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Everything Forex Trading Part I of II

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The Foreign Exchange is also knows as currency trading, Forex, or simply FX. In Forex trading every currency worldwide is traded in a global market. With an average trading volume of $5 trillion per day, it is the most liquid and largest market. All stock markets combined don’t even come close to this number.

With such high volume of trading, you may find some great oportunities for yourself in the forex market.

A single USD on any given day could get you 1.1 CAD. The very next day this USD could get you 1.15 CAD. Small changes such can these might not seem like they’d make a difference, but when put on a large scale, the significance becomes apparent.

Lets use an example of a company who pays employees overseas. Imagine what currency exchange rate could do to the company’s bottom line. Lets say for example, they are exchanging one currency for another that is at a higher value. It would be beneficial for the company to make their trade on a day when the exchange rate is lower. If the company needed to exchange USD to CAD, using the example above, it would greatly benefit the company to make their exchange on the day where CAD is 1.1 rather than 1.15. Pennies will add up quick when on a large scale.

Like being a business owner or traveler, when trading forex, you will want to make trades with the knowledge of when exchange rates will change to receive a more favorable rate.

FOREIGN TRANSACTIONS

Foreign transactions in the market are similar to what you may have done if you’ve traveled abroad. A trip north across the border and you are converting USD into CAD. The exchange rate between the two currencies is based on supply and demand. This is what determines how many CAD you get for you USD and the rate of this exchange is constantly fluctuating.

OPPORTUNITIES IN FOREX: WHAT’S YOUR OPINION?

Like stocks, currencies are traded based on what is their assumed value and what direction that value is headed.

The big difference in forex vs stocks is that trading up is done as easily as trading down. Because the market is so large it is easy to find a buyer or seller for the currency you have your eye on. Based on what foreign news you hear, you can decide the value of certain currency and then buy or sell as you see fit.

If you hear news that will cause the CAD to lose value then you would sell your CAD against another currency. The more the CAD depreciates agains the currency you sell it against, the more profit you make. If the CAD begins to regain value then you begin to lose profit and should quickly get out of the trade.

Read more about how to buy and sell currency as well as information on trading on margin in Everything Forex Trading Part II…

How Much Money Can I Earn Day Trading?

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HOW CAN I MAKE MONEY DAY TRADING?

How much money can you make day trading? Great question.

Day traders are not required to disclose their trading results to anyone but the IRS and because of this it is tricky to come up with an average of how much you can make. There are many strategies in trading. This, along with how much capitol traders are working with, must be taken into account.

In their 2011 research paper “The Behavior of Individual Investors,” Professors Brad M. Barner and Terrance Odean at University of California, Berkeley discuss how those who traded without diversified portfolios usually saw an average loss of money. There are also fees with transactions, so it is really important to have that proper education before attempting to make money during day trading.

HOW CAN I MAKE MORE THAN I LOSE?

The best way to assure that you are making money day trading and not losing money is to set stop/loss points as well as profit taking points. It’s important to not make too much of a gamble for an individual trade. The goal is to never allow one bad trade to ruin out your account.

Many full time day traders suggest that to make money day trading you should not risk more that 1% per trade.

Therefore, if you are looking at an account with $30,000 in it, the most you should be risking on a single trade would be $300. Using this 1% strategy will lessen your losses. This takes practice and discipline and will help you to make more money day trading.

A QUICK EXAMPLE

Let’s expound on the above example to see what setting stop/loss points looks like.

If we stick with a $30,000 account,  We are able to risk a maximum of $300 for a single trade. Let’s say the stop/loss is $0.04 and if the share price below $16 ($120,000 buying power/7,500 shares).  With this, we can take 7,500 ($300/$0.04) shares per trade to and stay within our $300 allowed.

Keep in mind this does not include Broker commissions.

FINAL THOUGHTS ON MAKING MONEY DAY TRADING

It would be wise to first ask yourself what you want from Day Trading. What kind of time are you willing to put in?
Using a Broker is a wise route if you and unexperienced, but they do take a commission which will cut into your net profit.  They are a more secure route, but even with a broker we don’t suggest looking at day trading like a hobby.
Day trading takes some serious discipline and training. The strategies are not 100% and there is always a risk. There is no guarantee that you will make money day trading or be able to predict your average rate of return over any period of time.
There are, however, some solid strategies. Mastering these will help you make that extra money you’ve been dreaming of. Contact us at DayTradeFeed If you are ready to commit to learning the strategies that can lead to success in making money day trading. Our personal Coaches can answer whatever questions  you may have.

