How To Use Our Reports For Profitable Trading
When I subscribe to one of your daily technical analysis reports, what do I get?
You will gain access to a daily report, updated every morning, usually from 1am-3am GMT (depending on which market). Login to your account to view the update.
How long have you been providing daily technical analysis and trade signals to traders?
Jason Sen has been trading financial markets on his own account since 1987. He started offering his analysis services to professional investment bank traders in 2008. As the retail traders business grew he began offering the reports to the public in 2012.
Who are www.daytradeideas.co.uk reports and trade signals targeted at?
Our reports are used by the investment bank and professional brokerage companies but we use language that even the novice retail trader will understand. Even the most experienced traders use our reports to give them more confidence in the trades opportunities they discover through their own analysis.
What will I read in the daily report?
We provide a brief summary of the previous day’s action and how the report identified useful trading levels & opportunities.
In the main part of the report we start with our outlook for the day & the most likely direction the market will take. (Bear in mind markets usually do not move in one direction throughout the day but move up and down in a general direction).
We then identify the most important support & resistance levels that a trader must be aware of. We notify you of minor resistance & support (which are useful targets) and also strong resistance & support (which are likely to see the market at least pause or possibly reverse).
You will also find clear trade signals at the most important levels of the day. Eg We will notify you of a selling opportunity at strong resistance, especially in a negative trend. We will notify you of a buying opportunity strong support, especially in a positive trend. (Buying opportunities to enter long positions, selling opportunities to enter shorts positions).
We will also notify you if we think there is a good chance of a high for the day or a low for the day at a certain level.
Why do I need to know where the important support & resistance levels are?
The key to successful day trading is NOT working out which direction the market is about to move. Successful day traders identify important levels to enter low risk trades. In fact even the most successful traders in the world will admit that they have no idea where the markets will go within a short term period. What successful short term day traders do is look for the important levels in the market where they can enter low risk trades. Trading is a form of gambling and the only way to win in the longer term is by making low risk trades.
Our reports identify the low risk trading opportunities.
So what is a support level?
A support level is a price level where the market tends to find support as it is going down. This means the price could very well "bounce" off this level rather than break through it and is more likely to do so the first time it it tested. However, once the price has passed below this level, perhaps on the second or third test it is likely to continue dropping until it finds another support level.
Support levels tend to work better in a bull trend.
And what is a resistance at level?
A resistance level is the opposite of a support level. It is where the price tends to find resistance as it is going up.
How do I use your support & resistance levels to make profitable trades?
Experienced traders tend to wait to sell at resistance & buy at support as this gives them the best trading edge. The best trade set up is buying at strong support when prices have dipped lower in a bull trend OR selling at strong resistance when prices have risen in a negative or bear trend.
Often markets also move in prolonged sideways trends. If price is moving between support and resistance levels, traders buy at support and sell out for a profit as the price approaches resistance. They also sell short at resistance and cover the short (buy back for profit taking) as the price approaches support.
So I am looking for strong resistance and/or strong support levels to enter low risk trades. What about the minor support & minor resistance levels you have in your reports?
These levels help you manage your trades. If you are in a profitable trade the minor levels often act as targets. There is still a good chance that the market will pause as these levels are reached, which is why it is often a good idea to take at least some of your profit at the minor levels. Although we are unlikely to use the minor level as trade entry opportunities, just be aware that these minor levels do sometimes cause prices to reverse.
What happens when price breaks above a strong resistance or below a strong support?
The rule is that support becomes resistance when it is broken and resistance becomes support. So once a break below support is seen we expect the price to head towards the next target or minor support level.
When a break above resistance is seen we look for a move towards the next target or resistance above.
If you could give me one most important rule to make a profitable trade what would it be?
Trade in the direction of the trend only.
What does ‘trade in the direction of the trend’ mean?
If the market is in a positive bull trend try to buy if there is a small correction down to a support level. Or be ready to buy a break above a resistance level & look for a move towards the next target & resistance level for profit taking.
If the market is in a negative bear trend try to sell if there is a small correction higher to a resistance level. Or be ready to sell a break below a support level & look for a move towards the next target & support level for profit taking.
Should I only I look for minor levels as targets for profit taking or do you provide a clearer target?
Yes we clearly identify targets for the moves. Ideally it is best to try to exit on the approach to the target as there is of course no guarantee they will be hit every time.
When a trade opportunity is suggested I see ‘Shorts need stops above...’ or ‘longs need stops below..’ How many pips extra should I allow?
Our suggested stop-loss levels are designed to give the trade enough room to over shoot the support or resistance level. According to our analysis, once the stop loss level is broken it is too risky to run the trade any further. About 5 pips above or below the stop-loss should be about right.
