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Trading Techniques for Long-Term Investment Success

image for site buyingbrain.comIn the world where economical crisis seems like a never-ending ‘trend’, people seek the opportunities to make money and reach financial stability. Many banks offer paltry rates of interest to those who open their savings account in one of their branches, however, it is certainly not much. For that reason, people decide to enter market and start investing in stocks. It can be quite a risk, money can be lost, but also a lot can be gained. If you are one of those who want to risk it and go bold for it in a long run, we have a couple of advices on what to pay close attention to, and what are the most interesting techniques used by professional traders that might lead you to a great success.

Trading Techniques

Retracement

This particular technique is for those who are able to identify clear movement of the price. The prices of stocks which are moving up, usually from time to time take a step back, and that is the moment a professional trader should recognize and jump in on it, just before it starts moving back up, so that he or she would earn that profit.

Fibonacci

When it comes to technical analysis and currency trading, Fibonacci numbers are one of the most popular mathematical concepts. Traders all across the world use them, however they can be quite hard to deal with and many people decide to pass out on the opportunity to use the Fibonacci technique, and miss out on its many advantages. Known as the “Golden String” or “Golden Series”, Fibonacci numbers derive from a sequence of numbers starting with 0 and 1, and each number is the sum of previous two in the sequence. Even though it all seems quite abstract, scientist managed to find connection with the nature and the world around us.

They are most commonly used to identify support or a resistance that results from a retracement, that is, the movement of a price against the prevailing trend. On the other hand, they can be used to identify trading targets when certain prices reach new high or new low.

High-frequency Trading

This particular technique is and algorithmic trading that uses the newest technological tools when it comes to investments. Computers carry out proprietary trading strategies to estimate the movement of the price of a particular stock. Professional traders can capture the second when the profit can be gained, and invest or sell an asset.

Additionally, when it comes to the use of technology in stock trading, there are a number of real-time stock monitoring platforms that help traders keep in touch with the latest changes. Equity Feed features, for example, allow efficient stock filtering in order to identify the most interesting ones instantly. This platform includes other advanced features that can automate some of the daunting processes associated with trading and as such represents a useful tool for anyone aiming to rise their trading techniques to the next level.

Investment Tips

  • Once you get into the business, do not stick to only one stock, but rather branch out. Find different markets, bonds and instruments, and also consider spreading yourself across the globe by finding stocks to invest in on several different continents.
  • Also, do not go into the business without doing thorough research of what you want to invest in. The smartest move is to buy stocks that have been strong performer in the past, however, be careful and keep constant track of the prices as even those can go down.
  • Whenever the market is low, that is your cue to jump in and invest, so that once they go up you gain your profit. On the other hand, when stocks seem that they have reached their highest, that is the time to sell and get out, in order to avoid the period when their prices go down.

Just a final tip for the end: if you are really in it for the long run, do not buy and sell stocks frequently, as the commission will eat into all of your funds and you will be left with nothing, or even less than you had to begin with. So know when to sell, and once you earn that much wanted profit, invest, not in the market, but you and your family’s well-being.