Both The RSI And Stochastics Can Help You Create Profitable Short-Term Stock Trading Strategies
I typically receive dozens of emails from traders who are just starting out asking me for help in creating short-term stock trading strategies. A few weeks ago I demonstrated a strategy using the RSI indicator; I received several emails from readers asking me to explain the difference between the RSI Indicator and the Stochastic Indicator.
Without getting into complex mathematical formulas, the RSI indicator measures the momentum or velocity of price movement or in plain English the RSI indicator measures when prices moved too fast too soon.
The Stochastic Indicator on the other hand is a measurement of the placement of a current price within a recent trading range.
During uncertain economic times, shifting a portion of your savings or investments into precious metals provides security because they are among a handful of financial assets that do not rely on an issuer’s promise to pay.
I am often asked to explain the use (or lack-there-of) of stops… and the psychology behind sticking with a losing position. Most of our clients and trading room members know I don’t usually put on a stop.
Trading. What an interesting subject. Almost everything is traded and at some time in your life you most likely have traded something. Even at early ages, did you ever trade your peanut butter and jelly sandwich for a ham sandwich in school?
Trading into news always involves risk, but if you have a good strategy, it can also be very profitable. In this article, strategies will be discussed for hedging weekly inventory reports for Crude Oil and Natural Gas with binary options.
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