it do, and how can it help you make money? Well, the Ultimate Profit Scalping Indicator is a special type of trading tool. Or in other words, an indicator that you can use for a variety of trading types such as stock market trading, cryptocurrency trading, forex trading and more.

For those of you don’t know, an indicator provides you with a variety information about the volatility, volume, momentum and the trend of a specific security. Now the Ultimate Profit Scalping Indicator provides you information about both the trend and the momentum of the specific security. Moreover, in case you don’t know what scalping and trading is, this is a type of trading that is characterized by a very large amount of small trades that are only open for short periods of time, with the main goal of being to allow all of those trades to accumulate into one substantial profit pool.

Its Ultimate Profit Scalping Indicator uses a series of highly advanced algorithms and market analysis techniques in order to determine what the best possible trades for you to make are. Of course, all of the research and heavy lifting is done for you, so you don’t actually have to do any of the research and you don’t really need to know what you are doing either. This is a special type of trading tool that takes the hard work out trading.

It has the ability to provide you with accurate buy and sell signals for a variety of securities. All you have to do is wait for the signals that come out and then place trades appropriately. Sure, you do still have to know how to use this Ultimate Profit Scalping Indicator, but with that being said, it’s one of the best assisting tools that you can possibly use because it provides you with all of the information you need to make trades without really doing much at all.

Now what you do need to keep in mind here is that you can purchase the Ultimate Profit Scalping Indicator separately from Stock Trading Mentor Box. Of course Stock Trading Mentor Box along with the indicator costs $399, but if you like you can purchase the indicator separately for just $299.

Personally, we would recommend joining the academy itself, because this will actually teach you how to trade, whereas the Ultimate Profit Scalping Indicator, while it can help you make money, it won’t actually teach you how to trade. One holds your hand throughout the entire trading process and the other actually teaches you to become a sufficient trader.

Stock Trading Mentor Box & The Ultimate Profit Scalping Indicator

The bottom line here is that if you want to make the most possible money trading the stock market, then you need to learn how to trade first and this is what Stock Trading Mentor Box is for. However, so you can actually make some money while you are still learning to trade. You can also use the Ultimate Profit Scalping Indicator. For one very low price, you can become a stock market trading professional.

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Income Mentor Box Education & Signals

September 24, 2021 AndyLatest News / Latest News / NewsLeave a comment

Income Mentor Box Education & Signals

If you are a newbie to the world of trading but want to start trading Forex for profits, then you have definitely come to the right place. What we are here to talk about today is the Income Mentor box Day Trading Academy. Now the simple reality here is that the Forex market is of course the most voluminous and liquid in the world. This means that the Forex market also has the potential to provide you with the most profits out of all markets out there.

However, with that being said, if you have never traded Forex before then chances are nearly 100% that you are going to lose every single penny that you invest. If you don’t have the right kind of education and training then you just won’t be successful here. It takes a lot of skill knowledge and the right tools in your arsenal in order to be successful when trading Forex.

Well, this is where Income Mentor Box comes into play. This is an absolutely fantastic day trading school that has the ability to teach you more or less everything that you need to know to be a successful and consistent day trader. What’s also pretty cool is that not only will you learn everything that you need to know about Forex trading to be successful, but the course itself also comes in at a very reasonable price and comes with a few freebies too, such as a free Forex signals service. Let’s take a closer look right now.

What is Income Mentor Box?

Alright, so first and foremost, the Income Mentor Box Day Trading Academy is a 100% online trading school designed for everybody and anybody. To be specific, not only is this a trading school, but it actually focuses on Forex trading. In other words, it focuses on trading one foreign currency against another, with the aim of making profits by predicting whether or not the price of one currency will increase or decrease in relation to the other.

Although this kind of trading might sound fairly easy, boring currency trading is actually quite difficult, and if you don’t know how to use indicators and all of the other proper trading tools, chances are that you just aren’t going to make any money.

Now, the fact that the Income Mentor Box Day Trading Academy is 100% online is of course really cool because it means that you can learn from the comfort of your own home without ever having to leave your couch. Moreover, what’s also important to note about this particular Forex trading school is the fact that you can learn on your own time.