Day Trading: Is It Right For You and Me? DayTradeFEED.com Investigates

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Is Day Trading Right for Me?

We live in an age where everyone is looking to make a little extra cash on the side. It’s no wonder why so many are asking, “Is Day Trading is right for me?”

It is true that unexperienced day traders can make expensive mistakes very quickly. For many, however, day trading is a great way to add some cushion to your income.

What is Day Trading?

To know if day trading is right for you, let’s first discuss what day trading is.

Day trading involves buying and selling stocks in a short period of time. Usually about a day.

When day trading, you are not expecting to make large sums of money with each trade. Instead, with each trade the goal is to make small profits.

The goal is that these small individual profits over time will add up to larger sums.

How Does Day Trading Work?

Successful day traders treat it like a full-time job, not merely hasty trading done between business meetings or at lunch.

Practice, practice practice. Those who make consistent money from Day Trading are devoting a lot of time to their work.  They rely heavily on the ever-changing stock market to earn profits.

It is better for Day Traders if the market moves up and down throughout the day regardless of which way it is moving.

When Day Trading, you will be looking for short-sell options to profit off of a falling stock or buying stocks that are trending upwards. Day traders are always looking for something to move around to make a profit.

So, Is Day Trading Right for Me?

In conclusion, only you can decide if Day Trading is Right for You.

Do you have the time to commit to it? Do you have the drive to practice and develop strategies?

A strong suggestion if interested, is opening a practice account before officially day trading. (contact us for more information on this)

This will allow you see what day trading would be like and observe potential results without a huge risk.

 

A Month’s Day Trading Results | DayTradeFEED.com

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Day Trading Results

Total Month’s Profit: $1,050

First of all, let me apologize for the delay in posting my Day Trading results. The month has been pretty busy for me with some vacations and business ventures (all funded by day trading, of course) but I’m excited to get back into the swing of things.

It was a decent month for me. Not my best month, but also not my most traded. In the coming months I should have more time to devote to trading and will make sure to get these results out a little more quickly than in the past!

Explaining Our Day Trading Results

Before we show you our day trading results, we always make sure to explain exactly which trades these results are coming from.

As we trade throughout the day, we record our trade results to post later on. These trade results come from all kinds of different strategies, including ONIT trades, SAT trades and normal daily trading.

When we say “ONIT,” we mean the Overnight Impact Trade. Similarly, when we say “SAT,” we mean the Sunday Afternoon Day Trade.

The ONIT is made Monday through Thursday, usually around 3:00 p.m. MST, and the SAT is a similar trade, but only made on Sunday afternoons. The trades are forex trades, and are placed on the EUR USD. Each trader simply sets the trade and forgets the trade each day, and watches the profits roll in.

Many traders swear by these trades, and this is one of the only places you can find them!

To learn more about this daily trade, contact us!

Now for Day Trade FEED’s day trading results…

Day Trading Results | Day Trade FEED

Day Trade FEED’s Day Trading Results

Daily Trades: 3
Pips Per Trade: 10
Total Pips: 30
Lot Size: 0.50
TOTAL PROFIT: $150

Placing these Overnight Impact Day Trades, Sunday Afternoon Day Trades or regular day-to-day trades would have made you $150 during the month.

Daily Trades: 3
Pips Per Trade: 10
Total Pips: 30
Lot Size: 0.50
TOTAL PROFIT: $150

Placing these Overnight Impact Day Trades, Sunday Afternoon Day Trades or regular day-to-day trades would have made you $300 during the month.

Daily Trades: 3
Pips Per Trade: 10
Total Pips: 30
Lot Size: 0.50
TOTAL PROFIT: $150

Placing these Overnight Impact Day Trades, Sunday Afternoon Day Trades or regular day-to-day trades would have made you $450 during the month.

Daily Trades: 3
Pips Per Trade: 10
Total Pips: 30
Lot Size: 0.50
TOTAL PROFIT: $150

Placing these Overnight Impact Day Trades, Sunday Afternoon Day Trades or regular day-to-day trades would have made you $600 in the month.

 

Daily Trades: 3
Pips Per Trade: 10
Total Pips: 30
Lot Size: 0.50
TOTAL PROFIT: $150

Placing these Overnight Impact Day Trades, Sunday Afternoon Day Trades or regular day-to-day trades would have made you $750 in the month.

