Saturday, October 17, 2009

Trying to figure out where the markets are heading?

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eToro - finanacial trading made simple

 

Dear Gajah,

Do you often find yourself confused, trying to figure out where the markets are heading?

Novice traders are often bamboozled by the markets as they are unable to determine the direction of the trend.

Hedging – A strategy built for beginners

To help you start in this market we would like to explain a simple strategy that is used by all types of traders and does not require advance trend analysis. The strategy only requires 2 things:

1)    Determination
2)    Correct Portfolio Management

How does the strategy work?

Due to our advanced trading system, you can now open two positions on the same currency, in opposite directions, at the same time. For example, you can Buy the EUR/USD and Sell the EUR/USD, having the two positions open simultaneously.

1)    Open the charts and find a ranging pattern
2)    Place two Limit orders out of the range. One to buy and one to sell
3)    Close the losing trade as the currency breaks out and let the profitable trade increase.


 
Even though the strategy requires some practice, it can be highly lucrative.
We hope that we have provided you will all the information to get started and we also advise you to contact your account manager to find out about our unique trading e-course.

Successful trading,
eToro support team


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. Any mention of past performance is not indicative of future results.


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