Trading dividend strategies


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Goal: Position yourself based on intraday information with the intent to hold for days to weeks. You work on computers during the day, have your trading platform open with your trading alerts set and when an intraday alert goes off, you position yourself into the trade.
CFD Trading Strategy: Set FMG alert if price breaks resistance at $. When alert gets triggered, go long 555 CFDs with stop at $.
Timeframe: Intraday (if stop gets hit) to several weeks.
Suited to: Experienced traders with specific entry orders and those who like to check market depth to help time their entry.

Swing Trading: Stocks, Strategies, and Resources

So if you have a profitable trading strategy in place that is able to generate consistent profits during the rest of the year, you might want to consider reducing your profit targets or making changes to your strategy during the month of December because you could easily come unstuck in this quiet trading period.

Dividend Definition | Investopedia

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If you are trading trending stocks, you could run a larger ATR trailing stop. Perhaps a 7 to 8 ATR trailing stop would work. Always test your strategies first.

Your goal is to ride the FMG position for as long as the position keeps moving in your favour. In this case, the trailing stop is pretty close, so the time frame would be lower.

If you trade one of the least volatile pairs, such as the EUR/GBP pair, for instance, there are some days when even a 65-65 point move is asking a lot.

The risk/reward profile of the strategy can vary depending on the &ldquo moneyness&rdquo of the options selected (whether they are already out-of-the-money when the trade is executed or in-the-money, requiring a sharper downside move in the underlying). Out-of-the-money options will naturally be cheaper, and therefore the initial credit collected will be smaller. Traders accept this smaller premium in exchange for lower risk, as out-of-the-money options are more likely to expire worthless.

Learn about the put call ratio, the way it is derived and how it can be used as a contrarian indicator.. [Read more.]

To compensate for the reduced earnings during this period, the stock markets tend to do well as we approach the end of year, which is why people often refer to a Santa Claus rally . So as I invest in a lot of high quality dividend stocks, this is usually a good time to bank some profits and make some money from a few short-term trades if I have opened any trades in October or November, for example.

In most cases, stocks seldom go up by leaps and bounds. Moderately bullish options trader usually set a target price for the bull run and utilize bull spreads to reduce risk. While maximum profit is capped for these strategies, they usually cost less to employ.


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