Why day trade? If you are not in the market for the money, you are in for the wrong reason.
Day trading is not investing. If you treat your day trading like investing you are bound to incur huge losses.
The Emini NASDAQ 100 and S&P 500 are index futures. These are derivative financial instruments. While you do not need a P.H.D in derivatives, a basic understanding is helpful.
Contract specifications of the S&P 500 and NASDAQ 500 are explained. Their confusing symbols are also discussed.
Tools of the trade, this is the backbone of your trading. A slow computer can cost you alot more in trading losses than a fast computer would.
Anti virus, charting softwares and brokerage trading platforms. You need these to trade.
I post my trades online regularly, I will bring you through the actual trading process I take. How, I place my stop loss, profit targets and when do I increase my bet. Real practical technical analysis which makes me money time and again is discussed. Find out how greed and fear affects all traders, including me.
Technical analysis is what you can not afford to ignore in day trading. Technical analysis is an art and theoretical knowledge without practice is useless.
Candlestick body length is an important visual signal in technical analysis.
Candlestick shadows are often tell tale signs of an impending reversal.
Hammers and shooting stars when formed in their respective contexts, are good reversal signs.
Doji candlesticks form when buyers and sellers are equally strong. Doji are also powerful reversal signs.
Market orders, Limit orders, Stop loss orders and the stop limit order. Know these cold and hard. No time to think about which order type to use during trade execution.
Do not ever underestimate paper trading. Test out your trading ideas without risking a single cent first.
Some fundamental analysis is definitely good for day trading. Use this together with technical analysis and you increase your probability of a profitable trade.
Download free Ebook on day trading the Emini NASDAQ 100 and S&P 500.