Daily Trades: 3
Pips Per Trade: 10
Total Pips: 30
Lot Size: 0.50
TOTAL PROFIT: $150

Placing these Overnight Impact Day Trades, Sunday Afternoon Day Trades or regular day-to-day trades would have made you $900 in the month.

Daily Trades: 3
Pips Per Trade: 10
Total Pips: 30
Lot Size: 0.50
TOTAL PROFIT: $150

Placing these Overnight Impact Day Trades, Sunday Afternoon Day Trades or regular day-to-day trades would have made you $1050 in the month.

In conclusion…

What would you do with an extra $1,050 each month?

We are Day Trading, Forex and Futures specialists, and love all things day trading! You can find more information on day trading education systems by contacting us!

Want to be notified when we post our day trading results? 

    “IMPORTANT NOTE: Trading foreign exchange or futures on margin carries a high level of risk. It may not be suitable for all investors. The high degree of leverage can work against you. It can also work for you. Before deciding to trade foreign exchange or futures, you should carefully consider your investment objectives. Also check your  level  of  experience and risk appetite. The  possibility exists that you can lose some or all of your initial  investment. You should not invest money that you can’t afford to lose. You should be aware of all the risks associated with foreign exchange and futures trading. Seek advice from an independent financial adviser if you have any doubts or questions. Past trading history does not indicate future trading success.”

    Huge Mistakes Made When Choosing a Day Trading System | Part Six

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    Day Trading Education – Pitches that Win Now, Lose Overall

    After a number of years in the trading industry, it’s difficult to avoid criticizing every little detail of various education systems. At a certain point, it seems as though you’ve heard it all in regards to companies selling their systems (and the questions that come from potential customers of said systems).

    You even begin to see an almost political sense of loyalty begin to form between traders and THEIR system. Rarely does a trader admit, openly, to the flawed practices which they adopted at one point or another.

    I recently heard a pitch so convincing that the educator didn’t even really sell an actual product. His system consisted of making live trades and explaining why certain decisions were being made and why.

    Most “educators” who follow this model have 12-20 years of experience in trading and, as mentioned previously, cannot actually replicate their system because it made up mostly by personality traits instead of technical coding.

    Day Trading Education – Buzzword: “Accuracy”

    “Over 75 percent accuracy,” the salesman says. Your eyes light up as you wonder whether or not he’s telling the truth. Surprisingly, the answer is most likely yes.

    But beware of the word “accuracy,” which will always be used as a tool in selling a system because of its ability to be manipulated.

    For example, you may find systems that are only actually accurate 15 out of every 100 trades. These systems still claim higher percentages because their trade structure outweighs the 85 losing trades with the 15 winning trades.

    The opposite can also be true. A system can be successful on 95 out of every 100 trades, but still lose money overall because the trade structure outweighs the 95 wins with the five losses.

    After hearing the word “accuracy,” the best practice is to always make sure to see what the actual overall profit/loss is.

    Day Trading Education – Buzzword: “Guarantee”

    Another buzzword traders often hear as they research trading systems is “guarantee.” This is obviously in regards to pricing or satisfaction quality, as it is neither legal or ethical to make future guarantees on profits.

    Again (just to be clear),there is only one type of establishment which can promise specific returns: federally regulated banks. Not one mutual fund, 401k, stock or trading account in existence can guarantee future profits.

    Day Trading Education – The Total Rip Off

    Occasionally a potential trader can come across a trading and education system that is a total and complete rip off. While this becomes more and more rare as time passes, it’s still a possibility.

    In most cases, these systems promise huge profits on little effort from the trader. Money is exchanged, likely never to even be invested.

    There are certain safeguards which are continually being put into place to help guard against this type of fraud, including federal laws requiring risk disclaimers on all trading websites and online entities. However, it’s still important to keep this in mind when searching for your system.

    Day Trading Education – Beware of Salesperson

    “Even a monkey could trade this,” is something a presenter might say while showing you a trade system demonstration. This may sound like they are trying to convince you, but in a sense, they could be right.

    A study was conducted years ago involving a human and a monkey. Both sat in front of a computer and asked to trade for a specific duration of time. By the end of the experiment, the monkey had made more money than the human.

    Obviously, results from the case above are rare, and should be taken lightly due to it being a single instance of the experiment. If it were run 1000 times, results would surely differ.

