Our Daily Routine lays out what we need to do throughout the day to give us the best chance of following our Trading Plan.
Our Pre-Trade Routine puts us in the proper mindset to actually follow our plan and maximize performance.
Here's how to create these documents👇
Here's a daily trading routine example.
Update it as your trading and life change.
The idea is that the routine serves you, helping you trade your best.
If the routine starts getting in the way of that, revise it to suit your life/current mental state.
Here's an example of a pre-trade routine to get us in a positive mental space for #trading.
Being in a good confident headspace is what matters. Create a routine that does that, and note things that work for putting you in "the zone". Recreate those things in your routine.
Do what works for you. I like routines & structure. But I'm also human and need to update these routines regularly to adapt to life.
Don't be too rigid, or you won't follow through.
Spend time developing these documents. Your trading will benefit.
The Math & Concepts Behind Making Big #DayTrading Returns
It's certainly feasible. It relies on 4 things:
- Number of trades (a couple a day)
- Position size (well-controlled)
- Reward:Risk (doesn't need to be huge)
- Win Rate (doesn't need to be high)
Here's how to do it 👇🧵
Trading on a 5-minute chart or lower time frame, a decent price action strategy should be able to find on average 2+ trades per day (40 per month) in under 2 hours of trading.
That doesn't mean exactly 2 every day. Some days there are no good trades, other days there are many.
Risk up to 1% of your capital per trade. 1% is the goal.
If starting out, risk 0.1% per trade and increase 0.1% per month of profitability.
If your account is $100, risk $1 per trade (1%). If your account is $35K, risk $350 per trade.
This is one of my favorite #forex and day trading patterns (I also use in stocks).
It occurs nearly every day on the 1-minute chart and it often occurs multiple times within a 1.5 to 2-hour time period (or however long you opt to #daytrade).
Get in and Get Out.
Learn it 👇
I call these RTs or RBs, which stands for Rounded Top and Rounded Bottom. The pattern requires specific criteria, but if you practice them, you'll see them almost every day.
I daytrade them on the 1-minute chart, but I also trade them on other time frames and various markets...
First, let's look at the patterns, and then I'll provide some context as to when to trade them, when not to, position-sizing, leverage, and other details...
I’ve been day trading for almost 20 years…here are a few things you should know about day trading stocks.
(I can only comment on what works for me. Take what you like, leave what doesn't resonate with you.)
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1. Don’t trade during New York lunch hour. There is occasionally some good action between 11:30 am EST and 1:15 pm EST, but not enough to warrant trading through it every day...
While I traded at the prop firm—based on data from hundreds of traders, thousands of trades, over years—not a single person made consistent money during lunch. Most traders lost a good chunk of their morning profit.
When ranges form and price starts chopping around, that's when most people lose money.
Here's how to avoid getting chopped up, profit if the range is big enough, and still participate in the breakout.
A quick visual thread on "range rules."
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My #daytrading "range rules" generate great returns (combined with my entry signals) and save me from unnecessary losses almost every day.
There are two concepts: 1. Room 2. Inside or Outside Swing
Both are important for navigating ranges or choppy trading...
1. ROOM means: if price is in a range & I get a trade signal, my target must be within the range (or barely outside) & STILL provide a good reward:risk of at least 2:1 or greater.
Notice how my targets are within the range. There's "room" within the range to hit my target.