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Saturday, 20 February 2016

Gap Strategy

Gap strategy:

Near GAP it concerns a course jump which arises from the closing price from Friday evening and the opening rate from Monday morning. The reasons lie in one reacting of the banks on news and important data about the week-end. GAP strategy is based on the acceptance that GAP originates on the basis of speculations and an excessive Volatilität. One assumes from the fact that the course develops during the next hours and days again in the other direction to GAP.

Advantages of the strategy:

  • Strategy can be used in regular trade
  • clearly defined rules
  • at a normal market very good profit possibilities

Disadvantages of the strategy:

  • Positions must be opened at the weekly beginning and be closed again to the week-end

Use GAP strategy

  1. For this strategy currency pairs with a high Volatilität as for example GBP/JPY are recommended. In addition are also suited all the other currency pairs basing on JPY. In addition this strategy can be applied to all main currency pairs at the same time.
  2. Hold for the weekly start look out to Gap which amount to the at least 5-fold of the Spread calculated for the currency pair. Only so GAP can be also interpreted as a real signal.
  3. If GAP lies on Monday under the closing price of Friday traders speak of negative GAP. In this case Long Position should be opened.
  4. Vice versa one speaks of positive GAP if the opening rate lies under the closing price. Near positive GAP a Short position is advised.
  5. With this strategy orders are put neither Stop-Loss nor take profit.
  6. At the end of the commercial week about 5 minutes before commercial end the position is closed.

Choice of the value writings for a successful strategy


The right process of the choice of the value writings for a successful strategy for active port folio management

In the modern economy different strategies exist for active port folio management. Besides, with a choice of the value writings the right process plays for a successful strategy an important role. Within the port folio theory acceptances about the behaviour are met by investors: Statements about the investment behaviour can be thereby met. High investment success can be achieved exceptionally by active port folio management. Besides, within an investment segment a higher performance should originate from it. If a high short growth is forecast for a market segment, it is invested in this area.

The right process of the choice of the value writings

Securities, called also value writings, are an important component of the economic business, as for example within a security pension business. Interest papers are distinguished in the kind of the interest, after firm, variable or economic interest. Value writings are distinguished according to the following criteria:
  • after the yield
  • after the economic function
  • after the juridical transference
Within the active port folio management port folios are constructed. Single securities are bundled up, for example, and receive a certain weighting. Besides, the following securities are weighted in a certain manner:
  • Shares
  • securities fixed-interest
  • Money market papers
  • Raw materials
  • Precious metals
  • Real estate and more.
With the investment strategies it is distinguished between active and passive port folio management. With the active port folio management a port folio manager invests invested in certain securities, she shops for a low price and sells them for higher price. A Überrendite should arise from it compared with the market. The selection of securities and the steady forecast of future security courses are of essential importance with this process. Moreover, an identification of undervalued titles must occur. This process plays with the passive port folio management only one minor part, future forecasts and the selection of the securities are not here from primary meaning. The passive port folio management serves with priority the simulation of capital market clue, the representation of the port folio and the Index-Tracking. The choice and the weighting of the securities orientate themselves by the construction of the underlying index. The advantage of both strategies, the active one and the passive port folio management lies in the cost comparison and in the scientific knowledge from the theory of efficient markets. Besides, the port folio diversification reduces the risk.

