Guide To Day Trading – Watch As I Guide You Through A Trade I Took

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Guide to Day Trading – Watch As I Guide You Through A Trade I Took
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I will try and write this so that it can serve as a guide to day trading.

Again before taking any trade make sure you always analyze what the market has been doing prior to the setup. In today’s market it started off extremely choppy but then started to run rather well to the downside. The one thing that I did notice is that the keltner channel bands were acting as really good support so this 2nd trade has an anticipated target of the OB, which now lines up with the money line.

With this particular trade you really have two options. Your decision just depends on what type of trader you’ve chosen to be. Traders can fall into one of three different categories. They are either:

Use each of these three as a guide to day trading:

1. Aggressive
2. Conservative
3. Hybrid ( these types differ depending on the situation)

In my particular situation I fall into the hybrid category. What this basically means is that in certain situations I will take the conservative approach and in others I will be more on the aggressive side. In this particular trade I decided to take the more aggressive approach. This was namely due to the fact that the market seemed to be moving down quite well.

After being filled we really want to see a pop down to the money line and outer band area. But this particular trade begins to show some consolidation around the MB. Most traders would start to become worried at this point. This is not a textbook move. But you have to understand that the market is not always going to work in your favor. Don’t expect it to do what you want all the time. As long as it does what you want a little more than half the time you will be a winner in the long run.

Finally after consolidating for quite some time the trade is beginning to lose all of the things that we initially liked about it. In fact my trading plan says that I can take an early exit. This is exactly what I decide to do. Following your trading plan is key to succeeding and becoming a big winner in the market. Most people don’t do it. They hang on when they shouldn’t and they exit when they shouldn’t. Overall I lost only 3 ticks and saved myself 2 ticks. The trade winds up failing and would have cost me five ticks. But this time my trading plan was able to save me.

This is trade two of the four that I took today. I hope you enjoyed this guide to day trading.