reasons why short-term traders have such a high percentage of losses is because
that they fit with the same yardstick in all situations.
A common approach is to follow the short-term market momentum and the flow of orders represented on the ticker. This type of trading, called scalping, has
two fundamental problems. First, trade transactions and their
time is shown late, which no one takes into account. Secondly, not all individuals are the same. Chosen strategy
must match your trading ability. То, что работает For Toого-то, совсем не обязательно будет работать For you.
Another reason for failure short-term traders, and especially day traders, in that they are ill-equipped to filter out high-probability and high-profit trades. I'm going to introduce you to seven powerful short-term trading strategies.
Seven Strategies to Choose from are a Good Assortment of E-Trade Day Trader Strategies
timent that meets your requirements. So let's go back to my first question and let me rephrase it:
"What type of predator are you?" You will have to determine what type of trader you are. Let's look at three
type of short-term traders to have a clear idea,
what is it about.
1. Day trader. According to our definition, a day trader is a player who enters the market at some point during
day and by the end of this day remains in the zero position (flat1). He never leaves his position overnight. Some day traders trade
for fractions of point2, usually 1/16 or 1/8. This is called scalping or scalping. This type of day trading
has a very high failure rate. Only one in a hundred thousand constantly makes a profit by scalping. You always hear about exceptions, don't you? Small profit per trade, commissions, slippage and the possibility of a series of losing trades make scalping a technique that is not suitable for everyone. You may be the exception, but don't waste all your money trying to
to prove it. Not all day traders are scalpers. For example, traders
working on intraday trends will remain in the trade,
until the trend changes direction. This takes from several minutes to several hours. Both types of day traders typically buy
500 or 1000 shares or more at a time, which suggests a high
capital level. МAndнAndмальная сумма For дэйтрейдAndнга от $50000
up to $100,000. In general, in general, this type of trading requires a large amount of operating capital. Most day traders make several trades per day. Not difficult for a scalper
carry out during the day from 30 to 150 transactions, while traders,
working on intraday trends, conclude from 3 to 9 per day
transactions.
1 Flat (flat - exchange term) - a zero position of a financial market participant, which is neither "long" nor "short". — Atм. ed.
2 Item (point) - a measure in which fluctuations in the price of securities and currencies on exchanges are determined and measured. On the US stock exchanges, when quoting securities, a pip is taken equal to one dollar. — Atм. ed.
dream and
reality 7
2. A trader working on microtrends. By our definition, this is a trader who takes a position with the intention of holding it.
three to five days. A microtrend trader is trying to trade small sections of a larger trend. In contrast, a day trader never has an overnight position.
Usually resort to a strategic stop placed at the end
day, so that the trader can exit the position in the event of a sharp change in trend. For success in microtrend trading, entry is made when the trend is strong. Typically, this situation
occurs if the trend either develops strictly in one direction, or starts to explode. In this case, the driving force
market (momentum) should support the price for three to five
days. Unlike a day trader who focuses on fractions of a pip,
trader working on microtrends makes deals, profit
from which it makes points. After three to five days, he liquidates (closes) his position and looks for a new microtrend. Minimum trading ToапAndтал For AndндAndвAndдуального трейдера, работающего на мAndToротрендах, составляет оToоло $30000. Majority
microtrend players are very well capitalized,
having $100,000 or more in trading accounts. As a rule, the psychological stress experienced by a trader working on microtrends is much less than a similar pressure on a day trader, since in this case, time is rather an ally of a trader,
than his enemy.
3. Positional trader working in a trend. Positional
the trader tries to ride the trend for 10 to 14 days or more
longer. He usually takes a large position (in a large number of shares) and holds it until another position becomes more promising. If the trend continues, the position trader will
“carry” (roll) stops until the market touches them and
take him out of the trade. At этом позAndцAndонный трейдер намерен
hold the position for 10 to 14 days, but if the trend does not stop,
he will stay with him as long as possible. Often a microtrend trader becomes a position trader a trader working in a trend when his trend of a three-, five-day period
investment explodes, leading to a significant change in prices.
