MetaStock Charting Package: Intro
MetaStock is a charting package that is known worldwide. The reasons are clear. Not only is MetaStock a polished charting package, it’s an incredibly powerful piece of software. If you believe in the maxim ‘you get what you pay for’, know that MetaStock is no exception. The depth of analysis that MetaStock allows you to conduct is extraordinary. Surprisingly, most people who own MetaStock never use it to its full potential. That’s why we’ve designed this guide, so that you can take advantage of all that MetaStock has to offer. After working...
read moreYou Need Trading Money Management
Now, these rules and guidelines for trading money management are determined before you even enter the stock, that way you don’t get emotionally involved with the stock and make poor trading decisions. You want to make sure with good trading money management, that you can maximize your profit on a winning trade and minimize your losses on a losing trade. With superior trading money management, you’re able to adhere to the two cardinal rules of trading, and they are to let your profit runs and cut your losses short. That leads to why trading...
read moreHow Much Trading Capital To Risk
Remember, the goal with your trading capital is to keep your losses as small as possible while also making sure that we open a large enough position so we can capitalize on profits as well. So the question becomes, regarding trading capital, what is a small loss? Well, they’re usually represented as a percentage of your trading float, and studies have been done that suggest you should never risk more than two percent of your trading capital on any trade. However, most pros will tell you that this is way too much. They’ll risk one percent to...
read moreSetting Stops With Average True Range
You may have read that many traders use the average true range for setting their stop losses. The reason is that the average true range is a fantastic measure of volatility and market noise. Very simply, the average true range (ATR) determines a security’s volatility over a given period. That is, the tendency of a security to move, in either direction. More specifically, the average true range is the (moving) average of the true range for a given period. The true range is the greatest of the following: The difference between the current high...
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