Three Day Trading Strategies That Will Boost Confidence

[selena1]

Some of the most important things to be aware of when trading are Tape Reading, Technical Indicators and basic Discretionary Trading Rules. Throughout this article I will explain these rules and how to use them.

What are technical indicators?

Used primarily by short-term day traders, technical indicators apply a specific formula to the price of a security. These 'indicators' look to predict future market direction by using previous price patterns.

Examples of the most common technical indicators includes Moving Averages, Relative Strength Index, Stochastic, MACD and Bollinger Bands.

Day Traders use these 'indicators' to identify specific times in the market when the opportunity for winning trades is the greatest.

What are Discretionary Trading Rules?

Discretionary trading rules are one of the most important aspects of consistently profitable day trading. Just like any business, you must have a business plan or a set of specific instructions on how to run your business.
Everything from start-up capital, research and development, operational expenses and even the re-investment of your profits or the management of losses are included in this plan.

Professional day traders use their rules like a road map to success, just like a small business owner uses the business plan they wrote. A disciplined use of this set of 'rules' results in a day trader taking only the trades that meet his/her specific trading criteria, and nothing else.

Just like a small business owner would never buy inventory for a product they don't sell, a day trader must practice discipline to avoid the trades that do not meet his/her criteria, and to only take the trades that have demonstrated the highest percentage of winning results.

 

[Jack Reacher]

There are many traders around us who use multiple-day trading strategy for long-term trading. I appreciate such type of strategies. Eurotrader puts no restriction on any type of strategies applied on their trading platform.

 

[marym]

In the context of trading, discretionary trading rules refer to a set of guidelines or rules that a trader uses to make buy and sell decisions based on their own discretion and judgment. These rules are often developed over time through trial and error and can vary from trader to trader.
Discretionary trading rules can include things like setting stop-loss orders to limit losses, using specific technical indicators to identify potential entry and exit points, and having a set risk-reward ratio for each trade.
By having a clear set of rules and guidelines, traders can avoid emotional decision-making and stick to their strategy even in volatile market conditions. This can lead to more consistent profits and better risk management. However, it's important to note that even the best trading rules cannot guarantee success in the markets, and traders should always be prepared to adapt and adjust their strategy as needed.