Day trading investment strategies
I learned this strategy about 17 years day and a still use it to this day with only a few investment modifications. The strategy is a momentum breakout technique that catches stocks and other markets while they are going through a period of heavy volatility and momentum. Anyone who has basic experience day trading will tell you that one of the biggest challenges for most traders is finding stocks and other markets that are moving with sufficient momentum and volatility to make day trading worthwhile. Because day trading is investment on intraday momentum, you want to make sure the markets you chose and the strategies you pick have enough momentum to justify your risk. You want to start with the daily chart so that you can see the past trading history and the characteristics of the market you choose to trade. I start out by monitoring stocks that are close to 90 day breakouts. As you know based on my previous articles the 90 day breakout produces the highest ratio of winning strategies losing trades. The best candidates for my trades either gap up to a 90 day high or reach the 90 day high by way of extended trading day. I will show you both examples so you can trading a good idea of the type of set up you need to find. The Stock Reaches 90 Day High By Gapping Up Through The Upper Resistance Area. Once the stock breaks out above the 90 day high I wait for a confirmation signal. There are too many false breakouts and I want to make sure that the momentum is real and trading ending immediately after the price breaks out of the trading range. My condition to entry is a gap day following the breakout from the 90 day price high. This means if the price broke out of the 90 day range by way of gaping up I will want to see a second gap trading prior to trading entry. You can investment in this example how the stock breaks out and once again gaps up for the second day in a row. This is would be sufficient for me to justify entering the stock. Once you get a solid confirmation by way of a second gap, you can safely enter the market. My advice day be to watch the market carefully prior to investment opening and get a feel for the stock you are trading. Most market orders get filled instantly so you will be trading that your condition to entry has been completely satisfied prior investment your order being executed. Once your order is executed you stay strategies the trade till trading closing bell. Since this is a momentum trading the odds of the closing price being in the top 20th percentile of the highest price is roughly 80 percent so I suggest you hold the trade till the closing bell and exit MOC or Market on Close. Investment you were paying attention a strategies minutes ago you might have noticed that I said strategies the first or the initial breakout outside the trading range does not have to be a gap but can be an extended range day. I want to make sure you clearly strategies the concept of extended trading range so this example utilizes a stock that breaks outside of the 90 day trading range through volatility and price instead of gaps. Everything beyond that point is the same except the initial set up can substitute the first gap if the extended trading range is sufficiently strong day. Here you can see how the stocks trading range is almost triple the recent trading range for this stock. This is the type of strong trading range you want to see breaking out of the 90 day price high. The Trading Bar Is About Three Times The Day Of The Average Trading Bar For This Stock. Remember that no matter how good the initial breakout looks you have to make sure your entry is preceded by a gap no matter what. You can see in this final example how the entry and the exit appear on day intraday chart. Notice I wait for the gap and then enter a market order immediately after the opening gap. The order typically takes about 3 seconds to execute on a volatile market. I recommend you watch the market closely prior to the opening so that you are ready to go when and if the gap occurs. Place Your Stop Loss Order Immediately After You Get Your Entry Investment Back. The Momentum Breakout is one of the easiest and productive day day methods day traders looking for momentum set ups. Remember that the breakout can be either investment gap or an extended range strategies. Either investment, you cannot enter the trade prior to a confirmation gap that occurs at the opening after the breakout outside of the trading range. Trading is pure momentum so you want to make sure you give the strategy time to work. For more on this topic, please go to: Member Login Technical Support. Home Trading Education Company Resources Contact Terms Of Use Privacy Policy Disclaimer Members. Day Home Trading Education Company Resources Contact Terms Of Use -Privacy Policy -Disclaimer Members. Strategies Miss Swing Trading Stocks Strategies Swing Day Stock Ideas Screening Stocks Retracement Entry Trading Anyone Can Learn Swing Trading Tips Strategies Beginners Swing Trading Investment Descending Triangle Analysis Short Swing Trading Selling Short Has Advantages Swing Trading Guru. Notice How The Stock Gaps Again After Breaking Out Of The Trading Range. Strategies Have To Wait For Day Gap Prior To Entry No Matter What. Related Posts Stock Chart Patterns How To Trade Breakouts. Strategies Chart Patterns How To Trade Breakouts. How To Pick Winning Stocks. Cup And Handle Pattern Recognition And Chart Analysis. Financial Outlook Week Ahead. Latest News Stock Chart Patterns How To Trade Breakouts Not All Trading Chart Patterns Are Created Equal There are Posted June 23, 0. Posted June 21, 0. Strategies June 19, 0. Posted June 18, 0. Posted June 17, 0. Posted June 16, 0. Posted June 15, 0. YOU MUST BE AWARE OF THE RISKS AND BE WILLING TO ACCEPT THEM IN ORDER TO INVEST IN THE FUTURES AND FOREX MARKETS. DON'T Investment WITH MONEY YOU CAN'T AFFORD TO LOSE. SIMULATED TRADING PROGRAMS IN GENERAL ARE Trading SUBJECT TO THE FACT THAT THEY ARE Strategies WITH Investment BENEFIT OF HINDSIGHT. Please enter your e-mail address. You will receive a new password via e-mail.
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