Stock Trading War Strategy
Whenever you put on a trade earlier in the day and the market keeps moving in your favor, should you stay in that trade overnight? What about the weekend? Those inquiries apply only to lucrative trades. Booking a loss over the weekend is totally for newbies.
A beginner must close his day-trades by the end of the trading day, but a shrewd professional has got the choice of holding the position overnight. When a market closes inside a few ticks of the day's high, it usually goes past it the next morning. A market that closes on its lows typically teases with lower lows the following day.
Now nothing is guaranteed, as the market may close on its high, get hit with atrocious news overnight, and open sharply lower. This is why only seasoned day-traders have the choice of holding their trades overnight.
Research, knowledge, and discipline place your trades on a more nerveless, more intellectual basis. You must explore the past, calculate the odds, and arrive at informed decisions for the future. When you day trade, there are lots of hours when the market goes nowhere, allowing you to calculate the numbers.
So traders I know use an individual computer or acquire two computers and devote one to trading and another to research.
Look at one year's history for the market you are trading. Create a spreadsheet and start asking yourself questions. When the market closes just five ticks from its daily high, how many times did it reach a new high the next day? How far did it go the next day? What about on days when the market closed within five ticks of the lows? How low did it go the next day?
When you arrive at the solutions, ascertain what occurred when the market closed within 10 ticks of the high, and so forth.
Pros are given to deal in the same market month after month, even when there is a high turnover of amateur traders. Pros have become accustomed to trading a certain method, and to trade with them you must identify those patterns and identify them on a stock chart.
Strive to make the foundation of your trades on objective chart analysis and not subjective gut feeling. You must learn the money making chart patterns and then find them yourself on various charts. You need to do this because only then will you gain the confidence to make better trades. - 23305
A beginner must close his day-trades by the end of the trading day, but a shrewd professional has got the choice of holding the position overnight. When a market closes inside a few ticks of the day's high, it usually goes past it the next morning. A market that closes on its lows typically teases with lower lows the following day.
Now nothing is guaranteed, as the market may close on its high, get hit with atrocious news overnight, and open sharply lower. This is why only seasoned day-traders have the choice of holding their trades overnight.
Research, knowledge, and discipline place your trades on a more nerveless, more intellectual basis. You must explore the past, calculate the odds, and arrive at informed decisions for the future. When you day trade, there are lots of hours when the market goes nowhere, allowing you to calculate the numbers.
So traders I know use an individual computer or acquire two computers and devote one to trading and another to research.
Look at one year's history for the market you are trading. Create a spreadsheet and start asking yourself questions. When the market closes just five ticks from its daily high, how many times did it reach a new high the next day? How far did it go the next day? What about on days when the market closed within five ticks of the lows? How low did it go the next day?
When you arrive at the solutions, ascertain what occurred when the market closed within 10 ticks of the high, and so forth.
Pros are given to deal in the same market month after month, even when there is a high turnover of amateur traders. Pros have become accustomed to trading a certain method, and to trade with them you must identify those patterns and identify them on a stock chart.
Strive to make the foundation of your trades on objective chart analysis and not subjective gut feeling. You must learn the money making chart patterns and then find them yourself on various charts. You need to do this because only then will you gain the confidence to make better trades. - 23305
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posted by Mr. Forex at
3:40 AM
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