i have learnt alot about price action using the smaller time frames---simply because there is more analysis to be done--more frequently--you learn that much faster!!!--exactly the SAME CHART PATTERNS EXIST ON 5MINUTE CHART AS ON THE DAILY CHART. you simply need to master reading price action--whether you do this on the larger time frame or small one as a beginner--you should simulate trade on your prefferred time frame first.
i day trade--but i don't trade every minute-that would be daft--there are days when i don't trade -but mostly i find 1 gd trade on average in a day.
VielGeld
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If anything, I would recommend that beginners start by daytrading... on demo. You just learn faster because it moves faster and you're sitting there all day watching price move. So there.
Later on you might come to prefer a higher tf, but I'm all about knowing your fundamentals first and that should start with knowing how the auction process works in action. Only daytrading can get you to learn this in a jiffy, imo.
Later on you might come to prefer a higher tf, but I'm all about knowing your fundamentals first and that should start with knowing how the auction process works in action. Only daytrading can get you to learn this in a jiffy, imo.
PollyM
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This is good guidance, and the reason I proposed running the INDE system in the background on a larger timeframe whilst practicing paper trading (demo) on the smaller timeframes. See post http://www.trade2win.com/boards/fir...ng-high-probability-trades-4.html#post2032010
You need to practice the process on the smaller timeframes as you're otherwise waiting too long on the larger timeframes for your mind/body to install it as a subconscious/automatic action. The process can run mathematically such as with the INDE system, or artistically by visual inspection of support and resistance. The mathematical system can help to ease you into this art in the same way that when learning to draw you first use basic lines and shapes to create a framework.
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SlowlyButSurely
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This is a huge factor. I started day trading and the problems were that as a beginner there was so much info to take in each day and i was slow at processing it all...next thing you know the market opens and you start to place your trades. I was successful if the first trade was profitable. If my first trade was a loss then things turned for the worse as i would overtrade, doubt my actions and decisions and become a mess often needing to halt trading the next day too.
I now swing trade and it suits me better. I can plan trades better, organise everything in advance and once i place a trade i walk away and only check price 3times per day which helps stop any overtrading. Also understanding that losing even when your decisions were good is part of the game Is vital!
N.B. Saying this, starting out on lower time frames probably sped up my learning curve massively, especially in regards to 'reading' the price action.
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i still maintain my point of view that learning on a fast time frame -- keeps the mind sharp!! and speeds up your learning curve-- i would never suggest one go live on a fast time frame without first mastering it. what is "noise" to some is perfectly logical to others -- it comes down to how well you have mastered the art of reading price action--if you swing trade without full comprehension -- eventually you would have lost your capital albeit slower than someone on a faster timeframe-- the result is the same without mastery of the subject in question
15 min tlb
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Straight in the shark tank ,you will learn faster .Ged them in faster , pros are hungry.
t2l
kingofdice
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You can make money daytrading, but as most of the posts state, you should really know yourself before entering this realm. Day trading is hit and run skimming at best. For a brokerage firm to allow you to trade as a PDT (pattern day trader) you'll need to maintain at least 25K equity in your account at all times. As astute as day traders may be, they still need to pay attention to market cap, fundamentals, and moving averages of stock. Day trader "guessers" don't last long and their account will be ground into parking meter money. To be successful in day trading, you'll have exhibit some skill in entry points and setting stops. The higher number of shares in a position, the tighter the stops must be set to avoid steep losses. Do you have the risk tolerance to be a day trader? Can you close out a losing trade at the end of the day? In my estimation, day trading is not for $1000 - $2000 trades. For most trades, you'll need considerably more trading leverage to cover your commission. And you can't let emotion enter into your trades. You need to know where your stock generally trades on any given day. You need to know if your stock is a contrarian - does it go down when the market is trading up and vice versa. To be successful daytrading, you really need to know your stocks. That means you've got a short watchlist of 5 -6 stocks that you watch DAILY and pay particular attention each day as to what they are doing, relative to the DOW, NASDAQ or S&P500.
Last, I would NOT recommend jumping into day trading. Learn how to place your trades, setup your sell triggers and stops first. Learn your risk tolerance. Day trading is no place to learn that you are gripping the chair, tearing down the curtains, and falling down a flight of stairs, because you took a loss and rapidly made another trade which resulted in even a worse trade.
Last, I would NOT recommend jumping into day trading. Learn how to place your trades, setup your sell triggers and stops first. Learn your risk tolerance. Day trading is no place to learn that you are gripping the chair, tearing down the curtains, and falling down a flight of stairs, because you took a loss and rapidly made another trade which resulted in even a worse trade.
I have the same thoughts as bluebell. If you take away the timescale and axis values then the 1minute 5minute 1hr 4 hr etc all move in the same way. There are pros and cons for all the different types of trading and its what you feel most comfortable with. Everyone is different and that means everyone is suited to different types of trading. So dot get to hung up on this. Concentrate on price action, see how the market moves, learn about supply and demand in the market and it doesnt then matter what timeframe or type of trading you want to do. Thats up to you and you alone and needs to be matched with the type of person you are.
It does not matter if it is day trading, swing, long term etc all has potential to lose a lot of money if you are a beginner? That said everyone has to start somewhere so everyone is a beginner at some stage but will you have what it takes to take it to that next level is the key?
This game is incredible and the ultimate test of so many charactar traits and skills which is why the fall rate is so high, and the rewards so good.
A very hard way to make a very easy living..............
This game is incredible and the ultimate test of so many charactar traits and skills which is why the fall rate is so high, and the rewards so good.
A very hard way to make a very easy living..............
Day trading for beginners? I do it because I am retired and can afford the time. When I was working I did not even trade but invested in shares and looked at the portfolio a few times in the evening and weekends.
I think that that is the difference. So many people post massively on here, at all hours. They must be working fulltime at tradiing, or retired.
I think that that is the difference. So many people post massively on here, at all hours. They must be working fulltime at tradiing, or retired.
I did many profitable day trades when I first was learning trading, so I wouldn't say it is not possible to profit. Jumping on a trend that is already going up from good news, etc. and following it to the peak of the day, I find much easier than choosing what stock is at a low and "might" go up. Stop loss and trailing loss keep my + greater than my -. As long as I create profit at the end of the day that is all that matters.
Doomberg
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Michaelball
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day trading in small time frame charts is similar to gambling, most of the time its a 50/50 chance of wining the trade, patience is the key to making money, and discipline
Yes, it's difficult to do the risk management and news are not well organized in many situations.
Because its much harder on the emotions. If you had about 4 losing trades in a row inside a day all at 1% then if you are like me then you are not going to be feeling very happy losing 4% in such a small space of time.
With end of day trading you can lose more like 1% a week and not be feeling too bad.
Its not just beginners its not for, its not for a lot of people.
Try it and you will probably see what I mean.
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I tend to agree. Holding a long position despite a significant decrease over time, praying that it will get back to your buy in price can be stressful. With day trading it seems more possible to keep your losses in check.
