Technical Analysis

Step-by-Step Guide: How to Become a Day Trader with $100
Strategy, Technical Analysis

Step-by-Step Guide: How to Become a Day Trader with $100

Most new and inexperienced traders would like to start trading with a small trading account, and brokers have carefully listened. Most brokers have lifted their minimum deposit requirements, which means that you can start trading with a live trading account with as little as $100. Trading on limited funds has both its advantages and drawbacks. In this article, we’ve tried to cover the most important ones, as well as provide some helpful tips to responsibly trade with a small trading account. Is Day Trading on a Limited Budget Possible? Day trading is a fast-paced trading style that involves opening and closing trades within the same trading day. This means that day traders usually have tighter stops than their swing trading peers, allowing them to actively trade their accounts even o...
Spotting Potential Market Bottoms and Tops
Online Trading, Technical Analysis

Spotting Potential Market Bottoms and Tops

Accurately predicting market bottoms and tops is not an easy task even to the most experienced traders and investors. Most of the time, whether a market moves up or down is near 50/50. Even though some conditions can tilt those odds meaningfully in either direction, it’s hardly enough to prognosticate.  Instead, the way of thinking should be, how can I spot potential inflection points in markets? Inflection points which are more likely than any random piece of market data to precede increases in volatility or momentum.  I liken this to card counting in blackjack. In Hollywood, its portrayed as a get-rich-quick scheme used by eccentric geniuses. In reality, card counting is very much like trading. Most of the time, you’re making small bets with a slight positive expectancy...
Career in Trading: How to Become a Full-Time Trader in 2021
Strategy, Technical Analysis

Career in Trading: How to Become a Full-Time Trader in 2021

It’s the ultimate goal of almost any new trader. Becoming a full-time trader with consistent profits means financial freedom and being your own boss. But, what does it take, financially, socially, and physically, to beat the markets on a regular basis and make a good income from trading? Trading isn’t as easy as many online educators want you to believe. It takes experience, patience, and screen-time to make a career out of trading. However, once you master the game, it can become rewarding. So, here is our guide on how to become a full-time trader in the year ahead. Trading as a Career Trading is the hardest way to make easy money, yet so many new traders are attracted to trading each day. There are millions of active traders around the world. While some of them do this as a side ...
Offline vs Online Trading Schools
Strategy, Technical Analysis

Offline vs Online Trading Schools

Choosing the correct trading school is arguably the most important decision you can make in your early trading career. If you don’t get the foundations of trading right, you’ll have a hard time mastering more difficult concepts down the road. However, there’s much more to choosing the right trading school than just the aspect of quality. One of the first questions to ask is whether to enrol in an online school and enjoy all the benefits of online learning, or taking a more traditional approach with an offline school. That’s why I’ve compiled a detailed list of all major pros and cons of both online and offline trading schools. Pros of Online Trading Schools Online trading schools are efficient, comfortable, and come with a relatively low price tag. Here are our main advantages of tak...
10 Reasons Why Most Day Traders Fail
Strategy, Technical Analysis

10 Reasons Why Most Day Traders Fail

There is an infamous saying in the trading community, and you’ve likely heard about it: 90% of traders lose 90% of their trading capital within 90 trading days That’s a high number of day traders who fail in this game. But, what are the reasons behind this poor performance of day traders? Besides the lack of quality trading education, day traders often do the same mistakes over and over again. Here are the 10 most common reasons why most day traders fail. Reason #1: They think trading is easy Trading can be easy once you have an individual set of rules and intuition while trading the markets. However, this doesn’t come overnight. Most beginner traders, when they’re just getting started with trading, think that trading is easy. All you have to do is buy when the blue line crosses ...
The Truth About Day Trading: Is it Worth it?
Strategy, Technical Analysis

The Truth About Day Trading: Is it Worth it?

The world of online day trading attracts thousands of new traders every day. According to some sources, there is an estimated 13.9 million active traders worldwide! That number is expected to continue climbing in the coming years. But, what is day trading, and is it really worth it? How do day traders make money, and what tools do they use? Let’s find out below… What is Day Trading and How Does it Work? Day trading is a short-term trading style that involves opening and closing trades within the same trading day. This means that day traders usually keep their trades open for a few minutes to several hours, or until the closing bell. Day trading attracts many new traders because it provides fast feedback on your trading performance. By the end of each day, day traders know whether th...
What Makes a Good Trading Coach, Why Use One and How to Find a Reputable One
Strategy, Technical Analysis

What Makes a Good Trading Coach, Why Use One and How to Find a Reputable One

Do you remember your first miles driving a car for the first time? I bet you had an experienced driver sitting next to you, explaining how to accelerate, when to brake, and how to shift gears. Learning to trade is pretty much similar: Having an experienced trader or coach teaching you how to approach the markets can make a real difference in your trading performance. Following the car analogy, a good coach will teach you when to enter trades (accelerate), how to manage risks (brake), and how to scale in or out of positions (shift gears). Here’s a guide explaining all the benefits of having a trading coach, what to look for, and where to find one. Should You Get a Trading Coach? A trading coach can help you fast-track your learning process and teach you how to trade the financial mar...
Day Trading in the UK: How to Get Started
Strategy, Technical Analysis

Day Trading in the UK: How to Get Started

So, you want to become a day trader and join the hundreds of thousands of day traders who are living in the UK? Then this guide is for you. According to BrokerNotes, there are 9.8 million online traders worldwide, with the UK taking the top spot in Europe with almost 300,000 active day traders! In this guide, you’ll find everything you need to know if you want to become a day trader in the UK. What Does a Day Trader Do? Day trading is a very popular trading style that involves the opening and closing of trades within one trading day. So, depending on the day trading strategy that a trader uses, a day trader could scan the market for possible trading opportunities early in the morning. Then leave the trades open during the day, and close them a few minutes before the end of the trading...
Linear vs Logarithmic Chart Scaling Explained
Online Trading, Technical Analysis

Linear vs Logarithmic Chart Scaling Explained

The style of chart scaling you use on your price charts is one of those seemingly unimportant details that can dramatically affect how you perceive market action. Linear vs Logarithmic scaling are the two primary chart scaling styles, and both are available in almost every charting platform. The Difference Between Linear and Logarithmic Charts On a linear chart, each unit change is treated exactly the same. The change from $1 to $2 looks the same from $10 to $11. On a logarithmic chart, each percentage change is treated the same. Linear charts become useful when you want to see the pure price changes with scaling calculations. Day traders often prefer linear charts. Logarithmic charts are useful when viewing long-term charts. Over the long-term, large price changes are made, which a ...
How to Trade with Parabolic SAR in the Most Effective Way
Technical Analysis

How to Trade with Parabolic SAR in the Most Effective Way

Parabolic SAR is a technical analysis indicator developed by Welles J. Wilder. It was first described in Wilder’s 1978 book, New Concepts in Technical Trading Systems. SAR stands for “stop and reverse”, it trails the price action as the time passes. The indicator is positioned below the price when the prices are growing, and above the price when the prices are falling. The author himself called this indicator the “Parabolic Time/Price System.” The indicator was developed with the purpose of notifying the trader about possible trend changes. Being a unique indicator with high practical potential, Parabolic SAR should nevertheless be combined with other indicators for maximum accuracy. How does Parabolic SAR work? The idea behind the indicator is quite simple.&n...