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I came to post this and you already had it. Look into price action, get away from indicators, rooms, and gurus.
You talk about wanting to make $50/day. What is your loss limit for each day? Your stop per trade will be dependant on market context and therefore flux. Your stop will need to fall within your daily loss limit, if it doesn't then you don't have valid risk to take the trade.
Look into trading pyschology, risk management, and price action. Trade as small as possible until you figure it out and then work to scale your position up.
Guess I should have posted that better. Not $50 PER day. It's more of a cumulative goal. As I said, if I can break even overall I will be thrilled. I did say I would not stop for the day even if I made $50. The most I like to lose in a day is $1,000. I want to trade for 4-6 hours a day as long as I am not losing money with an ultimate goal of someday making at least $50 a day average.
My calculus is rusty,but the numbers are off somewhere or the drinks I had last night are still being processing and frontal cortex is not functioning well.
I disagree at getting rid of indicators. I think you just have to know how to use them.
Sure, they have a lag, but a lag at the beginning of a move is inconsequential. As an example, the break out of a bollinger band squeeze may not show till after the move has started, HOWEVER, it still shows so near the beginning, and so far before the end, that you can capture a big chunk of the move anyway.
If your goal is to get every little bit of the price move, of course it won't work. However, if your goal is to catch a good sized slice from the middle of the move, it's works just fine. You'll miss the start, and you will miss the end, but everything in the middle is yours. This makes the lag irrelevant.
in order to put the market in context, some indicators can be extremely helpful. I wouldn't use them for triggering a trade, but I get a lot of useful information
I am finally moving in the right direction. THANK YOU Everyone!
Still would like advice from the profitable traders out there.
I am trading 1 contract. I try basically to find where the reversals are using various signals and try to scalp a little or jump on the trend once I have some confirmations that the S&P is reversing. I move my hard stop up if the trade goes my way. I usually try to stay about 6-8 ticks behind to give it room to move. I also set my limit to the resistance line if it's a consolidation time or I give it more room if the stock is trending until I feel the stock is reversing again.
Do you guys think this could work it long run (it has in short term)? First system I've ever had actually working!
For any newcomers; here is what I found my biggest mistakes were. Trendlines are virtually useless (I am sure they have there time and place, but using them to day trade did not work out AT ALL. I would have 1 monster trade, but all to often I was wrong footed when entering trades. Switching from candlesticks (even though they are so much prettier) to tick charts has also made all the difference. To think of all the time I wasted reading books on how to read candlestick charts! Now I focus more on the volume and type of trading going on. I WAS SHOCKED to find that I could pick out the turning point several times on stocks that showed no sign of breaking the "trend line" on a normal price candlestick chart. (I realize I will be wrong several times, but I can wait til things move my way...) Not saying any of these things are better, but for my trading syle; apparantly they are.