Trading with Support and Resistance

Bulls and Bears
Bulls and Bears

Support and resistance trading is one of the basic building blocks of trading. Not only is it a basic building block of my personal trading, but also of most trading done by professional traders. So even if your trading system does not incorporate support and resistance it is still good to understand it and take notice of the most important price levels. Just because many traders are watching these levels, prices usually will react when it gets there. Support and resistance are all about “Bulls and Bears”, aka “Buyers and Sellers” and how price itself affects their behaviors/decisions. Continue reading “Trading with Support and Resistance”

How I trade: trading concepts to profit from the markets

A money making machine?
A money-making machine?

By asking what people want to learn from me, it became clear to me that I should continue the getting started trading series by showing how I trade myself and how I produced my trading results. I am talking about trading here, not investing.

Investing can take a completely different approach from trading, like buying stocks for their cash flow (from dividends and selling option premiums for example) or real estate for the cash flow (from rent) instead of (only) for the capital gain of the asset.

Trading is about buying low and selling high, but also about selling high and buying back lower. This is something I do actively. If you are more into investing, then stick around as well. Many of the trading principles that I will discuss also apply to investing. And nowadays to be a successful investor it helps to approach investing like a trader.

I believe buy and hold is a dead strategy. Trading the way I do is at the other end of the spectrum, but it will help you as an investor to shift your mind into this direction. And maybe you will discover that it is fun to take a trading approach in your investing or even start trading yourself. You can trade small next to your day job, other investments or enterprises.

Continue reading “How I trade: trading concepts to profit from the markets”