Exchange rallies: which one to choose for active trading?
The topic of technical indicatorsinexhaustible. But I'm getting bored with it. We'll continue it when inspiration strikes. And now let's talk about what makes me actively work now.
Other articles of the master class "Stock market: a cross-section of knowledge"
- On the value of trends on the Russian stock market
- Dancing of prices and indicators: divergences and convergences
- How to calculate the profitability of stock indicators?
- Indicator periods: selection of operating parameters
The New Year is upon us, and traders have a desire to earn all the money that they failed to collect during the year. Therefore, during this period of the year there are a lot of different stock market signs and talk about rallies of different categories. For example, who hasn't ever looked forward to a Thanksgiving rally? Who hasn't dreamed of making money in December, the most bullish month of the year? Who hasn't tried to snatch a slice of profit just before the holidays on the New Year's rally? Everyone has dreamed! Even if this is your first year on the stock exchange, I think that analysts imbued you with the spirit of various December expectations as early as September.
There is only one nuance. Most exchange traditions came to our trading floor from foreign developed markets. Our young securities have individual peculiarities, which are often don't fit in with years of foreign stock market wisdom and superstition. So I urge, check and calculate the past history of your paper if you hear of any rally, seasonal factor, stock market omen!
Such analysis will save you from various dysfunctional stock exchange rumors, intuitive trading and rash trades. Such analysis can hardly be called statistical for our young market. What are statistics, for example, of a New Year's rally when some even very popular stocks have been trading in the market for less than a decade? It is a set of facts!
That doesn't make it any less valuable, because everyone Trader must respect the dynamics that were and are in the market! I call this analysis factual. Although it is not quite right, because when I bring data sets, I analyze them, and I always give advice to traders, how, using these or those factors, you can secure your trading strategy and improve the financial result. In the classics, factual analysis involves only providing data, but not describing and researching it. But, as you realize, "what is in my name"?
The most important thing is to understand how to use the data obtained. We will not go into details at the first stage and argue that some factors can be used as anti-barometers of the market and so on. Now it is important to understand that factual analysis will not tell you whether to buy or sell. It is done in order to at a difficult moment in the market you could emphasize a particular securityIf you want to open a position on it for a larger or smaller amount. And also to protect us from rash actions influenced by grandmother's gossip rather than the wisdom of the market.