Sunday, December 21, 2014 13:10 GMT 0 comments

Hope in day-trading
Day-trading is kind of psychological game and less emotions there are, better the performance is. The worst thing that could happen is to enter a trade which is a losing one and despise all logic and cold sense, sit on this losing trade in hope it would turn into profit. That is why, in trading hope could be very destructive. Even I'd say it's a bad word for the trader. It is very hard to learn to control this feeling because it is a subconscious self-defense mechanism. It is important to set some rules and indicators which to trigger a stop loss to close a losing position once this criteria met. Personally, I don't like stop losses to be triggered by the trading platform, but I do close losing positions manually myself as soon as I see that the underlying goes the opposite direction.

Wednesday, December 10, 2014 09:09 GMT 0 comments

Trading rules
I've read a lot of these pieces with advice about trading and I have some favourite ones. Myself, I have found that it is very important to establish some own rules and follow them while trading that is why here are some of my own trading rules.

- Do not over-trade - never trade just because of trading.
- Take profit as well as take losses. In the end of the day make sure you are above breakeven.
- Never get too excited about profits and too emotional about losses.
- Consider trading as a job but do not get too serious about yourself.
- Always learn. The market is constantly changing organism.
- Get prepared for the trading day.
- Rely only on your own opinion. No guru or algo could help you, if you don't understand the market.
- Avoid ranging markets.

Saturday, December 06, 2014 13:38 GMT 0 comments

Trading DAX
DAX  -  Deutsche Boerse AG German Stock Index DAX is one of my favourite indices to trade. It appeals quite well to daytrading strategies. During the trading day, it could move in some 200-300 points in average and having a margin account would offer great returns compared to money invested. Of course, the risk is also higher.

Unfortunately, if trade it through US futures brokers, it would require a considerable margin amount required to wire into your trading account. It is not the case as with S&P 500 - SPX where you could have a daytrading account with a margin requirement as small as $500. That is why, currently, I trade DAX through a CFD broker which on the other hand has its negatives as well. However, the good points are the small amount of initial margin to invest, fast execution and no transaction fees (which are calculated in the spread of course). As for the moment, it is good for me having a spread of 1 pip and after taking a position in a two-pip move I am holding a profit position.
DAX index is traded at Frankfurt stock exchange; it is computed daily between 09:00 and 17:30 Hours CET. The L-DAX index (Late DAX) is calculated from 17:30 to 20:00 CET.

Another interesting thing about trading DAX is that it correlates with the Dow Jones Industrial Average Index and some how follows it once the US market is open.

To sum it up, DAX is very nice for daytrading, volatile and liquid. Unfortunately, currently, I don't have much time during the day to trade DAX and I only follow it during US trading time and trade SPX but I do hope to get some free time and return to the routine trading this good index.

Tuesday, November 25, 2014 20:01 GMT 0 comments

One of the most important word in trading is discipline. It is essential to have a trading plan. Always enter into a trade when all entry criteria are met. If some of the entry settings are not present, it is better to stay in the sidelines and wait.

Monday, June 30, 2014 19:33 GMT 0 comments

Low volumes
The greatest enemy for the day trader are the low volumes and ranging markets. Although for the last few months we've seen the SPX climbing higher and hitting all time highes, the market is slowing down its momentum and these ranging days prove that we are approaching some very significant levels.

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