Your most important objective will be to follow your Max Loss rules so you never have a loss that exceeds a predetermined amount. With no clear boundaries for where to go, to short or buy after the first 5 minutes in my opinion is nothing more than a gambler's paradise. Conversely, if a key pre-market support level is breached, you can anticipate the pending move lower. This brings us to our second rule, which is to stick with your game plan. Government Required Disclaimer — Commodity Futures Trading Commission Futures and Options trading has large potential rewards, but also large potential risk.
Simple Day trading strategy earns profit on any futures market Uploaded by Patricia McCoy on August 27, at am This morning we trade Crude Oil, Euro, Gold and the MIGHTY Mini-Russell Futures in our Live Trade Room.
The 2X Inside Day Set Up
While using simple strategies increase your likelihood of consistent execution, this approach is too unpredictable. Some traders will wait out the first half an hour and for a clearly defined range to setup. I have noticed if a stock is going to head fake you, it will often do it at the 10 am hour. Another reason I like 9: After the completion of the 9: The importance of identifying the high and low range of the morning provides you clear price points that if a stock exceeds these boundaries you can use this as an opportunity to go in the direction of the primary trend which would be trading the breakout.
Or you can go against the primary trend when these boundaries are reached with an expectation of a sharp reversal. Below is another example of the stock NIHD after it sets the high and low range for the first mintues. At this point you have one of two options.
Your first option is to buy the break of the 9: I believe when you see stocks b-line like this for the first 20 or 30 minutes, the odds of the stocks continuing in that fashion are slim to none. I personally like a stock bounce around a bit and build cause before going after the high or low range.
Your second option is to short the stock with the expectation NIHD will reverse around the 10am time block. I am not a fan because you are just hoping the stock will reverse, but there is no real justification. So, looking at NIHD what would you do at this point? The correct answer is you should stay in cash. As you can see in the above chart, NIHD floated sideways for the remainder of the first hour. Do you see how sizing up the trade properly would have allowed you to miss all this nonsense?
Now that we have already had our head fake example earlier in the article, let's focus on one that follows the happy path. Notice how the stock was able to shoot down and build steam as the stock moved lower. In theory, waiting for a breakout after an inside bar or a tight range will often lead to consistent profits.
The key thing to remember is 9: If you place a trade at let's say Unless you are trading ticks, which I think is a sure way to make your broker rich, you simply don't have enough time for the market to move in your desired direction. The last twenty minutes is where you let the stock move in your favor.
This doesn't sound like a lot of time, but if you step back for a second this represents a potential of 40 minutes from the time you first entered the trade at 9: Now there is no law against you holding a stock beyond The key point is you get out of the mindset of letting your profits run. I honestly get visibly frustrated when I hear people giving this advice to new traders. In today's world there are way too many automated systems and retail investors all clamoring over pennies, stocks no longer move in a linear fashion where you can sit back and place your trades on cruise control.
The amount of head fakes and erratic behavior is just over the top. For me, a clear profit target is the best way to ensure I take money out of the market consistently. If you want to read more on this topic you can check out any of the following articles: Each of these articles will clearly breakdown the importance of getting in a rhythm of taking profits. The last 20 minutes of the first hour is not the time to hang out and see how things go.
This is the time where you need to be on the lookout for closing your position and you must have some idea of where you want to close the position. I personally like to have a set percentage target that I'm shooting for while others may adjust this value based on the volatility of the stock. It really doesn't matter over the long run because you will adapt your trading strategy to your performance. The key thing is making sure you are coming from a place of wanting to pull profits from the market.
Most of you reading this article will say to yourselves, this makes sense. I should trade during the first hour when I have the greatest opportunity to make a profit since there are the greatest number of participants trading. Since I trade, I know there are some of you reading this thinking, "I can make money all day".
This is a true statement. You can make money all day. The only problem is the majority of people do not. You will see that around The resulting price action when the true stock operators are away from their desk is basically a lot of sideways action. Stocks will breakout only to quickly rollover. Stocks will begin to move in one direction with nominal volume for no apparent reason.
