![]() It is ok to lose 5%, 10%, even 15% if you’re willing to go that far. Sometimes trends change, stocks alter their direction, they completely turn around and start moving the opposite direction. I think this is probably an apparent risk to anyone who is familiar with trading, but it warrants some attention. However, you could also use all 3 day trades on the same day or some variation in thereof, it is completely up to you and your trading style.įOMO – Fear of Missing Out. When I started with this strategy, I effectively could make three trades a week, typically M, W, F. This means that you will have a limited number of trade attempts per week. Now let’s talk about some of the restrictions and hazards of this strategy.Īvailable Day Trades – This is a day trading technique, and so you will need available day trades. (I just do not remember exactly what they looked like at the time) The lines that I used to make my trade, created by Trend Spider, were much more defined and in line with the daily highs / lows. My stop loss eventually forced me out halfway down through the move, but I was incredibly happy with the profit I made.Īs a disclaimer I would like to say that I had to go back and draw these lines in after the fact. I almost stepped out as my loss encroached on 10% however as the stock reached the developing trendline it turned downward and ran for a considerable amount of time. As you can see, I entered a little early, as I thought the downtrend was developing. This trade produced a return of around 80% after going as high as 110%. Here is an example of trending channel that developed on $SPY on which I will use as an example throughout this post. While many believe these are psychologically created by traders and their emotions, I believe the culprit is algorithmic which is what makes this strategy more reliable than most. These trends can present themselves as either horizontal or diagonal. What is a trending channel? A trending channel is created when a particular stock bounces off intra-day trend lines created by daily highs and lows. What type of trades are you making? Buying daily Call / Put Options based on short-term market momentum. How does it work? Using 1 min, 5 min, 15 min, and Hourly charts to track intra-day moves and identify a trending channel. What is the goal? To reach $25,000.00 as quickly and safely as possible. What is the principle behind this strategy? “Real traders try to hit singles, not home runs.” This is the easiest and most reliable way I’ve found to hit singles on a consistent basis. This will surely draw criticism and isn’t for everyone but if you feel like you’re chasing yourself in a circle trying to grow your account and you’re going nowhere then you might give it a serious look. This is a strategy I have been using for some time that has allowed me to find success while stepping away from the news cycles and endless horde of “twittersultants” that have only helped me lose more than I could ever seem to gain.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |