You don’t need to look to other traders, books, videos or courses to find a day trading strategy as with a bit of guidance you can develop day trading strategies of your own. One of the ways to journey into day trading strategy development is by using technical price or chart patterns. Price patterns are recurring themes you see day in and day out, which more often than not can lead to a certain defined outcome which you can capitalize on. Finding these pattern and ultimately developing a strategy for trading them will require five broad steps.
Money ManagementMost successful trade traders risk less than one or two percent of their account on each trade. Your first step in developing a strategy is assessing how much capital you’re willing to risk on each trade.
If you have a $40,000 trading account, and are willing to risk 0.5% of your capital on each trade, your maximum loss on each trade is $200 (0.005 X $40,000). Knowing this amount will help determine if the entry points...
