Day Trading Tips

The single most common of the day trading tips requested of me is this:

“What is the most reliable time interval I should be using on my trading charts?”

This question comes from people trading the stock market, futures, Forex and eminis alike.

The assumption is that there must be an optimal chart interval (the length of the bar on a chart) in which trades are more likely to be profitable.

There is a very small amount of truth to that assumption, but not as much as one might think.

Most things in trading are relative, and this is another one of those things (actually there’s a day trading tip within a day trading tip!).

Having said that, however, the time interval you choose for trading is indeed VERY important … but for reasons that do not occur to most who are day trading or swing trading.

There are indeed a couple issues that do make certain time frames objectively slightly more reliable than others. In theory these reasons make a lot of sense. However in the actual practice of swing trading and day trading, I haven’t found them to be as significant as one would expect.

More importantly, there are personal reasons that some time intervals are better than others for individual traders. These are the critical, yet less examined issues.

In the video below, I clearly share all of the reasons I’m hinting at here.

So of all the day trading tips I could give you, here’s one of the popular: How to find the best time interval for your charts.

Enjoy!

WHAT DO YOU THINK OF THIS VIDEO?
PLEASE LEAVE YOUR COMMENTS AND RESPONSES BELOW!

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One of the most common questions I’m asked is how day trading trends are to be evaluated when looking at more than one time frame.

The day trader will be looking at a chart and see the trend is up (for example), but then they look at a chart of another time interval and they see that it is down.

This is very confusing and they ask me which is the “REAL” trend?

I hope this video will help bring clarity to the issue not only for those who are asking how day trading trends are determined, but also for swing trading and even investing trends.

One extra comment not addressed in the video – while I look at the trend on a higher time frame, I actually find it more important to make sure I’m trading in the direction of the momentum and cycle of the higher time frame. These are faster energies and allow me to trade more frequently than if I waited for the trend to align on both time intervals concurrently.

As always, please leave your comments below after viewing the video.

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I get a lot of the same questions from new traders, and they are very, very good ones.

So I decided to go ahead and post some resources for you “newbies” to get your answers. This way not only can you get the answers to the questions you’re asking me, but you’ll also have the resources to find answers to other questions that may come up in the future.

Disclosure: I recommend the resources below because I feel they are of great value, but I want you to know that I am a compensated affiliate with Amazon.com for all the books listed, INO TV and Trading Mind.

Here are some of the most common questions I receive from new traders:

1. MOVING AVERAGES: What are they and how are they calculated?

A great resource for these questions: Stockcharts.com Chart School

Go there and click the letter of the term you’re looking up, or type it into the “Search the Site” at the top left of the navigation bar.

2. ORDERS:

  • What is a market order?
  • What is a limit order?
  • What is a stop ?
  • What is a stop limit?

A great resource for these questions: Stockcharts.com Glossary

Go there and click the letter of the term you’re looking up, or type it into the “Search the Site” at the top left of the navigation bar.

3. WHAT IS A GOOD BOOK FOR BEGINNERS TO LEARN THE BASICS OF TECHNICAL ANALYSIS?

I’ve had good feedback from new traders on “Technical Analysis for Dummies.”

4. WHAT TRADING COURSES DO YOU RECOMMEND?

Of course I like my own courses the best! You can read all about them here: Top Dog Trading Courses.

Beyond that, INO TV is an incredible value. For a very, very low price you get access to video trading seminars from some of the biggest names in trading without having to pay for each course.

5. WHAT DO YOU RECOMMEND FOR CHARTING SOFTWARE, BROKERS, ETC.?

Visit my Recommended Resources page where I list all of these.

6. WHAT IS YOUR FAVORITE TRADING BOOK?

High Probability Trading” by Marcel Link

7. I NEED HELP WITH TRADING PSYCHOLOGY. WHAT DO YOU RECOMMEND?

“Trading Mind” hypnosis CD-ROM by Jake Bernstein

Trading in the Zone” by Mark Douglas

8. WHERE CAN I GET FREE DAILY CHARTS?

Stockcharts.com

9. WHAT ARE THE BEST TIME (CHART) INTERVALS FOR TRADING?I’ve addressed this in detail in 2 former posts in my blog. You can view them here:

What is the Best Interval for Day Trading?

and here:

What is the Best Interval for Day Trading? Part 2.

10.  WHAT ARE GOOD RESOURCES WHERE I LOOK UP WORDS AND TERMS ABOUT THE MARKETS TO LEARN MORE?

ChartSchool

Investopedia

InvestorWords

I hope you find these resources helpful.

Happy Trades!

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