    The main takeaway here is that education salespeople will do anything to make trading look easy, which the reality is that it simply is not. In certain cases, new traders can remain profitable for a short period of time, but that doesn’t mean their strategy is perfect.

    A good thing to remember for new traders is to practice trade execution for a minimum of one month prior to increasing leverage and trading substantial funds.

    Conclusion: Day Trading Education

    In conclusion, day trading education is not something to take lightly. While many people learn and make a living day trading, others make their living by selling faulty and outdated education products. Here at Day Trade FEED, we’re doing our best to make sure everyone who is interested can learn to day trade without navigating all the tricks of the sales trade. 

    When choosing a day trading system, make sure to use the product as much as possible before paying for it. Do this by using free demonstrations, trial periods and other forms of test drives.

    Remember, if an education system doesn’t allow you to try before investing, it may not be worth your time.

    Trading is something that is difficult enough without trading platforms and software companies misleading you.

    Find Day Trading Education Through DayTradeFEED.com!

    This article is only part six in a series aimed at helping day traders understand what mistakes to avoid.

    First Mistake: No Ongoing Support/Education

    Second Mistake: No Specific Way To Replicate Results

    Third Mistake: Repeating Key Entry and Exit Strategies

    Fourth Mistake: Paying for Trading Seminars, Books & Videos

    Fifth Mistake: Make Money Day Trading (System Not Compatible)

    Subscribe below to be notified of future editions.

      Huge Mistakes Made When Choosing a Day Trading System | Part Five

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      Mistake: Make Money Day Trading (System Not Compatible)

      Make money day trading. Don’t kill profitability with a lack of funds.

      Two things that have nothing to do with a trading system itself can affect trading in a significant way:

      1. Liquidity

      2. Market Being Traded

      Some systems claim to see the same results regardless of  liquidity or which market is being traded, but the only way for this to be true is for the trader to have a significant account funded from the beginning.

      The truth is that profits are capped by these two principles in every market. On one hand, Forex market caps are traded in billions of dollars. In contrast, traders being capping out at around $5,000 in futures markets.

      How to make money day trading, even with Forex caps.

      Around $3 trillion is exchanged in Forex markets on a daily basis. Because of this, many traders will never have to worry about caps in terms of profitability. However, minimums balances do still exist, albeit usually at a relatively low rate.

      Many brokers offer what is called a “micro account.” These allow traders to open a trading account for as little as five dollars. These offers usually charge more in spreads, but make trading available to just about anybody.

      Typically, brokers prefer a normal account to start around $500. These accounts offer lower pip spreads, but keep in mind that profits are taken at the beginning by setting you however many pips behind your entry to pay the spread difference.

      How to make money day trading, even with Futures caps.

      The Futures market isn’t for everyone due to a required minimum standard balance set by the Commodity Futures Trading Commission (CFTC).

      First, it’s important to remember that most brokers will not allow you to open an account with less than $5,000. In addition, contract margins can vary from $500 to $6,000 per contract traded. These parameters are set to prevent losses that traders aren’t able to cover.

      The Futures market is also a little more unreliable in terms of liquidity. Take the S&P 500 vs. Silver Futures for example. The S&P involves many more traders, which means there is more opportunity in the market to make profits without “slippage.”

      “Slippage” is defined as a change in price which occurs due to a lack of participant reaction instead of an abundance of it. When these markets slip and there isn’t enough traders participating, your trade must wait until the prices moves far enough to pull you out completely.

      In turn, this can result in huge losses and/or little profit.

      Conclusion: how to make money day trading.

      In conclusion, while Futures markets remain a great place to trade, please make sure you have the correct knowledge and experience to correctly navigate the practice. A good place to start is to make sure you know about specific trade times and overnight margin requirements.

      The best type of educator of trading system will already have direction on which market fits your individual financial situation and the leverage at which you should be trading.

      How to make money day trading with DayTradeFEED.com!

      This article is only part five in a series aimed at helping day traders understand what mistakes to avoid.

      First Mistake: No Ongoing Support/Education

      Second Mistake: No Specific Way To Replicate Results

      Third Mistake: Repeating Key Entry and Exit Strategies

      Fourth Mistake: Paying for Trading Seminars, Books & Videos

      Subscribe below to be notified of future editions.

