Day trader setup

A triangle pattern needs a minimum of two swing highs and two swing lows that both connect to trend lines that extend to the right. Flag trading can be great for new traders since they can be easy to spot and trade. Beware of those false breakouts and always do your research before you trade. You should have a minimum of two quality computer monitors in your trading.

  • A profit target is based on something measurable and not just randomly chosen.
  • For example, a price might repeatedly rally and reach $25.25 but then fall.
  • Yet not every second provides a high-probability trade.
  • A triangle pattern needs a minimum of two swing highs and two swing lows that both connect to trend lines that extend to the right.

If this pattern occurs later in the day, it will often produce smaller price moves. Internet is one of the most important aspects in your day trading office. Because of how fast the financial market is, you need access to the fastest internet. You also want one that is from a stable and well-known internet provider.

Day Trading Setups I Use Every Day

There are several types of flag patterns, like bull flags and bear flags. So once you get the hang of them, trading range-bound stocks could be a great strategy. Considering the potential for fast returns and the excitement of surfing stock momentum, you can see why breakout trading is such a popular technique. The following four setups can help you manage risk and allocate resources. Mastering just one of these setups can help you trade with more confidence — and hopefully better results.

Day trader setup

Most importantly, while you can use Wi-Fi in your trading, experts recommend using a high-speed ethernet cable.

Strong Area Breakout

Instead, you can make it be like a journey where you improve your room when you can. In my many years of trading, we have found that while it is possible to use one monitor, life is easier when there are more. In addition to a computer, you should have a Uninterruptible Power Supply (UPS). This is a simple device that saves some energy for you in case of a power outage. If you are an advanced trader managing a significant amount of money, you should have the latest computers.

Experts believe that the overall sweet spot is about 4 of them. However, as you become an advanced trader, you will realize the importance of having an excellent work space. StocksToTrade in no way warrants the solvency, financial condition, or investment advisability ofany of the securities mentioned in communications or websites. In addition,StocksToTrade accepts no liability whatsoever for any direct or consequential loss arising from any useof this information.

Don’t Miss Out

If possible, we recommend that you have another source of power such as a generator that you can use when there is a power outage. Therefore, if you have a large trading account, you can decide to spend about $200 on internet per month. You can even spend less by combining an extra fast speed and a slower one as a backup. To save cost, we recommend that you use the available resources that you have. Unless it’s really necessary, you can go out there and hire an office space.

Day trader setup

Or bid one cent below the consolidation low point for a short trade (selling borrowed shares in the hope of buying them at a lower price before returning them to the lender). One of the worst things that can happen to you when day trading is an emergency power outage. As traders, we can never predict price action with absolute certainty. But once you start gauging historical price action from chart activity, you’re taking steps to make smarter trades. One of the trickiest parts of range-bound trading is finding those two points that represent support and resistance levels.

How is a Day Trader’s Workday Divided? Key Market Sessions!

In another monitor, you should dedicate it to your news terminals like Reuters Eikon, TradingView, and While this may not be a problem with our Cube-X (it works very well even with bad connections), in the news search phase the loading speed makes a huge difference. Don’t think of it as an expense, but as an investment in your business.

Identifying trends (like support and resistance) in chart patterns is necessary for all day trading setups. To avoid risk and unnecessary losses, keep it simple and trade with the trend. Here are a few setups that rank high among many day traders’ favorites. This is a great starting point to introduce you to top day trading setups.


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