my day trading notes

my day trading notes

- price can't take more than 3 directions in a single trading day

- book profit at sharp big spike but don't take reverse position

- don't enter premature while approaching a direction change

- breaching of yesterday or tody high-low is a clear signal of the start of first direction

- if market over-retraces its rebound after its very first sharp opening move it has taken its first direction

- change in direction is to be verified with step-up step-down theory

- play a direction to the full except in case of a sharp big spike

- re-enter trade on every fresh breakdown or breakout albeit with strict stop loss

- with ruthless stop-loss, any risk with acceptable risk-reward ratio can be taken

- can't afford to miss gap-up openings (2/3rd times), btst is a must

- bite (trade size) what you can chew.

- every visual support and resistance should be respected. reverse trade at these will benefit often.

- beware of rsi divergence (especially bullish divergence)

- beware of the collapse or suck points

- william % r touching extreme before rsi touching the extreme is a sign of trend resumption

- rsi retreat (while price remaining flat) is also a sign of strong resumption of trend

- always turn-down anti-trend positions till direction is intact

- i take the first trade only when the price has taken clear first direction. thereafter, i change direction only when there is clear change in the direction. alternatively, i book profit in case of a sharp big spike. thereafter, i re-enter the trade if there is a change in direction or fresh breakdown or breakout off yesterday high-low or today's high-low.

- i always have a permanent long position. all i have to do is defend that long position whenever the price direction turns down. all i have to do is to find opportunities to drag down the price without incurring any loss. this way i inject value into my holdings. going up is natural and inevitable. this reduces my stress and trading by half as i have to look for and take only short positions.

- i have sufficient buffer funds to meet any unforeseen eventuality