Top 5 Trading Resolutions For 2016

December 30th, 2015 by VantagePoint Software

trading resolutions 2016

Here it comes again … a new year in which you will resolve to do better, to stop doing the bad and start doing the good. Yawn. We’ve heard it all before when it comes to New Year’s resolutions. But what about those that apply specifically to traders?

Here are the top five trading resolutions for improving your game and making your bank account healthier in 2016.

I will lose weight.

Anybody who has been around the trading game a while knows one thing that weighs you down, makes you feel bad, and saps your confidence is losing money on a trade. Here’s the deal – you will lose. Everyone does. Accept your losses and move one. Shed those unwanted moments of despair. Lose the desire to beat yourself up. When you accept your losses as a natural part of the game you will feel lighter and more energetic. Best of all, when you look at yourself in the mirror, you will like what you see.

I will quit eating junk.

To start on the road to trading health, you have to first quit eating the crap. You know what I am talking about. The trading world is full of crap, and it is the talking heads on the entertainment financial programs serving most of it up for daily consumption. Now, there is real and solid analysis to be found on the TV, but you will not find it on the shows that feature controversy, entertaining big-name analysts/economists, and “in-the-know” CEO’s pushing their corporate agenda. These programs are designed to attract viewers with crap because they know people are weak. Don’t be weak. Avert your eyes, as it is all just sugar, coloring, and water. There is no there, there. Find the right sources and be confident that what you are hearing and reading is objective and factual.

I will gain muscle.

Becoming a stronger trader, leaner and more fit, can only help your trading efforts. Taking in the right nutrients is key to gaining muscle and in the trading game, that means going through the cupboards and tossing the bad data and replacing it with good data. If you are listening to the TV talking heads ask the analysts/economists and the CEOs about the market (see #2 above), stop! It is like eating a bag of cookies every night before bed. Don’t listen to their analysis. Create your own. Do this by learning how the market works, finding reliable sources of data, and then researching trades that fit the data. Relying on the TV for your trades is, well, like eating junk food.  By creating your own analysis your muscle will come in the form of confidence. And we all know how important confidence is for any trader.

I will exercise more.

Actually achieving resolutions one and three above means you have to commit to exercising more. In the trading world, this translates to working more. And working more in the trading world equals more reliance on you and your tools, which means you have to get down to the business of trading – research the data, track the market, find and set up your trades. Lining up good sources of data burns calories, as does tracking market. But the Internet has made these two tasks pretty easy. Finding and setting up trades, though, well, there is no way around it – you are gonna breathe hard, unless you get software to help you. Be careful, though, no magic “pill” exists that will do all the work for you, but there are tools that will lighten the load, like VantagePoint Trading Software. The point is: if you want to actually achieve your resolutions for 2016, you might need just a bit of help.

I will not over achieve.

Resolutions 1-4 are important, no doubt, and they are difficult enough to follow through on. But ignoring number five is the surest to way fail making your bank account healthier in 2016. Yes, if you do 1-4, you will get healthy, but here is what happens to so many people, and it is the primary reason for failure to make money – they get greedy. As you get healthier, you will want to do more, bet more, trade more, gamble more, make more, more, and more. Don’t! Always take small bites and make a plan, a real trading plan, and then stick to it. These two actions will help you not to “overachieve.”

One more tip to help you get healthy in 2016 – Follow the trend. Go with the big market trend. Remember, “The trend is your friend,” and we all a need friend that we can count on.

Remember, it’s never too late to wipe the slate clean and start over. By applying these principles to your trading strategy in the new year you can rest assured you’ll be more successful. Your trading account will thank you.

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Swing Trading Strategies

December 16th, 2015 by VantagePoint Software

What is swing trading anyway?

SWING TRADING STRATEGIES

This technique is often used by stock and options traders and tends to be more long term than day trading. Swing traders seek to capture explosive moves in the market, up or down, for profit. When the swing slows, they exit the position. As many swing traders will tell you – the trend is your friend.

