http://www.marketgeeks.com - Many people want to learn how to day trade stocks. There are many pitfalls and rewards but the best traders rely on technical analysis to pinpoint their entry and exit levels. Learn how to use technical analysis to determine your entry and exit levels the right way.

1. Learning Day Trading Transcript
1. Title Slide
2. Good Day traders this is Roger Scott from Market Geeks with another video
tutorial for you today. Before I begin I want to ask you to subscribe to our video
channel and don’t forget to visit marketgeeks.com for your free short term trading
report.
3. Most traders who start out learning day trading or short term trading tactics tend
to focus on the entry method the most when they first start out. There have been
countless studies to prove this point and if you doubt me just go online or take a
look at a trading magazine and you will see articles and advertising for entry
methods that produce high percentage of winners to be the most popular topic
online and offline. There is a fundamental reason behind this and companies who
sell trading education and software know about this and take full advantage of
this every time they can.
4. When traders start out they perceive markets differently than professional traders
do, especially when they are starting out or just learning day trading methods.
The beginner believes that with the right entry method they will gain some control
over the outcome of their actions. If you think about this on a deeper level you
will see that that the only control traders have over their positions occurs at the
time of entry. Once the position is entered and filled the trader loses all control
over the position and is at the mercy of the market to do what the market is going
to do. Before entry the trader had full control over everything, the position, the
account and even the market. Yes, you control what the market will do TO YOU
by avoiding market entry. So looking from a pure psychological perspective you
can see how you give up all control when you pull the trigger and enter the
position.
5. When traders look for entry strategies they focus on the accuracy of the method
and the risk to reward profile of the entry method, this makes them feel in control
over their trading account. They feel if they know how accurate the entry method
will be they can have even more control over the market. Most of the time this
happens on a subconscious level and traders don't even realize this is happening
to their thought process but it is.
6. I always ask traders how much time they spend thinking about their exit strategy
compared to their entry strategy and the answer is usually 9 to 1. Think about
your personal experience and how much time you think about your exit strategy
compared to your entry strategy. Most traders don't spend nearly as much time
about their profit target compared to their entry strategy, but your profit target is
responsible for how much money you make. Same with your stop loss strategy;
it's directly responsible for your risk and your loss amount but most trading books
talk about it in passing or provide simple rules that don't work in all situations very

2. well.
7. A few days ago I wrote an article about positive expectancy which is the key to
having a winning trading method; you can find the article and the video on Market
Geeks website. They key to achieving positive expectancy is to minimize your
losses and maximize your winners; both of these elements have to do with your
Exit Strategy instead of your Entry Strategy. You minimize your losses by placing
stop loss orders that are effective without stopping you out prematurely and you
maximize your winners by implementing a profit target or a trailing exit strategy
that allows the market to maximize its momentum without exiting prematurely
and missing out on a strong and powerful move in your direction after your
position has been liquidated.
8. Some time ago I wrote an article about using the ATR indicator to equalize or
balance your positions. The ATR indicator measures the daily or the intraday
trading range based on the actual volatility of the stock, futures or forex contract
that you are trading. Even though the ATR indicator was created 4 decades ago
it remains one of the most solid indicators for measuring the current volatility.
What I like the most about the ATR indicator is how it adjusts dynamically as
volatility changes bar by bar or day to day, depending on your time frame. This
allows the market to tell us where to place stop loss orders and profit targets
instead of us imposing our will on the market.
9. Tomorrow I will continue this series and will show you exactly how to use the
ATR indicator to measure stop loss levels as well as profit target levels
dynamically based on the actual volatility of the market being traded. Trading is
not a one size fit all endeavor and different markets produce different levels of
volatility at different times. By using actual market volatility to measure our stop
loss levels and profit targets we give our positions the breathing room they need
and at the same time the protection level necessary to achieve the best risk to
reward ratio.
10.That’s it for today’s trading tutorial. Please don’t forget to subscribe to our video
channel and visit Marketgeeks.com for your free short term trading report. This is
Roger Scott wishing you the best in your trading.
http://www.marketgeeks.com/learning-day-trading-the-right-way/
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