How To Plan The Trade Based On Scanners
Individual setups may be found after you have a list of stocks in play. You should keep an eye on their charts all the time and attempt to come up with a trading strategy.
Author:James PierceReviewer:Gordon DickersonMar 09, 20221.2K Shares412.2K Views
Individual setups may be found after you have a list of stocks in play. You should keep an eye on their charts all the time and attempt to come up with a trading strategy. Selecting three stocks in play and keeping tabs on them on three distinct monitors is a common practice among traders. They arrange my trades when they recognize a possible approach.
Here, decisions are being made in a jiffy. The time it takes to plan a deal might range from minutes to seconds. Because of this, you need months of practice on simulator accounts to really grasp the decision-making process. So let's discuss how to trade based on scanners.
Quality Vs Quantity
Focus considerably on quality versus quantity. There are millions of traders out there and there are no doubt millions of strategies out there as well. Some traders had to find the strategy that worked best for them, their personality and their account size. They’ve found a strategy that works really well for traders in their community as well as for their own personal trading. This strategy involves taking only the best setups and waiting on the sidelines until you see something worth trading.
Patience Is The Key
When it comes to day trading, you'll spend most of your time sitting and staring at your list. You are probably overtrading if day trading does not bore you.
When it comes to trading, patience is a virtue that should not be overlooked. Overtrading is a common mistake made by many investors. Overtrading might imply trading 20, 30, 40, or even 60 times a day, depending on the individual. Because you'll be paying a fee to your broker to execute each and every deal, you'll be out money and commissions. To put it another way, if your broker charges $4.95 every transaction, you'll be shelling out $200 a day in fees. That's a lot of money. If you trade too much, your broker will become wealthy, and you will become a broker! Keep in mind that the most important thing is to trade successfully, not often.
Take The Risk, But Don’t Overtrade
One of the drawbacks of overtrading is that it increases one's exposure to risk. A transaction is risky, and you don't want to be in that position without having demonstrated there is an opportunity to profit from the technique.
We now get to our second golden rule: When it comes to the art of trading, veterans are like guerrillas. Having timed their exit perfectly, they make a quick buck and head for the exit.
Summary
There is a lot of high-frequency trading in the stock market since the market is managed by robots and sophisticated algorithms. In order to frighten retail traders like you and me away, high frequency trading generates a great deal of price movement noise. You have to be a genius. Avoid coming into contact with them. Only two or three deals per day are often made by successful traders. They then pay out and spend the rest of the day relaxing.
James Pierce
Author
James Pierce, a Finance and Crypto expert, brings over 15 years of experience to his writing. With a Master's degree in Finance from Harvard University, James's insightful articles and research papers have earned him recognition in the industry.
His expertise spans financial markets and digital currencies, making him a trusted source for analysis and commentary. James seamlessly integrates his passion for travel into his work, providing readers with a unique perspective on global finance and the digital economy.
Outside of writing, James enjoys photography, hiking, and exploring local cuisines during his travels.
Gordon Dickerson
Reviewer
Gordon Dickerson, a visionary in Crypto, NFT, and Web3, brings over 10 years of expertise in blockchain technology.
With a Bachelor's in Computer Science from MIT and a Master's from Stanford, Gordon's strategic leadership has been instrumental in shaping global blockchain adoption. His commitment to inclusivity fosters a diverse ecosystem.
In his spare time, Gordon enjoys gourmet cooking, cycling, stargazing as an amateur astronomer, and exploring non-fiction literature.
His blend of expertise, credibility, and genuine passion for innovation makes him a trusted authority in decentralized technologies, driving impactful change with a personal touch.
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