Day Trading

What is a Double Top Chart Pattern? A double top is a retrogressive pattern that happenss at the top of an ascending trend and can represent the introduction of a declining trend.

There is a show called Wall Street Warriors which follows the lives of various individuals who make a living on Wall Street. I watched an episode on Hulu.com last night (the “Open Outcry” episode) and it reminded me why I’m a day trader and not a position trader.

The abnormal developments of the past few weeks have tested the portfolios and the optimism of investors world wide. As the markets keep fluctuating, reminisce that: * Market volatility is normal, and is to be expected. * Your investments should reflect your risk tolerance and investment time frame. * Stay focused on your long-term goals.

If you are like most people looking at your 401(k) or IRA statements recently, events of the last few weeks may have you fearful, concerned, indignant, deprecated . . . or some other similar reaction as the values of many stocks and mutual funds have fallen.

So you want to be a day trader. You want to turn thousands into millions. You want to turn a toothpick into a lumber mill. You’ve read all the day trading books and watched the day trading videos. You’ve researched every day trading system and day trading course and bought the ones that sounded legit. You’ve spent countless hours pouring over trading charts and are trying to figure out the next big move. You know about double bottoms and triple tops and head and shoulders patterns and halfway back points and pivot points and the like. You know how to read candlesticks. You think you’ve finally figured out how to buy the green bar and sell the red bar and put in your stop loss and set your profit target and sit back and watch the money pour into your bank account.