Trading Planing and Trending
What is Over Trading?
In order to get more commission from investors, the brokers will attempt to transact more buy and sell or sell and buy which is called over trading. Brokers will try to attempt over trading when index or stock is over volatile. In order to minimize over trading for each transaction the commission should be deducted from brokers instead of traders. It’s a difficult task, but over trading will tend to increase our interest, but that’s a wrong one. Good brokers will not do over trading.
The Individual person who decides by himself to buy or sell the stock or index is called manual trading. But this is against the decisions taken with the help of automatic software with all the information’s
Difference between “Manual Trading and Automatic Software Trading”
Nowadays the debate is getting stronger which trading is best whether manual trading or software trading. Investors and traders have some statistics and use them in software and trade with that signal. The automatic software which is gaining reputation in stock and forex market have not succeeded according to us. There are more traders who lose much when they trade with the help of automatic trading software. According to stock market analysts manual trading is the best trading. Forex traders mostly use automatic software’s, which can be seen in detail in forex trading.
What is the Mobile Trading?
Instead of trading online through computer if you are trading through mobile then it is called mobile trading. If you have GPRS connectivity in your mobile then you can trade from your mobile. Most of the brokers will avail this facility.
What is a Trading Plan?
Before trading a particular stock, analyzing that stock such as risks and all other information, whether it will suit for long term or short term investment is called the trading plan. Analyzing with the technical analyst will be the better trading plan, which can cover up all the risks.
What is Trending Market?
The trending market indicates the state of the stock market i.e. Either bullish or bearish. If the market is in bullish mode, then it’s trending upward and if the market is in bearish mode then it’s trending downward. Basically the trending market will be based on the time such as short term, midterm, and long term.
What is a Trend Line?
In share trading the movement of the cost of the share will be drawn known as a trend line. A particular stock’s highest price or lowest price will be drawn combine which is called trend line. With the trend line we will be able to know or guess the stocks support and resistance position.
With the stocks past cost or transaction history, we will be able to guess the future position of that stock which is called as Trend analysis. We can divide the trend into three different types like short term, medium term, and long term. With the help of trend analysis, we will be able to know the market turning from the bullish trend to bearish trend and from turning bearish to bullish trend.