Some people take just two or three weeks to complete the course, whereas other people take two or three months. Once you are a Member of this day trading Academy, you are a member for life, which means that you have unlimited and full access to all course content for as long as you like. The bottom line here is that Income Mentor Box is one of the world’s most popular forex trading schools.

What does it Teach?

Something that you are probably wondering about. The Income Mentor Box Day Trading Academy is what you will actually learn. Now, the most important thing to know here is that this particular day trading Academy comes complete with a five module curriculum. Those five modules contain over 51 and different full length day trading tutorials and guides.

Of course, this course is organized in such a way that the lessons start out with the easiest and most basic of Forex trading concepts and then slowly works its way up to the more difficult and complex aspects of Forex trading.

Within this Forex trading course, you will learn all about the most basic Forex trading concepts as well as basic market concepts. You’re also going to learn all about the most important terminology. When it comes down to it, the Income Mentor Box Day Trading Academy will teach you quite literally everything that you need to know to be a successful Forex trader.

You’re going to learn all about the best Forex trading strategies, methods, skills, trading concepts, how to use charts, how to read indicators, how to use brokers and trading platforms, and much more. There is really nothing about Forex trading that you won’t learn here. By the end of the 51 lesson curriculum, you should know everything you need in order to be a Forex trader that can make profits on a consistent basis without risking too much.

Who is Income Mentor Box For?

What you also might be wondering about this particular Forex trading Academy is whether or not it is right for you in the first place. Of course, not all schools are designed for all people. However, with that being said, what you need to know here is that the Income Mentor Box Day Trading Academy is designed specifically for newbies.

There is a reason why it starts out with all of the most basic market and forex trading concepts and it’s to provide you with a basic foundation of knowledge. This course is all about providing movies with the basic foundation that they need in order to become successful Forex traders.

However, with that being said, this course does teach more than just the basic foundations, as it also teaches you the more complex aspects of Forex trading. When it comes down to it, this is a 100% complete and fully comprehensive curriculum. It is therefore ideal for people who don’t know the first thing about Forex trading. What you do, however, also need to keep in mind, is the fact that forex and trading in general are always changing.

There are always new concepts and new strategies to know which means that this Income Mentor Box Day Trading Academy is also ideal for people who have been trading for a while. It’s not a bad idea for longtime traders to brush up their skills and take some refresher courses every now and again. At the end of the day, anybody and everybody who wants to become an extremely profitable Forex trader should try taking this course.

Who Teaches IMB?

One really cool thing or person actually that we want to discuss right now is Andrew A. Who is of course the teacher or leader of this Income Mentor Box Day Trading Academy. Now, the reason that we want to spend a bit of time focusing on the teacher is of course, because if you expect to learn everything that you need to know about Forex trading, you do need to have the right teacher. When it comes down to it, if somebody knows how to trade but doesn’t know how to teach, then they probably shouldn’t teach.

However, this is definitely not the case with Andrew. First of all, Andrew is a longtime and professional day trader. He has been trading forex, crypto, currencies, commodities and the stock market for well over 10 years at this point. Andrew makes a full time living trading, but only trades part time. This is just one piece of evidence that shows exactly how successful as a trader he really is.

Now, not only is Andrew is a successful trader, but he is also a very good teacher. When you watch his videos you will see that he has this way of teaching these complex Forex trading methods and concepts in ways that are extremely easy for newbies to understand. He’s an extremely approachable teacher that is really fun and easy to learn from. Having the right teacher is of course a really big deal.

If you want to get a better feel for Andrew’s teaching style, something we recommend doing is checking out Andrews trading channel on YouTube. Andrew Trading Channel is a free educational resource that features thousands of trading guides and videos which Andrew uploads on a daily basis.

VISIT ANDREW’S TRADING CHANNEL

Now, Andrew Trading channel doesn’t really qualify as a fully comprehensive education that starts from the ground up, but it does provide you with a huge plethora of random trading strategies, tips, news, updates, reviews and more. If you want to see what learning from Andrew is like, we definitely recommend checking out this trading channel. However, with all of that being said, what we just want to say is that Andrew is a fantastic trader and an even better teacher. There is really nobody that we would rather be learning from than him.

