Warrior Trading Blog

Why Our Strategies Work In Any Markets

Why Our Strategies Work In Any Markets

 

Day traders can be said to be hunters of volatility as well as risk managers. The mandate of a day trader is to monitor the market, develop strategies which will allow entry and exit from a trade. During this time, traders usually capitalize on market discrepancies in order to profit.

Since there is a small window for traders, it is important for a day trader to develop and implement the best strategies. As volatility hunters, day traders will always opt to trade shares for publicly traded companies that have released news for example sacking of the CEO or CFO and reported earnings among others.

Day traders also understand that there are several risks surrounding the market and trading. As a result, day traders need to come up with strategies that help to mitigate these risks preventing the occurrence of losses.

Since our strategies are based solely on technicals like volume, price action and chart patterns, they can be used across markets that use technical analysis as well. So if you like trading Forex or Futures, then you can look at using the strategies we teach for equities on them as well.

 

Versatile-trading strategies

Momentum strategy

As a trader, one of the best strategies you can ever implement is momentum. With this strategy, day traders only need to find securities that are moving in order to profit. The strategy is designed to seek opportunities via a combination of fundamental and technical analysis. Momentum strategy helps day traders analyze fundamental aspects of securities thus establishing mid to long-term trend. Once this has been established, traders have the opportunity of utilizing price momentum, resistance and support zones to note any market reversals.

The one thing every trader needs to know is that in every single trade, there is a security that moves 20 to 30%. The problem is how to identify these stocks. One of the top most factors to check out includes technical indicators. To achieve this, you have to use a stock scanner for example Trade Ideas. When paired with reversal strategies and pre-market gapper scanners, you are assured of success.

Savvy traders are known to use bull flags as their favorite charting patterns. This is because the pattern has been found to offer low risk entries especially in strong stocks. While it can be difficult for beginners to locate patterns in real time, implementing Momentum strategy with Trade Ideas will surely allow you to attain success.

What you need to do is use review scanner alerts to identify strong stocks. Using the bull flag pattern, check the first candle that will make a new high after breakout. Wait for two to three red candles that form a pullback. Your first entry should be at the first green candle while your stop should be the low of the pullback. At this point, you will note thousands of traders taking positions and making purchase orders which is the best time for you too.

 

Swing Trading

Swing-trading refers to a short-term process used to trade options and stocks. The strategy is utilized to retain the traded securities and options between two days to four weeks. During this time, the trader focuses on reliable strategies that mitigate any risks. There are a number of options and equity strategies that are utilized and allow dead cat bounces, continuation patterns and breakouts with catalysts to be traded.

As one of the versatile-trading strategies, traders should use stock scanners like Trade Ideas Pro. This should be combined with breaking news sources (StockTwits) and chart scans to attain full information for technical analysis. The reason for doing so is to identify high probability and short-term set ups. These alerts have been found to have explanations that describe fundamental and technical reasoning of a trade, profit targets and stop losses.

As a trader, you ought to note that the best trade strategies may fail as a result of volatile market conditions. This will result in a break before a new trade position is implemented. Why? To help mitigate risks.

Identifying trade possibilities is not enough to attain profitability. You have to understand other factors that include broader markets, underlying sector, catalyst and indices. This helps to handle market risk evaluations and alert traders on trades they are monitoring.

Furthermore, the strategy does not trade OTC, low volume junk or pump and dumps. It only allows the buying and selling of liquid small, mid and large cap stocks, options and ETFs.

The goal of this strategy is simple – to help traders learn versatile-trading strategies as well as attain profits.

 

Our Strategies Compared to Other Markets

Below are a couple charts that look very familiar to our gap and go strategy. Prices opened higher than the previous days close and then continued much higher through out he morning. But that isn’t an equity chart, that is a chart of the $SPX or the S&P 500 Futures.

strategies

strategies

 

So as you can see it is possible to use our strategies in other markets and with other instruments so long as they use technical analysis. There are tons of examples like this which just goes to prove that you can use them anywhere.

 

Final Thoughts

As you can see our strategies rely on technicals. This means that they can be used on many markets including different instruments if they use technical analysis like volume, price action, moving averages, chart patterns, etc. You can find more information on the strategies we teach here.

 

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