Leroy Rushing is an active, professional day trader; trading coach; and author. He is the Founder and CEO of Trading EveryDay, a distinguished provider of educational trading products and services that are available worldwide. Trading EveryDay also has many articles with unique perspectives on day trading.
Professional traders know all about the guts and glory of live trading. Trading discipline is the only difference between unprofitable and profitable traders. Watching a violent swing in the charts that can put a dent in your trading capital can be tough to swallow.
Avoid the Cringe of the News
To preserve your trading capital and avoid a heart attack, it is best to stay away from news related market activity. Even proven strategies are proven to fail when there is a large amount of volatility and gut instinct present in the market. After data releases, such as the Nonfarm payroll or inflation statistics, the markets will go wild with volatility.
Plan to Avoid the News
A trading plan planner should always be kept to outline under what conditions your strategy works best, but also to include times when the strategy is not as profitable. Key news dates should be written down in an easy to see area of your workstation. Markets like to respond to news 15 minutes before the actual news release and continue for hours after the news breaks. Avoiding high volume news times is the best way to preserve your trading capital and keep the cringe-inducing trades to a minimum.
Preservation Equal to Growth
To master day trading is to know when not to take a trade. Preserving your capital is equally as important as growing your portfolio. If the market loses 30% one year and a profitable trader preserves his capital, he’s outpaced the market by 30%. While wealth was not created, he made an effective gain of 30% after comparing to other investors. In a downtrend, trading discipline is critical to keeping your head and your profits.
Monitor the Trends
Cringe-inducing trades are often the product of a sideways trend, rather than a downtrend or uptrend. The uncertainty that comes with a sideways trend makes it that much more difficult to swallow than a well defined uptrend. A sideways trend can snap at any time, sending the price up or down at a violent pace.
Stay True to Your Trading Strategy Plan
The most common mistake made in testy markets is to interfere with your trades. Moving stop losses, taking early profits, or letting a loser run are all dangerous. It is best to let the proven strategies work their magic over the long run than to interfere with the odds on the short run. Creative techniques, such as trading smaller trade sizes or avoiding the trade all together, is the best way to prevent a loss.
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By: Viktor Ko | 03/01/2010The Trin (also called Arms Index) is based on the advance decline data and is used in technical analysis to spot overbought and oversold market conditions. Since this indicator is based on a backed of stocks, it could be applied to analyze indexes and exchanges only.
About US Indexes
By: Viktor Ko | 03/01/2010There are several index groups that used to describe US economy and trade US stock market. The Standard and Poor's group of indexes is at the top of this group.
The pros and cons of bank money market deposit accounts
By: Christina Pomoni | 03/01/2010Money market deposit accounts are a good option for retirees or investors who prefer to earn a high interest on their money with the least possible risk, while maintaining direct access to their funds and being insured against loss.
INVESTOR SERVICES & INVESTOR PROTECTION
By: DR.R.SRINIVASAN | 03/01/2010It is essential from the point of view of promoting investors’ confidence in their investment to create a sound investment climate which needs redressing the grievances of the investors. In this regard, the services rendered by SEBI to redress the grievances of investors’ are worth to mention. However, in view of growing capital market activities, besides SEBI, investors’ service centres in private sector should also come out in large number to redress the grievances of investing community
Best Intra Day Stock Tips Positional Tips Delivery Tips BTST
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By: Christina Pomoni | 02/01/2010As investor confidence is shaken, it is possible that, in 2010, money market funds are not an option, unless investors feel protected under new regulations that will allow borrowing and investing with evident reassurance.
New Highs
By: Kevin Matras | 02/01/2010Today I'm going to go over a simple screen with a powerful concept. Buying stocks that are making new highs.
Unleash the Hidden Power of Your Trading Plan
By: Leroy Rushing | 29/09/2008 | InvestingDeep in your trading plan, you may be missing an element that could be eliminating huge winners. By merely tweaking a few indicators and steps to your trading plan, you may be able to produce returns you’ve never been able to achieve.
Price is Determined by the Interaction of Buyers and Sellers
By: Leroy Rushing | 29/09/2008 | InvestingProfitable traders use technical analysis to judge prices because they know that price is not dictated by market events, but rather the interaction between buyers and sellers which determines price. The action of just a few traders can have a very significant impact on price, as their volume of shares can push the price through uptrends or downtrends, based solely on the exchange price for one trade.
Candlesticks and Overall Technical Picture
By: Leroy Rushing | 29/09/2008 | InvestingCandlesticks fit into the overall technical picture, but it should be known that candlestick chart patterns are just one part of a wide array of studies that fit into technical analysis. Technical analysis spans all chart analysis, and it is even applied to some fundamental analysis statistics.
The Basics of a Piercing Pattern
By: Leroy Rushing | 29/09/2008 | InvestingAfter knowing what a piercing candle is, you’ll find that they are very easy to spot on a candlestick chart. A piercing candle usually comes to rest after a downturn that is longer than five periods on the chart. Thus, on a one day candlestick chart, the trend would have to be more than 5 bars and exist at the bottom of a downtrend.
Adding Stock Scanning Tips to Your Trading Plan
By: Leroy Rushing | 29/09/2008 | InvestingStock scanning is a vital tool used by professional traders to find symbols that fit their criteria. There are thousands of programs and resources that scan the stock market based upon investor criteria, locating stocks that fit your trading system. Are you seeking stocks with a price between $5 and $50 with a PEG ratio of .4? A stock scanner will search through piles of data and return with hundreds of names that match the criteria. Why do all the initial searching when automated programs c
4 Types of Gaps and How to Trade Them
By: Leroy Rushing | 29/09/2008 | InvestingTrading gaps is extremely profitable, especially for traders with strategies for gapping up and strategies for gapping down. Some traders only take one side of each gap, but learning to trade the gaps up and down proves to be doubly profitable. It’s hard to trade the gaps intraday, on a short term chart, but can be done. For the swing trader, there is much more money to be made in gaps.
4 Steps Necessary for Trading Preparation
By: Leroy Rushing | 29/09/2008 | InsuranceThere are four very crucial steps for determining a trade and making the right decision. Profitable traders are able to spot opportunity, but not act until it knocks. Waiting for opportunity to knock is the sole difference between the average Joe and professional traders. True insider methods aren’t methods at all – just a strict adherence to the day trading rules.
Maximum Position-size Strategies and Trading Consistency
By: Leroy Rushing | 31/08/2008 | InvestingThe maximum position-size strategies are catered to traders who desire to make a living rather than grow their capital. Once a trader has sufficient capital, the result is taking positions that are equal in size to further the odds advantage.