4 Answers
<p id="isPasted">Definitely, It is possible to trade while applying moving averages only. Moving Averages are lagging indicator and conveys the best sentiment of human behaviour.</p><p>Before applying the strategy make sure you have two more basic things ready at hand to apply along with the strategy i.e. Risk and money management. Trading is only about discipline.</p>
4 Views
<p id="isPasted">You use any indicator , it will not give more than 60–66% success rate. You need to learn proper risk management and positioning to make profit which is sustainable for living .</p><p>Moving average is not a bad indicator and most of the people use it as support and resistance line and cross over as indicate to buy or sell.</p>
3 Views
<p id="isPasted">Absolutely. Using SMA or EMA (Exponential Moving Average ) to invest/ Trade in a stock is a common practice . However, this is not suitable for short term trades.</p><p>Longer the time period, the smaller number of trades, more the Cash inflow. The Major Drawback is ‘Whipsaws’ that will direct you to initiate trades, which from long/Medium term perspective is not required. EMA | SMA has worked beautifully over medium / Long term, which helps eliminate small term Whipsaws if any.</p><p>Using this over a longer period time frame will reduce the number of trades (Entry/Exit) and increase the Profit. …</p>
2 Views
<p id="isPasted">Trading just depends upon supply and demand, but these supply and demand in the market varies on 2 things</p><p>i. Fundamentals of company</p><p>ii. Psychological feelings on the company. The people who trade on their feelings use especially technical tools like SMA, Bollinger bands, Support, and resistance and so on…. So, people use different of tools for different companies. Over a period of time what i experienced is before using certain tools, test those tools whether they are satisfying your companies or not and it is always safe 2 to 3 tools in combination.</p><p>Ex:- Instead of using …</p>
Please select pages to share
shared
