There are some great rules winning day traders use, they use these secret rules as part of their trading technique. These rules are more or less unique to each trader, but there are certain rules that have been kept secret in the obscure environment of the trading floor. These range from daily pivot formulas to specific stocks that allegedly lead the whole market, but is there any substance in all this, or is it just superstition?

Here are some of the most profound day trading secrets that traders have been using for years!

• The value area – An area where most trading occurred on the last trading session, the calculation is a bit complex and requires both volume and price data. It is used as support/resistance for the next trading day, and floor traders often pay as much as $200 per month just for these daily numbers.

• Daily LSS pivot system – A trading technique developed by George Douglas Taylor back in the 1950’s. The credibility of this trading method remains debatable to this day.

• Leading stock indicators – Occasionally the stock market does follow some leadings stocks, but is not as straightforward as it sounds, different stocks are used as indicators in different market environments.

• The bond market – The bond markets does move contrary to the stock market, again it is not a sure fire indicator, there are times where it can be misleading.

• The day of the week factor – This theory states that certain days of the week, are more bullish or bearish than other, it’s proven by statistical back-testing.

• Weird moving averages of unknown formulas – This is the most secret of them all, some traders actually do have invented advanced formulas that can predict market movement with amazing accuracy, higher than 80%, and nobody really knows what this data is and how this data is used.

There are even more day trading secrets, but the most powerful secrets remain secrets, and even though they have been confirmed to exist, apparently they have not been available for sale to anyone. How do we know they exist? Traders have been seen on the trading floor making predictions to fellow traders, one that really blow them away! They never give away their secret, because they have dedicated their whole lives to it.

It is common sense that a floor day trader will have his own, unique secret, some of them rely on visual observation and the use of technical data, for example what good traders are present just before a move takes place? While other techniques are much more data- based, using volume, the arms index, previous highs and lows.

All of the secrets mentioned above do affect the markets on a day to day basis, but not everyday of course. For example there was one stock that influenced the whole market, that was the Merrill Lynch stock, and it did so for decades, but it no longer does! In today’s markets day traders watch other stocks, and depending on volatility and sentiment, they watch different, more relevant stocks.

If you find a mentor willing to share their day trading secrets, jump on it straight away.

Day Trading Rules – The One Rule You Must Know!

Discipline is very important in trading, much like it is in the military, and even though I dislike the military I have to admit that logic proves the case. The military could never work under democratic rules, but it does work fine under discipline and radical rules. Trading is the same thing, once you have the plan, you should not confuse your homework with the execution plan, homework requires a lot of thinking and planning, but executing the trade requires observation and following the rules, no thinking!

The extreme complexity of online charting packages and trading tools would have you believe that there has to be a lot of thought taking place in the trading business. The fact is that these tools are used for planning the trade and the whole trading plan, but when the trader places the order there is no more judgement on the markets. It is all down to your day trading rules.

The trader looks at the trading calendar, figures out volatility and the impact of news, then looks at important price levels to see if they are relevant for that day. He then makes up his mind as to whether he should buy dips or sell rallies, after that he will have a clear trading plan for the day.

Specific Day Trading Rules

• Wait up to 25 minutes for the trade to prove itself – a lapse of 25 minutes is a kind of stop loss order.

• Be out of the market during the first hour on unclear direction days.

• Use the first hour high and low as well as yesterday’s high and low for possible turning points today. If the trade goes well you should get out near these levels.

• Count 30 minute bars, 3 large, consecutive up or down bars often make the first leg of one trend, it is considered as a very likely top or bottom and stops should be tightened .

• Don’t take trades during the mid session timezone, participation is lower and trends hardly ever develop.

The markets do adhere to these rules more often than not, exceptions to these rules are indeed the exception to the statistical rule and nothing more. These rules help develop an emotionless trading plan that can stay immune to minor price volatility and panic attacks that are reflected in the price.

There are trading mentors that provide premium, advanced training, much more detailed and sophisticated than the above rules. If however you can’t afford such efficient, premium trading education, at least stick to the above rules and it will help you somewhat. Of course the premium educators do something unique, they help remove the emotions out of your trading, and that is something no book or articles can ever do!
It’s like going to the doctor and getting advanced therapy, one that exactly fixes your health problem and you get your life back.

Emotionless trading with discipline and advanced homework techniques, but always kept separate, that’s what day trading rules are all about!

