June 28, 2011
- in Uncategorized by schooloftrade
Easiest Market for Day Traders, Swing Traders & Scalpers
Easiest Market for a new Day Trader, Swing Trader, Scalper
Two main issues with the volume on the market you want to trade.
– It has enough volume to keep margins low and liquidity high
– Not too much volume so that it never moves with anything big.
Not enough volume won’t give me consistency in my trading patterns, and it makes the cost of trading (margins) difficult to swallow.
Too much volume and the price never moves, and becomes range-bound and sloppy, very similar to the ES E-mini.
Day Traders: (Crude Oil, Gold, Russell, Euro)
– Patterns every day, and consistency in getting new patterns
– Im paying my bills with what I earn, so I need to earn daily.
Scalpers: (Crude Oil, Gold, Russell, Euro)
– Need to have a little more volume so you don’t get too sloppy
– Trying to scalp 10 ticks out of the market will be easier with slightly more volume.
– Still need to see consistency so we always get patterns to trade.
– Beware trading these markets in times of low volume.
Swing Trader: Every Market as long as you have confidence in the patterns.
– Dependability in moving from highs to lows
– I can deal with low volume
– I can deal with lack of patterns every day
– I need to know what ive seen in the past will likely happen in the future.
– Swing traders will use their trading experience to make educated decisions based on patterns they’ve seen in the past.
– Crude Oil, Gold, Russell, Euro)
– Corn, Wheat, Soybeans
– ES
– Bonds, Notes
Dollar Correlation breakdown:
– Negative correlation
– Low volume
– Fear
Swing Trade Method we use:
– We keep it very simple
– Uses the same fundamentals as our day trade method
– Very simple entry and exit rules
– You don’t have to learn another pattern or method when you go from Scalping…Day Trading…Swing Trading.
– Stops? Stops go at the location where the trade becomes invalid.
– Target? Use the most important levels of support (below) or resistance (above)
Fast Track Method: High & Low Risk:
– I want everyone to learn, new and experienced traders.
– I want to teach you the difference between the High & Low-risk trades
– So I point the trades and I call them either higher or lower risk.
– High % trades (low risk) everyone can feel confident taking them (guests & members)
– High Risk trades so you know where the pattern is, what the risks are, and how to trade around that risky trade.
