i’ve been trying to trade the market, using indicators and not really looking at company fundamentals… so etfs like spy, vxx, gld…. and i’m wondering if anyone else does this, and what works for other day traders out there… i only like to hold stocks for on stochastics cycle… so usually about 5-10 min….
Trading indicators are best used along with money management and good risk control, using trading indicators alone will not enable you to be a successful trader, even if you learn everything about day trading indicators the market is just too random and unless risk is controlled, over time your account will slowly get wiped out, regardless how good a “trader” you think you are.
This question was about day trading indicators and there have been some pretty good answers that should help in your trading, and especially in relation to day trading indicators, the answer has been posted in the categories listed below:
Related posts:
- Can you give me advice on daytrading?
- Who has a good system for determining entry points into a stock for long and short trades 1-5 days?
- How can on predict when the market has topped?
- what is really going on in the stock market?
- what is the best set up for daytrading in stockmarket?
- What does the "pre-market" stock quote mean when I look up a stock before the opening bell ?
- What is a good method to daytrading in forex?
- Linear Regression Indicator: Calculation in Microsoft Excel?
- Is there any stock trading company that will allow day to day trades without margin?
- How do I start my own fund that trades futures and options?
You want my blunt assessment? Its all a bunch of crap (trading). All of it.
I beat this drum several times a week here, so I’ll cut to the chase: unless you personally have a particular competitive advantage, you are wasting your time.
If you are honest with yourself; recording your gains & losses accurately over time; you will find you are not beating the S&P 500 index year over year. The average trader — trading daily with a port less than $100k — will find he isn’t beating the index in any year. Most traders can’t beat the index more than once in any series of 3 years. More than 90% of traders can’t beat the average over any 10 year period.
When you consider that 70% of mutual fund managers — with enormous system and cost advantages — can’t beat the averages, you have to stop and think seriously about your real competitive advantage over the marketplace as a whole.
I am not saying that no one can do. I have. But you are not going to do it using some "system" that isn’t wholly your own and based upon your unique insight and abilities.
I use to chase stocks and would make a little money but mostly I broke even.
Spent a lot of time trying to research and annalise. Wasn’t worth all the effort.
Then I looked into other areas where I could think out-of-the-box. Studied all I
could on Options. You only make money when you "sell" something. I sell
options and make money every time. You only have to figure out where your
"safe" strike price will be in order not to be called out to buy or sell. What a
way to make $$$$ and it’s a lot more fun and a lot less STRESS! Learn all you
can about Options.