When trading, you want to be in an active, inquisitive mode, watching how we're trading at the moment, but also the context of the moment's trade.
This slide from my Friday seminar presentation summarizes some of the active questions that I pose through the day to gauge whether we're in range, trending, or breakout market environments.
See my post on three basic trade setups for more background.
Half the job of good daytrading is making an early read of day structure.
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3 comments:
Hi,
I enjoy reading your blog. I categorize today as an all day up. Usually gap up in the morning and cant get into the gap.
The trick of course is recognizing these types of days as early as possible. The pullins are shallow, and buying after being up so much "seems" wrong. The correct trade is to lightly buy any pullin and you will make money. It takes confidence, but if you can recognize these types of days, their is money to be made.
Brett, what you advocate is akin to close monitoring of the markets.
Yesterday is a case in point and if we have myopia, we would suffer much.
I refer to the post by Ray on myopia as context here:
http://tradingsuccess.com/blog/myopia-1082.html#comments
Dr Brett,
Could you post the powerpoint for your Friday presentation? I'm certain that it contains many pearls.
Phil
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