Advanced Trading Strategies Archives - HowTheMarketWorks https://www.howthemarketworks.com/category/advanced/advanced-trading-strategies/ Free stock market game with real-time trading and built-in lessons, curriculum, and assessments. Create a custom stock game for your class, club, or friends and learn to invest. Thu, 10 Aug 2023 20:46:48 +0000 en-US hourly 1 https://wordpress.org/?v=6.3.4 https://www.howthemarketworks.com/wp-content/uploads/2016/12/cropped-touch-icon-ipad-retina-32x32.png Advanced Trading Strategies Archives - HowTheMarketWorks https://www.howthemarketworks.com/category/advanced/advanced-trading-strategies/ 32 32 Dollar Cost Averaging: The Easy, Low Risk Investing Strategy https://www.howthemarketworks.com/dollar-cost-averaging-the-easy-low-risk-investing-strategy/ Thu, 29 Nov 2018 20:38:36 +0000 https://www.howthemarketworks.com/?p=12988 Dollar Cost Averaging Investing in the stock market involves a lot of unpredictable factors. So many first time investors get scared off by not knowing what stock(s) to buy at what time. Timing the market is a daunting task, but thankfully there are strategies that take timing out of the investing equation. Dollar Cost Averaging Read More...

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Trying to Find the Right Forex Broker? Consider These 5 Tips https://www.howthemarketworks.com/trying-find-right-forex-broker-consider-5-tips/ Tue, 13 Feb 2018 20:14:13 +0000 https://www.howthemarketworks.com/?p=12365 There are so many different ways for a person to build wealth over time. Finding the right investments is a key part of achieving your financial goals. In order to find the right investments, you will have to spend a lot of time researching your options. If you are looking for an investment that can Read More...

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How Will Cryptocurrencies Affect the Markets and Businesses in 2018? https://www.howthemarketworks.com/will-cryptocurrencies-affect-markets-businesses-2018/ Wed, 31 Jan 2018 15:06:47 +0000 https://www.howthemarketworks.com/?p=12310 Five years ago, most people didn’t have a clue what cryptocurrencies were. Ask the average man on the street about bitcoin and he would have raised his eyebrows and said “huh?”. Fast forward a few years and cryptocurrencies have hit the mainstream. Today, your Uber driver can tell you the latest bitcoin price and your Read More...

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Can the Sterling Hold at Current Levels? https://www.howthemarketworks.com/can-sterling-hold-current-levels/ Wed, 09 Aug 2017 17:52:45 +0000 https://www.howthemarketworks.com/?p=11954 The GBP/USD pair is currently trading at 1.3205, close to its 52-week high of 1.34427. The sterling has enjoyed an imperious run of form in 2017, starting at around 1.23, and gaining approximately 7.3%. The US dollar index indicates an overall poor run of form by the greenback, with a year to date decline of Read More...

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How To Trade Forex Using A Technical Indicator-Based Strategy https://www.howthemarketworks.com/how-to-trade-forex-using-a-technical-indicator-based-strategy/ Thu, 11 Aug 2016 13:26:59 +0000 https://www.howthemarketworks.com/?p=11492 When it comes to currency trading, there is a vast range of different strategies you can adopt to generate trading profits. For example, you could pursue an event-focused strategy, where you place trades just after large market-moving macroeconomic or political events. Alternatively, you could put on medium to long-term trades based on your view of Read More...

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Should You Trade the EURUSD? https://www.howthemarketworks.com/should-you-trade-the-eurusd/ Mon, 16 May 2016 14:40:47 +0000 https://www.howthemarketworks.com/?p=11402 The most widely traded financial asset in the world is not any particular stock, oil or gold – it is the EURUSD (Euro/ US dollar) currency pair. The pair represents two of the largest economies of the world. Created to facilitate cross-border trading among European and American partners, the euro (EUR) has risen to become Read More...

