Welcome Mooers!
This week's topic, we will be discussing 'How do we start short-term trading?'. We will focus on 4 main points.
Point 1: Who do we want to be?
There are 3 kinds of short-term traders. They are:
1. Scalpers
2. Day traders
3. Swing traders
A scalpers aim to profit from a position that last not longer than 10 minutes. Unlike scalpers, day traders trade within a single day while swing traders can have position that last from several days to weeks.
Point 2: What markets we are comfortable with?
The two most popular markets among short-term traders are Forex and Cryptocurrencies.
Point 3: Which strategies that we want to use?
There are many trading strategies that we can use for our short-term trading. The most popular one is the momentum trading as it takes advantage of market volatility by open position in stocks that is going up and sell them when they are about to go down.
As for the risk, we use sell stops and buy stops to protect us against market reversals.
To know when to buy and sell at the possible right time, we can look at a few indicators such as Moving Averages (MA) and Average Directional Movement (ADX).
The One of the patterns that I like best is the Cup and Handle. The Cup and Handle resembles a cup with a handle. We can identify the cup as a shape of 'u' and the handle has a slight downward drift. The Cup and Handle pattern signal bullish.
Mars Mooo OP :
Mars Mooo OP : Please support Nana 'To become a better day-trader!'
https://www.moomoo.com/community/feed/107415708368905
Mars Mooo OP : Wow, we got 1 scalpers in our vote.
Mars Mooo OP : Wow, we got 2 scalpers in our vote.
Mars Mooo OP : Wow, we got more than 75% mooers who want to be a day traders.
NANA123 Mars Mooo OP : Thanks so much
NANA123 Mars Mooo OP : I want to be a day-trader
Mars Mooo OP NANA123 : Nana, you're welcome.
Mars Mooo OP NANA123 :
Mars Mooo OP NANA123 : Nana, a tip for you, try divide your trading time between the 3 roles, e.g. 5-85-10: 5% as scalpers, 85% as day traders and 10% as swing traders.
Tweak the time, if necessary, so that you get the maximum excitement & profits that you are comfortable with.
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