Unit trust with wide dispersion

According to the so-called "Markowitz diversification" it is distinguished between systematic and unsystematic risk from arrangements. Unsystematic risk referring on single security, is diversifiable. Systematic risk is not diversifiable by contrast and concerns the whole arrangement. As a consequence it is renounced, for example, floor Picking. Therefore, investment in unit trust with wide dispersion about branches, countries and different investment classes are very recommendable. The port folio diversification by arrangements with counter-rotating yield development pays the port folio diversification in a high degree to itself, because by a counter-rotating yield development losses and profits can compensate themselves, for example, precious metals and real estate concerning. Often an uncoupling of shares and loan markets takes place. The risk of a loss is reduced by a wide-scattered arrangement in different investment categories. Besides, the investment categories should not be tied together too firmly with each other.
Besides, the globalisation process on the financial markets progresses on and on. The coenterprises, the enterprise structure, the finance management and, for example, branch standards which can promote positive criteria of an enterprise are for trade, besides, from bigger and bigger meaning. Just nowadays the market participants within the financial market must take over more and more responsibility. Within the port folio management responsibility for the decisions and the right process of the choice of the value writings must be taken over steadily. Moreover, the reading of articles and scientific, analytic books which form as a basis for the right process for a successful, active port folio management belongs to strategy processes. Besides, the progressing globalisation opens numerous, new investment possibilities, offers a broader dispersion of the finance arrangements and contributes to the lowering of the investment risk. Besides, it is important that the market participants co-operate with each other and profit of each other, not only financially, but also economic knowledge concerning. The globalisation on financial markets has led, as everybody knows, to a narrower connection of the development of capital markets in industrial states and thereby to a stronger synchronisation of yield developments. The advantages of the port folio diversification are lower. Difficulties exist concerning the increasing transmission of crises as a result of the globalisation process:
  • stronger transference of financial crises up to now not unambiguously confirms
  • Stability of the financial system
  • Hedge fund debate
  • Real estate crisis with central bank intervention
Moreover, has turned out that crises have numerous effects on the capital markets in developed states in developing countries. Moreover, in addition effects come like environmental editions or tax duties. Numerous economic researchers and professional port folio managers try to master these worldwide difficulties and by an active investment strategy in the market to exist more and more co-operating than competing. A passive beginning means the replication of an index of which wide-scattered port folio forms the basis. If one compares active to a passive investment strategy, explanations above the costs arise first.
With the active investment strategy the issue impacts which amount up to 3% of the investment are raised by the purchase by unit trust. A passive port folio management has less costs than an active port folio management. Nevertheless, therefore, an active investment strategy delivers no higher yield than the market and the cost disadvantage is not overcompensated. Capital markets are already efficient markets and systematically accurate course forecasts, therefore, are not possible basically. The topical course delivers at the market daily all relevant and available information. With systematically accurate forecasts about future course of securities the success of active investment strategies stands and falls.

Successful port folio management

The port folio manager of an enterprise provides and administers a port folio within an active port folio management. The conditions of this bundle in investments are agreed with the investor by contract, with regard to the investment criteria. Besides, special attention to purchases and sales is laid concerning the expected market developments. Within the theory of the top Down beginningthe aims in which the strategy is derived then are looked. At every time the strategy arises from the analysis and the decision. As soon as a Taktig has arisen or has developed, this is checked by the performance analysis. Another procedure is known than Bottom Up beginning. This port folio management process contains the port folio planning, port folio realisation and the port folio control. Within the port folio management process investor's analyses, finance analyses, checks, the so-called monitoring and many other factors are included like the performance measurement in the education of an optimum strategy. Also within the active port folio management it is difficult to weigh the future yield and the risks: This presents itself over and over again as a problem. Investors are interested as a rule in the investment medium, the investment politics, the risk classes and the dispersion. The port folio structure and the port folio style are fixed by thestrategical port folio management. With an active yield divergence a divergence of the yield of the comparative index takes place. Moreover, this divergence can occur through instruments beyond the comparative index. Also the passive investment style plays an important role for the choice of the value writings: For example, yield divergences compared with the index can be held by special technologies like the picture of the index value writings low. The active one and the passive port folio management can be connected directly with each other. With the so-called "semi passive" port folio management becomes, for example, a Tracking Error of 2%, besides, serves as the greatest possible percentage and unit for a semi passive investment style. The basis for every tactics and strategy forms the analysis which serves to make decisions which were weighed out before thoroughly. The analysis of the value writings forms the basis for the port folio management. Basic analyses enable to find out an adequate price of securities, and are based on economic data and the so-called basic data. Also methods of the balance analysis are applied, for example and the relation of course and profit are analysed. Thereby one receives, for example, as a result a course aim. This aim delivers tips to undervalued and overrated shares or enterprises. Then the knowledge which is won from the analysis of the tip can promote a certain action strategy in the stock market which is called "Value Investing". Moreover, short-term and medium-term to long-term aims are distinguished: The differentiation of the criteria "short" and "long" plays a very important role with regard to the floor Pickings. Besides, it is possible to the investor to determine certain rules for the tactics, the possible risks should prevent. Therefore, in the area of the short-term aims, in the short area, the port folio management often occurs with technical support through computer programs. Besides, the costs can be thereby reduced.
With the help of the performance analysis the success of a port folio is examined. With this kind of analysis the yield and the risk are balanced with each other and the result is split in different components. By the right port folio management can be found out which securities and which number of these securities can be taken up in an optimum port folio. The futures contract allows the observance of the Tracking Errors with Benchmarks and is an important instrument in the port folio management because he steers bonds-port folios. Investments can be thereby administered optimally. Moreover, it is thereby possible to anticipate future market developments. Then according to the analysis of a port folio and the decisions the market strategy which must adapt itself to the steadily changing market arises. Accordingly of the port folio aims is fixed which value writings are kept in the port folio. This can be, for example, shares, pensions or derivatives. Here a coarse subdivision of the structural components, for example , 60% of shares and 40% of pensions occurs. The dispersion qualitatively occurs (perhaps, also quantitatively) after regions, branches and between standard and Nebenwerten.

