Intraday Trading Techniques – Part 1
Anyone that came even close to some form of speculating in the markets, be it a forex, cfd’s, metals, crypto or any other existing instrument , started dreaming of making it a full time job ( with lots of money as a reward, of course J
Once first steps are taken, very quickly it becomes clear that just surviving in it is close to impossible, not to mention the original dream : full time job, lots of money, lots of free time, independence….
Still, the hope stays…there are some people out there that did it.
But is it really possible ??
Every single one of you was ( and is ) watching charts, seeing great moves ( OMG, if I just bought/sold it) , calculating possible profits and thinking of all the nice things that you could have done with that easily made money…
But that is just a past performance ( and if you ever read those small letters that every single broker has a legal obligation to print, you would read : Past performance is Not a guarantee of future results
So how to achieve those wet dreams and become a full time – successful trader?
First of all, aside of great time of learning and observing the markets, you have to be realistic and know the following :
- High Rewards go hand in hand with High Risk
- High Leverage = Possible High Profits, but more often High Losses
- Without placing Stop Losses your margin will very quickly disappear
- Money Risk Management is way more important than knowing where the market goes
With all these said, how could anyone achieve great returns without already having a great deal of money in the pocket ?
Well, that is why there is a leverage, full trading systems, stop losses, probability etc, etc…
But how to place a stop loss that has any sense ( not only in terms of exact levels, but also in terms of pure money)
As bigger Time Frame you use – you risk more money
Bigger time frames ( like Daily & Weekly ) tend to take long time for you to see any profits, and in the mean time you suffer great Losses
Bigger Time Frames – Bigger Stop Losses
So the best way to position yourself in trading is to trade on smaller time frames and trade strictly Intraday.
I know perfectly well how it sounds, remembering the chaos and misery that Intraday trading brought to numerous people around the world decades ago when it came possible for retail investors !
People without knowing the basics of any market started to invest their whole lives in the possibility to make it overnight – most lost everything.
To be able to profit out of it, first you have to understand Co-relation between different time frames and how to use it in your favour.
I am going to start with showing you first steps in determining how you gonna prepare yourself for every coming trading day ( Yes, you have to prepare yourself in advance !) , and how you should execute it .
This is the first example ( so do not take it for Granted or as The Law in trading ) – we are just beginning …
This is the Daily EURUSD chart
Intraday Trading Techniques – Part 1
What do you see on it ? Ask yourself first what would your trading strategy would be for tomorrow…
Now I’ll tell you how I see it:
- EURUSD are in clear Sell
- The falling Angle is almost Liquidating one
- As long as Below that Upper red line, it will continue to Sell
- Possible Targets are Supp 1 & 2
- As this is a Daily chart, so many moves and things can happen during the day, so I am not going to Sell it and wait to see am I lucky…
- There is no such a thing as Luck in trading
So I am going to move to smaller time frame to see how can I position myself within the coming day.
Hourly Chart
What do we have here :
- Currently in sideways
- Based on Daily chart, we are waiting for Sell signal to go with
- Do not just Sell it – it can Spike up considerably and you won’t be able to place a reasonable Stop Loss !
- Between Res 1 and Support we have apx 35 pips – so that might be dealt with on even smaller time frames
- As long as Daily Command it – Do Not try to go against the trend
- It is better to miss the trade then to take a losing one
- It is obvious that the pair is falling down in segments – within those downtrend channels
Once we have this in mind, we have to make a clear trading plan :
- What are the signals that we are going to execute
- Exact Stop Loss – pre set in the trading station
- Trading Size – pre set in the trading station
- Possible profit targets
Do NOT step away from the above trading plan.
Intraday Trading Techniques – Part 1
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