One of the biggest problems new traders or even unprofitable traders face each day is information overload. Â When you combine this information overload with the belief that indicators offer some type of magical entry formula, all you really get is confusion, which leads to losses. Â It’s important that you understand that less is better when
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The first thing a trader must do each day before entering a trade is to determine the type of day it is and what is happening with the current price action in that market at the moment. Â Understanding how the type of day affects the way you read the price action is important. Â When I
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I’m often sharing my thoughts on day trading, and since I concentrate on price action day trading, I’m certainly biased in my thinking about the most important steps to becoming a day trader and what it take to succeed as a real life day trader. Â However, whenever I read or discuss day trading with another
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The average daily volume for the stock indexes continues to be extremely low, and this low volume continues to plague day trading efforts if you don’t understand how to properly read a price chart. Â The average daily volume for stocks in August is the lowest since 2007, so we are seeing a five year low
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While we don’t suggest anyone start day trading without any knowledge of the markets, everyone has to start someplace. Â We actually get inquiries from people almost weekly asking about price action day trading, even though they have never traded in any form or fashion in the past. Â For this reason, we felt it was worth
While most day traders have heard about price action trading, most don’t really understand the full meaning of the term. Â Many people think that price action trading involves watching for certain chart patterns only, but that is far from the truth. Â While we are interested in certain chart patterns, we do follow a list of
There seems to be a lot of interest in price action day trading rooms or any type of day trading room where proven traders call the trades and everyone else tries to follow along. These rooms are normally set up where traders pay a monthly fee to be members, and for this fee, they can
We have talked about how markets are often correlated and how you can use one market to possibly help judge the direction of a different market in previous articles, but today we want to take this idea one step further. We are often asked if the price action in one market can provide clues to
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Today’s electronic trading is dominated by what we now know as High Frequency Trading. We know this computerized order entry technique has changed the day trading landscape, but does high frequency trading really affect the price action for day traders? For simplicity, we will call our high frequency trading “HFT” for short during the rest
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The markets have been very choppy and ranging quite a bit lately as they slowly move higher, but along with the choppy ranges have also been short bursts of price movement that has been very bullish or very bearish, so what is the cause of the short bursts of price action in the indexes? These
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