Risk Management

Risk management is a subject that is so broad that the only thing I can do is to encourage others to read widely on the subject. The best places to look for information on risk management are the books written by successful gamblers. In general, risk management involves those actions taken by you that increase or decrease you chances of losing. Entry into trades under the following conditions increase your chances of losing, thereby increasing your risk 1. Fast Markets 2. Thin markets 3....

The Floor

Many at home traders wonder, What in the world is going on down on the floor How is it that floor traders always manage to successfully fade those trading off the floor Does it have to be that way Why is it that floor traders can trade against the trend and get away with it Floor traders certainly appear to have the advantage over the rest of us. But do they really It's important to know the truth. It's vital to daytrading to know where and when the floor traders have the advantage and where...

Other Differences

Slippage is a greater problem in daytrading than it is in position trading. The same amount of slippage on a daytrade is proportionately greater in relation to an intraday chart than it is to a daily chart. A daytrade yields less time to absorb slippage. Therefore, holding slippage to a minimum becomes critical. Keeping slippage at a minimum necessitates using fewer order types based on an intraday chart than we might use on a daily chart. We must know within a point or two where we are going...

Verbal Summary Of Methods

Here is a verbal recap of the various methods for identifying the very beginnings of a trend TRUE TREND METHOD TTM DOWNWARD The True Trend Method does not require counting or shifting. It only requires the ability to draw a trend line in an already trending market. The method involves connecting highs to highs in a downtrending market, and lows to lows in an up trending market. When analyzing downward, you connect the highest high of the last up leg to the current correction high. After that...