SafeDay Trading

When trading candlesticks no matter what time frame it is, if I see a shooting star candlestick I jump in and trade, because it shows a reversal and a downturn and everyone know that in trading, that the drop is 66% faster than the rise of a instrument. Fast money as the instrument falls.

In January 2015 Netflix had a earning report released and the stock shot up over $50 in one night. Several of us played the earning release, but we had different styles to play the release and the podcast shares those styles with you.

There is a free site that will help you develop your support and resistance levels.

When calculating pivot points, the pivot point itself is the primary support/resistance level. This means that the largest price movement is expected to occur at this price. The other support and resistance levels are less influential, but may still generate significant price movements.

Pivot points can be used in two ways.

• The first way is for determining the overall market trend. If the pivot point price is broken in an upward movement, then the market will be bullish and vice versa. Keep in mind, however, that pivot points are short-term trend indicators, useful for only one day, then you need to be recalculate for the next trading session.

When trading and you find yourself at a point of panic you have probably not done your home work in terms of understanding the system you are trading, or you simply chose to not follow the rules regarding how your trading and maybe even what you are trading.

Most students start trading way too early, some even and have problems with their trading software & platform. They find out they have lost money all because they didn’t know which button to press.

Bottom Line: they need more practice time.

How many of us have sat and watched a trade develop and are still watching as it comes and goes. Then later saying to ourselves; “I should have been in that trade”.

Sorry to say that there is no profits in watching from the sidelines. You need to take action, but please don’t be in such a hurry to go LIVE, Practice is what you need first, then when your confidence is there – you can trade live with the assurance that you will be profitable.

Here is what I say to Panic and Indecision, paper trade, paper trade until trading is no big deal.

Then trading candlesticks you are looking for a certain setup and the one that I favor the most in trading is a hammer.

Hammer will identify a change in direction and could be at the bottom of a reversal and therefore if played correctly could be very profitable.

An interview with a Trading Instructor talking about why people that start day trading are not successful.

He talks about what they should be doing to make themselves a success.

Two of the most important things is to paper trade and to have hard stops set when they start the trading but that's not all they need to do.

If you are unsuccessful in trading on any certain day and are down some money, don't, DON'T increase the number of contacts to you bring yourself back to zero or to a plus side. It goes like this I enter a trade to go long, forgot to put in my stop and find myself down $100.00 I still believe I am right and the instrument has to move up so I buy another contract at this lower price thinking dollar averaging. Now it moves down another 5 points and you are now down $200. Panic sets in and you get out of trade cussing and your confidence is now deflated.

If you would just remember the rules put in your stop you may have lost only $30.00 but at $30 you can be rational and see that the market is moving down so you can sell short and make money quickly.

I have heard many stories of people that thought by doubling the amount of contracts that they could make the money back up, and it rarely works.

You are either doing a dumb trade or you’re off for the day, so "walk away" and come back tomorrow or go paper trade for a while.

You need to set some parameters to walk away, Example: if I am down $150.00 I stop trading.

If your do that, I can guarantee you will make more money in the long run than trying to recover your losses by increasing your contract size.

No I don't mean get out of bed go to the bathroom, brush my teeth, what I am talking about is when you sit down to start trading for the day what do you look at first, second, third and so on before you are starting to trade.

You need to set up a plan and a ritual, a friend told me that successful people have a successful ritual in what they do and they do it all the time.

So when you start to trade what do you do. Start the habit today.

Everyday around the world there are hundreds of reports, interviews and other worthy media events that can affect the markets.

There is one free site that can boil these down in to the most significant events and tell you which of those is the most important.

You need to understand how each report or event will affect the instrument that you are trading. It could cause the market to change direction and you may lose money if you are trading at that time.

One website I like to use is ForexFactory.com

This should be one of your daily rituals: Before you trade check to see what events are happening and when. Then make your trading plans accordingly.

The number one question a trader needs to ask if he wants to be profitable is: What if I’m wrong.

If you are a trader and don't routinely set stops or haven't learned how to properly place stops on your trades; I can say without hesitation that you have lost much more money than you have made.

Listen to this issue to learn all about setting stops!