is something that MOST people should really
learn before they jump into it. Daytrading
is not as easy as most people make it
out to be. There are many many small trends
on a 2 minute chart and daytrader's should
have the General
Trading Knowledge mastered before
they try to apply these theories to intra-day
issues with daytrading are simple... more
trends, fast and short trends, as well
as the trader has to be able to execute
trades and make decisions very quickly.
I've found the longer term charts (daily
and weekly) to provide excellent trading
opportunities. So, my suggestion is to
daytrade only a portion of your total
equity (maybe 10 or 20%).
are a number of excellent daytrading tools
that are available. Most of them are based
on "range breakouts" or "trend
following" systems. Others are based
on "pivot points" and other
advanced calculations. The interesting
fact about most of these is their simplicity
- they are providing (in some cases) simple
theories for daytrading. I'm not saying
these don't work - in many cases they
do. These are often good sources of information
for traders that are new to daytrading.
for a living is another thing. Many times,
daytraders have to build up the "constitution"
to be able to do this for a living. Meaning,
most successful daytraders are those that
have a system or method and stick to it
over and over and over. There is no "magic
formula" that will result in fanstastic
results. Most daytraders that I know plan
their trades around a theory or method
they have faith in and continue this process
over and over.
I see it, there are basically two types
"Micro" daytrader and the "Macro"
daytrader - sometimes the two intermingle.
individual concentrates on the microscopic
moves of price action and is often attempting
to "scalp" small points from
a price trend. They attempt to scalp at
a rate of about 2:1, 3:1 or higher. Meaning
if they are trying to get $0.30 from a
trade, they might risk $0.10. They often
use reversals, trend breakouts of other
forms of triggers - then place their trades.
of these individuals use "tick charts".
These are charts that are based on the
number of printed "price ticks"
instead of "time" (like other
charts). Often, they will use odd number
tick charts - like 280, 140, 95 or 33.
Tick charts sometimes show trend more
clearly than time charts. Although, there
is one MAJOR drawback to these really
short intervals - CONGESTION.
is the "killer" of most trading
systems. There are some who believe that
you can trade congestion (probably trading
upper and lower ranges), but I actually
doubt it. When the trend is going sideways,
scalping may work for a while, but eventually
losses will happen. My advice to traders
experiencing congestion, STAY FLAT till
the market breaks out of the congestion
daytraders are kind of a different breed.
They make calculated risks (often many
times a day), and if they are correct,
they may end up ++ for the day. The better
their trigger system is, the more likely
they are to have more consistent profits.
individual concentrates on the more of
the overall price trends and tries to
trade "with the trend" or "counter-trend".
These traders are often only trading once
or twice a day (if at all). The purpose
of these type of traders is to find the
best potential trades and let the market
make it's move. Kind of like jumping on
a moving train and riding it a while.
Just wait for it to start moving, then
jump on for a ride.
of the time, these traders have defined
trading styles or screening methods too.
Sometimes, these traders play "news
stocks" or maybe "certain sectors"
- they are screening for stocks that have
a potential for a decent trend move. Other
times, these traders play certain markets
(like the Emini, Forex or the QQQ - that
trend almost all the time).
interesting factor for most of these traders
is they almost always have different ways
of attacking the markets. This means they
all use different strategies to generate
their trigger points. Sometimes it is
a combination of indicators, or a breakout
system or possibly price patterns.
guess the end result is, "There is
more than one way to skin a cat"
(no offence to cat lovers - I'm one too).
But it makes sense that if there are all
these different kinda of entry triggers
(and we assume most of them work), then
the difference has to be in the "way
the trade was executed" - or "the
back to my original point, learning to
trade and to develop a trading plan is
the most important thing any trader can
do to maintain a successful trading adventure.
Finding entry triggers and adjusting stop/profit
target levels is up to the individual
trader. Knowing what to expect and how
to deal with the future of your trade
is the big difference. When you add a
trigger system that is 50/50 (or better),
you should be able to consistently make
money - right?
you ready for the next "twist"
to this fast-paced game for traders.....
"DOs and DON'Ts of Daytrading"
- like I have a list that you can just
read and follow. I don't!
do have some advise though. In my 15+
years in this industry, I have found that
most daytraders don't just concentrate
on the short-term charts. They also review
the Daily and Weekly charts for other
signs to support their decisions.
course, the "Micro-scalper"
may not really care about what happened
yesterday or last week. All they care
about is today and how much trend will
today have. This gives them more opportunity
to profit from the markets.
quess what I'm trying to say is "Always
track multiple market time-frames because
the more information you have to make
your decisions, the better informed your
decisions shall be". Yeah, knowledge
really is a powerful thing.
to do and what not to do?? Go back to
General Trading Help for that stuff...
you ready to really trade the markets like
you ready to trade once or twice a day?
you ready for consistently designed profits
in your account?
you ready for the most universal trading
system ever designed?
you need the ATWS Trading System.
wanted it pretty much as soon as I had a
look at it...it does not take long to realize
its a money maker, G. McArthur, UK.
looks great! A.G, Switzerland.
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