The performance analysis serves the inquiry of the success of a port folio and can be explained in different way:

By the comparison with a Benchmark, the comparison of yield and risk, for example, by the Sharpe-Ratio or the Attributionsanalyse. Within the Attributionsanalyse the result is disassembled in different components. Besides, market-conditioned, tactically or structurally can influence conditioned components the results. There are numerous analysis methods of the port folio analysis to put together the security bundles and to reach an optimum payment of interest of the invested capital. With the help of the port folio analysis the different market segments are looked in isolation. Besides, the port folio analysis allows a graphic representation of the commercial processes of an enterprise. By this analysis it is put outside whether the shops of an enterprise behave consistently. The port folio manager of an enterprise puts investment possibilities and bundles up with it other possible financial transactions to lower risks by a dispersion. Within the modern port folio theories it is distinguished between active and passive investment strategies. For example, the interest structures are analysed by active strategies to improve the business systematically. Passive strategies serve to make certain yields of interest variations independent. Verzinsliche securities serve the long-term investment.
A pension business is a short-term loan which is with a security besichert and was granted to the pension giver by the pension taker. Within a real security pension business the pension taker is obliged to sell the securities once more. Besides, the pension giver has a repurchase obligation. In a pension system after the capital cover procedure the pension contributions with interest and compound interest are accumulated. Then at the age the pension is tipped out. Asset managers look, for example, worldwide for the best investment possibilities to offer individual investment solutions and to guarantee investment possibilities. In any case, the competent behaviour within the economic forecasts decisively determines the decision with a choice of the value writings. In the investment process the important decisions which rescue different advantages and risks, profits and losses are made within the port folio management. Therefore, must be also respected by a decision for an active port folio management furthermore to the steadily developing economic processes and with a choice of the value writings must become perfectly gone forward. Also the advantages and disadvantages of the active and passive port folio management must be compared steadily with each other. Every decision must follow a thorough analysis, because exclusively in this manner new chances can develop and risks more often be avoided. Besides, in the areas of the port folio management the cooperation is a more and more important subject, so that active and passive port folio management strategies can be connected with each other and be realised better: And this best of all in a lasting way for all involved market participants. If the right choice is made at the right time the effected investments can be increased with the help of the active port folio management by leaps and bounds upward. Therefore, the strategies of the active port folio management must provide dependable future expectations.
Because the financial markets are unpredictable on the one hand though solidly, on the other hand, nevertheless, management strategies serve, in any case, rather the short-term planning. If, nevertheless, all risks were included, there are, in any case, the opportunities of evasion on which the port folio management can fall back then strategically and systematically. The right investments can be sense-donating: Therefore, reliable forecasts form the basis for the choice of the value writings. The investments should pay off in the long term on the financial market and can be used differently. Basically, for example, the trend goes with the investments in the direction of education and health service. In addition, the ethical added value also receives at many enterprises more and more in meaning. The profits which result from the investments can be used in many different kinds: Future thinking is asked for a successful active port folio management – the analysis, the decision: Then the strategy can occur. Moreover, by decisions the respective law situation must be considered. Also laws and other existing regulations determine the trend of a port folio strategy.

