Sit on Your Hands Strategies for Your Trading Plan

Looking for some fun? Whatever you do, Don't Click Here!

Profitable traders can place money-making into the hands of their trading plan rather than their own influence. There are a variety of simple trading strategies used by professional traders and amateurs alike to produce big returns with minimal amounts of work. Once the money management part of a strategy is perfected, the rest can be left up to an automated trading program or to the strategy desk of your broker.

“Hands off” strategies are preferred by many mathematical trading experts because they take out the risk of emotion, and instead leave every financial decision to a simple, rational, and tested trading system.

Profitable traders use proven strategies and automated systems to produce a profit with very little work or risk. Back testing a strategy will tell you whether or not the system was profitable over a time period prior to current trading and give you a well established starting point for profit or loss expectations.

Many different trading systems

There are many trading systems that can be used to produce profits in any kind of market. Some trading systems, such as the moving average cross, are best with sideways trends. Others, like a momentum RSI trading system, work better in uptrend and down trending markets where small bounces can be collected as the market rises or falls.

Moving average cross

The moving average cross is one of the most simple “sit on your hands” trading systems available. With some creative techniques, the moving average cross can be used however you may wish with as many variables as you please.

When using a moving average cross, two moving averages of differing numbers are used. When the short term moving average rises above the long term moving average, a buy signal is initiated; when the long term rises above the short term moving average, a short signal is created. The moving average cross will show alternating buy or sell signals which work best in short run sideways trends. Uptrends or downtrends will eliminate the profit potential with a moving average cross because there will be several entry and exit points in one direction, while your opposite market positions will rack up little gain.

RSI as a momentum indicator

Using the RSI as a sole trading indicator is often unheard of other than for automated traders. With an RSI momentum strategy, the trader sets a certain RSI reading level to enter a buy and a sell. The creator of the RSI recommended that a reading of 70 was a sell, while 30 was a buy. Many professional traders set the bar higher with a 75 or 80 rating becoming a sell and 20-25 a buy rating. Higher numbers means that you’ll take less trades, while hopefully avoiding the trades that turn sour.

Learn how to master day trading by downloading two of Trading EveryDay’s FREE products: Tools of the Trade eBook and a Trading Plan Planner. Dedicated to helping people become profitable traders , Leroy Rushing, a professional day trader, trading coach, and author, is the CEO of Trading EveryDay, a distinguished provider of educational trading products and services.

Article kindly provided by UberArticles.com

Topics: Personal Finance | Comments Off

Tags: creative techniques, downtrend, Personal Finance, professional traders, profitable traders, proven strategies, sideways trend, Uptrend

Article Citation
MLA Style Citation:
Rushing, Leroy "Sit on Your Hands Strategies for Your Trading Plan." Sit on Your Hands Strategies for Your Trading Plan. 30 Oct. 2008. uberarticles.com. 25 May 2012 <http://uberarticles.com/finance/personal-finance/sit-on-your-hands-strategies-for-your-trading-plan/>.

APA Style Citation:
Rushing, L (2008, October 30). Sit on Your Hands Strategies for Your Trading Plan. Retrieved May 25, 2012, from http://uberarticles.com/finance/personal-finance/sit-on-your-hands-strategies-for-your-trading-plan/

Chicago Style Citation:
Rushing, Leroy "Sit on Your Hands Strategies for Your Trading Plan" uberarticles.com. http://uberarticles.com/finance/personal-finance/sit-on-your-hands-strategies-for-your-trading-plan/

Recent Articles in 'Personal Finance'

Quit Smoking Permanently

By Chris James

Quitting smoking is not an easy thing to do. Anyone who has tried, even if they were successful, will likely say it was extremely difficult. There are a variety of ways to try and quit smoking. If one way is unsuccessful try another. Quitting smoking as soon as possible is imperative to your health and the health of those around you. Before beginning any non-smoking program be sure to discuss it with your doctor.

The First Three Days After You Stop Smoking

By Darren Warmuth

Regardless of which option you choose that you feel will assist you to stop smoking, the first three days are the hardest. This is when the physical symptoms of nicotine leaving your body is felt the most. Common symptoms such as irritability, feeling sleepy or fatigued, and that slight headache that never seems to go away, are all common symptoms of withdrawal.

Dealing with the Other Difficult Parent

By Dr. Noel Swanson

Q. I have a stepdaughter who is four years old. Her real mother whom she visits on weekends is in and out of jail; she has 86 felonies. Each visit leaves the child distraught; she gets depressed and sinks into her shell.

Some Facts about the Magic Stop Smoking Pill

By Darren Warmuth

You may be one of millions who get trapped by catchy ads of 'magic pills' that can cure you of your smoking habit without any effort. It is all tall talk. There is no such wonder drug. So, don't wait for miracles to happen, and start making an effort to get rid of your smoking habit.

ADHD - What It Is & How To Recognize It From Your Child's Behavior

By Dr. Noel Swanson

ADD and ADHD are two abbreviated terms that refer to children affected by particular behavioural problems. ADD means Attention Deficit Disorder while ADHD is Attention Deficit Hyperactive Disorder. Children are diagnosed with these conditions when they exhibit unusually difficult behaviour at home and at school. ADD/ADHD is believed to affect up to 5% of school aged children and is more prevalent in boys than in girls.

Make Money Using Article Submission Service

By Brad Selers_

Article Submission services are programs that submits articles to as many directories as possible and in the least amount of time. The system by which article submissions are made at lightning speeds is called spidering. A spider is a program whose primary function is to search for similar directories over the web and causing an article to appear in them.

How To Write A Great Article In 6 Steps

By Brad Selers_

Anyone who regularly reads newspapers, papers and goes online will have read several articles. These can be used in many different ways. Some articles are written purely for information purposes were others are used to market websites and goods. Understanding how to write a great article can be difficult even if you are a seasoned pro. So why not take a look at the 6 stages which will enable you to learn how to write a great article.

Uber Articles {Über (ger) adj. above, beyond }