IMB Reviews & Trust Rating

What we do just want to quickly touch on. Here is the fact that the Income Mentor Box Day Trading Academy does have some really fantastic reviews. You can go to various online review platforms such as Trustpilot and check out the Income Mentor box Day Trading Academy. You will see that it is indeed very highly rated and well trusted. It is at this time one of the most popular Forex trading academies in the world. It had stellar reviews across the board and this is definitely something that inspires a bit of confidence in it.

Income Mentor Box Forex Signals

OK, so besides the high quality education that you get with the Income Mentor Box Day Trading Academy, one of the other most impressive things about it is the fact that it comes with a free Forex signal service included with your membership. Now for those of you who don’t know what a Forex signal services, this is a specific type of service that operates over a messaging platform. It provides you with up to a dozen different Forex signals every single day.

All signals come complete in the form of a currency pair that come complete with all of the information that you need to place profitable trades. All of the signals come complete with both entry points and exit points, so you know exactly where to enter the trade and where to exit the trade with specific currencies. You will also be told on what time frames to trade with.

The bottom line is that this Forex signal service is more or less just a copy and paste service that provides you with all the information you need to place profitable trades. You just have to wait for the signals to appear on the Telegram messaging app and then when they come out you just copy and paste all of the parameters into your broker or trading platform of choice. Trading really doesn’t get easier than this, and a big reason for it is not only because you get 4X signals, but because they are extremely accurate.

You can count on these Income Mentor Box forex signals being accurate well over 90% of the time with the average accuracy rate being more like 95%. This means that the IMB Day Trading Academy forex signals should allow you to win at least nine out of every ten trades that you place with them. And when you win at 9 out of every 10 trades you make, it means that you are going to make money, no doubt.

A Free Ebook

Besides that Income Mentor Box Forex signals service that comes included for free with your membership in this Academy, but you also get here is a free trading ebook. The fact that you get a free trading ebook is of course pretty impressive. Now, when it comes to this free trading ebook, it does serve as a really good introduction to the world of Forex trading and to trading in general.

It introduces you to some basic terms and market concepts that you need to know in order to start trading and to learn more about the world of trading. Of course, this ebook doesn’t qualify as a fully comprehensive education, but it is a great stepping stone for you to get started on.

The Cost of IMB

The other thing that you need to know about the Income Mentor Box Day Trading Academy is the fact that it comes in at a very low price. The full membership into this Academy, which lasts a lifetime, costs just $299.

And yes, it comes with that Forex signal service and the ebook included. When it comes down to it, this is a very low cost, much lower than any other high quality for its signal service and educational system out there. This is by far the most cost effective Forex trading school and signal service out there.

Learning & Profiting with Income Mentor Box – Final Thoughts

The bottom line here is that if you want to learn how to trade forex and you also want access to a fantastic Forex signal service, then the Income Mentor Box Trading Academy is undoubtedly the place to be.

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Easy Trading with UPSI Indicator

September 23, 2021 Fabian FabianLatest News / Latest News / NewsLeave a comment

Easy Trading with UPSI Indicator

If you would like to start trading with stock market, cryptocurrencies, Forex, or anything in between, then something that you might not be aware of is just how difficult it really is. The fact of the matter is that without the proper skills, training and education, your life as a trader is not going to be very easy. Without the proper kind of tools, you are not going to make any money. Now this is where the UPSI or the ultimate profit scalping indicator comes into play.

If you have no idea what the UPSI is, no worries, because this is exactly what we are here to explain today. The ultimate profit scalping indicator is a relatively new tool that was developed by a team of high class traders. This is a tool designed to provide you with accurate buy and sell signals so you can make very easy and quick trades. When it comes down to it, this is an extremely high quality trading indicator that can definitely help you put money in your pocket.

What is also important to know about this particular trading indicator is the fact that you really don’t have to know the first thing about trading to put it to use. This is one of the easiest to use indicators in the world and this is what makes it ideal for newbies. Moreover, the UPSI also comes packed with features that will allow you to make consistent profits with ease. Right now we want to review this UPSI indicator to see exactly how it can put money in your pocket.

What is the UPSI?

Before we can get to talking about what the UPSI is, there are some other important things that you need to know. First and foremost, you do need to know what an indicator in trading is.

So, What’s an Indicator?

