Stock Trading Terror
If you get into a position early in the day and the market keeps going in your favor, should you keep that stock overnight? Should you hold it over the weekend? By nature, these questions only apply to money making trades. Getting hit with a loss overnight is strictly for losers.
A newbie must close down his day trades near the end of the day, but a schooled stock trader has the choice of staying in them overnight. When a market closes within a few ticks of its high, it normally goes past it the next morning. A market that closes on its lows normally baits with lower lows the following day.
Now zilch is guaranteed, because the market could end close to its high, get blasted with dreadful news overnight, and open up precipitously lower. This is why just veteran day traders have the choice of keeping their trades overnight.
Research, knowledge, and discipline cast your trades on a more composed, more intellectual foundation. You must research the past times, calculate the odds, and arrive at schooled conclusions for the future. When you day trade, there are dozens of minutes when the market goes nowhere, allowing you to estimate the totals.
Some trader use two computers and have one with their stock trading station loaded on it and another for research.
Look at one year's history for the market you are trading. Create a spreadsheet and start asking yourself questions. When the market closes just five ticks from its daily high, how many times did it reach a new high the next day? How far did it go the next day? What about on days when the market closed within five ticks of the lows? How low did it go the next day?
When you arrive at the solutions, ascertain what occurred when the market closed within 10 ticks of the high, and so forth.
Pros are given to deal in the same market month after month, even when there is a high turnover of amateur traders. Pros have become accustomed to trading a certain method, and to trade with them you must identify those patterns and identify them on a stock chart.
You want to establish your trades on facts and probabilities, not on bowel feeling and hope. You need to do your own analysis. You can't buy the solutions, because only finding them yourself will grant you the self-confidence to trade. - 23159
A newbie must close down his day trades near the end of the day, but a schooled stock trader has the choice of staying in them overnight. When a market closes within a few ticks of its high, it normally goes past it the next morning. A market that closes on its lows normally baits with lower lows the following day.
Now zilch is guaranteed, because the market could end close to its high, get blasted with dreadful news overnight, and open up precipitously lower. This is why just veteran day traders have the choice of keeping their trades overnight.
Research, knowledge, and discipline cast your trades on a more composed, more intellectual foundation. You must research the past times, calculate the odds, and arrive at schooled conclusions for the future. When you day trade, there are dozens of minutes when the market goes nowhere, allowing you to estimate the totals.
Some trader use two computers and have one with their stock trading station loaded on it and another for research.
Look at one year's history for the market you are trading. Create a spreadsheet and start asking yourself questions. When the market closes just five ticks from its daily high, how many times did it reach a new high the next day? How far did it go the next day? What about on days when the market closed within five ticks of the lows? How low did it go the next day?
When you arrive at the solutions, ascertain what occurred when the market closed within 10 ticks of the high, and so forth.
Pros are given to deal in the same market month after month, even when there is a high turnover of amateur traders. Pros have become accustomed to trading a certain method, and to trade with them you must identify those patterns and identify them on a stock chart.
You want to establish your trades on facts and probabilities, not on bowel feeling and hope. You need to do your own analysis. You can't buy the solutions, because only finding them yourself will grant you the self-confidence to trade. - 23159
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