Connect with us

Investing / Trading

Beware Of Range Breakouts

Published

on

If you are a trader I’m sure you have come across a trade scenario called a range breaker, it’s pretty easy to spot and is a favorite of many beginner traders. There are some that believe range breakouts can provide great returns, as the market begins to break out of its range-bound pattern. Unfortunately, the truth is that ranged trading often turns out to be unprofitable for most beginner traders.

Breakout trading is prone to be affected by a phenomenon called false breakouts. This is when the price moves beyond a previously established price range but then turns around and retreats back to the previous price range. False breakouts occur because support and resistance are not 100% accurate. If you want to avoid trading false breakouts then you need to be sure to look at indicators such as RSI because they will show you what the market is doing it if the asset is truly breaking out.

Trying to trade breakouts is not really a good strategy for a novice trader because to successfully do it you require quite a bit of knowledge and discipline. If you’re just starting out although it may be easy to spot range trading opportunities I suggest you avoid it until you have gotten good at technical analysis and are confident with making range based trades. My stance is to trade value based assets because inevitably their prices will rise and you will stand to profit regardless of the current range that it is trading in.

Trying to make trades and catch a breakout at its start is an easy way to make your balance suffer. Even the pros have a hard time catching breakouts as they occur. if you are a day trader then you could wait for a trend to develop and passively use a trend trading strategy to capitalize on the breakout but this too requires practice and a bit of skill. in the end, the best strategy is patience, this will allow the essay to make it move and reveal if the breakout is occurring or not. If you must range trade then I strongly suggest using the RSI because it may help clarify the indications of a breakout from range trading.

separador.png

This article was written by @bulma and edited by @flashfiction. This article can be found on PROFITRIBES.

Do you want to make REAL money writing?

  • Writers earn 50% of the SBD payout of all cryptocurrency/finance posts they submit. Send all submissions to editor@storyhackers.club.

Join the Discord Channel: https://discord.gg/56Pnrwc

Omniloquent was brought to you by @yallapapi.

Recommended reading:

#1 Blockchain Simplified: https://steemit.com/crypto/@omniloquent/why-is-the-blockchain-important

#2 Real Estate Investing: https://steemit.com/busy/@omniloquent/investinginrealestate-6ti7vr2lrq

#3 Economies of Scale: https://steemit.com/business/@omniloquent/economiesofscale-ldbp306oun

Investing / Trading

Whats up with the buffet buyback?

Published

on

By

First what’s a stock buyback?

A stock buyback is simply when a public traded company buys shares back from the open market.

It is common for businesses to buy back shares for several reasons

  • Help boost the value of their shares. This works because when there is less shares available it influences the price of that asset.
  • Boost earnings before and upcoming report.
  • Cause speculation on the value of their asset

In the past year it has been very common for companies to buy back shares. this is often helpful in rewarding investors.

Buffet knows something you dont!

Berkshire Hathaway is a company owned by Warren Buffett who is know for buying stake in companies he believes will grow in value with time. This time they arent buying shares of other companies but are investing in itself with approximately $1 billion worth of stock buybacks.

You may be wondering why Berkshire Hathaway is buying back shares? Well, after a decade long bull market in the USA coupled with increasing stock prices(potentially in bubble teritory now), Buffett thinks a buyback make sense because there is little percieved value anywhere else. The strategy must be working berkshire reported profits increased 351% to $18.5 billion this past year. Buffets style of value investing is known as one of the best in the industry and making Buffett one of the richest men in the world with a worth of about $90 billion.

Be like Warren buffet and start making valuebuys over on the Stash App, here is $5 for free to get started

Continue Reading

Investing / Trading

Euro to replace the dollar?

Published

on

By

there is a probability

The euro is currently 1/3 of global transaction volume, and some think its potentially possible that the Euro coud be placed to surpass the dollar in importance. The euro like the dollar is a fiat currency that is used for trade between european nations and their allies when convenient. With sanctions tarifs and general economic bullying becoming the norm for america and its dollar, some nations are choosing to look for ways to escape dollar hegemony.

It’s not likely to really happen

The euro is a strong currency but it has little chance of becoming the worlds reserve currency. It is more likely that folks will choose to move away from any financial institution that can basically starve your population with financial and trade sanctions. In my opinion cryptocurrency will find it’s way into the worlds economy so that users can escape the easily restricted fiat currencies. Value based in valuless debt notes is on its way out and this will probably be the segway into the next financial crises.

Continue Reading

ICO / Crypto

Can cryptocurrency survive a gobal financial crisis?

Published

on

By

Is cryptocurrency a hedge against economic downturns?

The answer to this question is quite controversial, some would say yes because this is what crypto was made for; while others would chime that crypto is unproven in a downturn and will need to survive its first one before we can feel at ease about its survivability. Much of your perception on whether bitcoin and cryptocurrency in general will survive aneconomic crisis, is based on where you stand about cryptocurrency in general. Today we will talk about the possible survivability of cryptocurency in a crisis.

Is Venezuela a test case

Right now in Aouth America there are several financial crises transpiring that may create possible examples of how crypto will fare in a financial storm. In venezuela reports are coing out that many people are choosing to use cryptocurrency to pay for life expenses. The national government under President Maduro have begun to implement their own state backed cryptocurrency called the petro. The Petro is an asset pegged to the price of a barrel of oil and the Venezuelan government hopes it will help them escape dollar tyrany. Hyperinflation has taken its toll on Venezuelans but many of them were informed enough to seek financial refuge with cryptocurrencies. This is a great example of how when value leaves fiat the holders will seek to run to other assets to store value; that exodus now has cryptocurrency as an outlet for the fleeing fiat users.

We may see a big example soon enough

Much of the world is currently on the precipice of a financial downturn and if america keeps behaving the way it has been then we will likely see a major crises emerge in the next 5 years or so. some analysts see a move away from the dollar as a potential catalyst whilst others proclaim that the trade war and student debt will push us into the downturn of this decade. Unlike those times prior, now cryptocurrency has created and outlet for those funds that “dissappear” from markets as the major stakeholders cash out. The financial bigwigs are likely going to enter the cryptospace as they will soon see it as a way to maintain some value in the crises they create.

Continue Reading

Trending

Copyright © 2017 Zox News Theme. Theme by MVP Themes, powered by WordPress.