Day trading tips: Day Trading: The Basics and How to Get Started

Furthermore, indicators should be used to improve your strategy NOT rationalize decisions you’ve already made. If you need to reference the PSAR, MACD, RSI, Bollinger bands, and VWAP indicators before a trade, you’re not operating efficiently. A stock’s trend is the general direction in which the price is moving. Understanding a stock’s trend helps ensure you are on the right side of a trade. For example, if a stock is in a downtrend, it wouldn’t be wise to initiate a long position unless there are clear signs of a trend reversal. Support and resistance are arguably the most important components …