The volume, the volume creates the price, so shouldnt the volume be just as important as the price and how does volume actually work, what are the elements that I can actually work with? Broadly speaking, the various trading strategies you employ will fall into two basic camps: Fundamental and Technical. . When it hits Y, sell. .
The Tactics of, strategic
It essentially indicates that when there is a sharp decline in the overall stock market, the long positions can lose more than the short positions and vice-versa. Armed with this information, you can make money in both directions buying at the bottom of a dip in price, and selling just before the price peaks and is set to drop again. . Whos on their management team, and what are they known for? . For instance, a market neutral position may involve taking a 50 long position and 50 short position for the same amount in a single industry such as Oil and Gas. Your goal in using these tools is to give you a better perspective about future price movements, and trade accordingly. To adjust to the fact, that stocks within a sector generally tend to move up or down in unison, long/short strategies should be preferred in different sectors for the long and short legs. You sell before the price plummets, and when you have to buy those shares back to close out your position, the price has fallen markedly, and you reap the difference (less chartnexus forex robot commissions and fees) in profit. . A well blended portfolio of various stocks can protect against individual firm risk or sector risk, but market risks will always exist which can impact the equities asset class. If such a situation occurs and the positions held are of equal size (e.g. Theres no denying its effectiveness, but thats not the sort of trading we tend to do at the Trading Lounge, so for our purposes, it is enough to make mention of it before moving on to the more active trading strategies you can employ. You can do the same thing in reverse by short selling a stock that has been increasing in price, in anticipation of a sudden change in price direction. .