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.

Most of us are familiar with various online trading platforms and charting software packages, most of which are complex and overwhelmingly difficult to use. In addition to that, we also need to make sure that we do use the best, most suitable broker. There is no way to tell if a broker is suitable for day trading or swing trading just by looking at their trading platform, so who can we ask for advice?

The best we can possibly do is find a trading mentor, one that will provide us with impartial trading education and valuable guidance in choosing the right broker. The problem with many so called trading educators today, is that they simply do business with any given broker. And deep down, all they want is to teach you nonsense. That is usually a high frequency trading system that makes the broker a lot of profits in commission charges.

That’s not what you want as a trader, rather you have to stick with the best out there, real market mentors who will let you choose among the best of the best, both a charting package and a broker. These real trading mentors are impartial, and their trading system has nothing to do with what the broker wants. They do however take into account certain brokers’ weaknesses, such as delays in filling orders, bad filling price, slippage and any kind of suspicious behaviour.

Don’t let anyone influence you with their self serving ideas. I have seen brokers for example who charge very high commissions and other who charge much, much lower commissions, one has to think however, ok commissions are a big operating cost in the trading business, but is not the biggest concern. What if the low cost broker ruins your trading by filling you at a very bad price? You saved $10 in commissions but you actually lost $100s because of the bad filling price, so really, you could have been better off sticking with an ‘expensive’ broker after all!

This kind of cunning broker behaviour is more evident in day trading than longer term trading. This is where you test if the broker is good or not! And please note, don’t bother with simulated, virtual money trading, only real money trading can reveal the real nature of each broker. And being in the futures business, you really have to realize that commission costs is really a minor detail, as long as everything else works fine, don’t trade off execution speed and quality for anything else, it’s not worth it.

Futures trading can be risky and an enormously stressful activity, particularly day trading futures contracts. When you attempt to trade a market, any market, without having an exact plan as to how long you are willing to stay in the trade or at what level to get out, then you are a weak minded person who makes trading decisions on wishful thinking. This is the hard truth you have to hear.

Futures trading is a great oportunity, it provides excellent leverage and high risk but if you use it together with a strict trading plan and some education on how to trade futures, then the markets cannot move much against you. A lot of good day traders never wait for more than 25-30 minutes for the trade to prove itself. If you have counted 30 minutes on your trade and you still want to wait for things to get better, then you are a weak, emotional trader. 30 minutes becomes an hour, then half the session, by that time you are losing 20 times more money, then finally comes the closing bell and you don’t have to worry anymore, the contract is closed.

You have to realize that futures are not like options or long term stock investments, they are much more volatile, and subsequently the emotions that come with it are also much more volatile. Futures trading is a lot about volatile emotional trading, and this is a kind of contradiction. How can one become emotionless when they are willing to play with a source of emotions?

The fact is that it is still difficult even for experienced traders to get rid of all emotions, but overall they manage to do just that. Not only are experienced trades calm with their trading, they are also calm with the way they drive, they don’t get mad at other drivers mistakes and bad manors. They are willing to give in, in many aspects of life because they feel a sense of guilt, they feel that all the millions they have made trading has come at the expense of society so they owe to somehow thank society for that.

Futures trading is a testing ground for the psychology of all people, I can always tell who can possibly win and who will certainly lose at futures trading, just by looking at they way they talk and they way they drive, nothing else! The emotions that come out of futures trading are really hard to manage, the volatility is hard to take.

If you really want to learn how to trade futures in an emotionless way, and also learn excellent money management techniques for your trading, then you really have to find a trader who is already a big winner. One that feels a lot of ‘guilt’ for making a lot of legal money without the 9 to 5 hard work, but rather by using advanced intuition and mental devotion. Believe me, the traders that made big money are not the sort of people you suspect, they are definitely not the people who believe that their car is a reflection of their wallet, so they drive normal, middle class cars. They don’t want to impress anyone in the city, they might however have their own yacht, their own villa in some exotic island. On the contrary, a social, poser kind of person who flashes his money IS addicted to human emotions. He likes people staring at him, he likes that feeling, and when he attempts to get involved in the markets and start trading futures contracts, he gets killed every time. He cannot think impartially and cannot see the truth.

