In this article I will explain to you how to develop a profitable day trading system in five steps:
Step 1: Select a market and a timeframeStep 2: Define entry rulesStep 3: Define exit rulesStep 4: Evaluate your day trading systemStep 5: Improving the day trading system
Let?s take a closer look at these steps.
Step 1: Select a market and a timeframeEvery market and every timeframe can be traded with a day trading system. But if you want to look at 50 different futures markets and 6 major timeframes (e.g. 5min, 10min, 15min, 30min, 60min and daily), then you need to evaluate 300 possible options. Here are some hints on how to limit your choices:
Though you can trade every futures markets, we recommend that you stick to the electronic markets (e.g. e-mini S&P and other indices, Treasury Bonds and Notes, Currencies, etc). Usually these markets are very liquid, and you won?t have a problem entering and exiting a trade. Another advantage of...
