Day Trading Tips Worth Reading
Are you tired of the same old day trading tips? Like, “cut your losses and let your profits run.” “Never let a gain turn into a loss.”, or the most repeated tip, “Buy low, sell high.” So how about something new? Let me give you some specific day trading tips that will turn your trading around. A good defense beats a good offense over the long haul. If you want to stay in the Trading "game", then developing a good defense is a MUST. Rule Number One: Cut your losses immediately when the trade doesn’t go your way. There’s nothing harder to learn and nothing better. I’ll be even more specific. The average “run of the mill” day trading advisor will tell you to enter a trade, place a stop of 2 to 4 points, place a target that’s equal to your stop, or 2 to 3 times greater, and then wait for your stop to get hit. This is a big mistake that is going to end up costing *you*. The time to wait is before you enter the trade, not after. I’ve been trading for over 20 years, and I don’t trade like the crowd. The crowd waits for their stops to get hit. They sit there hoping their trade comes back from negative to positive territory, but it usually doesn’t and they lose money. They believe that the edge (probability of success) isn’t good enough on their entries. This is the crowd’s approach and it just doesn’t work. My day trading advice for you is to use radical soft stops that go against human nature. In trading, your entries and your exits must NOT come naturally at first. Human nature is responsible for the fact that 90% of those day trading eminis lose money. If you follow the herd, you’ll lose money too. Some of my subscribers tell me it seems impossible to get out of a trade early, just because it doesn’t move immediately into a profit. They worry about commissions. They worry that the trade will turn around and go their way in a few more seconds and they’ll lose opportunity. In fact most of the people reading this right now will try it for a few minutes (hopefully on a trading simulator) and decide it can’t be done. Like I said, my techniques and day trading tips fly in the face of the untrained “gut feeling.” And that’s precisely why they work. Exiting my way is not the whole picture when it comes to the method I use for day trading support and resistance. Any complex process has to be broken down into small chunks at first, a person has to learn one thing at a time, especially when you want to learn day trading. Always demand that the trade goes profitable immediately. When it doesn’t, get out immediately. Radical, but it works. My day trading advise for them is don’t wait for the market to prove you wrong, instead, if the market doesn’t immediately prove you right, run for the exits. Example: Let’s say you enter a day trade. In the first 5 seconds it goes 3 or 4 ticks against you. What is your course of action? a. Give it a chance, don’t waste the commission.
b. Sit and hope that it turns around before it hits your stop.
c. “Knowing” your entry was excellent, sit tight and / or move your hard stop away.
d. Add to the position (scale in) to bring your break-even point closer.
e. Get out of the position NOW!!! Don’t think about it, just get out. Believe it or not, “e” is the right answer in my book. You have to be flexible with everything, but this is the foundation of my trading style. This is the default procedure. Does it work?... YES it works! But it only works IF you know where and when to enter. Mike Reed is author of TradeStalker's RBI Trader's Updates. He has been trading the Market for 23 years. His support and resistance numbers have been published on the internet since 1996. Mike's nightly support and resistance zones are specific and incredibly accurate. He offers an unlimited free trial of his nightly TradeStalker RBI Trader's Updates. http://www.tradestalker.com Copyright 2005 TradeStalker.com and Mike Reed |
Other Forex Trading Articles
Currency Technical Analysis Part 3: Dow Theory – Bull and Bear Markets In previous articles, we’ve looked at the history of Dow Theory, and why it's the best theory ever, for currency technical analysis.The logic for spotting the big trends follows - and it’s these trends that we want to catch - as they yield the big profits!Hamilton identified three specific phases, in both primary bull markets, and ...Dxinone E-Currency Trading Review If you are just starting to learn about this dxinone trading system, it's normal for someone who is just learning about it to be feeling confused about how the opportunity works.I personally recommend this system, and although it's an amazing investment strategy, Here are some tips when starting the dxinone system:-When you're gett ...Finding a Forex Broker Foreign exchange is the largest financial market and everyday new investors plan to jump in when they learn of the benefits, that is, high returns on investment which is as high as 20% per month a month. However, inexperience and over enthusiasm can only do bad and bring in losses so, you’ll need an experienced forex broker to help you put your ...E-currency Trading Program How to Make Money? You just heard about the E-currency Exchange Program. You hear about people making money with it. You wonder if you can make money with it. Is it too complex? Is it a scam? Could you double your income with it? Read on to find the answers.How soon before I can double my