Stock market day trading is a challenging pursuit. There is both art and science in it that combine to form a winning strategy.
But did you know the average trader spends more time deciding what to trade than they do on their strategy? With so much at stake, you’d imagine there would be a more balanced focus.
Most people remain oblivious to the nature of trading as a skill set.
It is easy to see how. There is the persistent misunderstanding that picking the right stock is everything.
Let’s debunk this myth right now. It’s great to think that there’s glory waiting on the other side of picking the next Amazon.com, Google, Netflix or Snap. The dream of committing every dollar that you have and making a fortune is very powerful indeed.
But that is not reality. That is not responsible investing. And even more important to us, it is not effective trading.
The exact same truth holds true for emerging markets and international trading. It’s not about picking the right stocks. What it’s about is picking any stock, and trading it with the right strategy.
In this article, we’re going to focus on international markets. So no matter what international market you trade, what you learn here will be important for you.
What I’m about to share works for the:
- Indian Stock Market (Bombay Stock Exchange)
- Middle Eastern Market
- European Market
- South American Market
- Asia Market, and
- all others worldwide.
So let’s get right to 3 important truths about stock market day trading in the international markets.
Stock Market Day Trading – Truth #1: Timezone matters more than location
Most traders don’t have unlimited free time to trade. We all have other daily responsibilities. So the time spent trading matters.
To be more specific, the time of day we spend trading maters.
Time of day is a huge deal when day trading. Consider when the market you like to trade is open in your time zone. For some, this could be the middle of the night when you’d rather be sleeping. It’s important to consider what time of day is best for you when choosing an international market.
An example of the importance of time of day is a UK trader who wants to trade the New York open. Trading at 2:30 pm UK time may not be the most convenient if this trader has to pick his kids up at that time.
The converse side of this issue is using time differences to your advantage. For example, 9:30 AM in New York time is 8:00 PM in India. This time difference could be an opportunity if a trader located in India wants to trade U.S. equities.
The first and most important thing to consider is why you want to trade any particular market. Answers as simple as “the time zone and trading hours work best for me” are legitimate. Work time zone differences to your advantage when you trade the international markets.
Stock Market Day Trading – Truth #2: Technical analysis works everywhere
Day traders around the world have specific tools. Those tools are visual. They relay information about trading activity fueled by human sentiment.
Cultures, languages, markets. Many things differ from continent to continent and from country to country. But we all seem to share one thing in common:
No matter where we’re from, we have the same group psychology when it comes to trading.
“The beauty of technical analysis is that it works everywhere on any traded market.”
Compare charts of equities or other traded instruments from around the world. What you’ll see is that the chart dynamics all remain the same. Markets are markets, whether you trade in India, America, Japan or elsewhere.
This simple truth holds incredible value to you. The value is that once you learn technical analysis, you can trade anywhere, anytime. If you become great at trading in one market, you can become great trading anywhere.
Stock Market Day Trading – Truth #3: Focus on method over market choice
Experienced traders know the value of having a plan and focusing on method. It’s a common rookie mistake to change markets at the first sign of problems. This mistake fails to solve the real problem that is plaguing the trader.
We learned in Truth #2 that a trader who succeeds in one market has a high chance of succeeding in another. Well, the same holds true of a trader who is struggling. If they struggle in one market, they are very likely to struggle in all others.
So what should you do if you are having trouble in whichever market you have chosen? The answer is simple: return your focus to your method.
Trading with success is about creating and sticking with a solid method. Most traders will have to try quite a few before they find one that sticks.
Note: If you are still looking for a good method to trade, try Market Profile. You can learn more about it here.
The most important thing to remember is to focus on your method over the market you choose.
Summary
Access to global trading venues is a huge advantage to retail traders. It allows for increased opportunity and flexibility. There are 60 major stock exchanges around the world with a total value of $69 trillion. That number only grows when you include futures, options, and Forex.
You learned three important truths:
- Timezone matters more than location.
- Trading charts and technical analysis work everywhere.
- You should focus on method over market.
Keep these three truths top of mind when navigating international markets. And remember the most important point of all – method is more important than market.
For more day trading techniques, tools & strategies, check out these articles:
- Market Profile Day Trading Strategies In Focus
- 7 Best Methods To Learn How To Day Trade
- 3 Options Trading Characteristics To Know
Remember these three truths when you trade international markets. Stock market day trading is stock market day trading no matter where you are.
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