What Makes a Successful Day Trader

A successful day trader is someone who has a trading plan and follows the trading plan.

Your trading plan tells you when to enter a trade and why, and when to exit and why.

A successful trader understands the law of probability. They do not trade low probability set ups.

A successful trader knows how to control his emotions at given any time.

He/she is a good money-manager .He cut his losses and let his profits run.

He is open to new ideas .

Big picture

Day trader should know the big picture before they get lost in intraday price action,macro price and volume analysis the key to success in day trading. Following the overall market will make a lot of sense to you ,make sure that there is no support/resistance close to your entry point.

Trading questions

1.Why would you select this stock for your day trading?
2.What would you be looking to get short or long?
3.Where would you put the stop loss and why?
4.Where would you partial and why?
5.Where would you exit?
6.What would be your position size and why?

Short sale bans seen a risky game by regulators

Forex update

Fed actions don't address root

Those behind market crisis should be punished

AUD/USD update

AUS/USD showing some strength at the moment but .8500 area is acting as resistance,i am looking it closely ,if the pair break this resistance i will consider long or if the present candle turn red i will consider short in accordence with other confirmation.

GG long

Entry $34.24
Partial -$34.51(161.8%)
Exit $35.07(261.8%)

Why Short Selling is to Blame for Stock Market Volatility

Hedge fund group wants looser short-selling rules

The naked truth: short selling must be banned

ASIC clarifies short-selling ban after confusion delays trading

Now Australia bans short selling.Interesting move by the ASIC!

8th Ritmo Brazilian Festival.Darling Harbour, Sydney, Australia

Forex weekly update

In the weekly chart both AUD/USD and GBP/JPY formed bullish hammer. For AUD/USD pair If the current support level prove invalid then .7677 will be next support and for the GBP/JPY pair 1.7961 will the next support.

How the rich differ from the rest

Explaining the latest measures to restore order

U.S. bailout is bitter pill for free marketeers

Select from the two

Very similar set ups but which set up will you choose and why?

Answers to the Questions

1. I select this stock because it is very active as you can see very high volume in the first three bars compare to the previous days first three candles volume.
2. I would be looking for short as the stock is showing weakness.
3. Initial stop would be above the inside bar.
4. First Partial at 161.8% extension.
5. I would exit my position when price close above the 10 SMA.
6. See my position size calculation post.

Trading questions

1.Why would you select this stock for your day trading?

2.What would you be looking to get short or long?

3.Where would you put the stop loss and why?

4.Where would you partial and why?

5.Where would you exit?

6.What would be your position size and why?

New short-selling rules could boost ETFs

Why you need a trading plan?

A trading plan should have complete sets of rules that cover every aspect of any trader's trading.

• What instrument (stock, forex, options, future, CFD etc) you want to trade and why? I trade stock and forex not because I like stock or forex market I have definite reasons to trade those, you need to know why you are trading individual stock not index?

• Which market (NYSE, NASDAQ etc) you want to trade?

• What is best time for you to trade why? (Suppose for forex London open is the best time to trade)

• How you will select a stock or a currency pair that will give you the best result.(I have 12 specific rules to select a stock that helps me a lot to avoid over trading)

• The maximum percentage you will risk on each trade. This most important for new trader to learn risk management. I follow three golden rules to manage my risk.

• How many lots/share you will trade per trade (position size).I always follow two different rules to know my position size.

• Which time frames you will look at. Time frame is very important aspect to any trading. I follow 5 and 15 minutes chart for equity .Any good set up will appear in any time frame but the point is exit will be different in different time frame.

• A trading plan will give you clear-cut entry strategy, where should you enter and why .My trading plan has eight specific entry strategy.

I think exit is the key to a successful trading plan. A exit strategy will show you where to exit and why. I use three different exit strategies.

Worst Crisis Since '30s, With No End Yet in Sight

Kakadu National Park, Northern Territory, Australia