This is an email I just received on which I wanted to comment...
TM,I have been a lurker for 2 or so years. I wanted to thank you for the information you have posted on this site!!. Without professional traders like you, CM (Chairman MaoXian), and TraderX, I don't feel I would have a chance at becoming a pro daytrader.
You're very welcome! I'm glad that you're finding the site helpful. I can definitely relate b/c if it wasn't for the MaoXian's blog and his dummy lessons I probably wouldn't be trading any more. What do you know, blogs actually can be useful!
I started daytrading almost to the day that you did. I have been struggling, and never have been profitable. I am down 6 percent over 1 year and 2 months. My problem is market direction. I knew I needed to change the way I traded, so I looked into your site for some help. I think I have found an answer, your advice to use Moving Averages for market direction. So simple, and it worked today. Last night I was up looking at QQQQ, 30 min charts, and saw how effective MA's were in keeping one on the trend. I made money today, I only had a long list out, and watched tick and breadth. I was confident we would have an up day after some consolidation, and waited for price to prove it. Thanks to your advice, it worked.Again, thank you so much for all the teaching you have done!!
I think that for most traders reading the proper market direction or, as the Chairman would say, "tone" is important. I believe I recall him once saying (writing) something to the effect of trading against the trend is like pissing into the wind. :-) So yes, such a simple thing like a moving average can keep one out of so much trouble. That is of course, if you are trying to trade with the trend.
It's also critical to know what kind of market conditions are good for your style(s) of trading. There will often be times when the best thing you could do is stand aside and preserve your capital for markets that match your style(s). The key is figuring out what those conditions are and how to identify them.
Whenever I feel like I am digressing in my trading, this is where I came for a refresher course. There's nothing like a triple dose of dummy setups with Mike, MaoXian, and X to put the groove back in your trading. Thanks guys:)
Right back at ya Jamie
I ditto this guys comments. I was curious about day trading and came across your site, and then MaoXian with his dummy lessons. It seemed too simple to be true. After quite a few email clarifications from him, I was able to edge out a good system/style to use and then later customize to my own preferences and needs.
You've been a great help and I owe it to you and the rest of the bloggers out there for leading me into a new profession where I didn't have to sit in a cubicle all day.
Thanks!
Along with ma's and breadth indicators, I use scanning software which scans the entire market in real time. One scan picks up on bullish stocks, the other bearish stocks. I have each set to a specific sound which lets me picture the bulls and the bears "fighting it out". I know it probably sounds absurd but it works for me. Along with other market indicators of course.
Hello,
Don't ask me how I came across your site because I have forgotten, anyhow I just want you to know that a visit regularly to get your perspective on the US markets.
I am Sydney based and follow stocks listed on the Australian Stock Exchange.
Kind Regards