investment? Will I be able to get my money out? Can you really make m ...Automated Trading Orders in Forex Trading Practical trading involves lots of simulations and automated trade orders using the power of computer. Charting, graph plotting, and automated trade orders; all these are used to enlighten your routine trading work and it spares you more time in studying the market.Some of the well known trading orders are zero stops, stop order, limit or ...Should You Use a Pareto Chart Unless you are familiar with manufacturing management principles, you probably have not heard of a pareto chart. It is a very effective tool managers use, to manage and effect outcomes in manufacturing environments. You're saying, How in the heck will this help my trading? Well it can, if you use it right.Another name for using pareto cha ...Forex Trading 101: Learning Guide for FX Beginners Being new to FOREX trading? Don’t worry, getting started in FOREX trading is easy and you can always test your skills first in a demo account before you go ‘live’ with real money. To get started in FOREX trading, we have to get to know what FOREX is. For the inexperienced, FOREX trading involves buying and selling the different currencies of the ...Buying Iraqi Dinars: 5 Critical Signs You Should Know At first glance, buying Iraqi dinars online looks easy. Almost too easy. There are a lot of dealers trying to sell them nowadays. So all you have to do is pick one. Right?Wrong! As with any "hot" merchandise, scams are common and you should know how to spot them, well before you hand out your hard earned money.Here are 5 critical s ...Dentist New York Can Help You Get That Heart Warming Smile When was the last time you have been to the dentist’s office? Can’t remember? Well then this surely is the first sign that you have been neglecting your teeth and neglecting them really bad. A dentist is the person who is best equipped to deal with any kind of dental defect which you may encounter. No one is born with a bad dental health; in fac ...Forex Trading Software Dynamic is the most suitable word to describe the forex market. Software that deals with forex trading should also stand up to the level of quality it demands.In the market there are two types of Forex trading software available: ‘Web-based software’ and ‘desktop software’. Choosing one of them depends primarily on security and also on yo ...Big profits from Currency Trading If you want to make big profits from currency trading, you need to lock into and follow the longer-term trends.“The art of contrary” thinking is one of the most powerful tools a trader can use, and is a trait with which all true great traders are familiar with.What is the Art of Contrary Thinking?Humphrey Neill’s book, "the ...Main Economic Indicators of the World (Part 2) National Association of Purchasing Managers (NAPM CHICAGO)Definition: The Chicago PMI (officially known as the Business Barometer) is a monthly composite index based on opinion surveys of more than 200 Chicago purchasing managers regarding the manufacturing industry. The survey responses are limited to three options: slower, faster and sa ...FOREX Trading: Risky Business You can see the claims on some FOREX web sites, implying that FOREX is a risk-free pastime. No investment is risk-free.In FOREX you are trading substantial sums of money, and there is always a possibility that a trade will go against you. There are several trading tools that can minimize your risk, yes, but eliminate it, no. With caution, ...E Currency Exchange Scam Are you sick and tired of those HYIP programs that claim you will get rich or make millions fast? I know I just had enough of them that is why I did my homework and researched the best work at home programs on the internet.E currency was the business that everyone referred me to. So I found a book that taught me how the e currency exchang ...FOREX Online System Trading- For Bigger Profits The rise of the Internet and cheap powerful computers has made FOREX online system trading a reality for any trader, novice or pro.Now its possible for individual traders to manage their funds and target 30 – 50% annual compound growth.The advantages of FOREX online system and how to choose a good one are outlined in this article. ...Choosing A Forex Trading System – Part 2 In the first part of our series – Choosing A Forex Trading System – Part1 we covered a few quick tips to get you a few steps closer to choosing the Forex trading system that’s right for you.In Part2 we will take a look at a few other do’s and don’ts for choosing a Forex trading system. With that in mind here is “don’t” number 1.1) ...Learn Forex Trading and Multiply Your Wealth To many people that sounds amazing, and perhaps it is. It can be very profitable for investors and fortunes have been made by many. The incentive to learn forex trading is the oldest incentive by far, the incentive to make profit. If you learn forex trading you are learning how to make your money make more money for you, the goal of all inves ...Investing In Foreign Currencies - The FOREX Building a diversified portfolio gives you a lot more stability with your investments and enables you to keep on the profit side of things more easily. But if you already have a rather diversified portfolio and think you are now rather knowledgeable of the stock market, then you may be ready to expand your investments into