welcome my friend to this part to day trading for beginners so today we're
going to talk about the top three questions that I get regarding day
trading basics for beginners and explain them help you to learn some day trading
techniques here that people ask me all the time so these are the top three
questions that I get number one can you day trade and still work a full time job
and the answer is yep yes sure can so here's a couple of ways
that you can do that number one you could trade pre market so before the
market opens then you can trade the pre market now you would want to trade a
market that has high volume obviously before the market opens something on the
e-mini x' they start trading early or the euro futures they start trading
really early usually California time around five o'clock or so 5:30 so it's
possible that you could actually start to trade these markets before the what
used to be called open outcry back in the days when we have pits for
everything and but again you want to make sure that your trading markets that
have a lot of activity during the pre market so you can trade before or after
now you can even trade during market hours if your time zone and your work
hours make that possible so for example I'm in California so the futures well
even New York opens at 6:30 here that's 9 3 D New York time so it just happens
in my time zone let's say I don't have a job but if I did and I started work at
9:00 maybe I'd have to leave at 8:30 I could trade from 6:30 to 8:00 and that's
an hour and a half now you might think that oh but that's not enough time I
can't trade the whole six and a half hour New York session or Chicago session
session it doesn't matter a lot of professional traders I know only trade
an hour two hours three hours a day and you can make a good living and doing
that so don't think you have to trade the whole day you absolutely do not you
can still Detroit for an hour and again if your time zone you work
hours accommodate that and that would be another possibility for you even during
regular market hours and not having to deal with pre market and then finally if
neither one of those options work for you then you can treat spot Forex and
the concept here is to trade the markets where the sun is shining so the forex
markets for an exchange currency is they trade 24 hours a day so you will want to
trade a currency pair that relates to a company or I'm sorry a country where the
sun is shining where it's going to be most active so even though the Forex
pairs trade 24 hours a day they're not as active during some times of the day
as other times and that's very important as that you trade when they are the most
active and so basically when the sun is shining over the country where that
currency is from that's basically the concept as to when you should be
treating that currency pair ok number 2 second question is should you use pre
and post market data on a chart so the answer is basically yes I like to do
that now there's a couple of qualifications here
again certain considerations if the pre and post-market data has a lot of
activity like the emails do then absolutely I would definitely do that a
lot of stocks don't and so if you're trading equities then you want to be
very careful with that now if you do put pre and post-market data on there and
you're trading things like futures and so forth you're not gonna see gaps and
gaps can be very very telling gaps can be very helpful to see so you may want
to use two charts and just have a separate chart up there that does not
show pre and post-market data so you can still see where those gaps are even if
you're not trading that particular chart just want to see where they are and then
you can draw those lines where the gap opened and then we're it closed or
whatever in other words where it closed one day and open the next day and draw
those lines on the chart that you are trading because those gaps are very very
important people are looking at those another option that
I really like is to use pre and post-market data but used tick bars
instead of time based bars if he is time-based bar is a and you're treating
especially a lot of stocks which don't have a lot of activity pre and
post-market then you're just gonna see price patterns that don't really make a
lot of sense candlesticks that aren't very meaningful you're gonna see a lot
of little mini gaps and because there's not a lot of volume traded and
technically it's not very meaningful so if you use tick bars then that smooths
out the price action because each bar isn't represented by a certain period of
time it's represented by a certain number of trades and therefore you get
more meaningful price action for your technical analysis alright and finally
question number three oh boy I get this one all the time what's the best time
interval for day trading now there is no one best time interval with regard to
making money for day trading but there are some factors that you need to
consider and they are very very important so the assumption I think a
lot of times is that oh there's one time interval that's best for some markets or
for some Oh exchanges or for certain trading patterns not necessarily true
here are the things that really are important for determining the best time
interval for your trading number one the size of your trading account now the
reason that this is so important is for money management purposes you've got to
look at the size of your trading account and then say okay I can only risk so
much money per trade or so large a percentage of my account per trade and
therefore when you get a shorter time interval your bar ranges are gonna be
more narrow they're gonna be shorter and therefore at the swing highs and swing
lows you'll be risking less money less dollars and therefore if you have a
really small trading account you're probably gonna have to trade faster
timeframes just for pure money management reasons because we don't want
to well my rule is not to treat more than 2%
of my entire trading account on any one given trade and that is based on where I
enter the trade to where I place my protective stop I don't want that to be
more than 2% actually personally I don't like to be more than one half of 1% but
I would say 2% should be the maximum for anybody so that is a huge thing you
start there because many management and risk management is more important than
anything else now the other thing that you have to take into consideration is
whatever market you're trading what is that markets average daily volume so a
stock or a futures market that has very little volume first of all I might not
even treat it at all but if it's a lower volume market then I'm going to probably
trade a time frame that's more appropriate for it and when that's see
more for example I'll just give you a couple of real-life examples here so if
the e-mini is personally I like to trade a thousand tick chart on the e minis but
when it comes to something like the yen futures they only trade a hundred tick
chart why the difference because the yen has much less volume traded than the e
minis and that's how I personally adjust up not necessarily recommending those
timeframes for you but those are the ones that I use and that is based on
average daily volume it gives more meaningful patterns now the other thing
and the final thing that we'll talk about today is your own psychological
aspects of what you need in other words how much time do you need to analyze a
setup and really look at it and then trade it with confidence this is gonna
be different for each person I can't tell you what that's going to be it's
only a gift you can give yourself through some experimentation get on a
simulator or a demo account try a couple different timeframes that meet number
one and two there your trading account science the markets average daily volume
so it's giving some meaningful price patterns and then just start trading it
on a simulator and see hey is this moving too fast for me
where I'm not able to have enough time to really analyze the setup
and treat it with confidence if it's moving too fast then you have to go to a
lower a time interval if it's going too slow for you well then just the opposite
you can go to a faster time interval so that's the third element so there you go
those are the top three questions that I get from day trading beginners and
hopefully you found that helpful feel free to send me an email at birria top
two are trading calm or put a comment down below if you have any questions
about this be very happy to answer them and hey give it a thumbs up a like share
this video with other people it's always good to share good things with good
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