Indicators – Day Trading Lingo of the Day

day trading lingo

The easy way to say it – indicators literally indicate when we get in and out of trades.

The hard way to say it – there are thousands of indicators that are out there. And on top of that, thousands more that are made into softwares and sold by experts, academies and software companies claiming they have the fountain of riches if you simply get their indicator(s).

One thing for sure, once you have found the indicators that work for you – remember if they aren’t free there is always a catch.

So how does one decide on which indicators to work with.

In my experience, the less the better.

There are very few pro traders that actually trade strictly on price action, but that is difficult to fully understand, mainly due to ‘where to enter’. They also started with indicators.

The most popular and widely used are moving average indicators. And even these come in all shapes and sizes.

MACD’s (Moving average convergence divergence) slightly different than the moving average (it’s on a separate part of the chart), these show the strength in markets if they are going up or down (this is the super easy layman explanation).

Since day trading is a skill, a profession, I do not recommend simply jumping in. To be good at it, you will need to take classes. Find the right academy to work with.

Once you have chosen a reputable academy they will show you the indicators they use. Again, if they charge you for indicators or say that once you are done with their classes have to continue paying for the indicators, that is a scammy place and you need to beware.

However, there are many good academies that are truly there to teach and they will always have their method which use indicators.

Remember this, you will not be able to trade without indicators, so my strong suggestion research the best ones for you, but truly going with a school or mentoring someone’s style is really one of the only ways to become successful at it.

ema line

Happy Trading,

Marina 'The Trader Chick' Villatoro

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2 Responses to Indicators – Day Trading Lingo of the Day

  1. Brad Hudson says:

    Marina I am sooo glad to find you.As a budding day trader myself,I find that I lack the patience to trade only the high probablility setups and buy/sell signals ( when they occur). I was wondering if you also suffer from lack of patience and how you deal with it.
    I find that when I am getting stressed and bored,I tend to also trade the secondary signals which have contributed to my daily draw downs.
    Thanks Marina!

    • Hey Brad!

      OMG, i’m sooo with you. Patience is such a huge huge thing that I had to learn.

      What I’ve done was have a shift in perception. Mainly, I only go for the high probability ones now, I have my risk in place and I usually go in with 2 or more contracts, which allows me to have one small target, which when it is hit, I move my risk immediately to break even so if the trade doesn’t go to my next target, and retraces, I have a profit already and I dont’ care.

      This allows for the first target to be hit faster, which helps with the patience issue, and then it’s like who cares if I hit the next one or not, I already have profit.

      hope this makes sense and helps you a bit 🙂

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