Traders choose Forex because of the low “entry threshold”: cent accounts, deposit bonuses and large leverage. But there is an alternative in the form of the stock market, where you can consistently earn.
Trading stocks, futures and exchange options requires high qualifications, access to insider information. In order to make a decision to buy or sell shares of a particular company, you need to constantly monitor related events, quarterly reports and other information. To do this while overseas is difficult, but quite possible.
In the stock market, you can use the same strategies as in Forex. We offer a strategy in which 7 out of 10 trades are closed with a plus – Sniper X. From the free video tutorials that we will send you by email, you will learn how to get the most out of trading using just 2 simple patterns.
We start trading
To get a sense of the basic principles of technical analysis, let’s look at two examples, and the first is GoPro, a manufacturer of portable video cameras for shooting in all conditions. As they say, no comments. Even beginners can see that one of the basic principles is triggered: the older (farther from the current price) the price high / low, the greater the impact of its breakout / rebound on the market. In this case, the maximum is almost a year old and it is natural that the unsuccessful retest gave a good entry point to sell, despite the release of a generally positive quarterly report.
It is necessary to keep track of the dates and contents of quarterly reports, but this is not a big problem. For quarterly data, special economic calendars have been developed that show a positive or negative report in different colors. Otherwise, the standard reaction is:
- negative news release:
- fixing losses and reopening positions towards sales;
- market makers start a strong downtrend.
A few practical tips
- The stock market works on technical analysis, but is more susceptible to the influence of “small” news – the resignation of a deputy director, a slight drop in profits, etc. Therefore, you should carefully study each news and calculate its impact on the market. Your best bet is to pick one company and trade its stock.
- The main advantage of the stock market is that it is more trendy and less volatile than Forex. There are moments of speculative price surges. But if major players begin to reverse, then the new trend lasts at least 2-3 trading sessions. This makes it possible to “squeeze” the maximum out of a strong movement.
- Such trends are typical for large companies such as Apple or Tesla. Therefore, they are more suitable for medium-term trading. If you want to make money with frequent entries with a small profit, it is better to pay attention to smaller companies, where intraday volatility is much higher.
And you can understand how the stock market works, find out sources of analytics and get trading recommendations on my course on the Stock Market – it consists of 25 lessons, where I do not just give a dry theory, but constantly make deals and trade with students. The training includes both the elements of the Sniper and my own experience, advanced technical and fundamental analysis. At the end of the course, the best students receive capital in management, the interest on which is a profit – so do not miss the chance, perhaps you are the future William Gunn or George Soros.