Day Trading Blog: Trading Plan: Attention on entries that are near the 50%-61,8% retracement area and if other markets dont confirm the entries

Wednesday, August 17, 2011

Trading Plan: Attention on entries that are near the 50%-61,8% retracement area and if other markets dont confirm the entries

Looking at the S&P you can clearly tell if the related markets (nasdaq, crude oil, euro)
also will have valid entries on the 5 min chart or not:

New setups just after quick moves can fail because the initial trend is still on and traders are making re-entries at the 50-61.8% 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.

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