Day Trading Blog: 21th July

Wednesday, July 22, 2009

21th July

High of the Day: 200% Extension
Low of the Day: 50% of Yesterdays Range

Profit 8,2 R optimized or
Profit 5,2 R trading all signals

Today was a very trending day, even though the strategy traded only 4 signals out of 12 it was a profitable day.

Like I highlighted yesterday, the basic entry rule to avoid short setups if the 50 EMA is not below the 200 EMA payed off this morning.

Also the setup rule to not take trades between 7:50 and 8:04 avoided today to exit the profitable long trade too early.

What we have not seen on the DAX so far was:

Exit Rule: Trailing Stops on the daily fibonacci targets (0.618, 1, 1.618 and 2 times prior days range added to the low of today) Using this rule exited the long trade today at the 200% extension right before the US market opened.

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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.

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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.