FOREX - the foreign ex ...E-Currency Trading: Not working Makes you More Money You are always hearing about this cash yielding system that requires no recruting or selling, just 60 minutes a day (at most) and no super human skill.A little hard to believe!Anyway that is always the first impression if you are someone who has surfed the web for some time.Instead, let's take a look at the Real Facts about ...Don't Short-Change Yourself by Not Understanding Money Exchange Rates One pesky problem you may encounter while on vacation in a distant country is the varying value of currency. Your vacation will be more relaxing if you are familiar with the intricacies of money exchange rates. Every country has its own monetary system, meaning their currency is different than yours and its value fluctuates constantly. For insta ...Advantages of Trading FOREX Over Stocks and Commodities There are many advantages to Trading FOREX as your main income generator. Let’s start by something that may be worrying you already.“Do I need a Diploma or some kind of Certification to trade FOREX?” The answer is this:When attempting to make more profit than losses on the fluctuation of exchange rates between major currencies (i.e ...Market Liquidity: Foreign Exchange vs The Stock Market Is Slippage a Problem? Let’s face it, every trader on the Planet has wished at some point during their career that slippage did not exist. I for one have cursed at the top of my voice, let alone under my breath, at slippage on an entry or exit. However, every successful trader on the Planet has found a way to deal with it either menta ...Brief Summary of Forex Trading The foreign exchange market is widely known as "Forex". Here brokerage firms and banks are linked over an electronic network. This network enables them to convert the currencies of countries all over the world. It is the largest and the chief liquid financial market in the world. Dollar volume of dealing of currencies daily goes beyond $1.9 tril ...Free Online Stock Trading Competition has forced many online stock trading companies to keep their membership, trading, and commission prices down. If you look hard enough, you can even obtain a lot of pertinent online stock trading services without paying a single cent.Deposit DealsMany online stock trading companies are able to provide you at least $25 – ...Forex Trading Education Foreign Exchange (FOREX) Trading is the concurrent buying and trading of different currencies. The industry is very fast paced with sudden changes happening everyday. There are a lot of factors that affect the market value of each currency, a lot of analysis and computation involved to try to make accurate predictions of the next direction the m ...Online Forex Trading Reviews Online Forex trading is a business of risk. It is only wise to choose your online Forex platform providers and brokers with utmost care. You can read books, magazines, or surf online for the corporate profiles and investment portfolios of the brokers you are considering, but oftentimes, this is not enough.What you need to do is consult on ...Day Trading - Will You Succeed? If you read too many websites about day trading, you might be lulled into believing that it's all incredibly simple. Don't make the mistake of plunging into any form of day trading without spending the time to learn what you're doing. And certainly don't start by investing every cent you posses, including next week's mortgage payment. Pretend ...Option Trading Basics Trading options is a simple concept to learn but a very difficult one to master. However, in order to become proficient at trading options, you first must completely understand the basics. So what exactly is an option? An option is the right to buy or sell (it depends on the type of option) an asset (like a stock) at an agreed upon price for ...Currency Trading Profits – A Simple System Making Millions! Here we will reveal a system for currency trading profits, which has a logic that is so simple, ANY trader will see why it works, and why it will continue to work, as well as how they could be making big currency trading profits too!If you use this system in currency trading, you will have the potential to catch EVERY major currency trend ...Trading The Market: Keep It Simple Stupid! It seems like each day there is another complicated trading system in development. I am quite surprised to see the trading population dig into more complex methods combining various indicators to profit from the financial markets. How many confirmations does one need? By the time all your indicators confirm a buy or sell signal, your entry point ...Futures Trading All futures contracts are generally made for the purpose of speculation or hedging. As such, the general procedure for settlement is the neutralization of the original contract by an opposite contract on settlement, so that only difference between the current and the contract price is paid or received. It is rare that actual delivery of the good ...Energies Update – Breakout & a Huge Gain! More To Come If you have followed our reports in crude and unleaded gas you will have taken this trade and made a huge profit already.Here we will show you how to protect this profit, bank it when the time comes and look at another trade that has even bigger profit potential!So lets look a crude and unleaded gas and how to maximise what you hav ...
|
