RSI is a technical indicator that can be used to help you decide if an investment is a good idea. When it hits a certain level, it signals a buy or sell signal. However, you should be cautious about entering trades too early. A good rule of thumb is to wait until the price breaks the previous day’s high before entering.
RSI is most helpful in non-trending markets, when a stock is oscillating between two prices. A non-trending market occurs when the broad market index does not reach new highs or lows over a long period of time.
Pump & Dump
The Pump and Dump trading strategy is very popular amongst day traders. It involves buying and selling at high price levels. Once you buy at a high price, you are supposed to wait for a pump or dump to take place, then sell it at a low price. Pump and dump trading tips may be tempting to some, but for people who are more conservative, they may want to avoid them.
Pump & Dump scams have grown in popularity recently. They work by organizing a community, in which people interested in the strategy join. The organizers of the pump and dump are generally good at concealing the coin they want to pump. Usually, small coins or tokens are chosen for this type of scam. It is important to note that most large exchange platforms do not participate in pump and dump activities, and they prohibit similar strategies. The exceptions are Yobit and Bittrex.
Trend following is a strategy that focuses on price. You may use other indicators, but they are largely irrelevant. Instead, you should focus on the current price, which tells you what the market is doing. Another crucial element in trend following is money management.
Trend following is a powerful trading technique that allows you to achieve higher profits. It allows you to stay in winning positions for as long as possible. And unlike other strategies that require you to open dozens of positions, trend following is also a more cost-efficient way to trade. This is because you don’t need to pay for spreads and commissions, which will lower your transaction costs.
There are some things you need to understand before you start trading. Setting a stop loss is one of those tips. This simple strategy will help you protect your capital from losing too much in one trade. Firstly, you need to decide what type of risk you are willing to take on any given trade. You should consider how volatile the market is and whether you have enough money to lose.
Once you’ve decided on a risk-per-trade limit, you need to determine where you’re comfortable placing your stop. The most common stop-loss level is 2% of your account. More aggressive traders might choose to place their stop levels as high as 10%. Traders who are risk averse may opt for a smaller number, such as 1%.