Experience The Stock Market – At Full Speed
Have you ever wanted to race a motorcycle? Have you ever thought about going three wide in a stock car at 200 miles per hour? If these things interest you, then you are probably an ideal candidate to learn to day trade. This is the stock market at full speed. Investment errors when day trading can have devastating effects. Decisions are made quickly and positions that you just bought can be sold minutes later if the price moves in your favor. Scanning for trades during a day’s trading can be a difficult task as you monitor the positions you are already holding.

For many investors, it is very appealing to learn to day trade. The action can be as fast as you want it and the profits and losses can accumulate quickly. While there are a number of commodities you can trade, the most common forms of day trading are stocks and Forex day trading. We’ll discuss each of these briefly and help you learn to day trade.

Day Trading Stocks
This was the original vehicle for day trading. The image of day trading in the 1990s was one of middle-aged, ex-engineers using their savings as risk premiums to day trade stocks from home in their bathrobes. If that visual alone doesn’t scare you, it’s obvious that you really want to learn to day trade! This is actually a great form of stock trading if you have the time to do it right. You have to pay your dues with research and charting just like every other form of trading. After that, you need to have access to monitor the markets for changes in your positions so you know whether you need to buy or sell. This is most economical if you do it but you can set market orders that do the work if you are willing to pay the higher commissions that they require. These techniques are part of learning to trade stocks and are important to the day trader.

Day Trading Forex
The second technique is to learn to day trade Forex. Forex trading is probably the ultimate when it comes to high stakes trading. This is the largest market in the world with more volume being traded here than in all of the others combined. If you want to learn to day trade Forex you need to not only understand what is involved in trading Forex but you need to realize the stakes involved. Forex trading allows you to control large sums of currency with margin trading. In addition, you are dealing with a market that makes its movements very quickly and therefore can create large swings. This means that a slightly loss can become a huge loss very quickly and you can lose much more than you invested. Conversely, modest gains can become enormous gains just as quickly. That is the reason so many people want to learn to day trade Forex.

Learn To Day Trade, High Speed Style
For those who learn to day trade, a higher emphasis on learning how to invest is needed because the stakes are so high. Developing your trading plan, using a trading system and taking advantage of stock screeners are a few of the things you can do to improve your chances of success. Remember that when you learn to day trade, you are on the fast track; be prepared, be wise and be careful!

Market Direction: When targets are obvious, candlestick signals makes the value of those targets much greater. Having the ability to evaluate what investor sentiment is doing at a perceived target allows an investor to maximize profits. The Dow has been a prime example is past few weeks.

The large Morning Star signal, on the 200 day moving average, clearly reveals the bottom of the downtrend. If that moving average was acting as support, where was the next target? Logically the 50 day moving average. When a target is finally reached, what might be expected? Profit-taking! From everybody that was projecting the 50 day moving average was the first likely target. Was selling at the 50 day moving average indicative of a trend reversal or profit-taking? That analysis is much better evaluated by knowing what individual candlestick signals are telling us.

DOW

Notice how the selling in the Dow, at the 50 day moving average, pulled the market back exactly to the T-line. That was an indication the T-line might act as support. Would this have been important? Definitely if an investor was debating whether to take full scale profits and setting up short positions. The fact that the Bulls stepped back in at the T-line reveals that the 50 day moving average may have been a temporary resistance level. The market trend can be better assessed by using the evaluation of the NASDAQ also. It had no resistance at the 50 day moving average early this week. However, it sold off, forming a Bearish Harami when the Dow was selling off from the 50 day moving average.

A critical piece of evidence yesterday was the fact that the NASDAQ bounced back up after it touched the 50 day moving average. This also provided some possibility that the 50 day moving average was going to act as support after it had been breached. Today's trading created more evidence that it may at as support. A positive open tomorrow would clearly reveal the consolidation was over. Further upside move from this area would make a test of the recent highs very viable.

NAS

One of the fine-points about candlestick analysis is knowing what a true reversal signal represents. There is a definite difference between a sell signal and selling during an uptrend; it is important to know what constitutes a reversal signal, where it opens and where it closes has a great deal of meaning. Notice the bearish candle in the Dow that showed a failure of the Bulls pushing the price through the 50 day moving average. It looks almost like a bearish engulfing signal. However, the crucial term is "almost". Looking at it closely will reveal that the open of the dark candle did not open above the previous days close. The fact that they opened the market slightly lower the next day did not produce a candlestick sell signal. If this selling candle had significance, the Japanese Rice traders would have identified it and revealed its importance to us. This is not a sell signal. That produces the probability that prices could pull back but is not likely a full-scale reversal.

That analysis becomes critical when deciding if a stock is still in an uptrend or not. As illustrated in the LNN chart, a very strong initial price move is followed by selling, not a sell signal. Once again, notice the selling ended right at the T-line. This becomes a critical evaluation factor for deciding whether this is just profit taking or a full-scale reversal. The Bullish Harami, following the dark candle, should reveal that the selling had stopped; the profit-taking was over. Having this information can keep in investor from being duped out of position too early.

LNN

Private training session - The next private training with Mr. Bigalow is scheduled for the weekend of September 29 and 30th. If you would like to learn the subtle nuances that will dramatically improve your investment abilities, this will be well worth your time. Candlestick analysis is based purely upon common sense. Mr. Bigalow will take you through the easy step-by-step process that will dramatically improve your investment perceptions. Wouldn't you like to be able to analyze price movements with a high degree of confidence? Candlestick signals produce an immense amount of information about how investors are thinking. The easy-to-understand interpretation of signals and patterns provide successful analytical tools one can use for any market for the rest of their life. You will not be disappointed in the information you will gain from a private training session. Sign up today! Seats are very limited. Take the opportunity to learn how to put investment probabilities consistently in your favor. Click here for more seminar details

Chat session - Chat session tonight at 8 p.m. ET open to everybody. Click here for instructions.

Good investing,

The Candlestick Forum Team

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