Trading Educators Blog
There are only two kinds of day traders: the quick and the dead. Day trading is like guerrilla warfare. The quick, seize opportunities immediately, move their stops to break even as soon as possible and capture as much money as is possible in the shortest amount of time. Often they are scalpers in for a quick kill, then out with the money! The dead are never quite sure when and how to enter a...
Hey Joe! How can I get a feel for what's happening in the market? One of the things that has helped me was beginning to use tick charts for my day trading. In a past issue of Chart Scan, I explained that there are two kinds of volume: Contract Volume and Tick Volume. Almost everyone is familiar with contract volume. It's usually shown as a histogram at the bottom of a price chart. For a given time...
There is an old saying that when day trading positions have had negative open equity most of the day, and an opportunity arises to exit the market at break even with less than 30 minutes of trading rises, go ahead and exit the market. Unless the market is moving rapidly in your direction with expanding-in-length bars, and no more than 5 minutes left, exit immediately and consider the opportu...
In 1981, when I first started day trading, I would get to bed early night, wake up early, and be excited about starting the trading day. I remember on time when it was a cool, sunny day, and I really felt rejuvenated. After a quick exercise session, I couldn't wait for the markets to open, so I could make a few winning trades. I was really hyped. "Today is my lucky day. Today I'm going to make a ...
During ongoing activities, such as day trading, you have to learn how to pace yourself. This means alternating between times of intense activity with times of greatly decreased activity, times that require very little of your attention. These "rest periods" should take place when you do not have to quickly react to sudden market moves. This is hard advice to follow for some traders. They just won'...
I wrote an article with the headline "Sometimes others get to play and you don't" some time ago and today (Friday 04/01) was such a day. And I tell you, it is difficult to watch markets are going my way knowing I could have made my shares for April but I missed the trade. Well, I haven't missed the trade actually because it wasn't my train. Here comes what happened. At 7:30 AM CT this morning we h...
