This is my tactical day trading cheat sheet. It’s things I do that smoothed moving average thinkorswim forex my trading easier and less complicated, so I can focus on what matters: implementing my strategies.
Below, I simplify what to trade, how to set stop losses and targets, position sizing, controlling daily risk, when to trade, time frames to watch, chart scaling, news monitoring, and strategies. Note: This is my tactical cheat sheet. There are other ways to trade, and by sharing this I’m not necessarily saying other methods are bad. These are simply a few of the tactics I’ve learned, since I began trading in 2005, that work for me. Futures Contract I always trade the same thing, every day. I don’t look at other charts.
I don’t care what’s happening elsewhere in the market. I simply find a stock that has a good amount of volatility, a good amount of volume, and has nice intraday trends. If you can make several trades a day, win about half of them, and make a bit more on winners than you lose on your losers, you will produce a great day trading income. Lots of people get distracted because they are trying to focus on too many things. I don’t look for confirmation from any other charts or indexes, I only trade the one asset I have chosen to trade and that is the only chart I watch. Simplify your trading, and stick to day trading the same thing all the time. As long as it has lots of volume and some movement every day, you can make a living from it.
Pick what you will trade and stick with it. Stop Losses and Targets I like to trade consolidation breakouts and engulfing patterns. These are what trigger me into the trade. The direction of that trade is based on the size and velocity of the waves that preceded the trigger. With nearly all my trades being triggered by these small patterns, I always know that my stop loss will be just below the pattern if going long or just above the pattern if going short. That makes it easy to place a stop loss, and we can plan out where that stop loss will be as bars forming.
That means when a trade triggers I already know exactly where my stop loss will be. I usually aim for a 1. That means that if I am risking 10 cents on a stock trade, I should reasonably expect to make 16 to 20 cents. As the bars are forming, since I know where my stop loss will go, I can also assess whether my target is likely achievable. If it is, I proceed with the trade.