Whoever you choose to be your trading mentor, make sure they are they ‘guilty’ low profile kind of person and not the poser, in fact you won’t find any posers in the stock market, the market is good at knocking them out fast.

Can computers really replace humans in doing delicate and extremely difficult tasks such as trading? I believe the answer is no, certain tasks such as translation, problem solving and trading can be aided by computers and have been to a great extend, but they can never be carried out exclusively by computers. That being said, you have to realize that forex trading is not the rocket science you think it is, it’s easy to simulate, and easy to design algorithms and computer programs for. The task is to save time, and not sit at a computer screen all day long, let alone that the forex market trades 24/5 so one day is not enough, you would have to trade 24h to be as efficient as these forex robots.

80% of the time the forex market doesn’t go anywhere. And that is why automated forex trading is so powerful.

That’s right! You can find out for yourself and see that it is real. Watch a currency pair on a 5 minute bar chart, (each bar represents 5 minutes of trading) watch it for 2 hours or just mark one point, and after 2 hours go back and check, count the number of bars from that point on. What you will find is that out of the total 24 bars of the 2 hour period, only 4-5 bars show price trend!

Only 20% of the time it trends. That’s really boring to wait for. This is really boring for active forex day traders, fair enough they can wait for news release times where volatility will be higher but even then it can take as long as 3 hours waiting time to capture just 3 trades of only 10 pips each, a total of 30 pips, not counting the frustration and the actual cost of these 3 hours. If the trader made $30 on these 3 hours, that is not a good deal! He took a risk to make this $30 and his 3 hours are also worth at least $20. Even if he worked at McDonalds he would have made a sure, stress free $20 for that time, and at least he would have the chance to date one of those lovely girls working at McDonalds, instead of growing older in front of his computer!

For that remaining 20% of time where the forex market will make its moves, and these can often be really wild moves of 80 and 200 pips, this is where the forex trader wants to automate things. A good forex robot can pick up 30% of these 80 or 200 pips, no matter if they happen at night or while you are away in another job. That is around $24 to $60 per eligible 24h period, at virtually no risk! I say per ‘eligible’ 24h period, because certainly there will be days where no opportunity will show up, the markets may move but the move is not tradable, so you have to be realistic in your expectations.

Automated forex trading cannot make you rich, but it can provide you with a second salary! It will help you get your social life back, which I have found is the hefty price we all pay in many high paying jobs, so why live in front of a computer?

Have you ever thought of trying Forex Day Trading, and learning the tricks of the trade from the very best? This article attempts to explain why forex trading is such an interesting concept, and why day trading in particular is so fast an exciting.

Generally the Forex market offers opportunities and technical setups that to the untrained eye, can be impossible to spot. Furthermore, the new trader just doesn’t know the differences from one currency pair to another, the presence or absence of liquidity, and the presence or absence of particular factors that may turn the daily trend upside down!
But knowing how to spot those, does make all the difference!

Common facts and myths about the Forex market that most new traders don’t know:

Forex day trading attempts to deal with the intraday market fluctuations, but let’s be realistic here, attempting to catch a 60 or even a 150 pip movement that you being setup on the charts is often harder than it seems! Bear in mind that charts alone are not enough in order to figure out market direction. Only the educated mentors of few and well established trading and trader-mentoring firms have the experience to read these technical charts, as well as other data and make sense of it all!

I remember when I first started trading forex, I was very excited. I did have a few winning trades that made me want consider forex trading much more seriously!
I made more than $400 in 3 days, way more than my day job paid, and certainly this excitement made me behave irrationally. I used no trading mentoring services, not an analysts opinion, only a public opinion poll.

As crazy as it may sound, all I did believe in, was that public opinion poll, after all it had been proven right, time and again. But that suddenly changed, and that’s when I started losing money day trading the forex markets. Then my whole trading method just fell apart, nothing seemed to work anymore, my ‘winning’ system had only lasted for a week or so, then market conditions completely overpowered it.

