day trading


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Trading Desk on Steriods.

Gentleman start your engines.

Here’s a video link of Jack Schwager discussing Techniques of the Market Wizards…
   http://www.fxcmexpo.com/video/jackschwager.htm

Professional traders focus on limiting risk and protecting capital. Amateur traders focus on how much money they can make on each trade. Professionals always take money away from amateurs. The trader who controls his or her risk takes money from the trader whose head is in the clouds. Good Luck to all.

1) Trade with a plan – not with hope, greed or fear. Plan where you will get in the market, how much you will risk on the trade, and where you will take your profits.

2) Follow your plan. Once a position is established and stops are selected, do not get out unless the stop is reached or the fundamental reason for taking the position changes.                              
 
3) Analyze your losses. Learn from your losses.  Most traders don’t learn from their mistakes they don’t want to think about them.                                                                                    

4) Always think in terms of probabilities. Trading is all about thinking in probabilities NOT certainties. You can make all the “right” decisions and the trade still goes against you. This does not make it a “wrong” trade, just one of the many trades you will take which, through probability, are on the negative side of your trading plan. Don’t expect not to have negative trades – they are a necessary part of the plan and cannot be avoided.

5) Stay current on global events. You never know what’s going to set off a particular currency on any given day.

6)  Learn to be comfortable being in the minority. If you are right on the market, most people will disagree with you. (90% losers, 10% winners).

7) Scalpers reduce the number of variables effecting market risk by being in a position only for seconds. Day traders reduce market risk by being in trades for a matter of minutes. 

If your like me you want to hear from the people who are making a living trading.  I’ve found a gem of a website called TraderInterviews.com. This website is full of audio interviews from all types of traders. The archive goes back 14 months and interviews are added every week.

I’ve found great interviews …
  Rob Booker – 9/04/06 – Re: Currency Trading
  Wayne McDonell – 01/22/07 – Re: Trading Forex Announcements
  Jason A. Jankovsky- 02/12/07 – Re: Thoughts on what traders are thinking and doing

I’m adding this website to my list of resources for becoming a world-class forex trader.

Here’s the link http://www.traderinterviews.com/index.html

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When I think of arcades I think of pinball machines, space invaders
and teenagers everywhere.

Here’s another take on it…
Do you want to trade options using state-of-the-art technology while feeling the camaraderie and buzz of a trading floor without dealing with the bureaucracy of a large firm? (Not to mention, could you stand to make more money?)

Go to the nearest trading arcade. What is that? Elizabeth Gisch, director, globes account management, for the Chicago Mercantile Exchange, explains that a trading arcade is a place where a trader gets a seat and sophisticated trading technology, connectivity to markets, market data, analytics, clearance and settlement services, as well as reduced commissions. They trade using their own capital. Profits generally are split with the house, says one published report.

Arcades first appeared in London after Liffe, the London International Financial Futures and Options Exchange, shuttered its trading floor, Gisch says. Liffe traders wanted to salvage their livelihood and continue trading. As a result, arcades were born – a place where former Liffe traders could connect to Liffe’s new electronic market. Soon, arcades began to target younger, tech-savvy traders straight from universities. The concept is growing and has caught on in the U.S., where now there are several in Chicago and two in New York City.

“Prop shops” – proprietary trading firms – are a variation of an arcade. Here, traders trade house funds and work for a package, including salary and profit split. Currently, both are for trading futures and options only.

by K Massaro – Wall Street

I received a comment requesting more details on my 10 to 15 pips a day strategy.
In all honesty it is a work in progress. My goal is to find the best setup opportunites.

I  trade the EurUsd between 7:30 a.m. & 1:00 p.m. (New York time).  I try to take advantage of the morning market movements.  I use the RSI and MACD indicators to gauge when to enter the market.  I would also suggest monitoring the website Fxstreet Advisor. It has great insider market commentary. 

If you have any comments or suggestions send me a post.

Good luck to all. 

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