Which strategy for small investors?

To buy shares and resell is an awkward matter. Basically it must be considered a lot to be able to take the fear of the action above all from small investors. It should be concentrated to use a special strategy to be able to make sure that no money gets lost with the action with shares and is risked, moreover, not too much. Small investors should never act with money which they need. This could entail because that they misjudge and invest money which yields no profit with itself. Putting on of money should be considered thoroughly and, in addition, a Kleinangeleger strategy is important to be able to use more security with the action.

Experiences collect and slowly start

First it is important that a property construction with richly consideration is begun. To begin an investment, among the rest, the advice of an expert is important. It can be tested with pleasure in the closer sphere whether already experience with shares were gained and whether richly sensible tips can be used. Basically there are with shares different possibilities to put on money without having to take a risk. The long-term property construction is very important and should be kept an eye permanently. The demands for shares must be held up accordingly, so that no shares are bought which promise only short-term results. That's why small investors should always pay attention to the fact that the following points are followed, before is begun with the purchase of a share:
  • Strategies consider and fix
  • To specialist books help in the entrance in the share world
  • Long-term arrangements need basic sign
  • Course variations can be avoided with blue chips partially
  • Share depots should be controlled only in long-term distances

Strategy do not change

To protect an investment strategy and to use this for himself, is to be paid attention to the fact that short-term and medium-term course variations should bring no strategy change with themselves. The investor who has bought a share or would still like to shop should pursue a clear strategy and can be dissuaded by this by no means. The uncertainty with the action is the biggest enemy and could lead without further ado to the bankruptcy. That's why it is recommendable to find the first strategies help of specialist books. With pleasure a long-term investment possibility which can be used absolutely sensibly can be found on this way. If own share depot is tested in short distances and is controlled, can lead absolutely to the fact that a big insecurity will receive. It is best if with the distance of several months own depot is looked to make no premature decisions.

The best investment security create

Small investors are equipped best of all with strategies which are based on blue chips. On this occasion, it concerns the shares which can be received with the biggest turnover. These come from listed companies who can shake off a sure profit. The small investor receives through this a high commercial volume and at the same time a higher engagement of enterprise investors exists. The shares which come from large-scale enterprise and which have already put down a good course are suited best of all for the purchase. Enterprises with a stable sales situation are to be selected here. Though Nebenwerte and shares which come from threshold countries are also attractive, however, these are connected with higher risks what is to be avoided best of all. Therefore it must be paid attention to the fact that shares with low course variations are used. These can offer the best possibilities for small investors.

The trend is your friend

Over and over again can read the small investors who explore themselves on the Internet or also in the professional reading about the successful commercial strategies that the trend should be obeyed. Over and over again it is pointed out to the fact that the trend is the friend and therefore the trend should be considered and is obeyed. Indeed, the idea is also to be handled behind the wisdom „falling knives“, the same idea. It is important that the past are followed by shares. The users can analyse therefore as the shares have behaved in the past. The trend will recur because with the highest likelyhood. With the Momentum strategy small investors have good chances, because here a relatively good yield is to be received. With the strategy is to be paid attention to the fact that the suitable moment is got. Indeed, new strategies and points of departure must be created moreover over and over again to analyse the market. It is tried to use an impetus to be able to make sure that a market change develops to own advantage. By a suitable beginning can be reached that the Momentum strategy absolutely yields an actual profit. Results could be already published which have brought up to 15 percent of yields with themselves, after this kind of the strategy was used. Particularly if low interest is received, there are 15 percent of yield a very good value. Also in Germany researchers could prove this success. Nevertheless, the height of the yield has differed concerning the period and the stock market a little. Of course the loss phases must be included in the plan also which is normal in addition fnühren, that even a deficit from up to 30 percent in the month. Small investors must pay attention very much, so that they are not drawn in a wave of the loss. On account of the commercial costs the yield is often reduced, so that must be weighed out whether an investment is worthwhile in a certain share generally really.

