How will you start with day trading? Well two years ago I did want to start with day trading myself, I searched the web for months to find some good information. What indicators do I have to use, what stops will I use etc.
Every week I want to bring a small story of my mistakes that I made and where I learned from to become that next pro trader!
My first mistake I started out with delayed charts. When you are day trading you want some good charts with a good feed! I used Realtick and now I am using E-signal, these products will never let you down during trading! I know some off my partners who are trading with charts from their broker, but when they need the charts sometimes they don't work! So very important to have good charts that the most important tool you are using when you are trading!
The 2nd mistake I did make was trading from news and earnings! You know the story people will talk on a stock like if it will go to the moon, but as soon you are in that trade the stock will fall and keep falling! This called the Wall street hype! Never trade of news or earnings not even when your friend is telling buy this or that! Only use charts to trade off! If something is overbought look for a good short is something oversold look for a good long opportunity. A very good example of this is when apple was trading around $700 some analysts on cnbc where telling that apple will go to $1000, this was the final call to get the amateur trader on board to slam it down. At this moment apple is trading at $390. Could you imagine that you were long the stock at a new record high? You will probably are still holding it at the moment and have a big loss! As pro trader you will avoid things like this and use this as an indicator!
Hear you all next week to bring you part2!
Kristof De Block