Archive for August, 2009

Introduction to Pyramid Trading System

The Pyramid trading is a technique that allows traders to minimize chances of loss while enhance their ability to profit from “expected” market price movement at the same time.
The Pyramid technique alone is not enough to build a profitable trading plan, a sound Money Management technique is also needed to help traders to [...]

Scale Trading System

Scale trading is a popular style of trading system which based on the idea that there is a limitation of how low the price can go. The scale trading technique tried to make profit from a market that is at historically low price levels.
There will always be demand for commodities, such as oil or gold, [...]

What is Trading Volume and How to use it for Technical Analysis?

In technical analysis, Trading Volume is an indicator that indicates the strength of market trend. Trading Volume, which is usually referred to as Volume, is simply the number of trades executed during defined time period.

The Importance of Back Testing a Trading System

Whatever trading system traders use for their trades, they are going to thoroughly and objectively back test their trading system in order to confirm that the system can make them profits.
The importance question that traders must ask their self is “Is the trading system they use profitable?” The back testing is lent to give them [...]

The 2% – 6% Money Management Rules

The greater staying power of traders the greater chance to win. Traders have to stay in markets long enough to win trades. Money management plays an important role in helping traders to survive in markets.
No one win every trades; money management help traders to reduce losses on losing trades. Moreover it also maximizes traders’ gains [...]

Secret of Time frames in Trading Systems

Trading Systems are built on top of technical analysis, which comprises of charts, indicators, oscillators, price patterns and etc. Just like the music, technical analysis is a universal language. Traders can apply technical analysis to any instrument in any market such as the Google stock in NASDAQ or the Japanese yen in Foreign Exchange (forex).