Don’t worry. We’re not just going to throw all this information at you and not teach you how to use it. Performing technical analysis at CAPEX is fairly intuitive and you’ll have plenty of tools and educational resources to help you along the way. Here are the 4 steps to get you started.
Choose a strategy
While you may want to trade a particular instrument or asset, you’ll need to identify whether it is worth trading in the first place. You can’t trade bitcoin or Apple stocks just because you like them – they need to be a viable option for making a profit. This means you’ll need to pick a trading strategy and stick with it. CAPEX offers plenty of tools to allow traders to complete any number of different trading strategies that suit their needs.
This doesn’t mean you have to simply choose a single candlestick pattern and look for it for 8 hours a day – learn about a few patterns that signal bullish reversals and look to trade assets that are moving up.
Pick a strategy that suits your needs. A day trader will probably prefer basic trendlines and indicators of volume, while position traders will most likely prefer more complex chart patterns and various indicators.
Identify an instrument
Employ your strategy on a few choice instruments. If you have chosen a short strategy – say, a 15 or 50-day moving average – you’ll be looking at highly liquid and volatile markets such as cryptocurrencies or certain stocks. Deploy your charts provided by CAPEX and attempt to uncover a pattern that indicates price movement in the fashion that you would like. When your technical analysis produces a signal, feel free to open a position in accordance with your strategy and imposed limitations. Don’t forget you can use stop-loss and profit target orders to control your losses and profit potential.
Track and monitor your trades
Once you have opened a position, you can’t just sit back and relax – unless of course you have opened a trade that you don’t expect to see results for a very long period of time. Day traders will want to closely track and monitor their trades. You can learn from this by watching how the market moves – does it match the sentiment identified by the chart you used? Will the trend continue? CAPEX provides plenty of tools for maintaining a watchful eye over your trades and there are different tools for different types of trades.
Use the full CAPEX suite
CAPEX offers a wide range of trading tools that traders can use to track and monitor their trades. You can even use specialised tools for performing technical analysis or have the analysis performed for you. CAPEX offers daily analyst ratings that offer trading recommendations and education on new trading strategies. Gain insights into market sentiments before you perform your technical analysis with CAPEX news sentiment – that way, you’ll know where to look that day.
Trading with CAPEX.com
The great thing about CFD trading online is that you can do it anywhere there is a secure internet connection. Inevitably, this means that mobile trading has proven particularly popular as traders can conveniently open and close positions from their mobile or tablet as and when it suits them.
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