A danger in day trading is jumping on low quality setups. It is extremely common, and not just with beginning traders. it occurs at many levels of trading expertise, even on professional dealing floors. It almost always happens when a trader has no established trading methodology. In other words, he/she looks at the market, performs an ad-hoc spur of the moment kind of analysis, and then puts the trade on as a result. Only when the position is live does said trader have lots of time to then see all the contrary indications to the trade!
The stock markets have been in turmoil with stock traders seeing hundreds over points lost on the Dow in just a few weeks. This kind of market movement and volatility begs the question as to whether the log-term bull market in stocks is now over, and whether we are now facing a bleak and sustained bear market for months or even years to come. The stock markets have been in turmoil with stock traders seeing hundreds over points lost on the Dow in just a few weeks. This kind of market movement and volatility begs the question as to whether the log-term bull market in stocks is now over, and whether we are now facing a bleak and sustained bear market for months or even years to come. These Dow Jones stock market videos gives an a frank and honest assessment…
In day trading, the ability to be independent is even more important than in other life arenas. That is because in the day trading arena, there is no such thing as “absolute truth” and there is no end of opinion, conjecture, rumor and fantasy. Hope and Greed play their part too, and overall create a landscape of illusion wherein a person with no independent opinion of his/her own will be swept away to rapid destruction…
This stock trading video gives a brief technical chart analysis of the stock market, specifically, the Dow Jones Industrials Index for January 2008.
This makes it clear that for stock trading purposes, the Dow Jones is poised at some very key levels. It is currently on some very major support levels, and hence it needs to hold these levels in order to avert a major collapse to the 11, 650 level, from where even further stock market declines could be easily seen. The negative side of this story is that we appear to have a fully developed and completed head and shoulders pattern, implying the target just stated. However, on the positive side, there are a number of major support points coming in on various time-frames, right at where the market is trading at the time of this trading video.
Novice day traders have little idea how to manage their trading risk,
even as a concept. The typical pattern is that they put on a
trade based upon some fairly poorly defined criteria, and when
the market eventually moves against them, they are clueless as to
when to get out of the position. Instead, they will typically let
the trade worsen until it is eventually too painful to retain.
The experienced trader, however, places risk management at the
heart of the entire trading plan from the very beginning…