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Friday, April 19, 2024

How do traders get ideas for what trades to make?

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Trading on the global financial markets is something that is popular worldwide. From European countries like Poland, to Asia, North America, Africa and beyond, it provides a viable way for people to use their spare cash to build wealth. The digital transformation in this sector over recent years has helped because it makes trading more accessible and convenient to ordinary people. The size of the financial markets you can trade on and the potential this gives for profit explains why people are attracted to trading. The London Stock Exchange has a total market value of £3.8trn!

If you are planning on trading assets like stocks, crypto or forex, it is vital to know what you are doing. This can be hard though as there are so many fast-moving assets and markets to choose from. A good tip is thinking about where other traders might get their ideas from. But where might this be?

Online trading resources  

The internet is one of the best places to find stock trading ideas and fresh trading inspiration. There are some fabulous trading websites around now which are dedicated to helping traders succeed. AskTraders is a name which is well-recognised in this area and has some great ideas to consider for free. In addition, it also brings together lots of useful content around trading in general to dive into.

The great thing about picking up ideas from resources like this is that it takes all the hassle out of conducting in-depth research yourself. It also allows you to get guidance on which trades to consider from people with more experience than you.

General news sites online

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Many traders also gain fresh inspiration by keeping an eye on financial news in general. This could be in the form of TV coverage, but online news is now the most common way to do this. The advantage with online financial news is that it is always up to date, always available and can be viewed on mobile devices. This makes it an effective way to find out on the latest new opportunities as they happen and jump on them if they seem sensible.

Keeping up to date with general news is also something many traders will do because of the impact geopolitical stories have on the markets. Storm Ida bringing destruction to the North-East USA, for example, could well impact on how certain assets may move in the market going forward.

Offline tips and ideas

Next to finding new ideas and trading tips online, many traders also find inspiration offline. The most common example is talking to other traders and finding out what assets they might be looking at. Talking to other traders you trust is also a great way to run any ideas of your own past them to get their opinion.

Of course, getting new ideas offline does not have to be only from other people who are investors. You might read a newspaper article which gives you inspiration for a new trade. Or you might talk to a family member who has heard one of their friends talking about a stock or currency which might be about to rise in value.

Chart reading, research and indicators

While getting tips from other people or sources is valid, many traders get new ideas from reading charts. All decent online brokers will carry price action charts for assets, and they allow you to see what the price has been doing over time. By keeping an eye on this, you can often spot new opportunities forming and place a trade.

Many people also use common trading tools and technical chart indicators to help. A popular example of this can be moving average indicators, Bollinger bands and Stochastic indicators. By placing these types of indicator on a chart, it can show you where the price of an asset might be about to head.

Fresh ideas key for successful traders

New and exciting ideas are crucial for any trader. That is true whatever assets you choose to put money into and also whatever timeframe you trade with. Short-term traders naturally need a flow of new ideas to continue making money. Even those who trade over longer periods will need new ideas at times to replace any trades they close. As the above shows, there are some great places to find fresh impetus and to stumble on new market opportunities.

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