Short Term Trading Approach

There are many ways to earn from the stock market. Whether you want to delve in share trading for a short or long period of time, there are varying approaches that you can use. However, there are certain factors that are profitable. If you prefer to gain maximum profits in short term trading these are some suggestions that you can look into.

Research:

If you want to gain some more information and insight from a successful trader, you can join ''The Chartist''. Once you're in you will be able to follow Nick Radge. His website provides historically tested strategies that you can use without having to download an expensive software. You can start immediately and use less than ten minutes of your time to get to work. He's a licensed Australian Financial Services with 4 profitable portfolios that can satisfy both short term and long term traders.

Specifics:

• Use price, volume and OBV (on balance volume) as your indicators. To be able to profit from short term share trading, you need to use the most important components in technical analysis.
• Ignore fundamentals and news items, which includes commentaries from so called gurus. Whatever comes out in the news are just confirmations of what already happened in the market. Its not about knowing what happens afterward, but being able to anticipate impact beforehand.
• Start with a $50,000 equity and use the 2 percent rule. You can also diversify into 6 stocks.
• Trade stocks between .50-5.00
• Have a minimum risk reward ratio of 3:1
• Have a stop loss that will enable you to break even as soon as possible after a breakout.

Again, these are just some suggestions that you can consider. Whatever works for you will depend on your trading plan that suits your personality. What works for one trader will be different to another. Strategies are formed out of trading habits and how you interpret data. Find what works for you and what makes your plan profitable.