Habit of systematic day trader
focuses mainly in how does he prepare himself for the next day.
Lets see how does he do that
(method describes below isnt the last successful method available out there, its just one out of many)
1/9
focuses mainly in how does he prepare himself for the next day.
Lets see how does he do that
(method describes below isnt the last successful method available out there, its just one out of many)
1/9
He needs answer to 4 questions basically in order to take a trader
WHAT - He prepares a watchlist for next day based on trend, both bullish & bearish
WHY - He will analyse the trend based on past data, find out major trend in HTF & chk if its aligned with other LTfs too
2/9
WHAT - He prepares a watchlist for next day based on trend, both bullish & bearish
WHY - He will analyse the trend based on past data, find out major trend in HTF & chk if its aligned with other LTfs too
2/9
WHERE - depends on if he a pullback trader
(who short on pullback rallies or long while weak corrections)
or a breakout trader
(who long abv or short below some particular event),
he prepares the levels to long/short based on the trend he analysed earlier.
3/9
(who short on pullback rallies or long while weak corrections)
or a breakout trader
(who long abv or short below some particular event),
he prepares the levels to long/short based on the trend he analysed earlier.
3/9
now having analysed and finished 3/4 already on the eve of the trading day,
he just left with only to time his trade;
means he just needs only to answer the most important query "WHEN".
4/9
he just left with only to time his trade;
means he just needs only to answer the most important query "WHEN".
4/9
There comes the most vulnerable part of an entire trading system come into play;
"the trader" himself.
Patience to hold himself till the price reaches to his predetermined level,
ability to keep presence of mind,
ability to hold his thoughts steady,
5/9
"the trader" himself.
Patience to hold himself till the price reaches to his predetermined level,
ability to keep presence of mind,
ability to hold his thoughts steady,
5/9
mental fitness to let the trade run till the trend lasts,
ability to judge (in a neutral perspective, not biased) when the trend weakens before turning opposite,
ablity to let the trade skip if it doesnt suit ur minimum risk appetite,
6/9
ability to judge (in a neutral perspective, not biased) when the trend weakens before turning opposite,
ablity to let the trade skip if it doesnt suit ur minimum risk appetite,
6/9
ability not to jump in if the stock doesnt come to ur predetermined level etc
are the psychological skills are the requisites here.
He should have a proper method to decide
whats the maximum risk he can afford;
then decide the position size respectively.
7/9
are the psychological skills are the requisites here.
He should have a proper method to decide
whats the maximum risk he can afford;
then decide the position size respectively.
7/9
Apart from this he should have proper generally usable scale in/scale out method
in order to maximize the winner and make it to big winner.
The risk/money management models can be applied in here.
8/9
in order to maximize the winner and make it to big winner.
The risk/money management models can be applied in here.
8/9
NB: Primary thing a day trader should understand is
he isnt looking for or going after the highest gainer/loser in the day
to get the maximum possible gain in day trade in the country on that particular day.
Neither he isnt trying to short at day high or long at day low
9/9
he isnt looking for or going after the highest gainer/loser in the day
to get the maximum possible gain in day trade in the country on that particular day.
Neither he isnt trying to short at day high or long at day low
9/9
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