Velocity Trading
Many people want to learn how to short term trade the market, and with the tax advantages available to traders who trade as a business, the opportunities for income from short term trading have increased.
Velocity Trading is just one of several styles of short term trading that most anyone can learn. This style of trading takes advantage of fast moving stocks that are being
traded with speculation for the short term. This trading style is not for everyone.
You must first determine if you have the risk tolerance for this style of trading, because it has an inherent higher risk factor due to the short time that you hold a stock- between 1-7 days on an average. You must also have enough capital to trade a larger share lot of a minimum of 500 and preferably 1000 shares and up. In addition most velocity stocks have a price range between $15.00 and $85.00. You also need to have the ability to exit a stock that is not moving as you expected it to move.
Velocity trading requires strong technical analysis skills, and in particular price action analysis skills. It is a fast in and out style of trading that can be highly lucrative, however, it is also a style of trading that requires patience along with skill. A velocity trader waits for the market condition to shift to a speculative mode, then moves in quickly and out quickly to snatch profits during the velocity move upward or downward.
TechniTrader® specializes in helping students develop strong technical analysis skills necessary for velocity trading and we help students hone their own unique trading style that can include many techniques to take advantage of speculative markets.
TechniTrader®, the educational division of Decisions Unlimited, Inc., is strictly an educational service for the serious investor and trader. It does not represent, nor is it sponsored by any vendor, provider, or broker. We are an independent educational service.
Copyright © 2008, Martha Stokes, C.M.T. & Howard Johnson. No part of this web site may be reproduced in any form without expressed written consent.