Long-term profit is decisive

Course variations are the best clue for the fact that shares should be bought. A mistake which many investors make at the beginning is the not sufficient caretakers of share increases. The profits do not let go them because enough and with losses they wait too long. Therefore is valid:

If the share price rises, should not be sold too early – Sinking the course, shares must be sold early

Of course a high and a low-pressure area cannot be analysed with shares by beginners early enough, because it is difficult for small investors to pursue a trend and too discover. That's why it is important that only enterprises should be searched which understand her commercial model and which offer a regular course course. Moreover, the following questions should be put themselves, before in the share purchase becomes got:
  • Does the enterprise make profit?
  • How does the enterprise lie in comparison to other companies?
  • How good are the views for the branch?
  • How was the course of the shares in the last time of the company?
It will get to the fact that only money should be put on that at least five years can be done without. Course variations should be absolutely accepted to be able to make sure that no loss leads to a long-term plight. This is valid of course for small investor just as for great investors. The problems in a share analysis are always that cannot be also protected by an extensive analysis that a course is interpreted really in the right direction. Finally, shares can suddenly break out or break (stop / Loss place!), so that also extensive analyses cannot lead to a clear statement.

Time horizon, course aim or stop

Would like to be invested with pleasure for a long-term time, should be always considered that with the time-horizontal strategy at least one investment time of from three to five years is valid. On this occasion, it concerns rather conservative and medium-term investment optics. A stable yield of 7 to 8 percent is mostly achieved. This yield can be maintained by the application of different investment securities with certainty. The market insecurity can be lost basically by a sure share. Still should be never invested in one single share, because it can be, otherwise, the case that by a case the complete depot goes to ruin. The time-horizontal arrangement brings the advantage with itself that diminished variations are received, an active supervision is allowed and at the same time optimised yields can be used.

Course aim maintain

An old stock market wisdom says that profits run leave and losses must be limited. On this occasion, it concerns a basis regulation which is important for the 3:1 rule. Investors must keep an eye above all on the long-term profit payment and protect therefore that the first step is taken in the right direction. The smooth places of own position with the course aim rule are important. It is to be noted that losses are hard to be accepted. Nevertheless, that's why it is important to consider the stop Loss courses and to work on this. Best of all the trader delivers an order and the share is for sale automatically if this has reached the pain border which was put. Therefore the loss can be limited to the minimum border. By no means an other stop Loss function should be adapted after next below. If the course aim is achieved, should be sold best of all directly to be able to use the profits. Or it could make sense at the same time if the goal is set further upwards to win afterwards the course increase for itself. The prospects of success with the course aim strategy are to be valued as a rule positively and introduce good yield chances.

Investment strategies with share trade: Which strategy for small investors?

Profits receive and, finally, walk unconcernedly by the life. For most people in Germany it would be very nice if one could come with an easy method certainly and easily to more money. Indeed, not only a risk exists with every possibility for the moneymaking, but a lot of work must be also invested. At least, there do not fall the bank notes from the sky. Nevertheless, hard work can be also a little light if you have found the right method to approach money. Trade with shares is very interesting and can provide for very good yields. On the other side you must note with trade that you have to include in the plan, nevertheless, also a risk to make possibly deductions concerning the capital.
Now the beginners who exactly do not know, how should be traded actually and with which strategy for small investors success is to be protected should particularly pay attention. I would like to offer to you to earn a possibility with the right strategy for small investor Geld which, otherwise, you would not receive. Unfortunately, on account of the jungle of the investment strategies it is not particularly easy to clear which strategy  is suited concerning share trade mostly. Finally, the numerous strategies which are suited supposedly for trade with shares are introduced above all in the technical literature and also on the Internet.

