Daytrading systems and techniques are in abundance on the internet. This brief article will focus on the very basics of technical daytrading. Home based competitive against major institutional daytrader dealers, mutual funds, market makers and computer algorithms. Before entering the arena daytrading, must be made by the trader. Competition held their powerful computers armed with hi-tech algorithms. High frequency trading programs work extremely profits and mass distribution.
The good news is that these super fast trading algorithms add liquidity to the markets. The bad news is that all these computers are not on the same page, create some pretty strange pricing scenarios. So, how in the world can the small home-based trader compete with traders trade dollars supercharged engines, high-tech mega?
The answer to this question is fairly simple and based on common sense. Regardless of how powerful the those computers, they continue to work with a set of rules. These trade rules are programmed in the computer. These developers use the same rules that are available to all merchants. The rules of trade is sometimes bent and rarely broken.
The average home-based trader can learn these basic rules and to compete successfully on the big boys. Of course, extraordinary fundamental events may be the exception to the rules, but as the trading day ordinary, average, these basic rules remain in effect for all players.
Technical market analysis, which is mostly based on price, time and volume. These are only there to work with variables. All trading systems created using these three variables. Systematic, based on the rule of marketing is the only way at home trader can compete with the big traders. The rules above all schedules, and is just as valid in the time frame for a minute as they stand within the timeframe daily, weekly, or monthly.
The rules are simple and each trader should know them. The most commonly used standards are support and resistance, Leonardo Fibonacci retracements, trendlines and moving averages. The home daytrader should take the time to learn these rules and how to implement them. Before entering degrading trading day, arm yourself with a simple design and a clear mind
Thanks for reading my article. To learn more, please visit one of my educational websites.
http://www.srg100.com/
The financial markets is risky. The investment is risky. Past performance does not guarantee future performance. This article has been prepared solely for informational purposes and is not a solicitation or an offer to buy or sell any security, currency or asset. Opinions are based on historical research and believed reliable data, but there is no assurance that future results will be rewarding.
Article source: http://EzineArticles.com/?expert=Dana_DeCecco
0 comments:
Post a Comment