Is it possible to get a good profit monthly by daily trading using SMA?

<p id="isPasted">Definitely, It is possible to trade while applying moving averages only. Moving Averages are lagging indicator and conveys the best sentiment of human behaviour.</p><p>Before applying the strategy make sure you have two more basic things ready at hand to apply along with the strategy i.e. Risk and money management. Trading is only about discipline.</p>

<p id="isPasted">You use any indicator , it will not give more than 60–66% success rate. You need to learn proper risk management and positioning to make profit which is sustainable for living .</p><p>Moving average is not a bad indicator and most of the people use it as support and resistance line and cross over as indicate to buy or sell.</p>

<p id="isPasted">Absolutely. Using SMA or EMA (Exponential Moving Average ) to invest/ Trade in a stock is a common practice . However, this is not suitable for short term trades.</p><p>Longer the time period, the smaller number of trades, more the Cash inflow. The Major Drawback is ‘Whipsaws’ that will direct you to initiate trades, which from long/Medium term perspective is not required. EMA | SMA has worked beautifully over medium / Long term, which helps eliminate small term Whipsaws if any.</p><p>Using this over a longer period time frame will reduce the number of trades (Entry/Exit) and increase the Profit. Combination of 13–34(EMA) is baffling, give it a try.</p>

<p id="isPasted">Trading just depends upon supply and demand, but these supply and demand in the market varies on 2 things</p><p>i. &nbsp; &nbsp;Fundamentals of company</p><p>ii. &nbsp; &nbsp;Psychological feelings on the company. The people who trade on their feelings use especially technical tools like SMA, Bollinger bands, Support, and resistance and so on…. So, people use different of tools for different companies. Over a period of time what i experienced is before using certain tools, test those tools whether they are satisfying your companies or not and it is always safe 2 to 3 tools in combination.</p><p>Ex:- Instead of using just single SMA, use multiple SMAs like 10SMA, 20SMA at a time and trade accordingly.</p>

<p id="isPasted">It is possible to generate profits by day trading with the Simple Moving Average (SMA), but characterizing the profits as "good" or "monthly guaranteed" is misleading. Day trading is an incredibly challenging endeavor, and sustained, consistent monthly profits are rare even for experienced professionals.</p><p>Here is a breakdown of how the SMA is used, the realities of profiting from it, and key considerations:</p><p><strong>How SMA is Used in Day Trading</strong></p><p>The SMA helps smooth out price data to identify the direction of a trend and potential areas of support and resistance. Common strategies include:</p><ul><li>Crossover Strategy: The most common approach involves using two different SMAs (e.g., a 10-period and a 20-period SMA). A buy signal is generated when the shorter-term SMA crosses above the longer-term SMA (a "golden cross"), indicating upward momentum. A sell signal occurs when the shorter-term crosses below the longer-term (a "death cross").</li><li>Price Crossover: A simpler strategy is to buy when the price crosses above the SMA and sell when the price crosses below it.</li><li>Support and Resistance: Traders use SMAs as dynamic support (price bouncing off the SMA from above) or resistance (price bouncing off the SMA from below) levels.</li></ul><p><strong>Realities of Monthly Profitability</strong></p><p>While the SMA is a foundational tool, it is not a "holy grail" that guarantees profits.</p><ul><li>Lagging Indicator: The "simple" in Simple Moving Average means it is inherently a lagging indicator. It uses past data, which can lead to delayed entry and exit points and missed opportunities in fast-moving markets.</li><li>Whipsaws in Volatile Markets: In choppy markets without a clear trend, SMA crossovers frequently generate false signals (whipsaws), leading to numerous small losses.</li><li>Requires More Than Just SMA: Consistently profitable traders combine the SMA with other tools, such as:</li><li>Volume analysis: To confirm the strength of a price move.</li><li>Risk management: Strict rules on position sizing and stop-loss orders are essential to protect capital.</li><li>Market context: Understanding the overall market sentiment and news events.</li></ul><p><strong>Conclusion</strong></p><p>You can achieve profit using the SMA, but "good monthly profit" is not guaranteed. Day trading requires discipline, continuous learning, robust risk management, and combining the SMA with other technical indicators. It is not a path to easy, consistent monthly income.</p>