Charts – Day Trading Lingo of the Day

This is your Holy Grail.

Without having a chart and indicators you will not be able to trade (successfully).

Sure you can hear someone say to buy something at a certain price point either going long or short and call up your broker and say get it here. But you will always fail (and if you do profit it was beginners luck which actually makes you burn doubly when you do it again).

Charts are done on trading platforms and softwares. Usually they are free because they work directly with brokers.
Examples: Think or Swim, Ninja Trader, etc…

Think of charts for traders as a canvas for an artist or sheet music for a musician.

Even though each artist, musician, trader will have different styles they all have foundations. For instance, musicians use do, re, mi, fa, sol, la, ti, do for writing music. Artists will use lines, circles, ovals and other shapes to create their masterpieces. Traders use indicators that go on the charts. (More on indicators in the next lesson).

So before you do anything, remember you need to learn how to work with charts.

And they don’t have to be flashy, with a lot of indicators and stuff on them. They can be simple and basic – as long as they make sense to you and give you all the green light signals necessary for your entries.

Below are my charts that I use, you can see they aren’t busy.

610 and 1597 chart