7 January 2021 (8:13 am IST)
6 January 2021 (9:43 pm EST)
US stock markets had a BIG rally in their overnight session and US stock futures are continuing that rally. But in Asia, major stock markets are trading mixed.
In Asia, Japan, Australia and South Korea markets are positive while the main indexes in China and Hong Kong are trading negative. SGX Nifty is 92 points up, showing that Indian stock markets may also open with a big gap up.
How To Day Trade:
- In the mixed trend days, it is better to follow the local trend.
- Day traders should watch the trend in their local markets and trade accordingly.
- Short term Moving Averages ( 9 -days, 20-days) and trend lines are good indicators of dominating trend.
- Wait for the price to come near these trading indicators.
- If the price jump up after touching/ coming close to these indicators, the trend would be positive.
- If the price turns down after reaching these indicators, the trend would be down.
- Currently, world stock markets are trading with choppiness in intraday session.
- That means, traders would see minor up and down trends within a single session.
- Keep that in mind and stay alert to exit your trades once the price breaks the trendline.
- Do keep stop loss in all your open trades.
World stock markets are showing a mixed, regional trend today. Day traders should follow the local trend and trade with that. Markets could stay highly volatile as we have seen in the last many weeks.