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What is Your Style of Day Trading? Part 2 – Entering The Trade.
We’ve found the tools used for are online day trading are:
1. Major Support and Resistance
2. Market Profile
3. Trend Analysis
4. Pattern Recognition
5. Price Action
6. Trade Management
We’ve discussed the first 3 in the previous article found on the blog and will now discuss 4-6.
4. Pattern Recognition is an important aspect to any day trading strategy . Trade entry patterns will occur on the 3 minute chart. These patterns occur in all time frames. It is to note, that this emini trading course methodology chooses to use the 3 min. chart. Trading the S&P Emini with the 3 min. chart provides the amount of desired trades in a given day. Once the trend is determined and is the desired direction of the trade, either with the trend or counter trend, the next step is determining an Entry Point and Pattern. A trade entry pattern is a collection of chart candles or bars (note, candles are the chosen chart pattern with this methodology). Using this day trading strategy these patterns are easy to recognize and deliver a high degree of success on the S&P Emini. This moves us to our next step of learning online day trading.
5. Price Action. Once the trade direction is determined on the S&P Emini or future traded and entry pattern is discovered, we are almost ready to enter the trade. The final confirmation of our day trading strategy is the Price Action. Price Action is an execution tool that allows a trader to enter a emini trade with the least amount of backwards movement (against the trade) as possible. The 2 Price Action tools used with this day trading strategy are the 144-Tick Chart (a chart that displays a candle every 144 trades, this has been described as the markets heart beat) and time and sales (a display of volume and time to which a trade takes place). Both tools provide a trader with necessary information on the immediate Buy vs. Sell pressure of the given market for the emini trade or market trade of choice. This is covered in complete detail inside our emini trading course. This leads us to step 6 of this day trading strategy.
6 Trade Management. Once the S&P Emini trade is entered, there are a few rules designed to manage the emini trade.
• Keep all loses at a minimum
• Protect all profits, minimizing risk
• Maximize Profits
To learn more about this emini trading course, how you can profit from the S&P Emini, and find 3 FREE trade setups you can copy and implement immediately visit my emini trading course
I write foremost about futures topics, specifically the S&P Emini. Many of my more technical techniques can be discovered at my blog, day trading strategy. I encourage you to read the blog and discover how to trade. You can add $500-1000 dollars a day to your pocket book. Much Success.
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