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Reading the candles. Why they matter

One of the most overlooked tools in a traders arsenal are the candle sticks. We all know what they are. But did you know just how useful they can be? I trade with 5-minute candles. Many people also choose 1 minute and 15-minute candles. For the sake of this article let’s stick with the 5-minute candles. They are simply put price action within every 5 minute period. They set a low and high and give you an idea of where the trend will go. And whether there is good volume and where it is coming from. When combined with other indicators and a few mental tricks I will go over, you’ll see just how important they can be. First let’s look at the candle and how it helps us assess a trend. There are so many things we could go over. Such as dojis, falling stars and other setups that …

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The secret to trading. Keep it simple

I’ve heard it and seen it over and over. “This guy uses like 4 or 5 indicators and it sounds so good. He’s making it work.”Anyone can make an explanation sound so perfect your like wow this must be the real deal. It’s actually so far away from the truth. Trading is a simple game. Long gone are the days of earnings releases and news announcements. Now we are simply trading on human emotion. And of course, computers however that’s another topic. When it comes to looking at your charts it should be simple and clean. You shouldn’t be confusing yourself with the new holy grail of indicators and in the end, lose money anyway. I’ve learned through my years of trading that the best way to trade is to keep it simple. There is no need to re-invent the wheel. The only indicators I use measure momentum and volume. …

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Why trading E minis is the best thing ever!

I’ve traded almost everything in my trading career. From stocks and options. To commodities and even forex. But one investment vehicle stood out and has become my bread and butter. Those are called futures. More specifically, E-minis. Maybe hands down one of the best to trade as a day trader. This is my opinion of course since they have brought me insane success. Let’s first go over what E-minis are in the first place. E-minis are simply a futures contract that tracks the S&P 500. It’s traded on the CME. That’s the Chicago mercantile exchange. It trades in terms of ticks and points. One tick is .25 and equals $12.50. One point is $50. So case in point if you buy a contract at 2300.00 and sell at 2301.00 then you made $50 dollars. E-minis trade under the symbol ES. You need permission to trade these. Which your broker will …

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Patience always wins. The 3 keys to becoming a solid trader

What are the most important factors in being a successful trader? Not only discipline as I’ve talked about before. But patience as well. So Important! We all think we have it. But do we really? It’s important to note that patience will win you more trades in the long run. There are 3 important keys to keep in mind: Waiting for a good entry. Hard to master but it can be done. Managing your trade. Letting the profits run. The first key is to be patient enough to get into a good trade. What do I mean by a good trade? Well, let’s take things into perspective. You have your strategy in place and your indicators hit and you are so eager to jump in that you place your order. Next thing you know it goes against you a bit. Most traders will panic and get out. This is where …

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It happened again! How to bounce back from a bad trade

We have all been there before. That terrible trade we knew we shouldn’t have made. Or even just a trade that we let go against us in the hopes it would come back. Sometimes it does. And sometimes it doesn’t. But what can we do to manage or trades better and come back from a loss? Let’s take a look! Now regardless of how you took a loss, whether you took it or were stopped out. Or even how big the loss was. We aren’t here to assess that. We are here to tackle the question on how to bounce back. The initial thought is to hurry up and keep trading and make your profits back. Easier said than done. What happens when you do this? You risk deviating from your strategy because you’re running high on emotions and not thinking logically. The most important thing to do here is …

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