Day trading, where to start?

kjones5159 · Aug 31, 2012

Credit where it's due: I didn't even pull up an MACD or any moving average or anything all day. Nothing but candle charts and the RSI. Thanks.

Quote from NoBias:

The Library,

Study, familiarize yourself as much as you can, Investopedia is a good start.

Work your way down, start with learning the basic concepts of Risk mgmt, blah, blah, blah. Do not use indicators, cross over methods, etc... bla, bla, bla, stick to price.
[No sense to repeat myself, you can research previous posts]

Once you have conducted the basic research to familiarize yourself with all the terms and concepts, recommend Swing/position trading initially.

Simulator at first to work out the mechanics, then small size for psyche to enter the mix, then slowly add size. Use Daily and Weekly charts.

If you think you must day trade, then slowly reduce the time frame of your charts, and repeat the process, confirming that your method works across faster time frames.

One must be successful trading slower time frames before they should ever attempt day trading, and god forbid attempt scalping as a beginner.

Don't expect to become a successful Day Trader overnight...
90% of Trading is in the preparation, 9% in the management, 1% in the execution
[before the %'s get flamed, it is an analogy]

I personally don't believe in self mutilation or self-punishment, the market will be kind enough to do that for you, but to each his own...
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SUPERIOR1 · Sep 3, 2012

People trash some traditional indicators like RSI or Stolchastics. Truth is they are useful to a certain extent.

It is easy, most just don't understand it right away. A positive risk to reward and a 45% or higher win rate. This is the most basic trading that requires emotional skill to stick to stop losses-and understand that each bad trade is normal.

Mysteron · Sep 3, 2012

Quote from kjones5159:

Day one ledger, paper trading:

FST 8/31/12 11:56a 8/31/12 11:56a Short 12865 $7.54
FST 8/31/12 1:13p 8/31/12 1:13p Cover 12865 $7.49
FST 8/31/12 1:19p 8/31/12 1:19p Short 19518 $7.46
FST 8/31/12 1:23p 8/31/12 1:23p Cover 19518 $7.42
FST 8/31/12 1:42p 8/31/12 1:42p Buy 15280 $7.43
FST 8/31/12 1:45p 8/31/12 1:45p Sell 15280 $7.45
XIV 8/31/12 1:55p 8/31/12 1:55p Buy 7636 $13.81
XIV 8/31/12 2:03p 8/31/12 2:03p Sell 7636 $13.79
CHK 8/31/12 2:10p 8/31/12 2:10p Short 5552 $19.41
CHK 8/31/12 2:15p 8/31/12 2:15p Short 4692 $19.44
CHK 8/31/12 2:20p 8/31/12 2:20p Cover 10244 $19.49
CHK 8/31/12 2:21p 8/31/12 2:21p Buy 5343 $19.47
CHK 8/31/12 2:22p 8/31/12 2:22p Sell 5343 $19.48
CHK 8/31/12 2:24p 8/31/12 2:24p Short 12751 $19.47
CHK 8/31/12 2:29p 8/31/12 2:29p Cover 12751 $19.46
FST 8/31/12 2:30p 8/31/12 2:30p Short 16531 $7.50
FST 8/31/12 2:51p 8/31/12 3:01p Cover 16531 $7.48
CHK 8/31/12 3:16p 8/31/12 3:16p Short 4962 $19.39
CHK 8/31/12 3:19p 8/31/12 3:19p Cover 4962 $19.40
FST 8/31/12 3:20p 8/31/12 3:21p Buy 15076 $7.47
FST 8/31/12 3:28p 8/31/12 3:28p Sell 15076 $7.44

Notes: Towards the end of the day when volume died I tried to find trades that weren't really there, tried to force it.

Short FST at 7.50 at the second peak of a double top, covered when the trade became profitable, should have held until a sign of reversal appeared around 7.40.

P/L: Up approximately 1.33%
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For daytrading only trade stocks with a daily range of at least 50c as suggested by The Expert / The Oracle elsewhere on ET. Otherwise commissions erode profits too much. Personally I wouldn't trade any of the above stocks for that reason.

For simulated trading, although it isn't daytrading, try:

http://chartgame.com/

and without using any indicators whatsoever, see how long it takes to get into the zone, so to speak, and double the initial capital.

kjones5159 · Sep 3, 2012

Quote from Mysteron:

For daytrading only trade stocks with a daily range of at least 50c as suggested by The Expert / The Oracle elsewhere on ET. Otherwise commissions erode profits too much. Personally I wouldn't trade any of the above stocks for that reason.

For simulated trading, although it isn't daytrading, try:

http://chartgame.com/

and without using any indicators whatsoever, see how long it takes to get into the zone, so to speak, and double the initial capital.
More...

This is great, seriously. Thank you. I'm at 52% now and I got a new chart

Again, nothing but candles, RSI and volume.

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Day trading, where to start?

kjones5159

SUPERIOR1

Mysteron

kjones5159