Day Trading Strategy Using Two Moving Averages
Welcome to Smart Money Alerts for Thursday March 12, 2020.
Day trading the stock market dominates the "right thing to do."
Putting aside the deadly impact of coronavirus it's our job to make money from the increased volatility and that means day trading.
A few active traders emailed me recently with basically the same question: "How do I trade this fast market without taking too much risk?"
As we've discussed risk should always begin with a dollar amount you are comfortable with. For example, maybe $300/trade (just an example because I do not know your situation)
Once you have your risk amount under control, then you can use the moving aver system I explain in today's episode of Stocks for Breakfast. This simple trading system works as both entries and exits.
And also enters and exits trades in two pieces.
I demonstrate the strategy using daily charts, but if you're a day trader you can apply the same principles using five or 15 minute candlestick charts.
Towards the end of the video I added a third moving average as a trend filter.
If you have questions about the strategy leave a comment below the video or send me an email: Pete Renzulli pete@stocktradingpro,.com
More serious coronavirus news today.
President Trump initiates a travel ban, the NBA suspended the season and Tom Hanks and his wife Rita Wilson have tested positive while traveling in Australia.
Be disciplined and have a great day.
Pete
Former hedge fund manager slams Wall Street in viral video
One bold former hedge fund manager just went on camera to expose how Wall Street is failing American investors right now. He’s boiled down what’s happening in the markets to just two words.
And he’s urging people to take notice. You’re not going to see the details of what he’s predicting anywhere in the news, especially not from the big banks on Wall Street.
