Subject to your style of daytrading the common factor will probably be that most will close before the end of a session and some will hold on from a positional trade.
The majority will accept smaller price moves not intending to run with the daily trend but come back tomorrow with the attitude tomorrow is another day and there is nothing wrong with that. It is what works for the individual that counts.
My suggestion refers to those who are not scalping for 1 or 2 points but more from the intraday trends.
To give yourself more of a chance why not consider the idea of locking in early profits with a % of your stake. When I place a trade I know from my set-up that I will usually get some profit, how much I do not know unless I have a pattern or resistence/support to guide me. When trading during the day and in my case the FTSE the most common target profits are 5 and 10 points. Obviously much more can be on offer but because these are lower values they are seen more frequently.
In this case one could lock in profits at 5 or 10 then leave something to run on. By diluting your open position in this way allows you the opportunity to manage a trending move further along its path without the worry that it may all evaporate without anything to show for it. As the 5 points is seen first you could also consider placing a higher % on the 5 points so that this becomes a worthwhile return in its own right. The same could apply to the 10 point position.
This will then leave a further % to run its course.
Having this approach means that when it does not work out and fails after the 1st target is locked in you are less likely to come away with a loss, bolstered by the early profit which in this case is another risk management tool to safeguard your main deal of hoping for a nice trend to return a larger profit.
It also helps when a trend does not appear but only moves in a narrow range of 10 - 20 points, this system will allow you to profit in such circumstances rather than trying to second guess the market.
It will not suit experienced traders who can monitor a trade and deal with it from a single view point. Having pre-determind targets will help emotional trading but does reduce your overall profit because you dilute your position compared to trading in a single amount. It is the price you have to pay for a bit more safety. Someone experienced though will probably not need to go down this path.
But at least you know low targets will come again day after day which can make a good return without a large amount of capital, especially if using SB for your trading.
The majority will accept smaller price moves not intending to run with the daily trend but come back tomorrow with the attitude tomorrow is another day and there is nothing wrong with that. It is what works for the individual that counts.
My suggestion refers to those who are not scalping for 1 or 2 points but more from the intraday trends.
To give yourself more of a chance why not consider the idea of locking in early profits with a % of your stake. When I place a trade I know from my set-up that I will usually get some profit, how much I do not know unless I have a pattern or resistence/support to guide me. When trading during the day and in my case the FTSE the most common target profits are 5 and 10 points. Obviously much more can be on offer but because these are lower values they are seen more frequently.
In this case one could lock in profits at 5 or 10 then leave something to run on. By diluting your open position in this way allows you the opportunity to manage a trending move further along its path without the worry that it may all evaporate without anything to show for it. As the 5 points is seen first you could also consider placing a higher % on the 5 points so that this becomes a worthwhile return in its own right. The same could apply to the 10 point position.
This will then leave a further % to run its course.
Having this approach means that when it does not work out and fails after the 1st target is locked in you are less likely to come away with a loss, bolstered by the early profit which in this case is another risk management tool to safeguard your main deal of hoping for a nice trend to return a larger profit.
It also helps when a trend does not appear but only moves in a narrow range of 10 - 20 points, this system will allow you to profit in such circumstances rather than trying to second guess the market.
It will not suit experienced traders who can monitor a trade and deal with it from a single view point. Having pre-determind targets will help emotional trading but does reduce your overall profit because you dilute your position compared to trading in a single amount. It is the price you have to pay for a bit more safety. Someone experienced though will probably not need to go down this path.
But at least you know low targets will come again day after day which can make a good return without a large amount of capital, especially if using SB for your trading.
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Off to a party now.
