Continue reading...The most important thing in any type of trading is to have a solid set of rules and then to have the self control to follow those rules. Day traders especially need to have rules to follow as emotion can and will have you buying and selling at the wrong time.
Day Trading Rules:
Only enter trades when price is at a support (demand) or resistance (supply) level, no matter what time of day or night.
Two types of entries: Breakouts and first pullbacks (see below).
Each day, identify one demand and supply level in each market, using a larger intra-day time frame. Always know where the market is in the larger picture with regard to supply and demand.
Only trade opportunities that offer at least a 3:1 profit zone to the first target.
Pre-plan and pre-set: Entry, Stop, Target/s.
Don’t get fooled by: News, Lagging indicators, Subjective information.
Remember, any and all influences on price are reflected in price? Price is all we need...
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