OBSERVE & TRADE: Trading the perplexity of the Stock Market*: How To Trade


Just to have some kind of idea how to do trading on a short term basis. As been propagated by the best traders we’ve learned and  read from trading books, there lots of ways to trade the market, it all depends on your understanding and strategy you implement. As you’ve gain experience participating in the market with the numerous trial and errors you encounter, trading the market – all come within you. No one can teach you how to make money trading the market, it’s all between you and Mr. Market.

Mr. market gives a lot of opportunity how you can get money from him, it’s a combination of strategy, continuous learning how the market moves, watching ourselves how we participate, and of course the education.

The simple strategy to participate in the market on a short term play – per my own way of trading summarizes below.

Though I spend a lot time learning/reading/gathering ideas trading the market – still struggling and continuous to learn (that’s how to involve in the market, not always right).

First, I look up the economic calendar as shown below to see what’s the main event that is scheduled, this is important if we need to to participate or not. Need to find out how this calendar affects trading, Google it to have an idea. See the link to find out: https://us.econoday.com/byweek.asp?cust=us

Second, is to prepare and watch the market as it unfolds (from overnight session, I trade futures), see the daily chart, study the chart, the price movement, from the daily to the chart frame you trade, in my case I use the one minute chart.

From the one-minute chart below, I have a few indicators, 9 simple moving average, with the VWAP (not shown), and the MACD to see their relationship, though I don’t really wait or look how they correlate or what they call confirmation, I base my trade from the price movement (reading the minds of the market or the participant), as well as pattern recognition.

Third, I trade the in-between moves, I don’t trade the bottom or the top, cannot be done, the best trade is the middle part. Capturing the middle part is the best trade to gain in the market, it’s all about waiting the right area or movement to participate.

Like the above chart frame, you don’t need to buy at the low and sell at the top, just capture the in-between, and you are set. You already make money in the market.

Looking and reading my scenario seems easy, but the most important is patience, understanding the market, have discipline, execution, and you as a trader if you have the confidence to participate.

Have a nice trading to all…


Image and article originally from puzzledtrading.blogspot.com. Read the original article here.

By Unknown