Basics Of Algorithmic Trading That Every Trader Should Know
One of the big mistakes that people make about trading the markets is that they believe that they have to be doing something original or indeed very clever in order to make money from the markets. This really is not the case. In fact, in many ways, it is the exact opposite. The basic concepts that are being used today by both small home-based traders and bigger funds are pretty well exactly the same as they were 40 years ago. For instance, breakout strategies were being used by Richard Donchian in the 1920s and were subsequently used by the famous turtles in the 1980s and are still being used, in one shape or another, today. So that the basic concept has remained valid for pretty well 100 years. One simple concept or bias that you can use immediately in your own trading on the indexes is to simply trade the volatile days. Most of the time the market is meandering a little up and then a little down and making no real progress. However, occasionally some big news event occurs or ch...