I have traded my own account for many years, trying most styles before finding my particular niche - day trading grain futures contracts. What seemed important in those early days now seems largely irrelevant. Instead, I focus exclusively on a few powerful trading concepts. This article summarizes what is important to me now.
In order to be successful at day trading support and resistance, you must have confidence in your trading strategy. Most traders with less than 2 or 3 years of experience, and for those who are just starting to learn day trading...well, they have nothing to be confident about. (But, there is a strategy that really helps inexperienced traders, so don't be discouraged, we'll talk about it in a minute.) If your trading strategy isn't making you money consistently, in "real time", you can't have confidence in it. But, how can you tell if your method is any good when you don't yet have the nerve and discipline to trade it?
Day trading can be considered as an offspring of high speed electronic communication networks. Most day traders today trades markets from a distant location such as their home or work area. They use trading software, the direct access trading platform, installed in their computer connected to internet to execute trades in real-time. In order to qualify for the trades, the trader must maintain a margin in the corresponding market. It is the day trading broker who maintains the margin for the trader and provides the direct access trading platforms. Although there are web-based trading platforms available, they are not suitable for day trading.
Day trading is a broad term, encompassing many trading styles. The one thing all day traders have in common is that they are out of their positions at the end of the primary trading session. No open positions are held overnight, at weekends, or even during lightly traded electronic sessions outside primary trading hours. The typical image of a day trader is of a person glued to a screen during long market hours, possibly entering several trades during the course of a day. That is true of many traders, but there are other styes. For example, my own approach is quite different.
Having confidence in a method you have traded in simulation mode is the most rational starting point for a new trader, or any struggling trader. So begin the successful part of your trading career with a strategy that you personally have learned to trust through real-time trading (preferably simulated trading). Not all trading strategies are alike when it comes to day trading psychology, and this is important to understand.
Day trading facility is available for most stock, options and futures market, but note that most brokers offers services for limited markets/exchanges. The trader also must be keen to choose markets according to the product they are trading, their financial status, the brokerage they are affiliated to, the trading system they uses, and their geographical location.
In order to be successful at day trading support and resistance, you must have confidence in your trading strategy. Most traders with less than 2 or 3 years of experience, and for those who are just starting to learn day trading...well, they have nothing to be confident about. (But, there is a strategy that really helps inexperienced traders, so don't be discouraged, we'll talk about it in a minute.) If your trading strategy isn't making you money consistently, in "real time", you can't have confidence in it. But, how can you tell if your method is any good when you don't yet have the nerve and discipline to trade it?
Day trading can be considered as an offspring of high speed electronic communication networks. Most day traders today trades markets from a distant location such as their home or work area. They use trading software, the direct access trading platform, installed in their computer connected to internet to execute trades in real-time. In order to qualify for the trades, the trader must maintain a margin in the corresponding market. It is the day trading broker who maintains the margin for the trader and provides the direct access trading platforms. Although there are web-based trading platforms available, they are not suitable for day trading.
Day trading is a broad term, encompassing many trading styles. The one thing all day traders have in common is that they are out of their positions at the end of the primary trading session. No open positions are held overnight, at weekends, or even during lightly traded electronic sessions outside primary trading hours. The typical image of a day trader is of a person glued to a screen during long market hours, possibly entering several trades during the course of a day. That is true of many traders, but there are other styes. For example, my own approach is quite different.
Having confidence in a method you have traded in simulation mode is the most rational starting point for a new trader, or any struggling trader. So begin the successful part of your trading career with a strategy that you personally have learned to trust through real-time trading (preferably simulated trading). Not all trading strategies are alike when it comes to day trading psychology, and this is important to understand.
Day trading facility is available for most stock, options and futures market, but note that most brokers offers services for limited markets/exchanges. The trader also must be keen to choose markets according to the product they are trading, their financial status, the brokerage they are affiliated to, the trading system they uses, and their geographical location.
About the Author:
Frank Miller has a Debt Consolidation Blog & Finance, these are some of the articles: The Way To Speed Up A Tax Refund You have full permission to reprint this article provided this box is kept unchanged.
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