Small investors react emotionally

Small investors are different than investor who can act already very long and show a lot of experience. If you also belong to the small investors, I would like to attack you by no means. However, is known that small investors are more emotional than experienced stockholders. These have themselves because more under control and preserve a chill head. This entails that one can control himself on the whole line emotionally and can make, in addition, good decisions. Accordingly on this basis the strategy is based for small investors. A good strategy and the sure yield following from it would like to be celebrated, finally, after the sales of a share by you as a success. First you should work on yourselves and make sure that you begin share trade properly. It is to be cleared whether you know the basic terms on trade and whether you know at the same time which risk comes up to you. The people who have enough money on the high edge and do not depend on the capital which they invest in share trade can act with a chiller head.
That's why they should deal with the different commercial-psychological facts to clear, to what extent you fall under influence under trade. The commercial kind and also the sudden purchase and sales decisions are based as a rule on emotions what is to be recognised with small investors very often. The way out for this problem would be the production of a commercial plan. The plan should indicate which aims you have and when you consider a purchase or sales of a share. You should perform certain rules to keep to the plan and to make no decisions which are based on emotions. Now therefore you have found out that you can receive no good results with a strategy for small investors if you fall under influence under other factors. The control of the emotions is the most important criterion about which it is with the action.

The strategies for small investors


At this point it is a time to talk about the strategy for small investors. The fact is to be assumed of course that you should keep always only to a trend. "The Trend Is Your Friend" is called it in an old saying which not only is valid on the stock exchange, but also is important with außerbörslichen trade. To reach in the falling knife you should completely avoid to make no losses which are unforeseen. The development of the shares is to be carried out with the help of the basic analysis. They should study the history of the well-chosen shares and learn how the analyses lead to success best of all. They can protect because with the best strategy for small investors no success if you do not help yourselves of the analysis methods and examine the shares before the investment., Among the rest, the following approaches belong to the known strategies for small investors:
  • Momentum strategy
  • Empty sales
  • Blue chips
But also with these strategies there are the different opinions which not always assure of high-quality security. This means that on the one hand the strategies can promise a success, still a risk exists which precipitates above all with the Momentum strategy not quite unsubstantial. With the strategy it is tried to use the swing of the moment to receive for a short time a good entrance for the other share value increase. They can use of course here different strategies, so that you make sure that the shares with her courses were analysed to deliver clear results. The Momentum strategy is connected by many experts for beginners with a special risk. At least, it can absolutely happen that Bi is no rarity to 30 percent of loss in the month. Though the strategy is interesting for small investor, could lead on the other side, nevertheless, to possible losses with beginners. A good yield is possible with the expected success with the Momentum strategy.

By empty sales it is important to divide the shares into good and bad shares. You buy the good shares accordingly and ignore the bad shares. With these shares you would become on falling rates bets. The profits are achievable with empty sales what means that you lend the shares and sell afterwards. Hope to sell the shares later for a higher price is hope of the traders. Professional traders state that the empty runs are not possible as a rule in Germany for small investors. Scientific studies prove that the commercial costs have not been considered and, unfortunately, by a possible profit not more a lot for the traders is left.

The blue chips show an other strategy for small investors. Most investors turn to this strategy, because here the most top-selling shares are considered by important enterprises. The signs, a high commercial volume are given to have, protects the success with trade. Shares of large-scale enterprise are often connected with a very low risk and bring many advantages for you. Nevertheless, as a condition is valid that you have selected to yourselves enterprise which show a stable turnover and perform an also sure profit situation. They should avoid shares from threshold countries and Nebenwerte and not follow if you liked to use a low risk for yourselves.