Wouldn’t it be nice if you could catch these overnight currency moves while you were sleeping? Believe it or not, the 3 continent trading nature of the forex markets is what bothers many traders today, they do win anyway in the long run, but they still miss enormous overnight moves! A typical overnight move in EUR/USD which I trade the most, is on average 100 pips, around 30 of these pips can be captured with automatic market orders, and 80 pips can be captured with a trading forex robot! The remaining 20 pips cannot be captured by anything.

Forex trading is more exciting than ever, and the latest developments in pattern recognition have enabled computer programmers to do unbelievable things! Who would have thought that we would be able to trade automatically the forex markets, and not only that, but there are even more sophisticated day trading forex robots that can trade even when your computer is switched off! I have trouble figuring this one out, but apparently it has to do with some kind of remote, 3rd party computer operated by your broker or the forex robot company.

The level of sophistication is really breath taking, I always worried about those overnight moves, and the missed opportunity. Let’s face it, some trading setups in forex are way too easy to figure out, but the problem is that you have to spend 5 hours being on stand by mode, like a soldier guard at a night shift, certainly not the most exciting job in the world, I always hated being a guard.

Being a guard is mechanical, meaningless activity that is simply against human nature. The forex market is not different, can you really enjoy your life if you have to spend 5 hours every day with the finger on the trigger waiting for the opportunity to show up, often in the last 5 minutes? How annoying! Even when you win big money, it’s still too annoying and boring to wait, it almost offsets the good feeling of winning.

And it’s no surprise, trading was bound to evolve to this point, just like everything else did. Do not think that forex robots are some kind of free money making machines, they still require capital to operate, they will only trade if conditions and entry criteria are right, but when they do trade, they capture that quick, sure fire 20 pip movement a night!
Even with a $1 per pip, that’s still $20 of giveaway money, very easy to win, why leave it on the table?

By ultra conservative estimates a forex robot can pick up $320 in the first month, and it can actually triple a small $1,000 account over one year, that is by the lowest, worst case scenario estimates. Forex robots either win or WIN, they never lose. We say day trading robots, but they are actually night trading and automated trading robots, when we have night, another part of the world is beginning its forex trading day, or we just want to have automation in place for the reasons mentioned. Either way, it’s the only way!

The forex marker is often seen as an attractive alternative to the stock market, a market that provides more opportunity for profit. In fact the forex market does provide more opportunity because it’s a more technical market than the stock market is, and one can trade it using the charts alone. With that being said, the forex market has its own inherent risks and surprises that can knock out any kind of aggressive, non patient trader, no matter how well financed they are.

If you want to day trade forex you will have to face the following:

• Sudden unexpected price movement up or down, fuelled by news, and one that is often impossible to make sense of.

• Central bank interventions. The national bank of a country can cause the market move too sharply by 600-800 pips in 2 days. This creates all sorts of illusions.

• Risk aversion due to sudden panic events, causing the dollar to surge higher without further explanation.

All these events cause traders to get stopped out and losses can pile up quickly. On the contrary however, the experienced traders have been trained to know when to expect these kind of scenarios and adjust accordingly. All traders that have been educated by older, experienced traders and have been mentored to trade wisely know about these events, so they don’t get frustrated. The uneducated trader gets killed psychologically every time he suffers such a loss and he almost thinks that maybe trading does not work, or it will not work for this month at least.

No matter what you hear about forex day trading, things like ‘it’s impossible’, or it’s ‘crazy’ or it’s just the job better left to the ‘experts’, you have to ignore all this. Sure it is about expertise but it is not some kind of expertise that’s impossible to acquire. Rather
you have to figure out how winning traders became what they are today, find out what they did, and who trained them.

I know for sure that these traders treat the forex market very seriously, not like some kind of game. They are willing to pay for a 2 year mentoring program that may cost as much as $10,000! That’s about how much you also need to become a certified pilot, and they treat it equally seriously, because they know trading is a serious business. And forex day trading is an even more serious business where there is no halfway success!

So is it possible? When these people ask you again, you have to tell them the paradoxical truth; sure it’s possible to turn $20K into $200K or a million, yet it is impossible to turn $1,000 into $5,000. A trader with only $1,000 cannot afford the $5,000/year training unless he takes out a loan, and as an untrained trader he will fail while wasting his time trading. The $20,000 trader has a very realistic chance to make one million dollars in less than 2 years, even if he borrowed that $20,000 from the bank and spent $5,000 per year to day trade forex, he still can make it with only a small portion in his trading account, maybe $7,000, that’s all he can trade with and still reach $20,000 within 3 months.