        Huge Mistakes Made When Choosing a Day Trading System | Part Four

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        Mistake: Paying for Trading Seminars, Books & Videos

        Day Trading Seminars Can Be Misleading

        Above all, if you learn nothing else from reading this chapter, please remember the following fact:

        In most cases, day trading seminars are the equivalent to really expensive (albeit live-action) YouTube videos.

        What this means for traders is that the same information and strategies being used and taught in most of these seminars can be found, for free, on common sites like YouTube.

        In a recent experience, I came across a seminar which charged $3,600 for a six-hour introduction class. Further research showed the class’ curriculum covering general market facts alone.

        Students attending class received really fancy-looking binders, a catered lunch and the smug feeling that only comes from knowing “the secret.”

        What these students did not receive was any information whatsoever on how to trade.

        There’s a reason these seminars have the negative reputation that they do. The entire seminar model itself is basically ideal for scammers and should immediately trigger multiple red flags.

        This model includes three basic steps:

        1. Show up in a town for a couple days.

        2. Collect lots and lots of money.

        3. High-tail it out of town with no real way for unhappy customers to contact you.

        Can you think of a better scam?

        A good way to sniff out these scams is to remember the following:

        A company’s pricing model directly reflects how it intends on maintaining its future relationship with you.

        For example, if a company charges you everything up front, chances are there’s a high amount of risk involved in the product. If the charges are incurred on a monthly basis, chances are the company is banking on you being satisfied with the product.

        Trading educators that charge monthly fees generally offer a higher level of support and concern for your success. To put it simply, if you’re not successful, they stop making money.

        Tip: Be cautious of large up-front costs.

        You’re Clear on Day Trading Seminars, But What About Books?

        Books remain a great, inexpensive educational resource for those looking to learn about the markets.

        Unfortunately, if a trader wants to actually make money in the market, it requires a lot more (even for the most avid readers) than simply reading some material to get started.

        Another issue with these books is how quickly they become outdated. With trading platforms and software evolving so rapidly in recent years, books on a specific subject become useless if more than two years old.

        Tip: Avoid books surrounding a specific trade strategy that are more than two years old.

        In my experience, I’ve found the most beneficial reading material for traders often has nothing to do with the actual act of making trades. Instead, books dealing with psychology and mental readiness in trading have made the most difference in my trading.

        Many traders believe this aspect of trading to be irrelevant. In contrast, I believe it to the driving factor behind 75% of your trading success.

        Tip: Not a big reader? Listen to the audio version in the car or at the office.

        We’ve Covered Day Trading Seminars and Books. What About Video?

        It’s easy to see technological advances in education, television and digital media becoming more and more interactive by the day. Due to this, videos are becoming a faster, more efficient way to consume trading education material.

        However, prior warnings in this chapter still apply.

        This may seem obvious, but if you come across a system that doesn’t include education videos in its curriculum, it’s likely outdated and faulty. This is clear indication of the system as a whole.

        As we previously discussed, there’s more free trading education videos on YouTube and other streaming sites than you can imagine. But know the information in these locations can be repetitive, and even incorrect at times.

        If you’re diligent in your research, it will quickly become clear to you which video sources are reliable.

        Day Trade FEED’s Picks for Day Trading Seminars

        Here at Day Trade FEED, we have a specific way of choosing which seminars have the correct information to incorporate into our day trading system. After years of research and trial/error, we’ve found some really great seminars that provided information that would fit perfectly into our trading system. We determine this by making sure the information is a good fit for traders using Kevin Jones Day Trading Indicators.

        Traders have been using these indicators for more than 20 years, and so far they’ve worked perfectly for us in our trading.

        If you’d like to learn more about Kevin Jones Day Trading Indicators or how they work in our trading system, contact us!

        We were also careful to make sure these seminars were safe, reliable and properly vetted prior to receiving our endorsement. To receive a list of Day Trade FEED’s picks for Quality Day Trading Seminars, contact us or fill out the form below.

        This article is only part two in a series aimed at helping day traders understand what mistakes to avoid.

        First Mistake: No Ongoing Support/Education

        Second Mistake: No Specific Way To Replicate Results

        Third Mistake: Repeating Key Entry and Exit Strategies

        Subscribe below to be notified of future editions.

          DISCLOSURE: While these methods may have worked in the past, past results are not necessarily indicative of future results. While there is a potential for profits, there is also a risk of loss. A loss incurred in connection with trading foreign exchange currency contracts can be significant. Carefully consider whether such trading is suitable for you in light of your financial condition since all speculative trading is inherently risky and should only be undertaken by individuals with adequate risk capital.

