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Is Your Day Trading Strategy – working?
Most investment and trading sites on the Internet call them strategies so I’ll go along with that but they are actually investing, swing trading, day trading tactics.
My thinking about a day trading strategy, relates to a career of business direction, and for day traders, you only have 2 strategy choices:
- A focus on money, actually an obsession with money during every trade; or
- A focus on winning, a global strategy for most athletes, CEOs, and politicians for example,
- With NEW SCHOOL Day Trading Strategies that work.
Here are common Tactics
(most mistakenly call Strategies):
- High Frequency Trading – the fastest action imaginable, think nano-seconds, using extremely fast data feeds and software with fat capital accounts looking for pennies for gains or losses. Do you need people, real traders, for this?
- Scalping– the second fastest form of day trading with day traders in a trade for minutes and often seconds, looking for gains of less than $.50, say – could be a bit more or less.For most, it’s a goal; for me, it’s a consequence of a $1.00-$3.00 goal.
- Fading– also fast trading and can lead to huge gains or losses. It’s about investing, swing trading, and day trading opposite the direction of major price action, either to the up or down side, anticipating price exhaustion and quick price reversal of the seemingly endless price action.Conditions: overbought, oversold indications, buyers or sellers taking profits or anticipated to take profits, smart money trickery, triggering long and short squeezes (triggering unattended stop limit orders in mass).Risky business for amateurs; thrilling for master day traders.
- Daily Pivots– used to gauge stock price support and resistance, as well for indexes, and as reliable as the tides for sailors.Based on yesterday’s price extremes, day traders will make timely buy/sell decisions at these inflection points that most day trading software firms provide. Available for intra-day trading only, obviously.
- Fibonacci– similar to the daily pivots, and a considered reliable technical analysis tool for trading any time frame chart.A great tool for extreme price movements for the day. Has to do with reoccurrence in nature and all things – can you imagine trading on the natural rhythm of life, rather than reacting to trickery of you fellow traders?
- Momentum – momentum trading is about following trending price moves with volume. Good for day traders at times; mostly just chop and creep, in my experience. When extreme is great and exciting; when trending for the day, momentum trading is not so. Spikes set up for possible fading momentum.
Becoming a day trader requires a trading strategy that works. The most important part of that strategy, that is often left out, is a set of day trading rules, that
Day Trading Strategy –
Liquidity / Volatility
A day trader looks for two price conditions in a stock: liquidity and volatility. If it’s not moving in price with volume, why get in the stock in the first place?
Liquidity allows you to enter and exit a stock freely with the assurance that buyers will buy and can cause the stock price to go higher, after you go long and conversely sellers will sell and can cause the stock price to go lower, after you short a position.
Liquidity indicators are:
- The spreads in level 2 bid/ask data, and
- Slippage, the difference between the anticipated price fill and your actual price fill.
Both stock price spreads and slippage vary depending on the current level of volume on both the buy and sell side of the stock trade.
Day traders thrive on narrow spreads and minimal slippage and dread low liquidity, wide spread price action that at times, like during the summer doldrums, and most Fridays and Mondays, when smart money is off to play with their families and friends for 4 days, not making one trade all day long.
Slippage occurs when the order to buy or the order to sell a stock executes of fills worse the expected, during times of short term volatility; caused by news events, investing, swing trading, and day trade greed or fear, and smart money price manipulation (price trickery) purposely causing a stock price long squeeze or short squeeze (forcing unattended stop limit orders to execute in mass, thus prices to accelerate in change in either direction, that smart money decides to take advantage of, at will)
Volatility is the expected daily or intra-day price range anticipations, projected from past daily or intra-day price range activity, derived by chart analysis, technical, analysis.
For most traders they rely on software service companies to provide a volatility number.
For master day traders the sense of volatility, anticipated price change, comes via years of trading experience, intuitively.
Remember, day trading is more an art than science, which is why it is unwise to attempt to learn, to be a winner in this game, on your own.
There are endless day trading strategies. That’s enough for now.
Trade Execution –
When to Get In – When to Get Out?
Timely entries and exits are the heart of winning. If you don’t get this right most of the time, you are in the wrong business.
Buying and selling stocks has never been easier.
We now have traders competing in micro-seconds (High Frequency Trading – HFT) using sophisticated data feeds and software.
It’s good for narrow spread trading but not so good for price action as this causes price creep and chop looking for pennies on gains.
For most day traders like us, high frequency trading equates with price noise not major price movement, and frequent annoying exits, as trades too frequently fail.
Good fills; lousy break even or small loss or small gain trades, usually occurring when smart money is not present in the price action, just HFT action and day traders looking for, anything but HFT action.