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How To Use FX Derivatives To Hedge Your Currency Risk https://www.howthemarketworks.com/how-to-use-fx-derivatives-to-hedge-your-currency-risk/ Tue, 12 Apr 2016 15:12:11 +0000 https://www.howthemarketworks.com/?p=11163 In the last six months we have witnessed strong volatility in the global currency markets. Emerging markets currencies weakened aggressively against the U.S. dollar, which has strengthened substantially leading up to the Federal Reserve’s U.S. benchmark interest rate hike in December of last year. Volatility in the currency markets is not just an issue for Read More...

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Vicky’s March Trading Strategy https://www.howthemarketworks.com/vickys-march-trading-contest-strategy/ Fri, 08 Apr 2016 19:45:37 +0000 https://www.howthemarketworks.com/?p=11188 Contest: March Trading Strategy Final Portfolio Value: $101,169.24 Trading Strategy For This Contest Trading Strategy: Investing for the first time in the stock market is very overwhelming; even if it is done with virtual money. I’ll start saying that implementing a strategy takes a lot of practice and patience. You must begin understanding some of Read More...

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Michael’s February Trading Contest Strategy https://www.howthemarketworks.com/michaels-february-trading-contest-strategy/ Wed, 09 Mar 2016 20:34:36 +0000 https://www.howthemarketworks.com/?p=11087 Contest: February Trading Contest Final Portfolio Value: $135,104.98 (+35.1%) Trading Strategy For This Contest I made 4 trades at the start of the month all based on gold being undervalued. I suspected a medium term rally and I therefor bought leveraged gold stocks/etf. The only reason I made 4 trades was because I was forced Read More...

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Housemanager’s February Contest Strategy https://www.howthemarketworks.com/housemanagers-february-contest-strategy/ Wed, 09 Mar 2016 20:29:50 +0000 https://www.howthemarketworks.com/?p=11076 Contest: February Trading Contest Final Portfolio Value: $143,899.64 (+43.9%) Trading Strategy For This Contest Study sectors precious metals and energy- they have greatest potential for change because of most “auction” mentality” in stock and options activity. Research understanding small cap stocks. Read up on them and knowledge of these individuals is key. Final Open Positions Read More...

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Finding Stocks In Specific Sectors https://www.howthemarketworks.com/finding-stocks-in-specific-sectors/ https://www.howthemarketworks.com/finding-stocks-in-specific-sectors/#comments Tue, 22 Dec 2015 19:53:17 +0000 https://www.howthemarketworks.com/?p=10308 If you’ve started buying a few stocks, you will probably be interested in diversifying your portfolio between more than one sector. This sounds easy, but it can be very challenging finding stocks from a wide range of sources that fit what you’re looking for. Thankfully, our Quotes Tool has all the information you need to Read More...

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sgsadamc’s November Investing Strategy https://www.howthemarketworks.com/sgsadamcs-november-investing-strategy/ Mon, 30 Nov 2015 16:51:46 +0000 https://www.howthemarketworks.com/?p=10226 Contest: Second November Investing Contest Final Rank: 2 Final Portfolio Value: $113,134.06 (+13.13%) Trading Strategy For This Contest I usually found stocks that had high volume and good community sentiment. As well as good stock short term news. I then bought into those stocks, and when they went up. I shorted them. MACD and Bolinger Read More...

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NickStalksStocks’s Investing Contest Strategy https://www.howthemarketworks.com/nickstalksstockss-investing-contest-strategy/ Mon, 30 Nov 2015 15:30:44 +0000 https://www.howthemarketworks.com/?p=10211 Contest: Second November Investing Contest Final Rank: 3 Final Portfolio Value: $112,739.67 (+12.73%) Trading Strategy For This Contest First off, thanks for the great game everyone! Well played. This being my first HTMW monetized contest, I feel very humbled and excited to win. During last week, I played the VIX and biotech stocks. TVIX and Read More...

