price action trading
- Thread starter saakk
- Start date
Basic Rules for Swing Traders
Because of the short-term nature of this technique, swing traders must adhere to some very basic rules, including:
If the trade moves in your favor, carry it home overnight. The odds favor follow-through.
Expect to exit the next day near the objective point. An overnight gap presents an excellent opportunity to take profits. The exception is when the market offers you windfall profits; take these to the bank on the close. Do not get cute.
Concentrating on only one entry or one exit per day relieves some of the mental pressure.
If your entry is correct, the market should move in your favor almost immediately. It may come back to test your entry point a little, but that's OK.
Do not carry a losing position overnight. Exit and play for better position the next day.
A strong close usually indicates a strong opening the following day.
If the market doesn't perform as expected, exit on the first reaction.
If you are long and the market closes flat, indicating a lower opening the following day, scratch or exit the trade. Play for better position the next day. It is always OK to scratch a trade!
Use tight stops when swing trading and wider stops when trading trends.
The goal always is to minimize risk and create “freebies,” i.e, trades that move in your favor quickly, where the stop can be moved to break even.
Training yourself how to think and act under pressure is a major part of the battle. Therefore, when in doubt, get out! You have lost your road map and your game plan. It’s an old cliché, but when dealing with real money, it’s one cliché you want to respect.
Place your orders at the market. Do not get cute trying to price your trades with limit orders.
When a trade isn't working, exit on the first reaction.
Always anticipate. Do not get caught up in reacting to market moves.
Article from trade2win.....
Because of the short-term nature of this technique, swing traders must adhere to some very basic rules, including:
If the trade moves in your favor, carry it home overnight. The odds favor follow-through.
Expect to exit the next day near the objective point. An overnight gap presents an excellent opportunity to take profits. The exception is when the market offers you windfall profits; take these to the bank on the close. Do not get cute.
Concentrating on only one entry or one exit per day relieves some of the mental pressure.
If your entry is correct, the market should move in your favor almost immediately. It may come back to test your entry point a little, but that's OK.
Do not carry a losing position overnight. Exit and play for better position the next day.
A strong close usually indicates a strong opening the following day.
If the market doesn't perform as expected, exit on the first reaction.
If you are long and the market closes flat, indicating a lower opening the following day, scratch or exit the trade. Play for better position the next day. It is always OK to scratch a trade!
Use tight stops when swing trading and wider stops when trading trends.
The goal always is to minimize risk and create “freebies,” i.e, trades that move in your favor quickly, where the stop can be moved to break even.
Training yourself how to think and act under pressure is a major part of the battle. Therefore, when in doubt, get out! You have lost your road map and your game plan. It’s an old cliché, but when dealing with real money, it’s one cliché you want to respect.
Place your orders at the market. Do not get cute trying to price your trades with limit orders.
When a trade isn't working, exit on the first reaction.
Always anticipate. Do not get caught up in reacting to market moves.
Article from trade2win.....
http://htwins.net/scale2/ SCALE OF UNIVERSE.
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