Here are the day trading tools, most day traders use with their day trading strategies to make timely stock trading entries and exits:
- News feeds like the Wall Street Journal.com, CNBC.com, and Briefing.com(mostly fundamental business and economic news mixed with dated price information).
- Technical Analysis – Charts – candlestick charts with [both real time, both real (actual) and often unreal (trickery) information].
- Level II (Level 2) open orders on the both the buy and sell side of price action, yet to be filled, and often with no intent to be filled (more trickery, like hearing what’s going on in buyers and sellers heads, before the flea market opens).
- Live Price Tickers – mostly true price action. Remember pictures of tape spilling out of ticker-tape machines accumulating on the floor. Not any more – you now get price action flashing before your eyes in a software trading window at nearly the speed of light.
Did you notice I didn’t answer my question: when to get in and when to get out?
That I will leave for the time you become my client in the Trading POWER Learning program.
Well you didn’t think I was going to give it all away, did you?
Manage What’s Manageable
Day trading winners must learn to let go the urge to manage (control) what’s not manageable – the markets, prices, all outcomes.
In my experience, this arrogant thinking, this attention to forecasting /predicting /guessing what will happen next is exactly what stands in the way, distracts all day trader losers, from financial success.
You can’t manage the markets.
You know that you can only manage yourself.
Every attempt to manage the external factors results in them managing you = mismanagement.
Waiting for the markets or prices to comply with what you expect, waiting for dozens of stock picks to setup and trigger has also proven to be, simply and expensively, a waste of our time, energy, and money.
Sure, stock picks or the day, the ultimate arrogance, will trigger at some future moment in time. The question is – when – today, tomorrow, next week, or next month?
As the picks accumulate over a few days, week, months, managing them become overwhelming; again, they manage you.
That is the primary activity that preoccupies the crowd of losers. The big money winners, meanwhile, use this same data to trap and then kill these losers.
This urge to control may have worked at some time in the past for traders – not any more.
What do winners really need?
Objectivity (bias-free observations) and patience for real-time opportuinties to day trading stock.
Give up trying to manage the unmanageable, start learning, from a qualified coach, how to better manage yourself and your game, day trading the new game in town.
Day Trading Strategy –
Your Stock Trading Business
Let’s change subjects.
So you excelled in some other business, before you started trading stocks.
Yet, applying what you know about business, not so great.
Applying standard business practices, with a focus on planning, management or any other long-term controls to predict the near or distant future is exactly the opposite of what you need to be up to while successfully day trading stock.
Working with us, dissatisfied winners and losers alike can learn what’s manageable and what’s not manageable for winning to generate the high level of income they seek – all based on a winner’s day trading strategies.
Day Trading Consultant
Day Trader Coach
Investors, swing traders, and day traders are beginning to rely on consultants to find their way – trading strategy – to get on and stay on a winning track— with a winner’s game.
World-class athletes, CEOs, and politicians must rely on the best consultant / coach to be really good at what they do — playing their game with the best at highest possible levels of confidence, competence, producing the best performance results – consistently winning.
So it should be with every day trader, expect excellence with big money results – with your coach by your side. Most don’t, thus suffer the slow, grinding, dreadful negative consequences
Most day traders start off on their own, with no coach – not knowing all their options, not gaining adequate confidence, competence, thus lacing the performance results they deserve – winning results, very profitable results, day trading stocks – yes, exactly what I offer qualified traders.
You will find a few so called coaches on the internet, but they usually only offer products, not valuable consulting or coaching services.
Their business primarily is about selling books, courses, ever changing day trading systems, and the latest indicator of the day – all old-school, as you have likely discovered by now as I repeatedly want you to be aware of for your career/business decision making, for your future.
Virtually nobody on the Internet offers you what you really need – real, successful results, driven with one-on-one day trading consulting and day trader coaching services you need to win.
They won’t even use the words career or business, as it’s not their primary concern. They are interested in selling things, not about developing a relationships with money making services.
For most Internet businesses and their teachers, you are a series of transactions, like stocks to trade, not a relationship for lasting, profitable learning.
The problem is – a truly qualified consultant/coach, for troubled traders, is nowhere to be found in the day trading industry—until now.
I am interested in helping you accomplish both day trading strategies competence and very profitable results, should you qualify.
Fortune 500 executives, top level politicians, and world-class athletes wouldn’t think of competing without their own consultant/coach.
Nor should you.
This is your chance to be trading stocks with big money profits, making stock trades that generate thousands a day, setting you up for the possibility of being a millionaire status wealth builder.
Your Day Trading Career
What’s your Day Trading Strategy?
You Need –
A Day Trading Strategy that Works !
Day Trading Strategy – Winning, not the Money
Be Empowered – Master Day Trading Coach
Call for your FREE day trader Career / Business Consultation
Call Now: 949-218-4114