Why don’t you just tell me the exact price to enter the stop?
We could do. But imagine if all our subscribers do exactly the same trade and place their stop at exactly the same price. As soon as the price is hit, all the stops would be triggered in one go which could cause prices to vacuum. There is therefore a risk that your stop will not get filled at the exact price you entered.
There is also the risk that bigger traders will subscribe to the reports to identify where large stops will be places and they will intentionally try to push the price so stops are hit.
We leave the ultimate decision to you the trader, but give a very clear guideline.
Why do I need to place a stop-loss every time I enter a position?
IIf you do not place a stop loss on every trade, you have not predetermined the maximum loss you will take on a trade. This is one of, if not the worst trading habit you can practice. Sometimes you may kick yourself because every trader experiences being stopped out on some trades before the market reverses. It is just something that will occasionally happen. However sooner or later, by not using a stop loss on every trade, one trade will run away from you and you will be frozen as the losses increase dramatically. In some cases you will lose the total amount in your account.
This is unfortunately a very common problem for inexperienced traders.
When you are ready to execute a trade you need to ask yourself:
1. How much can I afford to lose? ... so that I can continue trading tomorrow? The general rule is only risk 1-2% of your account on each trade.
2. Exit strategy: You must always place a stop on entry. Ask yourself: What is the price at which I will admit that this trade is not working? We give clear stop levels on our reports when we suggest a buying or selling opportunity.
3. Profit taking: How will I close this position? Use a trailing stop if you think you can or are prepared to run your trade a long way. ORSet a realistic target if you are looking for a quick turn.
Sometimes the price gets very close to your trading opportunity but not close enough to trigger an entry. It is frustrating when I miss the opportunity so should I quickly chase the market before I miss the trade?
No, never chase the market. This will increase your potential loss & decrease your potential profit because your target will be closer and your stop loss further away. Accept that you will miss trades. It is all part of learning to be a disciplined trader.
Who are www.daytradeideas.co.uk clients and subscribers?
We provide our daily technical analysis to many leading investment banks and brokers including Deutsche Bank, Morgan Stanley, Bank of America Merrill Lynch, Bayern Landesbank, Mizuho, Bourse de Montreal Canada, First Continental Trading as well as the leading professional UK proprietary day trading arcades: Marex Spectron, Xconnect Trading and Tower Trading Group.
We also have hundreds of retail trader clients, many who have been with us for several years.
When I first read your report it seems a little confusing and I have to read it a few times. Is this normal?
Yes. If you do not have a lot of experience in trading, the report can seem a little overwhelming. Many of our less experienced traders read our reports for a few weeks while following the markets so they can get in tune with our analysis and trade signals.
Will your reports ensure I make money trading from day one?
If you have experience as a trader and understand the rules of the game, yes there is a strong chance our reports will enhance your trading from day one. Many traders who had be consistently losing money have found that our daily ‘road-map’ allows them to see the price action much more clearly and allows them to make consistently profitable trades.
What if I am new to trading and have little experience? Will following your reports make me instant profits without much effort?
NO! If you have little experience you will need to be patient and study our reports for a period of time. Why?
Imagine you are learning a completely new skill, such as riding a bicycle. It looks dead simple, because so many people do it every day. However we all know it takes quite a lot of practice just to get going and stay up right. Then we have to master controlling the brakes...not too soft, not too strong. Then we have to get used to building up speed. Eventually we may be ready to cycle on the road but we have to gradually build road awareness. We need to be aware of the dangers of other vehicles and learn the rules of the road.
Even if you are a successful car driver, learning to ride a bike and then use it on the public roads would take a lot of practice.
Risking your own money to trade financial markets is much harder than learning to ride a bike. Markets are far more unpredictable than other vehicles. Cars indicate but markets change direction without any prior signals.
Anyone who thinks you can credit your brokerage account and start trading profitably from day one is a fool. You will get ‘run over’ in the market if you do not practice on a demo account.
Learning any new skill requires study and education. It requires practice and learning from mistakes. Trading is incredibly hard to master become much of it requires you to have total self control.
Just because you are successful in other fields does not mean you will be successful at trading.
Take time, invest in your trading career. Do not think that a £49.99 subscription to our daily technical analysis reports will guarantee you will be profitable from day one.
Every one develops a trading style that is unique to them, one that suits their personality. You must give yourself time not only to learn but to develop your trading strategy and style. THIS TAKES A LARGE INVESTMENT IN YOUR TIME.
If you are not prepared to invest time in educating yourself and practising to develop your skills, stop now before you lose all your money.