Posted by forex at 2:39 AM
Read our previous post
1. Determine whether or not range trading is the best strategy for you. As a day trader, you must close out your position at the end of the market day. A stock may not be in the favorable end of the channel when you are forced to sell.
2. Consider trading currencies (FX). Range traders often buy and sell one stock many times over. Commissions can take a big bite out of your profits when you are trading in the stock and futures markets. However, most FX dealers don't charge commissions.
3. Acquire direct-access software. This trading software allows day traders to trade directly with stock exchanges like NASDAQ and NYSE. When you are using range trading, it is important to be able to execute your trades instantly.
4. Put tight stops into your day-trading program. A stop order is an order to buy or sell shares of stock when the price reaches an indicated amount. Doing so will limit any losses you might incur.
5. Trade currencies in minilots of 10,000 units, rather than 100,000 lots, especially when you are using leverage. Currency value can fluctuate greatly during the trading day, and trading smaller means you won't risk losing as much money.