TODAY I SHARE WITH YOU ONE TECHNIQUE OF SWING TRADING & ASKING TOO..
WHEN 5 DAYS SMA CROSSES 13 DAYS SMA FROM BELOW TAKE BUY OPPORTUNITY & DO SALE AT REVERSE SITUATION.
CAN YOU SUGGEST ANY OTHER METHOD FOR SWING TRADING.
KINDLY EDUCATE ME.
REGARDS.
KEDAR
kedarvb@rediffmail.com
http://stockcharts.com/school/doku.php?id=chart_school:technical_indicators_and_overlays:moving_average_convergence_divergence_macd
What exactly do you think the "other" day traders do wrong?
If they are "ignorant" as you suggest – what should they know that would make them less unsuccessful?
If this is more than idle boasting – you should take your results in the real world to a publisher and get a book out that allows the ignorant masses to understand your superior techniques and live off the royalties!
What kind of stocks are the ones they are selling right after they get them etc….and rushing around more ?
The other long term strategy is to buy good companies that keep making money every year and wait many years as their shares grow with the earnings. This is the usual way normal people invest their money for the long term. In the short term trying to catch moves is exceedingly difficult for non-professionals.
I am a day trader and often try to derive profit from the disparity in currency rates at various points of time. People who try to make some huge profit can incurr loss using this techniques but if we try to capture small pips then its a winning strategy.
One of the fund Manager of FINEXO suggested me to try this once when i was looking up for high returns. Surprisingly i made huge pips in just 1 hour and thats how i became a Day trader.
Anyways the basic requirements for successful Day trading are:
1. Excellent Command on Technical charts.
2. Look beyond what common man does.
3. Foresightedness
4. Be Different.
5. Good Source of market news and technical charts
6. Ability to draw conclusions from market updates.
If you have these you can very easily succeed here. I am using Finexo charts and updates which are quite accurate and reliable for me. If you have other sources it would be an added advantage.
Take 6 months to a year reading, learning and paper trading.
You fully understand the fundemental and technical aspects &(just as important) use very exact money management techniques.
Ignoring the above will put you with the 95% of people that blow their FX accounts (usually very very very quickly).
Consider yourself warned!
This is a great market for those that take the time and make the effort. All others lose big.
If you list at least two of the books im reading this month i'll give you the "Best Answer"
So what are you guys reading?
2. The Stock Trader: How I Make a Living Trading Stocks by Tony Oz
3. The Nasdaq Trader's Toolkit by M. Rogan LaBier
4. The Master Swing Trader: Tools and Techniques to Profit from Outstanding Short-Term Trading Opportunities by Alan S. Farley
5. Tools and Tactics for the Master DayTrader: Battle-Tested Techniques for Day, Swing, and Position Traders by Oliver Velez
6. The Undergroundtrader.com Guide to Electronic Trading: Day Trading Techniques of a Master Guerrilla Trader by Jea Yu
7. Day Trading on the Edge: a Look-Before-You-Leap Guide to Extreme Investing by Leslie N. Masonson
8. The Guts and Glory of Day Trading: True Stories of Day Traders Who Made (or Lost) $1,000,000 by Mark Ingebretsen
I think it is pretty cool that you are trading at your age. But, no matter what strategy you use, don't take on too much risk, cuz losing trades are part of the game, no matter what strategy you trade.
Good luck!
Scott Cole
www.bestdaytradingstocks.com
www.kungfutrader.com
It requires a lot of time in front of the computer.
Basically if you want ot day trade – in and out of a trade on the same day – well you have to be dependent on technicals as well as any news that the market is awaiting or is absorbing. and for private investors this up to date news is hard to obtain.
Technical charting day charts – make sure you have all the indicators in your system present as well as all the time scales that only cover the day: ticks. 1 minute, 2 minute, 5 minute, 1/2 hour, 1 hour.
Not all indicators work in this short term environment.
Look at Cramer's record – it is worse than DOW's — so why should I listen to his recommendations
About day/swing trading — start with small amount (say $3000) learn on your own, read and practice, do not quit the job.
Do not listen to others. (including me!)
I don't think anybody gets pissed off because you day trade. In fact one of the popular day trading strategies is to look for a certain "signal" shortly after the market opens, and be in and out of a stock within 1-2 hours.