day trading is an enigma.
investing calls every new trader but none goes there first.
many never go there.
all come pulled towards day trading like hypnotised souls.
this write-up is for those souls
who want to live and die with their obsession
the day trading.
if day trading is a vault of money.
here are the 6 passwords to open that vault.
--------------------------
password 4 = "time"
well begun is half done, they say!
so true in day-trading!!
when to enter a day-trade is decisive.
if you enter at the wrong time
even if your direction of trade is right
you may slip into loss for some time before the trade actually turns in your favour!
by that time, you may have panicked and chickened out or quit.
even otherwise, you are unnecessarily inviting stress.
you are unnecessarily cutting down potential profit.
i have seen many day-traders enter positions randomly.
even when you are on the side of smart money
even when you are mentally aligned and aware of the bigger picture
even when you are prepared for the "guerilla" war
you need to enter at the right time!
i give some examples below:
- enter only at a higher low (for a long position)
or a lower high (for a short position)
- keep intraday fibonacci retracement levels in mind.
- keep support and resistance levels in mind.
- don't enter the position without the permission of the indicators, if you have some on your payroll.
"never try to time the market" may be a rule for investing but certainly not for day trading.
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