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AWESOM-0’s Third October Daily Contest Trading Strategy https://www.howthemarketworks.com/awesom-0s-third-october-daily-contest-trading-strategy-2/ Mon, 09 Nov 2015 13:20:00 +0000 https://www.howthemarketworks.com/?p=10046 Contest: October Third Daily Challenge Final Rank: 7 Final Portfolio Value: $101,621.37 (+1.62%) Trading Strategy For This Contest For the October 3rd Daily Contest I picked a mix between triple-leveraged ETFs and a few companies that I felt were undervalued. The triple-leveraged ETFs are great for a daily competition because the profits are huge if Read More...

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RUINTHERE’s Third October Daily Contest Trading Strategy https://www.howthemarketworks.com/ruintheres-third-october-daily-contest-trading-strategy/ Mon, 09 Nov 2015 13:14:11 +0000 https://www.howthemarketworks.com/?p=10044 Contest: October Third Daily Challenge Final Rank: 1 Final Portfolio Value: $108,724.97 (+8.72%) Trading Strategy For This Contest The strategy I prefer to use is to look for stocks that have been unfairly beaten down. Many stocks are down at any given time and most justifiably so. However, there are those that have become oversold. Read More...

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AngelRivera’s September Trading Strategy https://www.howthemarketworks.com/angelriveras-september-trading-strategy/ Mon, 09 Nov 2015 13:01:18 +0000 https://www.howthemarketworks.com/?p=10034 Contest: September Monthly Million Contest Final Rank: 1 Final Portfolio Value: $1,308,146.64 (+30.8%) Trading Strategy For This Contest My strategy is finding pharmaceutical/biotech companies. I find corporations that are testing products. I look for ones who have an upcoming announcement on phase 3 testing or FDA approvals. I keep those stocks on my watchlist. Once Read More...

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RiskOn’s October Day Trading Strategy https://www.howthemarketworks.com/riskons-october-day-trading-strategy/ Thu, 15 Oct 2015 23:44:30 +0000 https://www.howthemarketworks.com/?p=9948 Contest: October First Daily Challenge Final Rank: 1 Final Portfolio Value: $104,671.33 (+4.67%) Day Trading Strategy For This Contest For this daily contest, I purchased 4 ETF stocks, then sold 2 of them once I had a good lead, not wanting to give up all of my gains. My strategy is to purchase the riskiest Read More...

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smithjjj5’s September Trading Strategy https://www.howthemarketworks.com/smithjjj5s-september-trading-strategy/ Wed, 14 Oct 2015 15:45:32 +0000 https://www.howthemarketworks.com/?p=9896 Contest: Official September Contest Final Rank: 5 Final Portfolio Value: $1,119,202.95 (+11.19%) Trading Strategy For This Contest My strategy is to look for stocks to short that are moving up (30% +)on news with greater than average volume. So much of the time people get overly excited about the news and drive the price higher Read More...

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wkaraman14’s September Trading Strategy https://www.howthemarketworks.com/wkaraman14s-september-trading-strategy/ Wed, 14 Oct 2015 15:26:30 +0000 https://www.howthemarketworks.com/?p=9893 Final Rank: 3 Final Portfolio Value: $1,181,543.46 (+18.15%) Trading Strategy For This Contest I used was mainly “gap plays”; I analyze gaps in the premarket everyday, once I determine if the gap will be filled for short term investing, I will place my trade and swing looking for a 10%-20% profit. 90% of all gaps Read More...

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Risk Level https://www.howthemarketworks.com/risk-level/ Fri, 21 Aug 2015 13:45:43 +0000 https://www.howthemarketworks.com/?p=8919 Definition Your “Risk Level” is how much risk you are willing to accept to get a certain level of reward; riskier stocks are both the ones that can lose the most or gain the most over time. Risk Understanding the level of risk you need and want is a very important part of selecting a Read More...

