Day Trading For Beginners – Why Is This Style of Trading So Easy?

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Day Trading for Beginners – Why Is This Style of Trading So Easy
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The purpose of this video is to help teach day trading for beginners.

This is the third trade that I took in the Emini S&P market today. The market moved surprisingly well for the day after a holiday. I had a couple of early winners followed by a loser and this one popped up. The most important thing as usual is to analyze the market prior to taking any trade.

The key things that I look at after I’ve already been trading an hour or more is:
What has the market done thus far?

What I mean by this is several things:

What kind of environment are we looking at?

By this I mean is the market running well and are we channeling or trending. There are actually five different market environments that I classify in my trading system.

Is it respecting our areas?

By areas I am talking about the Money Line and the MB. Is it using those as support and resistance or is it blasting right through them.

Are other trades working?

This is very similar to what I wrote above. Are the trades in previous up and down runs working or are they failing?

Did any run in this direction already work or fail?

This again is in line with what I said above. Mainly I mean did a previous run to the upside wind up failing?

Once I have the answers to all these I process this in my head like a checklist. I begin to think of the possibilities in taking the particular trade at hand. In this case we had a market which had previously failed trying to go up at a strong resistance area.

But two one of those failed instances was an invalid trade and the second push up was during news. I would never trade at news so really neither counted. The previous run down wasn’t really that strong so as long as I get a solid looking run and retracement I should have a very good trade.

So, when we get a really good run and a textbook retracement this one is perfectly fine to take. That is classic day trading for beginners. I take this without hesitation and then start out by measuring my Fibonacci extensions. I did anticipate this to retrace all the way to the money line but it did not do this. My target is 2 points away at the 61% Fibonacci extension.

The bars begin to close all the way at the top and this is a pretty good indication that the trade is going to hit our target. Despite the slow move up it still eventually hit target. Surprisingly we do get a retracement to the MB, but eventually three is a squeeze in the bollinger bands and we do get that pop up that takes us to target.

This was trade #3 of the 4 trades I took on 1.22.13. I hope you enjoyed this video which taught day trading for beginners.