          Huge Mistakes Made When Choosing a Day Trading System | Part Three

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          Mistake: Repeating Day Trading Entry and Exit Strategy Mistakes

          Three Questions to Remember When Choosing a Day Trading Entry and Exit Strategy

          While researching trading systems, many traders run into different strategies that are obviously going to fail.

          I recently had an experience with an education company claiming to have made hundreds of thousands of dollar with it’s own proprietary trading system. For a fee, the company was willing to teach me this strategy via their own education system.

          While looking into this company, I made sure to remember the following questions:

          1. If someone decides to make a trade, what do they stand to gain?

          2. What do they stand to lose?

          3. If a company was fishing for a good testimonial, but couldn’t actually deliver on its low-risk guarantees, could it inflate results to mislead consumers?

          A Bad Day Trading Entry and Exit Strategy Can Mislead You

          One of the main ways a company can inflate results is through what is called a hedge. A hedge is an opposing trade of equal value that offsets any profits or losses accrued by a previous trade.

          So, if a trader sets up two accounts, places a buying trade with one and a selling trade of equal value with the other, they are hedging. The profits of the first account will even out the losses of the other and only the winning trades are displayed.

          This is only one of the many ways these “educators” are enticing customers to use their programs.

          How to Spot a Faulty Day Trading Entry and Exit Strategy

          Remember that if you only see a couple of trades on a statement, it’s likely faulty information.

          Now, let’s say you see a statement with over 100 profitable trades. Your first instinct may be to trust the system. However, it’s important to make sure a stop loss was in place before going with this instinct.

          Traders with millions in their account are able to trade the market on the smallest level with no stop loss. This means they are able to hold onto their trade regardless of which way the market swings.

          This isn’t how a typical trader attacks the market, so why would you want a system that isn’t tailored to fit realistic trading parameters? In these systems that don’t use a stop loss, one bad trade can outweigh more than the 100 good ones and wipe out an entire account.

          The typical trader would have a stop loss set and an exit strategy in place. Make sure these are part of your trading system if you haven’t already.

          Day Trading Entry and Exit Strategy Red Flag

          There is no such thing as a perfect trading system. It is impossible to trade without taking at least a few losses here and there.

          Another issue that has been seen is the lack of continuing education surrounding margin. Some education systems even purposely leave margin curriculum all together. This allows the company to show flexibility in their system when a trader is margined out and is looking for someone to blame.

          Margin requirements should be clearly and thoroughly taught before the trader experiences it with a loss.

          A good way to spot margin issues with a trading system is to make sure margin requirements match up with stop loss positions. If the margin would kick a trader out far before the stop loss, it  may simply just be an oversight by the educator. However, if they get this basic step wrong, what other compromising practices will they teach you?

          What to Look for When Choosing a Day Trading Entry and Exit Strategy

          The final topic to be discussed relating to entries and exits is how long or short to make them.

          When identifying an exit strategy, remember that almost every strategy has many variables going into the equation. This can make it hard to plan ahead, which is why some educators determine their exit strategy at random.

          For new traders, it’s important to focus on the winner-to-loser ratio instead of the length. If this ratio is profitable, it shows the system works regardless of its exit strategy.

          Day Trading Entry and Exit Strategy: The X Factor

          At a certain point during their day trading education, each beginning trader finds themselves at a crossroads.The choice facing them? Whether to choose a scalping method (short exits and stops) or a long term strategy (long exits and stops).

          The main thing to consider when making this decision is whether you’re financially capable of practicing this method in your trading. Many think scalping involves less financial commitment than long term trading. However, the truth is the exact opposite!

          Personally, we suggest trading short term systems. The uncertainty of world economics, along with unsteady market conditions in recent years make scalping the safer choice between the two. This is due to the limited amount of time spent in the market as opposed to long term trading.

          Day Trade FEED’s Day Trading Entry and Exit Strategy

          Here at Day Trade FEED, we have a specific way of choosing which entry and exit strategy to use in our day trading system. After years of research and trial/error, we’ve come up with a great way of determining this and adopted it into our trading system. We determine this using Kevin Jones Day Trading Indicators.

          Traders have been using these indicators for more than 20 years, and so far they’ve worked perfectly for us in our trading.

          If you’d like to learn more about Kevin Jones Day Trading Indicators or how they work in our trading system, contact us!

