Few weeks back , a
friend curiously asked me about the strategy for successful Day trading.
i told him to read article : Day trading-Hidden Rules.After reading it,
he argued that day trading is gambling. I smiled to him and asked,why?
'people lose money,isnt it?'
' yes..'.i replied:'Have you analysed why people lose?'
'Do you ever find trading charts with these losers?'
'That is the reason of their loss.'
Ok.Can u explain it? He asked.
'sure.Trading without charts is like driving a car without steering . Making profit is not an easy job.You need good understanding about charts,especially candlesticks. You should study about moving averages,MACD,Stochastics,RSI etc. Otherwise,you cannot identify the market trend.'
'Is these things are tough to learn?'He asked.
'If you have interest and passion,it is easy'
'Tell me,How can i practice it?'
'Buy any professional chart and observe it continuously for at least one month.now,automated signals are also available. This will provide clear picture.'
He accepted it and bought a professional chart.
Last day , i enquired: Is it gambling?
He Laughed:'i dont know,but i like it so much now a days.beacuse,i have learned the art of making decent profits'
All the best friend.Nothing is tough.Nothing is easy.