The only problem is that I suck at teaching. We have pretty much the same trading style. I did open an account for my grandkids and am trading that for them.
But as for me I am happy with where im at. Anyone who is interested in learning to trade futures I recommend you take a look at this guy. All seasoned, successful futures traders trade exactly like he does. Be the way your trading is pretty awesome. Follow the Tradate not give warnings, but you learn to do them. Thanks for your advice. Joseph, Ive seen a couple of your videos and I am really enjoying them. When chosing the better market shouldnt you chose the one that allows an amount of leverage that will never restrict your money management rules?
Which leads me to my next question: Thanks in advanced, considering joining the program! Great video my friend, Thanks! We love to see these patterns FAIL because it turns into a breakout pattern for us, which are always very profitable. Join our free trial on our website to learn more about our entry patterns.
Over my years as a trader and as a trading coach I have worked with thousands of students. The majority of those students experienced a devastating loss at some point due to an avoidable mistake.
The money to trade on margin is easily available and the allure of quick profits can lead both new and seasoned traders to ignore commonly accepted rules of risk management. They cap their losses. They accept that each trade has a pre-determined level of risk and the adhere to the rules they set for that trade. This is part of a well defined trading strategy. The Momentum and Reversal trading strategies are the 1 and 2 best trading strategies out there.
These two day trading strategies are being used by thousands of our students who have participated in the Warrior Trading Day Trading Courses. In short, both of these strategies are going to give you the framework for what type of stocks to trade, what time of day to trade, how to find stocks to trade, how to set your stop loss to have a max risk, and how to find your entry based on traditional chart patterns including Bull Flags and Rubber Band Snap Backs.
Once you choose the one that is a good match for your skill level, your risk management tolerance, and the time of day you plan to trade, you are ready to get started. Make a plan to trade this strategy in a Simulated Trading account for 1 month to test your skills. You also must maintain a profit loss ratio of at least 1: If you can achieve these statistics, then you are positioned well to trade live.
During the 1 month of practice, try to take 6 trades per day. Nobody wants to lose, but the best traders are great losers. They accept their losses with grace and move on to the next trade. They never allow one trade the ability to destroy their account or their career. I personally focus on accepting small losses, and not letting them get me frustrated. Learning this characteristic will keep them in business as a day trader for a long time.
Your most important objective will be to follow your Max Loss rules so you never have a loss that exceeds a predetermined amount. The most important skill you need to learn is to cap your losses. Learning how to scale in and scale out of your day trades is a critical still every trader must develop.
When I have winning trades, I scale out of the positions to take profits and adjust stops to break even as quickly as possible. I never hold a position that has achieved my profit target and hope for a bigger winner. The reason is because all too often the price can drop and you will end up giving up that profit. This method of scaling out ensures small profits on all trades that move in your favor, giving you a better percentage of success.
That would give you a 2: Again, with 6 trades and a 2: With the same percentage of success, if you can increase your profit loss ratio you will make a lot more money! Finish the day green, and do it again tomorrow.
Over time accuracy will improve and you will find yourself hitting winners right out of the gates. If you plan to succeed, you must follow your trading plan. That means ONLY taking trades that fall into your strategy.
Sometimes beginner traders start to gain confidence and then venture outside the strategy that works the best.
Simple Day trading strategy earns profit on any futures market
This strategy is a simple trend following strategy that should work in any market, but as a day trader I prefer to trade futures. At Rockwell Trading, we trade this strategy live in our Live Trading Rooms on the following markets. This morning we trade Crude Oil, Euro, Gold and the MIGHTY Mini-Russell Futures in our Live Trade Room. Join us for a week free trial. Feed a man Fish personalbank.cf this on our blog: In todays video we are going to take a step back personalbank.cf us trade live in front of you. Complete Transparency. Nothing to personalbank.cfding with GTR. Day Trading Strategies for Beginners. Day trading is a worthwhile activity, but you must know what you are doing. There is a technique that will help you succeed at day trading, but you have to first learn what it is.