Day traders morning tasks

[suprsnipes]

Hi everyone,

I was hoping for some insight as to what information other day traders use on a daily basis to help them prepare for the day ahead.

Some of interest to me is;

The US and Europe overnight performance
Sector performance in the US...mainly Financials, Metals & Energy
Movements in Gold, Oil and the AUD/USD
Base metals overnight.
The Vix (Volatility Index)
Daily RSI on the XJO.

I also look at the daily futures summary (15 min. delayed data) to see the volume on the SPI, including the puts/calls ratio.

Is it wrong for a trader to put a target band together for the day ahead by utilising the % up or down on the SPX500 and DJIA?? Does this put us off our game.

Should day traders purely trade on price action?

I'm trying to update my trading strategy and at the moment perhaps I'm trying to take in too much information with regards to the above??

Any comments, feedback good or bad are welcome.

 

[peter2]

Ask yourself how each bit of information helps in your trading process. If it doesn't help, ditch it.

A target band or playing field is only good if you are using it. Pivot points are useful, only because so many others (not me) are using them.

Try not to predict what will happen on each day. Trade what you see on the chart, or what the FA is telling you (Ha, ha).

So yes, trade price, volume action only. Keep indicators to a minimum (0). OK if you insist, use one for confirmation only.

The info you need before the open will depend on what you are trading.

 

[suprsnipes]

I tend to trade the Australia 200 Cash index and major companies within.

 

[tech/a]

(1) Open 15 min Tradeguider Charts on stocks of interest.
(2) Wait.
(3) Place orders where appropriate.

Foget all the outside rubbish.

 

[James Austin]

(1) Open 15 min Tradeguider Charts on stocks of interest.
(2) Wait.
(3) Place orders where appropriate.

Foget all the outside rubbish.

(2) wait . . . . with cigar, and feet relaxed on table


:mexico:

 

[suprsnipes]

Hopefully not treated as a stupid question...

but in your experience what am I waiting for?

 

[tech/a]

Wait.

For an entry signal long or short.
If your taking EOD signals to trade intraday then your behind the 8 ball to begin with.
The whole idea is to find very low risk entries which can return a decient reward in a short period of time.

A chart is a chart.
a 15 min chart presents entries just like an EOD chart with 24 bars in a session.
24 bars in an EOD chart shows 24 periods--plenty happens.
Have a look at a 15 min chart of any of the top 100 stocks and a lot happens in 24 bars.

You need liquidity to trade intraday successfully (in my opinion).
If your risking 20C you want a 60c move at least in your direction.
10c-30c

 

[suprsnipes]

Are these trades placed purely on price action...

Is there any indicators used as back up, lately my view on indicators is the less the better...

I like;

1) RSI
2) Stochastics
3) MACD
4) ADX

But more so I have found the use of support and resistance with Andrew's Pitchfork handy.

 

[tech/a]

Are these trades placed purely on price action...

Is there any indicators used as back up, lately my view on indicators is the less the better...

I like;

1) RSI
2) Stochastics
3) MACD
4) ADX

But more so I have found the use of support and resistance with Andrew's Pitchfork handy.

I only use one
Stochastics.
Rest is pure price and volume.

 

[suprsnipes]

When trading instruments like the SPI or Australia 200 Index how do you use volume when it's not available or is there something I'm missing here.

 

[James Austin]

When trading instruments like the SPI or Australia 200 Index how do you use volume when it's not available or is there something I'm missing here.

suprsnipes

i do not use volume when trading indicies, some do, but my experience has been volume is overall unreliable -- you will get just as many false signals -- or its all over once the volume shows up

S&R are very helpful when intraday index trading - forget indicators

James

 

[korrupt_1]

Read Bloomberg - Australia/New Zealand
Check overnight DJ action
Find if there are any AU ecconomic data being released. RBA/Beareu of Stats

Generally trade the fade the gap strategy with bias to close the gap.

Follow multiple 1 second to 1 hour charts.

Use RSI, MMA, MACD, Bollinger, S/R

Scalping 1-10pts per trade about 2-10 times a day...

Stop Losses all the way... if I can get nett 2pts per day, I'm a happy trader

 

[professor_frink]

Hi everyone,

I was hoping for some insight as to what information other day traders use on a daily basis to help them prepare for the day ahead.

Some of interest to me is;

The US and Europe overnight performance
Sector performance in the US...mainly Financials, Metals & Energy
Movements in Gold, Oil and the AUD/USD
Base metals overnight.
The Vix (Volatility Index)
Daily RSI on the XJO.

I also look at the daily futures summary (15 min. delayed data) to see the volume on the SPI, including the puts/calls ratio.

