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Re: Is Daytrading Right For You?
this will be the 2nd part of 3M. Methods.
Depends on your style of trading, one will need to chose his tool accordingly. ( Since i daytrade, so my focus will be more on day trading)
swing trade, position trade:
1. TA is OK, but need more money to hold position, and mental toughness to withstand market's gyration and account drawdowns.
2. Dose not need to make constant decision, but do need to have the discipline to take signals.
Day trading: so far those price derived indicators have not been working for me on day trading. I will list what has work for me, and one can judge for himself. And I only trade YM.
Preparation
1. forward thinking from higher time frame, mainly daily and 135M chart.
2. stats on different conditions, gaps, range.
During trading hour:
1. various SR line on 5M chart
2. Volume delta on the same 5M chart
3. $tick, time & sales,
4. 5M Point and figure chart on YM
5. 5M ES, NQ, and ER2 charts.
what I am looking at is the relationships on all these charts. These are what I call NOW indicators. Indicators that do not lag or lag very little. They give you the info for what is happening now, then I base on my setup from here.
Again this is approach that focuses on "the cause" that produce the result(price).
Even with daytrading, there are many styles and many approaches. One would have to use a method that fits the market that he/she trades and fits his//her personality.
there are so many systems and trading rules out there, I would suggest a beginner stick to one setup and very few rules. Once you master it, then move on to the next one. Important thing is to know exactly what to do with the system in all different market condition. so one can act accordingly.
weiwei
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