Continue reading...Day trading involves isolating the current trend from market noise and then capitalizing on that trend through well-timed entries and profit taking. These factors play a crucial role in managing potential profit expectations and risk. Trading has many challenges, but by sticking to certain guidelines success is more likely. Since the market always moves in waves, on all time frames, rules can be created for exploiting this phenomenon. The following five rules will help traders find high profit potential, low risk, intra-day trades.
1. Trade only with the current intra-day trend Trading with the trend allows for low risk entries and high profit potential if the trend continues. Intra-day trends do not continue indefinitely, reversals do occur, but usually one or two trades, and sometimes more, can be made before the trend reverses.
Isolating the trend can be the difficult part. Trendlines provide a very simple and useful entry and stop loss strategy. Focus on trading...
Last edited by a moderator: