Day Trading Blog: 03th Week of July Another Bullish Week

Friday, July 24, 2009

03th Week of July Another Bullish Week

This week clearly showed the type of market that we are in: Trending market
Pretty bad in trending markets are counter-trend signals. Have a look at both screenshots and decide whats best either elliot wave based signals or simple breakouts with ATR trailing to exit trades.

To avoid even more loosing trades I added this setup rule:

Don't take short signals between 7 am and 8.30 am
Don't take long signals between 4.40 am and 7.30 am
Enter long after 8.50 am for the signals that occurred after 7.30 am

This limitations are because of news events happening usually at 8.30 am. Knowing the fact that news events often create spike ups that will be faded before the US stock market opens, its wise to use this entry rule:

enter a valid long setups only after 9.30 am to avoid getting stopped out or realizing profits too early (targets or breakeven stop have been triggered)

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Trading Rules:

how to trade profitable? with KSE. knowledge, strategy, execution.
Knowledge: You need to buy low and sell high. So I wait for the price to first go to a prior support level on the daily, 4h, 1h chart.
Strategy: Timing is important so I trade when there is a good setup on the dax, s+p, nasdaq or oil market. My goal is to make few trades with high risk reward, that is archived by either holding a trade till the market closes or reaching a level that sets up a counter trade.
Execution: Usually there is only a 20 point risk involved, so I try to get into a prior support level on the 10 min chart and automatically set a stop and multiple take profit targets.
All the little details how to trade better are listed here but I like to keep it simple: just enter the market at prices with a target that it at least 3 times the initial risk.

The Legal bit

Risk Disclaimer and Disclosure Statement

Trade at your own risk. The information provided here is for Education only and is of a general comment only and neither purports nor intends to be, specific trading advice. It has been prepared without regard to any particular person's investment objectives, financial situation and particular needs. Information should not be considered as an offer or enticement to buy, sell or trade. You should seek appropriate advice from your broker, or licensed investment advisor, before taking any action.

By reading this Blog, you acknowledge and accept that all trading decisions are your own sole responsibility, and I cannot be held responsible for any losses that are incurred as a result.

There is risk of loss in trading and investing. All trade decisions are your own sole responsibility.