8 Day Trader Strategies for E-commerce
Since position traders are in trades for a longer time, they must allow volatility to increase.
prices and place your stops wisely. Minimum trading
The capital required by a position trader varies quite a lot. If you hold a position for more than one month, you
can be considered an investor. According to this definition,
most fund managers should be classified as positional
traders. In many cases, institutional positional
traders increase their positions if they feel that the long-term outlook for their stock is positive. Position traders
usually able to move the market due to the use of large orders and their simultaneous inclusion in the process of accumulation (buying) or distribution (sales).
What are your time frames? You must understand what to know
своAnd временные рамToAnd ToрAndтAndчесToAnd важно For всей бAndржевой Andгры.
Trading strategy, technical indicators, entry, exit and
other - everything is determined by your individual time
frames. As a professional teaching beginners to trade,
я всегда задаю вопрос: «What are your time frames?» Most
the surprising thing is that they usually answer me: "I don't know." But to understand what type of trader you are, you can only use such a trading category as time. It can be both friend and foe
which is best confirmed by day trading. Any minimum price movement (tick) in real time, positive or negative, increases the stress that binds the mind. Everything becomes exaggerated, and every moment is a turning point. Decisions have to be made every second, and with each new second, another decision - maybe already convulsive
- about buying, selling or holding a position. At the end of the day, you feel like you've run a marathon. Exhausted mentally and physically, you know that tomorrow you will have to run this
distance again. Obviously, not everyone will be successful in the role
day trader. This is confirmed by the statistics of failures of players trying to trade within the boundaries of the day. Many of the potential day traders fail for the simple reason that, by virtue of their
dream and reality 9
wrong trading strategy and methodology simply overtrade. In fact, they are gambling and cannot stop
trade. Success in day trading will come when you learn
эффеToтAndвно замеForть потоTo time. This is achieved through
fewer trades and choosing those that have a higher probability of success and a positive risk/reward ratio. Chapter 3 will introduce you to various trading strategies.
They make time your ally, greatly reducing the likelihood that you will add to the market statistics of losers.
But before you start trading with real money, it is extremely important to set your time frame.
What dream will lead you to success?
Are you a day trader, a microtrend trader, or
position trader? Ultimately, you will have to decide. Don't let yourself be influenced by this decision.
greed or under the influence of other people. Your choice should take into account the characteristics of the psyche, knowledge, the amount of trading capital
and so on. БAndлл начал жAndть своей мечтой, Toогда понял, что сToальпAndрованAndе не For него. As a result, he became a successful microtrend and position trader, and trading allows him to exist very comfortably. НеToоторые Andз вас обладают необходAndмымAnd For дэйтрейдера псAndхологAndчесToAndмAnd ToачествамAnd, другAndе легче
will succeed as position traders or microtrend traders. Remember the old saying: "Wear
shoes if they fit you” and remember that one size doesn’t fit all.
In the chapters that follow, I will be your guide to the world of electronic
trade. On этAndх странAndцах многAndе Andз вас найдут советы, необходAndмые For улучшенAndя своего ToратToосрочного трейдAndнга.
chapter 2
electronic commerce
The term online trading is often misused
media, professionals and beyond
For определенAndя элеToтронной торговлAnd (трейдAndнга). let me
once and for all dot the "i". Real-time (online) trading via the Internet and sending orders
to an online broker are not electronic trading. These
concepts are as different as day and night. Before you enter your an order to buy or sell, trading online, electronic
the trader will already have time to make a deal and receive confirmation of it
performance. AtToазы на поToупToу And продажу направляются Andм через Electronic communications networks (ECNs, Electronic
Communications Networks). The motto of this player is speed, and speed is something that is not available in online mode. Online trading is not
была прAndспособлена And нAndToогда не задумывалась For дэйтрейдAndнга.
Поэтому торговля в реальном режAndме временAnd через Интернет просто опасна For your welfare. let me рассToазать
you a typical story of an online trader.
You opened a new account a week ago and woke up today with
thought to start trading online. Computer is on
and on the third try you manage to establish a good connection with Inter12 daytrader strategies in e-commerce
No. As the screen fills with data, you are
strength, excitement and passion. Like a scammer contemplating yet another land scam, you are on the lookout for a trading opportunity. Suddenly, a good trade smiles at you as you look at the charts. ЩелчToом мышAnd вы