Trading intra day is like a puzzle, but there is just one thing, the puzzle is different for all of us. Just like we are all different....we all have to find what works for us. So far this past week we have looked at the first bar trade on a 3m chart.
From that we have already found two questions:
1. How much can the gap be on the opening bar before I would pass on the trade since the market on large gaps can be a little wild.
2. How much can the range be on the first bar before I would again pass on the trade. Can you handle a 2 or 3 or maybe, one day, a 4 full point range on the first bar, because of the risk I would have to personally assume. Of course, that depends if you use the low of the first bar as a stop on a long and vice versa on a short. Please tell me you trade with a stop....PLEASE!!!!
3. The next question that needs to be addressed is, could I front run the close of the second bar and when.........So we will take a look at this during the next week. So relax, follow along, takes notes, do research, play on a sym trader....but if you lean into a trade without doing these things with real money....you need to be spanked...
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2 comments:
You will get a lot more than 'spanked' by the market, you will get completely f******* !!
Your posts are great timing for me as I just did my 14th trade this morning with real money. It is all I can do right now because I go to work at 10AM. If I can just learn one setup, well, I should be able to learn another, also start adding contracts... I always use stops but I haven't been considering the gap until now. This is the closest thing to mentoring I've had even though we've never actually met. I hope you continue your posts. Love the house also. BTW I am the guy that commented about the 2 point range.
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