Wednesday, February 29, 2012
Day Trading Strategies, Intraday Trading Strategies Rules
1. Don't Fight The Trend
Go long a stock only when it is strong (up) on the day. Same for shorts (only short down stocks).
2. Don't Overtrade
Enter a maximum of three trades on any given day. Be selective.
3. Consistent Trade Sizes
Each trade should only consist of buying between 100 to 300 shares. Never more.
4. Buy Near Support Levels
Never chase a stock way above its support levels. Wait for a pullback.
5. Manage Losses
Never take a loss of over 10% on any trade. Enter only trades where the stop, if triggered, will result in a loss of less than $10%
6. The 30 Minute Rule
Never enter a trade in the first 30 minutes of trading.
7. Overnight Rule
Any overnight holding can only consist of 100 shares. Only one holding. Again, be selective.
Trading is all about profits and losses.... But, successful trading is about making your losses small and profits big.....
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