Archive for ‘daytrading’

Beginning Traders Can Learn to Day Trade Effectively

By , 28 June, 2010, 3 Comments

There is a general feeling among experienced day traders that beginning traders cannot trade profitably for several years. As a trading educator, however, I have found that properly trained beginning day traders can trade effectively from the start. However, the trader must be motivated and well versed in the material presented, and have the self discipline to adhere to the parameters of the trading system being taught. This is, of course, no small task. Just the same, the financial rewards far outweigh the time and effort expended to develop the skills necessary to trade.

In my program, The E-mini Trading Professor System, we have found that beginning day traders can be a profitable within several months of starting our system. It is important that the trader sticks with the rigid guidelines established for proper trade setups and maintain that discipline throughout the course of an average trading session.

Once a beginning trader learns to day trade only with the trend, which is one of the most important aspects of our trading system, trade selection becomes very far easier process than trying countertrend trading techniques. Learning to trade with the trend is no small feat, either. There are many countertrend trades that, at first glance, appear enticing and a sure bet to earn money. Unfortunately, countertrend trades are generally just retracements in a broader trend and must be avoided in order for the beginning trader to profit.

Much of what we teach in day trading centers around the psychological/emotional approach that is necessary to trade successfully. Many trading educators do not devote much time or effort in stressing the importance of psychological/emotional considerations. We consider these issues to be among the most important and toughest skills to master in the day trading process and devote several modules in the course that consider psychological/emotional considerations at length. If you can control your mind, you can control your day trading and make sound, rational decisions about selecting the proper trade set up.

While every day trader may not be ready at two months to trade profitably, many are. It’s important to understand that every beginning day trader assimilates information at a different rate and in a different manner. That being said, some traders are ready to trade earlier than others. On the other hand, I have not found a correlation between how soon a trader is ready to trade and the ultimate success they achieve. Simply said, some traders are ready to trade earlier than others, but once the trading methodology is assimilated there is no appreciable difference in the actual performance. I encourage beginning day traders to take their time and learn the information at a rate they are comfortable. This approach assures the proper retention of the information.

Bottom line; beginning traders can trade profitably sooner than it was once thought. I say this was one caveat though, the traders who have learned the information and practice the most on a demo account are the ones who enjoy the greatest success. Jumping into trading a live account with real money involved is not encouraged; on the contrary, it is far preferable to hone the beginning trader’s skills on a demo account so that they understand, in a real sense, the material presented in the course and can apply it.

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Day Trading: Are You Giving the Euro and Forex Your Attention

By , 26 June, 2010, No Comment

I am not a huge Forex trader, though I occasionally dabble with day trading Forex. With the problems Europe is having, which have greatly affected the euro and have taken on some added significance and are certainly worthy of keeping an eye on. While many people are loathe to admit it, the fate of the euro is directly related to the performance of the US dollar. So I have day traded some Forex lately, even and even more often day trade the futures currencies of several European countries, along with the euro.

The video today is an excellent overview of the euro and some of the effects it will have in the future on our economy. There is also discussion concerning the future of the European Union and how it will affect us here in the United States. While talking about the global economy is a very unpopular subject in some circles, there is no doubt that the global economy is a reality and we are a distinct part of the global economy. So, I hope you enjoy the video and glean some important information while watching.

Click here to watch the Forex video and the discussion of the euro

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Day Trading: Market Convergence and Divergence

By , 25 June, 2010, No Comment

Most of my day trading involves, either directly or indirectly, the principles of convergence and divergence. For day trading in the futures market, I am concerned primarily with converging indicators and agreement and oscillators. But there is a wide range applications for the principles of convergence and divergence. I thought this video from INO was very informative and will provide you with some valuable insight into the practical application of bearish and bullish convergence and divergence.

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Day Trading: Do You Find Yourself Falling in Love

By , 10 June, 2010, 1 Comment

Once the novice trader has proven his or her competence in basic trading, he or she has started down the path to trading success. Day trading skills are important to assimilate in a timely manner and hone with a solid dose of demo account trading, followed by live trading on the contract they have chosen. In the day trading world though, chart reading skills and trading experience are only one part of the equation for success. The next component in a successful traders skill set is the ability to manage trades.

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Is E-Mini Day Trading a Risky Proposition

By , 5 May, 2010, No Comment

There is a general perception that day trading futures contracts is a highly risky business and not for the faint of heart. Day trading can be a very risky business, especially when traders use poor money management techniques, faulty trading technique, and improper risk assessment for trades. For the uninitiated, day trading is a great way to lose a nice chunk of money.

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A Great Way to Earn Money On the Internet: Day Trading

By , 1 May, 2010, 1 Comment

I still use simple indicators and am highly successful. You don’t need fancy computers or even elaborate computer programs to trade successfully on your computer. It’s actually a very simple exercise, and there are even practice accounts where you can hone you trading skills until you become proficient. Demo accounts are like real accounts except you are not trading real money, you are just trading hypothetical money.

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This trade didn’t go exactly as I planned

By , 28 April, 2010, No Comment

I thought that this might be a good video to watch as I had to scramble a bit to salvage a gain from the trade.  The darn thing almost stopped out for a gain three of four times but stopped one tick short.  I finally had to move my stop up to 7 ticks as the market started to consolidate and I worried that the trade would go south.  It was a pretty interesting trade and I actually had to think a little as the trade played out.  Did I do the right thing?  Let me know what you think.

The Simple Moving Average

By , 25 April, 2010, No Comment

Not many indicators get less respect than the diminutive simple moving average (SMA). Though there are a multitude of useful applications for the SMA, most traders opt for more complex indicators in their trading methodology. To my way of thinking, this is a mistake. There are very few charts I use that don’t have some variation of the SMA included on them.

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