Technical Charts – Secrets of the Pros

Technical charts are among the best tools used by professional traders to make a good profit out of their investments. These charts help the trader recognize some patterns and trends in the prices so they can make wise predictions based on technical analysis. It is not just a beginner’s way of getting a feel for the market; even professional or experienced traders refer to their charts before making a major trading decision.

What are these charts like?

A technical chart is basically a graphical representation of how a security or commodity is doing in the market for a certain period of time. A trader may refer to existing charts that are based on recent trading history of the currency of interest. Fortunately, the Internet offers some of these technical charts. If the trader keeps close watch of the market, he or she can plot the points himself or herself. Of course, the trader can make use of a special software that can generate the graphs on the computer. The trader only needs to supply the data needed and pick what type of technical chart he or she prefers.

What can technical price charts do? Continue reading “Technical Charts – Secrets of the Pros”

Day Trading Success- The Key Is Survival

Most new traders tend to focus just about all their time and energy on finding nearly perfect “setups”, but trade setups, even very good ones, are *not* the key to successful trading. It’s the *way* you trade your setups that keeps your losses smaller than your gains. And this is the single most essential key to trading success. To me, the process of limiting losses is more than just money management…it is survival.

I can’t give you a list of mechanical survival rules that will take the place of experience and make you a successful trader overnight, but if you stick to the following principles in your trading, you’ll be on track. You’ll be doing just about the opposite of the crowd, and you’ll eventually learn to limit your losses. Limiting your losses is the only way I know to make money in this business.

The following guidelines will sound radical, but they have guided me in making my living from trading for many years. Continue reading “Day Trading Success- The Key Is Survival”

5 Day Trading Tips for Success

1. How to Treat Gap Openings

A gap up or gap down open is an emotional move, and it often will reverse course and turn in to “trap open”. Gaps that are less than 4 points on the SP Future tend to get filled in the same day, especially Tuesday through Thursday. Turns will occur within 20 to 40 minutes after the open. A trader must be on the lookout for a reversal as soon as early momentum is lost.

A gap into a good support /resistance zone is almost always a good “fade” – with stops no more than 1 point on other side of the support /resistance zone.

(A “fade” is simply entering a position opposite of the direction of the gap. If the market gapped down, a “fade” would be entering
a long position (buying) in to the selloff.) Continue reading “5 Day Trading Tips for Success”