Hello traders,
In buying and selling, there are various methods to earn a living. Perhaps you realize about Value Motion buying and selling, the place you take a look at charts or how a lot inventory is purchased and offered. Or perhaps you utilize Indicators, that are instruments that present you what the market would possibly do. These methods may be useful, however they usually want you to guess or determine rather a lot by your self.
Immediately, I need to inform you a few totally different, usually simpler approach: the Grid Methodology.
What’s the Grid Methodology?
The Grid Methodology is a buying and selling plan that makes use of fastened worth ranges. We name these ranges a “grid.”
Think about you set many strains in your buying and selling chart. When the value touches one in every of these strains, you will have a set rule for what to do. There are totally different sorts of Grid Strategies, however all of them work the identical primary approach: you utilize a set of worth strains to make your trades. Every methodology tells you what to do at every line on the grid.
How Does the Grid Methodology Work?
The principle concept of the Grid Methodology is to position many purchase and promote orders at common steps up and down from a beginning worth. This creates a “grid” of orders throughout your worth chart.
This is the way it typically works:
Set Your Grid Traces: First, you choose a beginning worth. Then, you determine on a small step, like each $1 or each 10 factors. You draw strains at these steps, each above and beneath your beginning worth. These strains are the place you will commerce.
Commerce Mechanically or by Hand: You’ll be able to place these trades your self, or you should utilize pc packages (like buying and selling robots) that do it for you when the value hits a line.
Resolve What to Do at Every Line: That is crucial half. You should determine your rule for every line. For instance:
You would possibly purchase extra when the value goes right down to a decrease line and promote when it goes as much as a better line.
Or, some merchants promote when the value drops and purchase when it goes up, attempting to earn a living from small worth adjustments.
Usually, every commerce within the grid tries to make a small revenue, like taking cash out after a small worth transfer.
