Day Trading Signals - Getting In And Out
Finding a good Day Trading Strategy must include one very important aspect of trading is timing. Since the entire success of a trade depends on our ability to enter and exit at a profit, then I would say the 'Getting and Out' is a very important aspect of your success.
Many systems vary in the amount of criteria that they must use in order to exit or enter into a day trade. The criteria must also meet the personality of the trader. For example if a trader loves to trade 'Trend-lines' then the traders must have exact criteria to determine when he or she enters into a trend-line trade. This must also meet the persons personality for example I do not like holding trades overnight, yet I make exceptions. Since I like to sleep at least 6-8 hours per night, I know that this can only be accomplished with me if my leverage is at a reasonable amount that I feel comfortable with. The amount one feels comfortable with regards to leverage will be determinant upon his or her personality. My website has a 90 day pitbull challenge. I basically trade for 90 days and post my results, in this time period I see if I can make a nice return. Obviously with the name 'Pitbull Challenge' one can deduce that this is not a conservative approach to trading this account. This is my personality and yes I trade with aggressive techniques. This may lead to larger gains but also to larger losses.
Know Your System
In order to be a real success at something, wouldn't you say you must know your weaknesses and strengths in that particular discipline? Knowing yourself and personality will help you to make better decisions not only in trading but in life. Here are a few questions to ask yourself. Do I like to hold trades overnight? What amount of leverage should I use? At what point do I decide that I have Day Trading Signals that I should implement? What lot size should I use? What time of the day is best for my Day Trading Signals system?
Knowing When Day Trading Signals Should Be Taken
Your Day Trading Signals must be specific to have certain criteria that only when this criteria is met then a trade is entered. You must also have certain criteria in place with regards to exiting your trade. For example If my trendline breaks, then I see a retest, I will place my trade with my stop here. Once the trade is placed you should review your trade to see if you followed the exact criteria that you intended before the trade was placed. Make sure also that your exit strategy is laid out. I often take trades with no set target, however this does not mean that I do not have a target in mind. I like to see the momentum on the candles to determine when and if I will be exiting.
Some systems I have seen that work well is to take day trading signals based on their entry strategy then simply let the position ride with no set idea of an exit unless the position gets stopped. The important thing one must know about this system is the stop MUST be in on this system for it to work properly. You can see that if the stop is used as an exit then one must move the possible exit in the direction of the trend for it to work. Using this simple system is often better than most complicated systems with all these conditions and charts that tend to confuse traders and their respective day trading signals do not work as well.
The system that is being used must have one of the most important elements in any trading arsenal, this is "ride the winners and cut the losers'. This statement alone is something that we should all paste to our charts to see day in and day out.
Know When To Lose
Knowing when to lose does not mean getting stopped out. A person can be stopped out on the trade but simple hop right back in. I am sure some of you have done this correct? We satisfied our Ego by telling ourselves we are going to get back into a trade because we know that we are right. If you find this temptation coming on then it may be best to go and get a diversion. Find something to do other than sit in front of the computer. I have posted a video below. This is just a simple fun video I made to help you understand that taking a break may just be the best thing for your trading. Day Trading Signals may be generated all day but at some point you must analyze what you are doing and if its not working you must decide to take a break. Join our facebook, and twitter, I sometimes post Day Trading Signals that I am taking. If you are ready to become a member then see more info here. Enjoy!
If you are interested in receiving what I feel are the best Day Trading Signals on the web you can learn more here.
- Posted by fx_Trader
- On March 12, 2013
- 0 Comments