So now, I have come to realize that there is so much more to trading than just a quick glance at a price chart… The only way to really know when public opinion is right, when is wrong, when the central bank will be right, or when even the central bank can be wrong is to perform extensive market analysis, before the trading day! Good forex traders have learned techniques from their own mentors to do that, and I assure you they know beforehand how much money the markets will allow them to make on that day. Even thought the forex markets appear to be setting up for a 200 pip move tomorrow, you can only really catch 40% of it. Try catching more, and you will lose! But why risk more? If the mentors tell me that these 80 pips will be during the time of the best liquidity and volatility, that’s all I want! I will trade on these 80 pips with more money, I will still make $200 on that day even though I will have ‘missed’ 60% of what appears to be a tradable move.

Sometimes I think I would have loved to have found a mentor early in my trading career, it would have saved me a lot of trouble and frustration when I needed it most! Yet, much like the majority of traders I ended up learning the hard way, losing, and losing again, blowing my trading account many times only to eventually do the right thing, that is go to a mentor! After learning so much from the trading mentors I look back at my early trading, and sometimes I feel embarrassed by the stupidity of the early, childish trading of mine.

Bad trading is a natural phenomenon, it’s very similar to other forms of irrational behaviour that we often do. We are not rational beings, and that is why TV commercials work after all, that is why many fake things in life work, such as services that sell false information, horoscope providers and all sorts of gurus who will take you for a ride.

In fact it has been found that consumers buy purely on psychological grounds, they buy things they do not need just to satisfy their consumer psychology. Then they try to justify with reason! Believe it or not, most of the products and services you are being offered are carefully designed to satisfy your consumer psychology and make you desire them. They have little or nothing to do with real logic. It’s the same with financial products and self claimed market gurus who also want to get you excited and take you for a ride in some kink of wonderland, where big effortless profits are possible.

Here are some facts that prove how stupid we consumers are, and how naïve we are when it comes to the real profitability of the financial markets:

Traders International are a trading education firm that will help you remove this and other similar forms of hallucination and distorted reality, they can teach you how to trade from a real world perspective, and where to look for overlooked trading opportunities in the markets. Take the opportunity to learn about the real thing now!

These days the internet is filled with adverts and premium content that brags about forex trading and the how their unique trading system has beaten the markets, often promising 100% or even 500% monthly returns. Others promise lower, more realistic figures, but again how can you put these claims to the test? Is there anyone really who can consistently beat the forex markets?

No one can fully understand the risks of the forex market. No matter what trading system you choose the risks are always there. The only difference between a new trader and an old, seasoned forex trader is their way of dealing with the unknown. But even seasoned traders still have losing trades. Also the old winning trader has the confidence of his past winnings, new traders don’t have that, rather they are drawn into the trading game by an urgency to make some money soon, just for the sake of covering some immediate living costs.

Traders, this is not for you! If you are thinking about easy, effortless money then this is not for you at all! The forex markets do give away money, but only to those who are patient enough to wait for it, and to those who have the patience to sit down and learn from trading mentors.

It’s much like going to a casino, if you are looking for quick fun just to kill some time, then it’s fine, there’s no need to do any homework. But if you are serious about it, and want to go and ‘break’ the casino, then you have to have the passion and turn this desire into a profession, a life long profession. Beating that casino comes down to planning, learning from some older players, and then either developing special skills, specific to the game you wish to play, or devising a scam that can fool players and the casino alike. Both of these are possible!

That’s how I have looked at the forex markets too, even though it’s not possible to fool and scam the forex markets it’s still perfectly possible to learn from old traders! Now, in regard to probability of winning and monthly return figures, I have found that in forex day trading, it can be up to 40% a month. It is possible to make up to 40% a month day trading currencies. Using nothing but your imagination combined with the know-how of seasoned traders, ones that are willing to mentor you and help your trading!

These mentors’ techniques are rather simple and easy to follow, but you will be amazed how many obstacles they will help you overcome. Once done with the first stage of learning you can be more risk-taking than they are, after all they have to play it safe for the sake of educating you. It’s kind of like a car driving instructor that doesn’t speed over 25Mph, this doesn’t mean he can’t teach you how to drive at 200Mph!