So how to get sucessfull as a day trader?
How to absorb all the information about the markets and which opinions are the right ones?
Which systems works best and which should be avoided?
Where to place stops and targets? How much money should I risk?
How to conquer fear and anxiety? What kind of trader am I? Which time frame works best?
Probably if you find answers to the above questions then you should be on the right path to suceed in this challenging business.
The help I can provide you with is that a chart should be observed and that only your opinion counts.
Since you have to pull the trigger and assume the responsibility of your actions your thoughts should be independent from other opinions.
Important is to place support and resistance zones at your chart which will probably be visited by price.
You may note that the white numbers 1 to 10 of the chart always provide you with higher highs and lows.
Therefore to avoid shorter moves one might take only long positions.
Then we have the yellow numbers where a trend reversal took place so only short positions could be taken.
So if somebody would ask are we in an uptrend or downtrend? you may answer “on which timeframe?”
And then you may say we have been in an uptrend on the 5 min chart and now we are in a downtrend.
A trader needs to have a firm believe about his actions and understand price action.
The price action in the european and uk session did not provide the trader with great moves but there were a few small ones.
But kindly note the yellow number 6.
This would be the great profit move of the day trading in direction of all the moving averages, from resistance with a bearish engulfing candle stick pattern.
One of the take aways for today i would like to share is to trade in direction of higher highs and lows if a bull or the opposite if a bear and have a relative small stop on the 5 min chart and let your profits run.
Like this scalping or day trading can become easier.
Best of PIPS.