Momentum Trading is a trading strategy that is used to focus on stocks or other trading instruments that are showing a strong move in a particular direction - usually on high volume.

When momentum trading is executed properly with a tried and tested trading plan and proper risk control, it displays a trading method that is ofter referred to as High Probability Trading.

When analysing stocks for momentum trading, a trader measures the amount by which a security’s price has changed over a given time span.

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If you have a Forex Trading Plan in place then if is often often handy to set up a system to generate Automatic Forex Trading Signals.

Being able to receive these Automatic Forex Trading Signals enables you to be able to spot trading opportunities without employing your emotions too much.

It means you can get un-biased Forex Market information that is independant upon what you read in online forums, the newspaper or watch on the television news.

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If you trade futures or Emini Futures then you should have, or at least be thinking of creating, a Futures Trading System.

Why is it so important to have a Futures Trading System?

Probably the biggest reason is that if you are going to be speculating by trading financial instruments, then trading futures is probably carries the highest risk.

With the high amounts of leverage, lock limits and volatile markets, you need to do everything possible to arm yourself against huge losses that can occur when trading in the futures market if you don’t have a well laid out trading system.

If you don’t already have a Futures Trading System, there are several ways to get one.

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Are you interested in the work of Nicolas Darvas and his theory of Darvas Boxes? If you are keen to find out and have not read the book How I Made $2,000,000 in the Stock Market or Wall Street - The other Las Vagas, then you may want to check out the latest article called Darvas Boxes over at www.darvastrade.com.

The article has information on what Darvas Boxes are and what to look out for when it is possible that you could make some money from them. There is also a brief look at what goes on behind the scenes in a company that could make these Darvas Boxes appear on your stock charts.

Click here to read the article…

[tags]stocks, stock+trading, investing, nicolas+darvas, darvas+boxes[/tags]

It seems every day some new and up coming superstar day trader (ok wannabe superstar day trader) asks me the same questions. It always strikes me as funny that everybody always seems to have the same questions when to me the answers just seem so obvious.

I will admit I’ve been trading for a while now and I’ve seen and read all the doom and gloom numbers about how 90% of all day traders bust their accounts in the first year. Why? I mean seriously why does this keep happening over and over again? I think it boils down to a couple of really simple but important rules that too many new traders either don’t learn soon enough in order to save some of their trading capital. Or they don’t really understand the concepts. Let’s look at a couple of the major ones that you have to understand and have mastered before you can really hope to earn a living at this day trading game.

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By Van K. Tharp

How important is it for you to be right? Let’s say I could guarantee that you would make money by the end of the year—lots of money—but you would probably lose money on 90% of your trades.
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