Here we have a very basic textbook definition of what an indicator is. “In the context of technical analysis, an indicator is a mathematical calculation based on a security’s price and/or volume. The result is used to predict future prices. Common technical analysis indicators are the moving average convergence-divergence (MACD) indicator and the relative strength index (RSI)”.

With that being said, knowing what an indicator is, is not the only important part of the equation. What you need to be aware of here is that the UPSI is a profit scalping indicator. Therefore, you do need to know what scalping in trading is an no, it has nothing to do with removing heads.

So, What’s Scalping in Trading?

When it comes to trading, whether we are talking about four X cryptocurrency, the stock market or anything else scalping is all about placing extremely short term trades that are only open for a short period of time and are placed with very small investments.

The point of profit scalping is to minimize your overall risk by only investing small amounts of money. The end goal here is of course to have all of those small trades add up into substantial profits. It’s all about maximizing your profits while minimizing your risk of loss.

So, What does UPSI Do?

Alright, so now that you know what an indicator in trading is, as well as what scouting in trading is, we can do a much better job of explaining what exactly this UPSI is. The ultimate profit scalping indicator is a special type of indicator that uses a series of highly advanced market analysis techniques, as well as a variety of algorithms in order to figure out what the best signals for you to trade with are.

Of course, these signals are all about short term trades and small investments. One of the reasons why people like this UPSI indicator so much is because it actually works. It features a great accuracy rate of well over 90%, which means that it’s nearly impossible to not make money with it.

This particular indicator is more than ideal for newbies, thanks to the fact that it quite literally holds your hand throughout the entire trading process. It allows you to make consistent profits without actually knowing the first thing about trading.

Everything You Need to Know About UPSI

OK, So what we want to do right now is to provide you with a list of all of the most important features and benefits that you get with the UPSI or the ultimate profit scalping indicator.

Perhaps the most important thing for you to know about the UPSI is the fact that it comes with three separate components. The first component is the trend component that provides you with very accurate buy and sell signals. The second component is the trend cloud component that helps traders identify long term and short term trades. The third component is the volume indicator that shows you the overall momentum and activity of a certain asset.

What is also worth mentioning about the UPSI is the fact that while it is primarily designed to trade stocks, it can also be used for Forex trading, crypto, currency trading, commodities trading and other types too. Depending on the specific settings you have, the UPS I set to you can use it for virtually any type of market or security out there.

You keep in mind that this particular day trading indicator is accurate over 90% of the time, which makes it nearly impossible to not make profits with it.

The fact that the ultimate profit scalping indicator comes complete with an alert system that allows you to get alerts on your phone, your computer, or anywhere else is very cool too. This means that you can always trade with the freshest, the newest and the most accurate signals.

Let’s also keep in mind that the UPSI never repaints signals, so you never have old or inaccurate signals to deal with.

The other thing to keep in mind about the ultimate profit scalping indicator is that the cost of it is just $299. With that being said, if you would also like to learn how to be a profitable trader, one that is self sufficient then you might want tickets that are joining Stock Trading Mentor box. At this time, this is one of the most popular and useful stock market trading schools out there. Now the cost of this stock market trading school is $399. But what you do need to be aware of here is that if you become a member of it, you will also get that ultimate profit scalping indicator included with your membership.

The Ultimate Profit Scalping Indicator – Final Thoughts

The bottom line here is that if you need an awesome tool to help you make money, even if you don’t know anything about trading than this UPSI or ultimate profit scalping indicator is definitely something that you want to have in your corner.

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MACD Indicator Trading Guide

September 20, 2021September 20, 2021 Fabian FabianLatest News / Latest News / NewsLeave a comment

MACD Indicator Trading Guide

If you are trading stocks, forex, cryptocurrencies, or anything in between, then one of the things that you absolutely need to know how to do is how to perform technical analysis. Now, when it comes to technical analysis indicators, one of the most important ones that you need to know about is the MACD indicator.

The MACD Indicator is an extremely useful tool when used in the world of technical analysis. It can provide you with a whole lot of information in relation to the direction of a price of a security or asset.

If you do not know what this indicator is, how it works, what it tells you, or how to calculate it, then no worries, because this is exactly what we are here to teach you today. Let’s get right to it and provide you with a newbie trading guide for the MACD indicator.

What is the MACD Indicator?