If you break down the term swing trading into its components, the first part is a swing. No matter the technique, if there’s not a swing of some degree after you buy, then you will not be able to sell at higher prices and vice versa. Trading is the next part of the term and you shouldn’t take this lightly. There is a big difference from traders and passive investors. Traders don’t buy and “hope.” They never get married to a trade regardless of what they hear from the media, friends, relatives or whomever.

Swing trading can be broken down into three key phases:

1. The Development Stage

2. The Recognition Stage

3. The Bandwagon Stage

Knowing how to identify each stage at the optimal time and how to react during those stages is key. Here are some tips on improving your swing trading skills and increasing your profitability.

The Swing Trading Development Stage

The first stage is the œdevelopment stage.  Swing traders want to be able to identify an opportunity early on so they can get into position during the development stage. While this is obviously an optimal situation it is often difficult for traders to implement. Why? Because on a chart, this often looks like a congestion or balancing zone.

Recognizing Profits in Swing Trading

The second stage the recognition stage. This is where you can begin to see a surge in price, either upwards or downwards. Those fortunate enough to have entered during the development stage are often challenged with remaining in a profitable position for a longer period of time. The idea is to capture more of the swing, not to lose confidence and get out while leaving money on the table.

Swing Trading Exit Strategies

Finally, there is the bandwagon stage. This stage is usually determined by a plethora of market specific news reports mentioned on TV.

The bandwagon stage is where many people lose money when investing, especially when investing without a defined plan. Now, that is not to say that those who enter the market at this time are going to lose, but all too often the trend is over by this time.

Timing is Key for Swing Trading

If you’ve already picked up on the common trend here (see what we did there?) timing is everything for swing traders. It’s near impossible to be successful in any of these 3 stages if you don’t have a system or a strategy for knowing what may happen in the market.

Meet your solution.

VantagePoint Trading Software has been utilizing Intermarket Analysis with predictive technologies to forecast market strength and direction for the past 25 years. This proven technology helps swing traders identify developments before they happen, gives them the confidence to stay in position longer and warns of when a trend may be coming to an end. With accuracy documented up to 86% for some markets, this technology has changed the game for swing trading as it provides consistent and accurate data for traders.

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When Mario Draghi Speaks Do You Ditch the Dollar?

December 10th, 2015 by VantagePoint Software

Mario Draghi

Some think he’s a downright scrooge while others may call him a benevolent Santa. Whether you love him or hate him, when Mario Draghi, President of the ECB (European Central Bank) speaks, the world listens.

On December 3rd Draghi delivered a major policy decision speech. It revealed that the ECB pushed its deposit rate further into negative territory by reducing it by ten basis points to -0.3%. Major refinancing operations rate and the marginal lending facility rate were not altered, remaining at 0.05% and 0.3%, respectively. In addition, the ECB extended its asset purchase program under which it purchases bonds worth 60 billion euros every month, to March 2017 from September 2016, which isn’t exactly a hard deadline. Those don’t really exist in the Central Banker’s world.

Mario’s speech last week sent currency markets askew. The US Dollar was hit hard by Draghi’s comments for sure. Forex traders still want to keep finding profitable opportunities, though. So what should you expect going forward?

On the fundamental side, this is a balancing act between two central banks (FOMC and ECB) propping the Euro up for its inevitable next decline. While last Thursday’s move was violent, the markets have leveled off since. The US Dollar has also stabilized.

With the big fundamental play behind us, traders need to find the right time to jump back into the dollar. But here’s where things get tricky.

Those that are utilizing leading indicators, like those found in VantagePoint, are at an advantage. Trend forecasting capabilities give traders the confidence to enter a currency market after it’s made a big move. Whether it’s a countertrend reversal or a further confirmation, traders utilizing technology that forecasts markets with up to 86% accuracy are prepared for these types of events.

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