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Gallup Poll is Best Historical Market Indicator https://www.howthemarketworks.com/gallup-poll-is-best-historical-market-indicator/ Mon, 18 Nov 2013 16:03:16 +0000 https://www.howthemarketworks.com/?p=6608 HTMW Quote
Actually, one of the better indicators historically of how well the stock market will do is just a Gallup poll, when you ask Americans if you think it's a good
. . . Nate Silver

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How to Evaluate a Portfolio Manager https://www.howthemarketworks.com/how-to-evaluate-a-portfolio-manager/ Mon, 13 May 2013 12:12:55 +0000 https://www.howthemarketworks.com/?p=6027 A good way to evaluate a manager is to ask many relevant questions pertaining to your own personal financial situation and your financial goals. Examples of questions to ask are:

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Small Cap Stock Investing https://www.howthemarketworks.com/small-cap-stock-investing/ Wed, 27 Mar 2013 20:41:36 +0000 https://www.howthemarketworks.com/?p=5530 Small cap stock investing is volatile. That is one of first things you should know and understand. So, why risk your money by investing in what is typically considered risky business?

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The Art of Market Timing https://www.howthemarketworks.com/the-art-of-market-timing/ Sat, 23 Mar 2013 20:12:06 +0000 https://www.howthemarketworks.com/?p=5505 Learn the classic market cycles of accumulation, mark up, distribution and mark down so that you can time the market -consistently - and make steady profits any time.

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Technical Analysis vs. Fundamental Analysis – Which is better https://www.howthemarketworks.com/technical-analysis-vs-fundamental-analysis-which-is-better/ Tue, 12 Feb 2013 09:12:54 +0000 https://www.howthemarketworks.com/?p=4955 In the world of stock analysis, fundamental and technical analysis are on completely opposite sides of the spectrum. Earnings, expenses, assets and liabilities are all important characteristics to fundamental analysts, whereas technical analysts could not care less about these numbers and only focus on price and volume.

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How do candlesticks imply volume? Why is that critically important? https://www.howthemarketworks.com/how-do-candlesticks-imply-volume-why-is-that-critically-important/ Mon, 14 Jan 2013 09:13:43 +0000 https://www.howthemarketworks.com/?p=4245 You do not need anything else on a stock chart but the candles themselves to be a successful swing trader! And, there is nothing that can improve your trading more than learning the art of reading candlestick charts

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Hedging with ETFs https://www.howthemarketworks.com/hedging-with-etfs/ Wed, 17 Oct 2012 14:41:29 +0000 http://virtual-stock-exchange.net/?p=2344 With ETFs, you can scaled down the size of the transaction for small investors.

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Trailing Stop Loss Tips https://www.howthemarketworks.com/trailing-stop-loss-tips/ Mon, 15 Oct 2012 19:10:55 +0000 http://virtual-stock-exchange.net/?p=2246 A trailing stop loss is calculated in a manner like the way we calculated our initial stop loss. The only difference being that while we calculated our stop loss from the entry price, we're calculating our trailing stop loss from the highest price since entry.

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Factors that Impact Stock Prices https://www.howthemarketworks.com/factors-that-impact-stock-prices/ Sun, 14 Oct 2012 16:13:31 +0000 http://virtual-stock-exchange.net/?p=2153 Stock market prices are affected by business fundamentals, company and world events, human psychology, and much more

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Fundamental Analysis https://www.howthemarketworks.com/fundamental-analysis/ Wed, 03 Oct 2012 21:21:54 +0000 http://virtual-stock-exchange.net/?p=1541 Fundamental analysis is the process of looking at the basic or fundamental financial level of a business, especially sales, earnings, growth potential, assets, debt, management, products, and competition.

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Sharpe Ratio (Advanced) https://www.howthemarketworks.com/sharpe-ratio/ Fri, 28 Sep 2012 15:29:07 +0000 http://virtual-stock-exchange.net/?p=1217 A Sharpe Ratio calculates the extra return you make compared to the extra risk you take on.

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