Welcome to another issue of Traderwave Weekly, a trading newsletter where I curate the most useful trading articles on the internet to share with you.
Hope you will enjoy all these fabulous reads and apply those knowledge along your journey to become a proficient and profitable trader!
TRADING BEST PRACTICES
In the world of stock trading, we usually cannot ignore how dividends might affect our trading decisions.
At the same time, I often see new traders making bad trading decisions because of the wrong perception they have about dividends.
In this article, the author speaks about how high dividend yields often present a false hope to inexperienced investors and traders.
From a trading best practices point of view, a trader shouldn’t be too concerned about the dividend yields. I hope that from this article, you will be able to see the argument against putting too much emphasis on dividend yields in your trading decisions.
Most people are used to buying low and selling high because that is psychologically easier to do.
Breakout trading strategy is one of the most difficult kind of trading strategy to implement.
This is because trading breakouts often require a trader to go against his human nature.
Yet, the best trading strategy is usually one that is not commonly used by the masses. That’s how an edge can be identified and taken advantage of.
Would you like to learn how to trade breakouts but avoid the typical mistakes that new traders make? If so, please read on for some tips and tactics on how to trade breakouts confidently.
Setting stop loss using technical price levels might be too subjective for new and inexperienced traders.
Yet, having stop loss is one of the most crucial element to long term profitability of a trader.
If you are still unsure how to use technical levels to set your stop loss, you can start off using ATR to establish your stop loss level.
ATR, a volatility based indicator has certain fixed parameters that is non-subjective and easy to follow.
Watch this great video to learn how to set a stop loss using ATR before you put on the next trade.
If you find these articles I’ve shared useful, do share them with your friends by clicking the sharing buttons!