Never without analysis and basic figures

Very importantly it is natural that you never get without analysis into share trade. To be able to value shares and the matching courses, you must turn to the identification numbers which analyse enterprise and explain clear. The course-profit relation as well as the course-book value relation are only two factors to be followed. Also the Kurs-Cash-Flow-Verhältnis which is known under KCV shows an interesting characteristic. The better the identification numbers are in her dimensions and assessments, the more favourably the share is valued as a rule. The identification numbers are often different according to enterprise branch and show no uniform rules. An overestimation of shares is to be followed also, as well as an underestimation which could pose problems to you in an analysis. The analyses with the identification numbers as well as the foundation analysis it does not seem to be quite easy for beginners. At least, numerous bases must be examined and be given, in addition, the basis information, so that you can begin an analysis.

Other tips

An extensive base which can assure of success you for trade with shares is very important. If you liked to deal in the future with share trade and use a strategy for small investors, you should follow the additional following tips. These help you to create a suitable security and to protect at the same time that you fade out special risks which lead to losses:
  • Commercial costs: One knows that commercial costs can reduce the yields of the traders. The small investors who often do not act must search for themselves an on-line broker who shows low commercial costs and prescribes accordingly clear fees. Only on this way a good profit is possible.
  • Course variations: A strategy for small investors is successful only if they let go profits long enough and brake losses rather. This means that if the share price rises, you should not sell too fast her shares. If the share value sinks, you may not leave the shares too long in the depots. On this way higher yields are sure.
  • Money puts in: They should put on only money which you do not need. To depend on the money and to have to sell the shares possibly at a later time because the money is needed, is senseless and careless. That's why share trade makes sense only with a capital which is not required during the coming five years.
  • Different shares: Trade different shares, you can make sure that you do not have too many losses if shares fall. To have from eight to ten different share types in the depot is more sensible, than to invest in only one or two shares.
  • In the long term act: They must act in the long term to achieve success which raises at last good yields. As an age security shares are very attractive and assure that you receive, among the rest, special advantages. Good profits gain is possible in the long term for you if you buy not only shares for a year.

Recognise trends return signals – on-line Trading


If a high-quality Chartanalyse liked to be carried out, different signals should be known to be able to carry out a suitable analysis. It is very important that above all the unskilled traders deal with suitable contents and make sure that they are on the right way. If shares or also binary options liked to be traded with Forex, different signals and trends are to be obeyed to be able to carry out a very high-quality analysis. The analysis should occur best of all securely when was decided itself on a commercial value. In the area binary options and Forex the aid offers as a rule for the technical analysis to be able to guarantee, to be able to value a topical course accordingly. At least, professional traders not instinctively act, but check a course extensively, before they invest her money in the topical course.
For the technical analysis it is very important that one deals with the special signals which determine a trend. If a trend was recognised in the past and was analysed on the whole base, one can deal best of all with the further details which allow to turn around a trend. The return signals should be confessed for traders also, like the indicators which determine a trend. At least, it could seem that different trends after a certain time are not other to an end and any more than commercial entrance are suitable. A trend return is not often quite easy for traders to determine. Nevertheless, with some signals is clear to analyse, when the return signals begin trends and when these are to be traded best of all.

What are return signals?

By the realisation and protection of different signals in an analysis is to be respected to the completeness of the signals. In the past professional traders could already admit that they have dealt with numerous different signals and can fix some trends on the basis of only small signals. Most young traders who have used the trend analysis or other analysis kinds only few weeks to recognise a trend had to admit that not enough reading about the return signals trends are known. Finally, most private traders trade a trend which is clearly to be recognised. Indicates to sit down against a trend not only stupidity, but also too much risk for the traders. Indeed, there are special signals which make clear, when a trend is to an end. In this case a trader would turn not against a trend, but he would recognise, when a very good entrance exists to trade the trend turn.

One understands a clear tip to the fact by the return signals that a trend leans towards to the end. Here of course not only the count must be looked with the broker, but it is to be seen, in addition, to the real time charts. The trader uses best of all different signals and tools to determine a course. Beside the Bollinger of tape and the gliding averages the known oscillators should be used, in addition. The traders can receive not only with the help of the known tools a return signal, but also already only by the candles which are to be recognised in the charts. These give because explanation about the opening rate and closing price. A sign would already put the formations as well as the sole appearance of a single candle, so that the trader knows, when he has to act. With a hammer or Hanging One a return signal which is to be traded could be put.