          This article is only part two in a series aimed at helping day traders understand what mistakes to avoid.

          CLICK HERE TO READ PART ONE

          CLICK HERE TO READ PART TWO

          Subscribe below to be notified of future editions.

            Huge Mistakes Made When Choosing a Day Trading System | Part Two

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            .Mistake: No Specific Way to Replicate Results

            The Begging Trader’s Day Trading Indicators

            If you’ve been exposed to trading for less than two years, most still consider you a “begging trader.” Every trader has made their way through this awkward phase. It can almost be considered a right-of-passage.

            But while each trader has to go through it, each trader also has to overcome it.

            Success by Day Trading Indicators

            If you currently fall into this “begging” category, please understand that merely signing up to use trading software is not what will help you find success moving forward. Simply knowing basic indicators and how to buy and sell does not make you a professional trader. While this software can be a vital part of trading strategies, it should never make up the entire strategy on its own.

            What type of returns do you expect to see if you’re only using free indicators and trading tips? Instead, these resources are best used in addition to other resources that make up a trader’s personal strategy as a whole.

            Different Types of Day Trading Indicators

            As you begin your search to find the best set of trading indicators, you’ll likely find only a few reputable companies offering proficient systems compatible with modern, updated charting software. Some of these companies even customize their indicator software for individual customers.

            It’s important to remember that while this sounds like a perfect scenario, success can never be guaranteed. That being said, these companies can at least help you come closer to finding a way to replicate results.

            Free or “Lagging” Day Trading Indicators

            There are countless trading companies offering basic indicators that have been around for a long time. These include Moving Average, MACD, Bollinger Bands and Fibonacci Retracements.

            However, advanced traders consider these to be “lagging” indicators due to how easily it is to take advantage of traders who use them.

            Another issue with these “lagging” indicators is a slower response time to the signal. This is because many advanced, savvy traders have built upon them to create and innovate modern methods to stay ahead in the game.

            This can be frustrating for “begging traders,” but the truth is that even with custom-designed indicators, replication is still a distance off. Traders may see consistent success, but it’s near impossible to develop indicators that can replicate specific trades based on specific market conditions.

            The true success of a trading system can be measured and replicated only to the point that others are willing to test its validity.

            Fibonacci and Retracement Day Trading Indicators

            Fibonacci’s retracement principles are now common among traders. These principles have been rebranded often for sales, but the main function remains the same.

            Some of these attempts to rebrand include Pivot Point, Prediction Points, Sing Marks, Buy/Sell Levels, Trade Levels, etc. Watch out for these old and free techniques rebranded as modern when developing your own system.

            All warnings aside, Fibonacci’s tools can greatly benefit traders if used correctly and in addition to other resources.

            There are enough uneducated traders willing to “donate” their money to the market. Let them.

            Other Enticing, Potentially Destructive Trade Tools

            Some traders use trading announcements as the deciding factor on each trade. Making trades based on the assumed market reaction to currently unfolding events is likely the oldest trading strategy there is. However, it may also be the most dangerous.

            The issue with trading announcements is inconsistency and unpredictability. Many have witnessed announcements with similar context to past announcements, but significantly different results.

            Some of these announcements can be traded on their own (slam dunks). But remember that it can take years before a trader is experienced enough to differentiate between market reactions.

            Just like other tools, announcements can be beneficial when used in addition to their other indicators. Making trades based solely on these announcements can pay off, but the numbers are against anyone making the attempt.

            Trade Systems Based on Results

            It is perhaps most difficult to find a trading system based on actual results. You may find systems that work with announcements and others that work with indicators. The question to ask yourself is if they are making money.

            This question may be harder for you to answer than you realize. It is best to take testimonials with a grain of salt. There are some outlying trading companies that even claim to base their trades on the moon’s gravitational pull. Even these companies will have testimonials from “clients” who claim the system works for everyone.

            It is likely you’ll experience at least some success in each system you encounter. This success is common and hard to take with a grain of salt. But to truly avoid the scams, make sure to do your research. Give each system you experience the time and preparation necessary to determine actual credibility.

            Day Trade FEED’s Day Trading Indicators

            Here at Day Trade FEED, we use a specific set of indicators in our day trading system. After years of research and trial/error, we’ve incorporated Kevin Jones Day Trading Indicators into our trading system.

            Traders have been using these indicators for more than 20 years, and so far they’ve worked perfectly for us in our trading.