For those of you who don’t know, MACD actually stands for Moving Average Convergence Divergence. Now, although this may sound like a very complicated technical indicator to master, it is actually fairly simple. All of the MACD indicator does is measure the relationship of exponential moving averages or EMAs.

When you look at this indicator, when attached to a chart, you will see that it displays three lines. It displays the MACD line, which is a blue line, a signal line, which is a red line, and a histogram, which is a green line. The main goal here is to illustrate the difference between the MACD and signal lines.

To put this in technical terms, the moving average convergence divergence indicator is the difference between two moving averages that have been exponentially leveled, and these are generally on the 12 and 26 day periods, with the signal line usually taking the form of a 9 period exponentially smoothed average of the moving average convergence divergence line.

One of the main things that the MACD indicator does it to function somewhat as an oscillator, because it provides you with both oversold and overbought signals, which are either below or above the zero line, with MACD lines generally wavering around that same zero line.

What does the Moving Average Convergence Divergence Indicator Tell You?

OK, so something that you are probably wondering here is what exactly the MACD indicator has the ability to tell you. So what you need to know here is that the moving average convergence divergent syndicated is one of the most versatile technical analysis tools out there, and the reason for this is because it has the ability to measure two different things.

What you need to know here is that indicators are generally divided into four categories, which are trend, momentum, volume and volatility indicators. While this particular indicator is actually both a trend indicator and a momentum indicator combined into one which therefore makes it extremely useful. Below we have listed some main points in terms of exactly what this indicator tells you and what it means when it looks a certain way.

When the moving average convergence divergence’s line crosses above the zero line, the signals are in an uptrend. Traders usually take this as an indication to place buy trades.
When the MACD these line crosses below the zero line, the signals are in a downtrend. Traders usually take this as an indication to place sell trades.

Pros & Cons of the MACD Indicator

Yes, the moving average convergence divergence indicator is of course an excellent one to use for technical analysis. However, as is the case with all indicators, there are both advantages and disadvantages to using the MACD.

Pros

The fact that it is both a trend and momentum indicator is of course a big bonus.
When using the MACD crossover and the divergence, this indicator provides you with very clear and accurate buy and sell signals.
For increased clarity, this particular indicator can be used along with other tools and indicators.

Cons

It is sometimes the case that this particular indicator may provide false signals, especially when it comes to reversals. Sometimes something that looks like a reversal with this indicators as actually just a sideways movement or a pause before the same trend continues.
It is also sometimes the case that this particular indicator doesn’t provide 100% accurate analysis of trends. Sometimes trend following signals may fail. Sometimes these signals may also not move enough before a trend reversal.

Calculating the Moving Average Convergence Divergence

Although this may all seem very complicated, the fact of the matter is that calculating the MACD is not actually that hard. Keep in mind that this following calculation is using the 12. And 26. Timeframes as the moving average convergence divergence indicator usually uses.

First, calculate the 12 period EMA for the price at a chosen time.
Calculate the 26 period EMA for the price at a chosen time,
Subtract the 26 period EMA from the 12 period EMA.
Based on the result obtained in step 3, calculate a 9 period EMA.

FAQ

What is the Best MACD Setting for Day Trading?

Generally speaking, the MACD is set to 12, 26, and 9, as we have spoken about in great detail above. However, if we are talking about the best settings, these are considered to be 5, 13, 1, as these provide you with a visual representation of MACD patterns. However, some people love the sensitivity provided by 5, 35, and 5 settings.

How is MACD calculated?

Generally speaking, the 26 period EMA is subtracted from the 12 period EMA (or the 13 from the 5), the result of which is the MACD line. A nine day EMA (or 1 day), of the moving average convergence divergence line, called the signal line, is plotted on top of the MACD line, which then functions as the trigger for buy and sell signals.

How Accurate is MACD?

When it comes to technical indicators for day trading, the MACD indicator is quite accurate. Generally speaking, you can expect it to be accurate upwards of50% of the time, which is quite good as far as indicators go. You can of course improve this accuracy level if you use this indicator along with others.

The MACD Indicator – Final Thoughts

There you have it folks. You should now know all of the basics about the MACD indicator so you can start using this technical analysis tool on a regular basis. It is one of the better technical analysis tools out there, particularly in terms of trends and momentum, so we definitely recommend mastering it.