Let us approach this with open mind and objective stand:
Scalpers set chart with one second timeframe and trade with the NANO trend.
Rest of the day traders do MICRO level trend trading with timeframe in minutes (1/3/5,)
Swing trading is MACRO level trading with timeframe of one day.
From scalpers to trend traders to swing traders all are basically doing trend trading only at various levels (nano, micro and macro)
We all agree that SCALPERS absolutely don’t need anything other than chart to pursue trading successfully.
Here is the question…
What makes us think that for the other two levels of trading (micro and macro) chart may not be sufficient?
Even hedging, which depends on good volatility, needs chart because volatility is very much part of it.
This thread gives us the big picture of stock market from a stock trader’s perspective:
This thread embraces day jobbers to pursue day trading by taking a ten minutes break:
AI VS ART OF TRADING
Let us take a stock of AI’s achievements in stock trading:
Did AI identified the best combination of indicators for stock traders?
Did AI captured the best of best price actions for stock traders?
Did AI discovered the best strategy for options trading?
Did AI invented a best system for hedging?
Can AI do scalping better than scalpers?
So far Art of trading (manual trading) is unbeaten by AI.
TRADING PSYCHOLOGY AND RICK MANAGEMENT
What is trading psychology?
First of all what is trading,?
Trading is a business.
Then trading psychology means business mindset.
What is business mindset?
It is treating investment like one’s own baby. In other words investing responsibly which boils down to developing trading skills first before investing.
Exceptional trading skills is true risk management. That is the essence of business mindset.
TWO PILLARS OF ART OF PLAIN CHART READING ARE:
Yesterday’s market (high/low) is today’s sideways market "
Only a COMPLEX SUPPORT can withstand the complex nature of chart.
The strategy of “U” shaped support JUST above yesterday’s high is based on the two pillars.
PRICE ACTIONS STRATEGY FOR DAY JOBBERS
Draw two horizontal lines on your chart for yesterday’s high/low.
Wait for “U” shaped support that is formed JUST above the high line. It is guaranteed bullish signal.
Wait for inverted “U” shaped resistance JUST below the low line. It is guaranteed bearish signal.
Use this “U” shaped signal and confidently trade options on index (ITM Strike price only) with 5% floating stoploss.