Introduction to Day-Trading
Day trading is the act of buying and selling financial-traded assets on the same day.
Crucial Issues When Trading Intraday
Day-trading seems promising, but in reality, day-traders are exposed to a significant number of market risks, and they are forced to pay a high transactional cost. Understanding technical analysis and using efficient money management and trading setups is the first step to successful day-trading. These are some important issues for all day-traders:
(1) Minimization of Trading Cost (Trading spreads and commissions)
(2) Implementation of a Trade Strategy {Compatible with your trading profile and risk appetite}
(3) Use of efficient Money Management {Risk/Reward, Stop-Loss, etc.}
(3) Effective Technical Analysis
(4) Trading Setups {Waiting until the market comes to your setup, and only then trade}
Technical analysis
Technical analysis can provide a quick analysis framework when trading financial assets. Day-traders can use several technical tools such as Candlestick Patterns, Indicators, Trendlines, and Triangles. Be very careful in order to identify with reliability the general market trend. Your profit potential depends on the trend of the market you trade. Use technical analysis to evaluate the general trend of the market.
These are some important technical analysis tools for day-trading:
- Support & Resistance levels
- Daily and Weekly Pivots
- 50, 100, and 200 periods EMAs
- Chart Patterns and Candlestick Formations
- Higher Highs / Lower Lows
- Harmonic Price Patterns
- Price Channels (very important in Forex trading)
- MACD and MACD Divergences (on H1 and above)
- RSI(21) on M5
- RSI Divergences (on H1 and above)
■ Introduction to Day-Trading
Trading Center
L MORE RESOURCES