If you've ever contemplated day trading, there is something of which you need to be aware. All the day trading systems suck. They don't work. No day trading system works. Technical analysis doesn't work. The reason is very simple.
A chart is nothing more than a graphical representation of what happened in the past. It means nothing. Support and resistance levels only hold up if someone with A LOT of money is willing to buy or sell at those levels. And traders who have access to a lot of money don't decide to buy or sell based on charts. They decide to buy or sell for reasons which you will never know. Maybe they are spreading. Maybe they are buying futures and selling an underlying basket of stocks. Maybe Joe Blow at XYZ Hedge Fund feels like taking a shot here. Who knows? But trying to make a trade based on reading charts is ridiculous.
Numbers do not move markets. Computers crunching code do not move markets. People move markets. The people who buy and sell. People with access to large sums of money. One person can move the market over a short period of time and one person can start a chain reaction which will lead to big moves.
If you want to make money day trading, you have to learn how to anticipate what the big players are going to do next. You have to learn how to read the price action in the order book. You have to learn how to decipher the information in the bids and offers. The biggest traders in the world trade on this information. So should you.
Take a minute to check out my website if you would like more information on how real professional day traders make their trading decisions.
John Grady has been profitably trading futures and stocks for over twelve years. He has documented proof of his track record and has written "No B.S. Trading", a book which explains, in detail, how real professional day traders make their decisions. For more information on how to become your own day trading system, go to http://www.nobsdaytrading.com
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