This guide to day trading futures is directed towards new day traders and intermediate day traders wishing to gain an understanding of day trading. The day trading modules contained on this site provide a high level understanding of the key knowledge areas involved with day trading (Technical Analysis, Money Management, Trading Psychology & System Development).
These areas are an essential part of any day traders successful day trading career. This day trading guide is designed to compile relevant day trading information in one central library to simplify the day trading educational process of new day traders. Today you hear stories about Day Traders depleting entire trading accounts within a very short period and the most common statements i hear are ” It is to risky to trade the markets.” or “it is to complicated you need a PHD in economics to make money in the markets” but the truth is that trading the markets is not complicated at all but it is difficult in a scene that it requires the discipline to follow a trading plan.
Take a minute to consider the following questions they will help you in defining your trading style;
- What market will you be trading? (Stocks, Futures)?
- Will trading style Day Trading, Swing Trading or Investing?
- What is my risk to reward ratio? Do i have a solid trading plan?
- Does your system have a positive expectancy?
- Are your profit expectations realistic and achievable?
In the book Trading In The Zone, Mark Douglas makes some very important statements about how traders perceive and respond to the markets based on internal believes and desires, I recommend any serious day trader read this book to understand the critical part psychology plays in day trading. We trade to make money this is the truth and as such we must treat it like a business. All the information related to day trading can easily overwhelm and paralyze new Day Traders because there are an unlimited number of ways to day trade. You can use any number of chart timeframe’s, indicators, indicator combinations, different indicator settings etc. so it is no surprise that without a solid foundation new day traders find this experience overwhelming and quit before even getting started.