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5 Day Trading Tips for Success
1. How to Treat Gap Openings A gap up or gap down open is an emotional move, and it often will reverse course and turn in to "trap open". Gaps that are less than 4 points on the SP Future tend to get filled in the same day, especially Tuesday through Thursday. Turns will occur within 20 to 40 minutes after the open. A trader must be on the lookout for a reversal as soon as early momentum is lost. A gap into a good support /resistance zone is almost always a good "fade" - with stops no more than 1 point on other side of the support /resistance zone. 2. When the Market Moves Against You, When Do You Exit a Trade? The way I trade, I exit as quickly as possible. There's no sense in waiting around for your "stop-loss" to get triggered when the perceived edge is gone. I like to stay in control of my trades, and if the market doesn't do as anticipated, I don't wait for my stop to get hit. 3. When Are The Best Times of the Day to be Trading? For me, the best times of the day for trading are the first hour and the last 2 hours. 4. How Can Anyone Trade a Choppy Market? I take a number of scalps in choppy markets. I time entries with Tick extremes, especially when price pops into previous high
areas of congestion, or other intraday support and resistance. Moving averages are not good during choppy days.(Scalps : small profit, "hit and run" type of trades) 5. How Do You Measure Pullbacks In a trend move, I like to see shallow pullbacks to a steeply sloped moving average on one of the 3 time frames I follow. (more time frames, the better) Pullbacks to symmetry in a persistent trend are useful when present. Example: Rally, dip 2.00 points - Another run up, then a dip of 2.25 points - A another push higher, then a dip 1.75 points. Note
continued dips of 1.75-2.25 points repeatedly hold. A pattern has developed, and you want to be buying those shallow pullbacks. This works great used in conjunction with a steep slope of the 20 ema on the 5 minutes charts, or slightly bigger picture, the 60 ema on the 5 minute chart. Mike Reed author of TradeStalker's RBI Trader's Updates. Mike has been trading the Market for 23 years. When he got his start as a trader, Mike was plotting prices on paper tape as the internet had not yet been "born" as we know it today. Years of experience have really given him a feel for the Market action. Mike's support and resistance numbers have been published on the internet since 1996. He has a wide readership that includes day traders, floor traders, locals and hedge fund managers. Mike's nightly support and resistance zones are specific and incredibly accurate. He offers an unlimited free trial of his nightly TradeStalker RBI Trader's Updates. http://www.TradeStalker.com
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