TRADINGSIM DAY TRADING BLOG

Welcome to the Tradingsim Blog.  Please browse the various trading categories which cover everything from trading psychology to chart patterns.  Another great resource we offer is our trading simulator which allows you to practice placing trades against real historical tick data.

Simplest Approach for How to Make Money Trading Stocks

money management

Trading stocks is a daunting task and turning a profit trading stocks is even more difficult.  There are literally thousands of books and articles on the web related to trading and the path to riches. Each author has their theories of how best to trade, but how do you make sense of it all.  Well, Read the full article →

Risk and Reward – All that Should Matter to a Trader

reward and risk

Overview of Risk and Reward Trading is not as complicated as everyone would have you to believe.  Successful trading comes down to whether you can turn a profit. Getting to the point where you can consistently land in the black will take some time.  For some of you, you may never reach this point in your Read the full article →

6 Best Price Action Trading Strategies

Long Wick 3

Overview of Price Action Charts If you browse the web, at times it can be difficult to determine if you are looking at a stock charts or hieroglyphics.  When you see a chart with a ton of indicators and trend lines, it is likely a trader trying to overcompensate for a lack of certainty. For Read the full article →

How Much to Invest in Stocks – $10k to $50k

Credit Cards

Wondering how much to invest in stocks?  When you read a number of articles on the web, you will notice the answers you find are somewhat convoluted. Logically the answers center on your long-term and short-term goals.  In addition, the answer will depend on your trading style. Well in this article, I am going to Read the full article →

How to Day Trade with the Elder’s Force Index

length of elder's force index

Overview of Elder’s Force Index (EFI) You can never call Alexander Elder a humble guy as he decided that the best name for his indicator would be that of his own last name. I can however appreciate the fact that Alexander believed in his own analysis so much, that he was willing to associate his Read the full article →

Net Volume Indicator – Should we Care?

net volume indicator

I quite frequently perform research on technical indicators and to be honest, net volume never peaked my interest.  Therefore, I have decided to explore in this article why I am not enamored with the indicator. Unlike other indicators discussed on Tradingsim, net volume is easy to calculate.  If the stock finishes up for the period, then the Read the full article →

How to Trade using the Choppiness Index Indicator

choppiness index inputs

Wouldn’t we all love to know when a stock is trending and when it is in flat territory? Close your eyes for a second and imagine a world where you know on the first tick that the market is starting to trend.  An indicator that would somehow tell you to ignore all of the head fakes Read the full article →

The Definition of a Successful Day Trader

NFL

What a loaded question?  Many traders just close their eyes and begin imagining all of the fancy Bugattis they will be buying with all their new found wealth, kudos to you for at least taking the time to perform a search on the web for some answers. Before we go too far in the weeds, I Read the full article →

How to Improve your Trade Entry and Execution

Trading Low

When you review your historical trades, you will notice that given a better entry price, your loser could have actually been a winner.  It’s like anything in life timing is the key. When day trading, you will have the natural inclination to go back and tweak your system, or look to pull in additional indicators to Read the full article →

3 Strategies for Trading Flags and Pennants

US Flag

Flags and pennants are foundational chart patterns of technical analysis.  What I mean by this is most technical traders have heard of the patterns, as these are easy to recognize.  Most of the trading strategies documented for flags and pennants are straightforward and somewhat boring to be honest. In this article, I plan to challenge the Read the full article →

7 Ways to Prevent Overtrading

Beach Resort

Definition of Overtrading If you look across the web, you will find many articles that cover the topic of overtrading; however, the information is related to a company selling more than it can produce.  In this article, we will cover overtrading, as I know it, which is placing too many trades in the market. One Read the full article →

5 Examples of Keltner Channels versus Bollinger Bands

Keltner Channel Inputs

I am a self-proclaimed ATR fanatic, yet I have not explored Keltner Channels.  The Keltner Channel is a lagging on-chart indicator that uses a combination of exponential moving averages and the Average True Range (ATR) as inputs.  Unlike Bollinger Bands, which uses standard deviations to calculate the width of the channel, Keltner Channels uses the Read the full article →

5 Things Required to Swing Trade for a Living

Facebook Daily Chart

For those fans of the Tradingsim blog, you know that we focus heavily on day trading.  However, I want to take some time to start discussing swing trading, as some of our readers are unable to day trade due to the fact they are working during the day and other life constraints. To this point, Read the full article →

Best Day Trading Chart Patterns

Morning Consolidation

Don’t you just love the word “best” as it applies to anything in life?  Well, wait until we walk through the best chart patterns for day trading and you will see sometimes that the use of this adjective is applicable. As a trader, you are literally bombarded with hundreds, if not thousands of trade opportunities on Read the full article →

Top 4 Awesome Oscillator Day Trading Strategies

Awesome Oscillator

I don’t know about you, but what was Bill Williams thinking when he came up with the name awesome oscillator? With names floating around as complex and diverse as moving average convergence divergence and slow stochastics, I guess Bill was attempting to separate himself from the fray.  To learn more about the awesome oscillator from Read the full article →

5 Reasons I Use Stop Limit Orders to Enter Trades

Stop Limit Order

I exclusively use stop limit orders to enter day trades.  This is because I trade breakout strategies and I like to wait for the price to exceed the most recent high or low. In this article, I will cover the 5 Reasons stop limit orders have helped improve my trading.  Before we get into the Read the full article →

3 Strategies for How to Trade the Cup and Handle Pattern

Cup and Handle Chart

The cup and handle pattern is one of the oldest chart patterns you will find in technical analysis.  In my experience, it’s also one of the more reliable chart patterns, as it takes quite some time for the formation to setup.  In this article, I will cover 3 strategies for how to trade cup and Read the full article →

4 Strategies for How to Use the Volume Oscillator

Volume Oscillator and Choppy Markets

Fans of the Tradingsim blog know that I am big on volume.  Volume is probably one of the oldest off chart technical indicators you will find in technical analysis.  So, as I’m looking through the technical indicators I have been intrigued by the possible uses of the volume oscillator indicator. The volume oscillator displays the Read the full article →

Top 50 Day Trading Myths – Get the Facts

Top 50

In this article, we are going to cover the top 50 day trading myths that are floating around in the trading community.  This list will cover what I have learned during my 15+ years of trading experience.  Feel free to share with others, as I would have loved to come across a list like this Read the full article →

6 Reasons Not to Trade During the First 30 Minutes

Emotions

The first 30 minutes is the most volatile time in the equities market. As a new or even seasoned trader, you will gravitate to the first 30 minute slot like a moth to a flame. It really comes down to the level of action present in the market early in the day, which keeps us all Read the full article →