Financial investing is both and art form and a science. As a result, there is always room for improvement. Even the best traders on the planet are constantly seeking to refine their skills in order to develop a more well-rounded approach to the markets as whole. The trading market is constantly changing, so it makes sense to rely on other measures like the Weis Wave to measure the volume of price changes. This cumulative volume indicator can be used with other tools to maximise your trading strategy. The best thing to do is to learn about it to simplify your interpretation of the trading analysis. You cannot afford to be left in the dark. If you hope to maximise future returns, it is essential to optimise your current approach. Let us take a look at four methodologies to keep in mind.

The Concept of Predictable Liquidity

Possessing a stagnant portfolio is akin to keeping your money tied up within a long-term savings account. While wealth may indeed be accrued over time, you cannot access any source of short-term capital. This is why a portion of your holdings should reflect liquid asset classes such as Forex positions. You will be able to realise short-term profits and if required, these funds can then be reallocated into more stable sectors.

The Emerging Cryptocurrency Market

One of the most recent trends involves trading in crypto currencies. There are several unique advantages attributable to this strategy:

• The markets are open 24 hours a day and seven days a week.
• The prices are not governed by any type of central bank.
• You have several types of cryptocurrencies to choose from.
• As this is an emerging sector, it is likely to grow exponentially in the future.

If you would like to learn more about currencies such as Bitcoin and Ethereum, take a look at the information offered through CMC Markets.

The Importance of Win-Versus-Loss Percentages

Successful investing involves just as much technical prowess as it can be determined by instinct (at times). This is why appreciating the past performance of your portfolio is wise if you hope to make prudent decisions in the future. Pay particular attention to your win-loss ratio. Also, look at the percentage returns that were associated with your profit margin as well as the mean value of losses (2). This method can sometimes provide surprising results; especially if you have never tracked previous events from a longitudinal point of view.

Know the Differences Between Fundamental and Technical Analyses

Achieving balance is important within any trading strategy. This is why you should learn to appreciate the differences between technical and fundamental analyses. The disparities can be briefly defined below:

• Technical analyses tend to focus on chart movements and qualitative predictions such as Fibonacci lines.
• Fundamental analyses are more concerned with values associated with an asset such as the financial statements of a company or its past market performance.

We should be clear that both of these methods will take a significant amount of time to master. This is why becoming familiar with basic measurements such as candlestick charts and resistance levels is important if you hope to progress to more complicated materials. Although you do not necessarily have to master such approaches, gaining an appreciation of the roles that they play will provide you with a superior level of insight.

The best way to change your personal trading strategy tomorrow is to begin to formulate a plan today. All of these tips have been used by experts in the past and they can be employed even if you are a novice trader.