I am an active underlying stock market swing trader and buy-and-hold investor, and my portfolio could be worth £20,000 to £30,000 sometime next year.
I already have been demo trading CFD’s (contracts for differences), also 1 trade live and scored 17.5% in a day trend following – I am looking to trade them more next year when/if I have made this money.
Anyway, what I want to know is what are the best technical analysis indicators I should be looking at as a CFD’s trader to efficiently trade them as a stock swing trader along with market news embedded into my strategy?
What technical analysis indicators DO YOU as a CFD’s trader personally use/look at to trade them and have a high winning ratio?
I know this is longer than the average question here on Y!A, so sorry about that.
Trading indicators are best used along with money management and good risk control, using trading indicators alone will not enable you to be a successful trader, even if you learn everything about trading indicators the market is just too random and unless risk is controlled, over time your account will slowly get wiped out, regardless how good a “trader” you think you are.
This question was about trading indicators and there have been some pretty good answers that should help in your trading, and especially in relation to trading indicators, the answer has been posted in the categories listed below:
Many of the technical indicators serve to highlight one aspect of price or volume behavior. No one indicator is perfect or infallible. Technical analysis indicators are great for stock-screening, but, if possible, base final decisions on the price chart. If I were you I would choose 2 or 3 indicators and use them to confirm signals from each other.
No one technical indicator is suited for all market conditions. Technical trend indicators lose money during a ranging market, as up and down movements in a narrow price range whipsaw traders in and out of positions. In a trending market, momentum oscillators give exit signals too early and should only be used to confirm trend indicators.
Use a trend indicator in a longer time frame than the cycle being traded (e.g. if trading the secondary cycle, use a 100-day exponential moving average to indicate the direction of the primary trend).