Understanding range expansion can help new traders

I get lot of emails from the readers of this blog asking where should they start if they are new to trading. It can be very confusing for new traders to decide what to focus on with so many blogs and books around.

The starting poit for any new trader should be by understanding a very basic market structure phenomenon of Range expansion. That is the most basic behavior of market. Stocks or ETF go through several range expansion and range contraction cycles. These cycles provide you a way to build your trading methods around them.

Stocks exhibit several range expansions during trends. Trends are never completely linear. Let us say a stock makes 100% move in 100 day, it does not make that move in increments of 1%. It makes it in series of impulse moves.

In reality the 100% move might just happen in 15 to 20 days out of the 100 days. As traders observed this phenomenon , they developed methods to exploit this market tendency.

By trial and error they refined several methods based on range expansion or range contraction. The evolution was craft based. Now with easy availability of computing power the same methods have moved to computers.

In order to make range expansion or range contraction based trading work for you, you have to move from the concept to trading methods. Fortunately there are literary thousands of range based methods in public domain. 95% of swing trading methods are based on range expansion or contraction.

If you study them , you will not be reinventing the wheels.

Best site to learn to trade

If you are serious about your trading and want to build an enduring edge, the Stockbee Member site might help you.

Members tell me they have tried a lot of things before coming to my site, and it has offered them the most extensive and detailed methods to swing and position trade. Members range from very experienced traders to novices.

No advertising, no hard marketing, no promotions, no free offers, no affiliate marketing, no incentive to other bloggers to promote the site, no constant tweets self-promoting the site, and no tall claims. Every member comes through word-of-mouth recommendations from existing members.

As a member, you will learn the basics of swing trading, momentum investing, growth investing, and risk management. You will learn about Stockbee Momentum Burst breakouts, Stockbee Trend Intensity Breakouts, Stockbee Episodic Pivots Breakouts, Stockbee Lemonade Strategy for 401k, and many other member-shared methods.

You will learn how to set up your own scans, how to select the right kind of stocks, how to set up stops, when to enter, when to exit, how much to risk, how to track your trades, and all other details about trading.

You will learn about developing your own methods and not relying on others for trade ideas. Develop your own edge. Once you develop your own method, you will have a lifelong profitable method.

The site gives you an opportunity to interact with some of the most successful traders and learn from them about their trading methods. It is a vibrant community with members from different backgrounds and experiences willing to help each other. Members have shared their methods, scans, software, backtests, and market insights.

Every day, the emphasis is on continuous learning and upgrading of market knowledge and setup knowledge. The members range from hedge fund employees, financial advisers, active swing traders, investors, and new traders.

You will see that many trading bloggers have been using my market timing methods, scans, and chart templates. They have developed their own methods based on my methods.

Almost every member comes through a recommendation of some of the leading trading bloggers and trading sites. 80% or more members continue to be members for more than 3 years. Most tell me that they stay on because every day they learn so much from the members' site.

If you are looking to develop your own trading strategy, the membership site might be for you. You have to be willing to put in the effort to build your own method. There are no silver bullets offered on the members' site. Every method, every scan, every nuance is detailed, and all possible help is offered to design your own method.

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