            If you’d like to learn more about Kevin Jones Day Trading Indicators or how they work in our trading system, contact us!

            This article is only part two in a series aimed at helping day traders understand what mistakes to avoid. Subscribe for future editions.

              Huge Mistakes Made When Choosing a Day Trading System | Part 1

              by

              Mistake: No Ongoing Support/Education

              To begin, think about what is going on in our current day. We live in an era where technology is advancing exponentially, and it seems, at times, as though computers are taking over the world.

              But are computers REALLY taking over the world?

              Foreign exchange (forex) markets recently saw a spike which caused the greatest change in the history of the Yen. Experts attributed this failure to robotic trading, which lost millions in the market due to faulty code.

              This, along with countless other examples, show us that the human brain is more capable than even the most advanced computer in existence. And even when computers become more advanced than the brain (experts believe this to be only years from now), humankind still possesses something computers do not: the ability to evolve, adapt and change.

              Day Trading System vs Robot Trading

              Perhaps Charles Darwin said it best:

              “It is not the strongest species that survive, nor the most intelligent, but the ones most responsive to change.”

              Fortunately, the computer is not a living species, nor does it respond well to change.

              A human mind would have stopped the execution of the trade or the continuation of losses. And just as the world witnessed during the aforementioned fall of the Yen, a robot could not.

              What good is developing a trading tool or system if there is no continued education or support to follow? How does this help you increase your advantage by responding to change?

              Adapting Your Day Trading System

              When the market first began, certain candlestick patterns began to emerge. We know these patterns as Dojis, Hammers, Hangmans, etc. Traders that were able to recognize these patterns and understand how they’d affect the market moving forward were able to adapt and innovate old techniques to make millions.

              The rule of supply and demand in economics is very clear: if something is profitable, demand for it will increase. If demand increases, supply decreases.

              So, what does a trader do with their old, outdated system when it becomes less profitable? Some began their search for the next “golden goose,” while others refine their system with updated data and adapt to the circumstances now before them.

              This is why continued education is critical to the success of traders. Today, there are still traders who use candlestick patterns when determining the best trades to make. The difference is this is not all that goes into their decision. The data from these patterns is combined with current market conditions and other trading strategies to form a more consistent, reliable system.

              Is Your Day Trading System (Support/Education) Affordable?

              Now, what if a trader uses an updated, elite system, but the infrastructure behind support and continuing education within that system is not affordable?

              Unfortunately, this is a common trick of the trade. Many traders lose their first trade without even trading. How? By paying too much for the initial education and education materials to continue through the growing pains that come from learning to trade.

              If a trader pays $3,500 for trade coaching, but their trading system only yields $4,000 per month, chances are the remaining $500 will be used to pay their broker.

              Issue #2 With Some Day Trading Systems

              Another issue many traders see is that they’ll lose money while they learn how to handle losing money.

              There are a lot of trading businesses that shirk all accountability immediately following a student’s graduation from the program. So when a beginner starts to see a trade go upside down, they have nowhere to turn for assistance.

              This lack of support causes many to panic and make rash, emotion-filled decisions while trading. Making these decisions can cause bad habits and practices to form.

              This is why it is absolutely critical to make sure a trading program offers sufficient support and continued education before taking the plunge and joining.

              Pulling the Trigger on a Day Trading System

              In conclusion, ensuring these first two items (support system and continued education options) are integrated into the core of your trading system is absolutely essential. You may find a program that lacks in these areas, and it may be a challenge to walk away. But being confident in these areas will help you find success throughout your trading career.

              In order to determine whether support and education moving forward will be sufficient, ask yourself if the education is actually education and not just information from past market trends.  Many teachers and coaches will claim their continuing education to be worthwhile, when really it merely consists of ancient information from a past generation of traders.

              To truly grow as a trader, continued education needs to be current, driven by live data, state-of-the-art and relevant to today’s markets. This means live webinars, online meetings, etc. While older strategy and information can still be relevant, updating their trading system is necessary to stay profitable as market conditions shift and evolve.

              How to Know if You Have a Good Day Trading System

              This article is only part one in a series aimed at helping day traders understand what mistakes to avoid. If you’d like to be notified when future articles like this are published, subscribe below.

                Until future parts are released, check out our Should I Day Trade? and Introduction pages.

                Have a question about choosing a day trading system, continued support/education or just day trading in general? Contact us!