Stochastic, MACD, Bollinger Bands Plus Day And Swing Traders

  Image: A professional day

  trader sitting at his desk.

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What is day trading?

It is a trading method that utilizes both technical and fundamental

analysis to uncover short term bullish trade or bearish signals in

real times.  It aims to profit from short term market cycles without

dwelling too long in the market.

A day trade may last for fifteen minutes up to two hours in normal

market conditions.

Who are day traders?

These are market players that use technical indicators such as the

slow stochastic, Moving Average Convergence Divergence indicator

(MACD), Relative Strength Index (RSI), or the CCI indicator to spot

real times buy or sell trading signals without disregarding the

trading triangle.  They also employ chart & market patterns,

Elliott wave structures and Fibonacci patterns.  Apart from these,

more advanced short term traders also make use of fractal trading

strategies to forecast the next price move.

Day traders are the most active market participants since they

are constantly placing orders.
More working traders can place more than hundred trades per

day depending on their trading style or account.  

There are regular day traders, but also professional traders who

trade for hedge funds, banks, trading firms and big financial

institutions such as J. P. Morgan or Goldman Sachs.  Common short

terms traders are less in action than the professionals for the reason

that most are part time short term traders with minuscule trading

accounts.

Day-traders buy or sell stocks, currency pairs (Forex or FX),

commodities, indices and ETF.  As real times market participants, they

spend most of their time looking at their computer screens.  A day-trader

can spend at least three hours starring at computers screen when he

or she is trading.   

Day trading tools

Most daily traders use mechanical trading systems such as the TSTW 24,

TS CCI PRO or Swing 240.  The systems allow them to apply viable

trading strategies without guessing the market.
They also help them to stay focused, disciplined and detached from

all unnecessary emotional
or irrational reactions.  Furthermore, they as well rely on

automated trading software such as Track 'n Trade Autopilot. 

Though, these trading tools are essential, the most imperative

trading instrument is the trader.
He or she has got to be able to filter out false signals or distortions

and take into consideration the current market environment.  A trader

will also pay heed to all economic news at Google finance,

Yahoo finance or Forex factory.  One shall always trade guardedly

when high impact news such ADP Non-Farm Employment Change or

Non-Farm Employment Change.

Real times traders bring into play various trading strategies depending

on the financial instruments that they are trading.  The most

effective strategies are the three channels trading methods which do

not violate the market patterns.  Day traders also specialize in a

particular market or financial security.  Some do trade stocks while

others only trade Forex or commodities.  In addition, there are also

specialists for a single financial instrument such as the Euro-dollar

currency pair, silver or gold.

Day trading pitfalls

a/ The number one pitfall is over trading when a trader becomes too

greedy and exposes more than 5% of his or her trading account.   

b/ Lack sufficient trading fund.

c/ Lack of a viable trading plan or strategy.

d/ Constant violation of market patterns.

e/ The use of a single time frame instead of a multiple time frames

trading strategy.

f/ Bad habit of repeating the same common trading mistakes over

and over without caring.

g/ Gambling instead of learning how to day trade.

h/ No consideration to the economic news at Google finance, Yahoo

finance and Forex factory.

I/ No desire to learn to apply the trading triangle.

j/ Impatience; one never waits for a price candlestick bar to close

before looking for signals or always rushing to place a trade

k/ No viable money management or hedging strategy.

l/ Setting the wrong goal such as making money instead of one

that seeks to trade successfully
   like a pro.   Indeed, trading like a pro will permit one to profit

from the financial markets.

m/ No attention to London, New York or Hong Kong’s opening bell.

n/ Addiction to be in a trade even if the trade setup is not reliable.

p/ Being a courageous trader instead of a smart trader.

q/ No knowledge of basic market protocols that the professionals follow.


Final points

It is essential for beginners to remain composed, and stop blaming

themselves too much for these downfalls.  New traders are more

likely to commit these errors without knowing, but it is

indispensable to review all losing trades.  If one had a losing trade,

one ought to know what went wrong.  Once one identifies the source,

one will now try to rectify it or control it if it arises in the future.

For example if a day trader does not acknowledge the opening bell

and notices that this is one the causes of his or her trading failure,

he or she will learn to be patient or wait at least thirty minutes

after a market is open before pulling the trigger.

It is vital to all active market participants to watch the full length

of each educational day trading tutorial.
These trading tutorials have been carefully prepared to help day

traders who want to boost their trading skills.  These are practical

demonstrations with effective day trading strategies that one

can learn and master.

Finally, one ought to understand that it takes time to become an

expert.  Therefore, one will engage one step at a time making sure

that one grasps the first level before heading to the next.  The

learning curve varies from one trader to another, but nothing

can stop those who want to adopt the mindset of a professional

day trader.

   Image = A day trading picture

   showing a day trader analysing

   a chart .

Watch all the best day trading strategies video tutorials HERE