Day Trading Blog: Review 1st Week of December

Friday, December 4, 2009

Review 1st Week of December

Its important to know the theme of the day and if that theme can be played out especially if there is a gap open and/or prices are simply not following last weeks pattern. This week they absolutely followed the charts from prior week, so I am using prior week days more as a tool to tell me where trends will happen and if its possible to hold on to positions a little bit longer.

Nevertheless I learned this week

that the 3rd 1 Min DP is often also a signal for the end of the trend
Monday, Wednesday and Friday its wise to anticipate an uptrend so exiting short trades at the double bottom or minor support level.

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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.