Day Trading Rules – Stay Out of Slow Markets Daily Recap

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Day Trading Rules – Stay Out of Slow Markets Daily Recap
Learn how to trade at http://daytradervideo.com

Could today have been any slower? One of the cardinal day trading rules that you should follow if you do plan on being a profitable day trader one day, is do not trade in range bound markets. That holds especially true when the market hardly has any volume or volatility. This is not to be confused with trading in a range when there is volume in the market. That is still a can do.

So, now that we have those day trading rules out of the way let’s get into my daily trade recap.

As always I like to start in the pre-market which was nonexistent action. I always use this as a pre-cursor of what could happen once the market opens. Most of the time it works out really well but there are times when it just doesn’t. So, take it with a grain of salt. This is another area where eventually you’ll just have to make up your own day trading rules to follow.

When we open we are totally flat and in a range bound market. Quickly I also realized that there was absolutely no volume. The way you can tell this is by the fact that the bars are printing incredibly slow. The speed of the bars printing is a good indication of the volume in the market. And today there really was none.

If you actually go back and take a look at yesterday’s chart you can see that the markets almost look identical to this point. One of the key differences though was the fact that areas just were not being respected whatsoever today. So, I decided to stay out until I saw a complete and total break of this range.

We finally did get that break and I quickly took a long. If you are a regular subscriber to my videos what you’ll also notice is an incredible amount of consistency in my trading. I often marvel at traders that want consistent profits but yet they never consistently do the same thing.

The spot I’m talking about is an identical spot that we had in yesterday’s market where I actually held to 2.5 points. Well today we had the exact same situation except this time there was no profit. In fact I wound up taking a small loss. However the day ended nicely with a short that fit all my day trading rules and wound up being a two point winner.

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