It's all good to be looking at these types of things, but you need to take it a step further to be able to profit off it. Try collecting some data on whatever you find of interest overseas, and then turn around and compare it with the opening period for our market the next day. Are there any repeatable patterns that happen when there is a certain move in overseas markets?

Is it wrong for a trader to put a target band together for the day ahead by utilising the % up or down on the SPX500 and DJIA?? Does this put us off our game.

See my comment above. Collect some data and test it out. It's the only way to answer these types of questions.

Should day traders purely trade on price action?

Do whatever works for you. The longer I spend trading, the more I come to realise that we all have to walk our own path. Find something that works for you and you will never again care about what you "should" be doing.

I'm trying to update my trading strategy and at the moment perhaps I'm trying to take in too much information with regards to the above??

Any comments, feedback good or bad are welcome.

There's nothing wrong with looking at a lot of information, the key IMO is translating that information into something that can be of use to you. There's no point in knowing exactly what has happened overnight if you have absolutely no idea how you can find an entry signal that will make money once the market opens.

And just to make your life a little more complex, one area you seem to be missing here is Asia. There are quite a few markets open whilst we are trading, and are worth a look at.

suprsnipes

i do not use volume when trading indicies, some do, but my experience has been volume is overall unreliable -- you will get just as many false signals -- or its all over once the volume shows up

S&R are very helpful when intraday index trading - forget indicators

James

you've just gone and said that volume is unreliable, and then spoke about a good way to use it

 

[Indian]

"Generally trade the fade the gap strategy with bias to close the gap."

Korrupt, as a newbie to this site, could you you please explain this strategy a little more in depth.

Thanks in advance...

 

[korrupt_1]

"Generally trade the fade the gap strategy with bias to close the gap."

Korrupt, as a newbie to this site, could you you please explain this strategy a little more in depth.

Thanks in advance...

For some strange reason, price action for the SPI generally gravitates towards any gaps that apear on the charts.

For example, if the SPI closes at 4800, and overnight the DJ closes some 200pts up, the SPI will also open higher at around 4900. This leaves a 100pt gap. What generally happens during the course of the day, the SPI will want to head towards yesterday close at 4800.

This stategy was almost faultless during the recent bull market, however lately not as reliable - but still worth looking out for.

 

[korrupt_1]

Just following on from my last post above...

DJIA up some 300pts on friday... SPI gaps higher on the open at around 5045...

The SPI is now heading down towards Friday's close at around 4990...

 

[Indian]

Tech/a,

I have recently used 1 - 2 min charts trying to pick tops and bottoms with some but little success. Basically entering entering off trend change when schoastics, rsi and macd support and exiting first sign trend change.
Have been backtesting your 15 min chart theory and have liked what i have seen. Do you enter off first sign of trend change when schoastics support? And exit on trend change or hits your predetermined exit?

Indian

 

[strudy]

I do most of my research after the day's trading has finished.Firstly I look for stocks that have performed well today and add them to my prospect list.The number varies from time to time but the average number can be as high as 50.

I also keep an eye out for company announcements and also watch to see who is buying who in the substantial stock movements.Sometimes you can pick up on a takeover about to happen before the general market latches on to what is happening.

I quite often just jump on for the ride make my preset profit percentage and jump off again.

I then check out my list of future prospects against my entry criteria.This is a step by step plan that if any stock does not match up then it is put onto the backburner for review later on.

This way I whittle the list down to 2 or 3stocks, this of course depends on the amount of capital I have available for trading.

A lot will depend on your work committments or other time constraints.It is really up to you as there are no hard and fast rules.

 

[Trembling Hand]

Try collecting some data on whatever you find of interest overseas, and then turn around and compare it with the opening period for our market the next day. Are there any repeatable patterns that happen when there is a certain move in overseas markets?

thats the real key to OS moves that people never actually test and retest.

Do whatever works for you. The longer I spend trading, the more I come to realise that we all have to walk our own path. Find something that works for you and you will never again care about what you "should" be doing.

No thats not right. Surely its just a matter of the right guru's book or course??

There's nothing wrong with looking at a lot of information, the key IMO is translating that information into something that can be of use to you. There's no point in knowing exactly what has happened overnight if you have absolutely no idea how you can find an entry signal that will make money once the market opens.

Hints from someone who has actually intraday index traded longer than it takes for most people to blowup a couple of times over.

And just to make your life a little more complex, one area you seem to be missing here is Asia. There are quite a few markets open whilst we are trading, and are worth a look at.

Yep NOTHING beats screen time observing how markets really move live. Not static after the fact crap.