If you want to make money day trading then you will need to have some indicators that work and the above are very popular.
Lets look at them and see which are the most effective.
The logic of day trading
Is of course to predict where prices will go in a daily or hourly periods.
The Market
The market consists of trillions of dollars traded by millions of participants daily, all with different methods and trading objectives.
This creates volatility which in a day can see prices go anywhere and is totally random and very few of these participants are interested in daily moves or ranges.
So what does this tell us?
Quite simply that pivot points, support and resistance are useless tools in such short time spans.
If volatility and price moves are random they can't help you predict market direction.
Now you know why:
You never see a day trader with a long term track record of profits its always a hypothetical one!
The only way you will ever make money in day trading is in hindsight you certainly wont see a real winning record over the long term.
Moving averages can they be used?
Well I saw a few systems and e-book promotions using moving averages to trigger trades and laughed out loud at how serious they were about doing this =.
Moving averages are a lagging indicator!
So how on earth can you use them to enter trades?
These guys said they were traders but it was pretty obvious they had never traded in their lives.
Most day trading systems are sold by writers who have never traded in their lives.
They want you to buy their books and systems that's how they make their money NOT from trading.
Day Trading
If you want to lose it's a great way to do it!
There is no better way to lose money than day trading, its fantastic at wiping out equity and doing it quickly.
Applying technical tools over meaningless random data will not bring you success.
There is a lot of hype about day trading.
Investors fall for a good story due to being naive and greedy - don't make the same mistake.
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On all aspects of becoming a profitable trader including features, downloads and some great FREE Trading PDF's visit our website athttp://www.net-planet.org/index.html
Article Source: http://EzineArticles.com/?expert=Sacha_Tarkovsky
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