Which return signals of trend are there?

It is turned itself first to the known return signals, the different called signals should be examined in her detail. A return signal is already given if not only the candles of the charts are analysed closer, but if, in addition, the aid flows in in her meaning onto the analysis. It is occupied itself, for example, with the Bollinger of tape, many people act with the signs of the tapes. As long as a course stays in the middle of the tapes and sways only now and again a little, no commercial signal still exists. If a course moves in the direction of upper or lower line, it is waited so long, until the suitable line was reached. Afterwards some traders use the signal to act against the trend or to trade the return of a trend. It must be always looked as the course has behaved in the last time and whether there is a sign for how shortly a trend turn can run. If only the Bollinger of tape are used, the past course course can absolutely make clear whether with the touch of the upper or lower line a course return has taken place. The traders must mostly absolutely protect themselves with this commercial kind. At least, no unequivocal sign can be used with other missing signals for the commercial start what can absolutely be a risk. That's why other signals are to be used.
The return signals trends are to be received not only with Bollinger of tape, but also in combination with the gliding Durschnitten. These are to be put best of all when one has an Echtzeitchart before himself and liked to use not only the Bollinger of tape for an analysis. The gliding averages are shown directly after the setting in the lower area of the count who make clear themselves in the form of two lines. The lines present a return of a trend with a cut. This is above all the case when they cut themselves in the lowest or uppermost area. This signal can be used as a return of a trend. Nevertheless, of course the trader must also pay attention here to the fact that he puts the Chart in such a way that the commercial time is adapted according to long time trade. With the Skalping, so to brief trade of maximum five minutes is to be adapted of the Echtzeitchart also. Otherwise the traders would receive wrong signals and could guarantee no high-quality trade.

Formations and candles

Return signals trends are to be recognised, in addition, help of formations of the charts. Special formations are known which can show how a course behaves and influences to what extent this the topical commercial situation. It is to be mentioned that of course the formations must be confessed before the action to be able to recognise the special styles of the Candlesticks., Among the rest, thus the formations shoulder head shoulder offer or also the 3 jagged ground which can be lighter recognised with a line course. Switching the course lines can help in the direct analysis.
The candle kinds are more importantly beside the formations, with the Japanese Candlesticks can be received. The candles offer as a rule a very extensive commercial possibility, because they have a lot of explanatory power. Two known candles which are to be used as a very sensible sign is the hammer and the Hanging One. On this occasion, it concerns both most current candles generally which can be used as a return signal. The hammer is to be recognised as a rule by the lowest point of a course which was reached topical ones. The hammer shows a very short body and has for it a long shade. After this candle a climbing up candle shall be recognised as a rule, because the descending trend has come to an end. With the Hanging One it concerns almost the same candle kind. Nevertheless, the difference is that this candle is to be recognised at the end of a climbing up trend. The Hanging One has an as small body and can initiate a falling course. Belong to the other important candles which are able to make clear return signals to trend:
  • Umbrella Lines
  • Endulfing to Pattern
  • Tweezers
  • Dark Cloud cover
At this point still a lot of other return signals of the Candlesticks can be given. Indeed, this would sprinkle the frame. In addition, the eighth beginner with the action always only on both most important candles which they know how to value after a certain time. However, the hammer and Hanging One should never be used only. The return signals trends are to be combined with Bollinger of tape and also with trend lines. This combination assures that a demolition of the trend lines and the matching way there break to the return signals counts trends. Very importantly it is additional of course that the signals are not traded too late. Otherwise it would come because to the fact that a high loss and no very good commercial positions can be received for trade. Unfortunately, the too late action and the missed entrance would foil many traders. Above all with brief trade with low commercial time every time delay is a possible loss of the whole application what is to be avoided.