The article below is literally packed with tips and tricks that can seriously improve your trading success inside the day. And although technically this article belongs to the Price Action section, the tips provided will be useful for any short-term trader. In addition, we advise you to read the information about macd rsi strategy alligator. So, what are the secrets of success in intra-day trading?
Do not trade below H1
The first advice refers to trading inside the day with Price Action sets. The point is that the very idea of reflecting the market players’ actions through Japanese candlesticks loses its meaning on small timeframes. That is, if you try to trade on PA, say, on M5, then it will not be trading on Price Action, but trading at random. That is why you should not go below the hourly charts when working with PA patterns.
Do not race for the number of deals. Choose the most obvious setups
You have opened the chart. Look at it. There are no setups. You zoom in, change timeframes, look for any reason to enter the market. Does that look familiar? The fact is that you, following the stereotype “intraday trading is a lot of trades, almost every minute”, very much want to open a position, and then another one. Only, it is not trading on the system, but trading at random. What will it lead to? Come in only when you see a clear set-up. If you start to look for something, to guess, to look for entrances not clear on the basis of what, then stop doing it. Flip a coin and finally enter the market, because that’s what you want. Jokes are jokes, but then again: enter the market only when you see the obvious setups. Just ignore murky, incomprehensible situations – wait for clear signals.
Limit the number of traded instruments
Intraday trading requires fast and clear actions from the trader. There is no time to think long and hard. Therefore, a large number of traded pairs will only confuse and distract you. You do not need 20 charts when trading inside the day – limit your portfolio to two or three instruments, no more. At first, I would advise you to trade no more than one pair.
Risk no more than 1% of the deposit in each trade
Yes, 1% is very little. Yes, you want to earn a lot of money at once, preferably with a guarantee, but try to understand the meaning of this advice. There is a very high psychological load in intraday trading. It is very easy to fall into a state of anger because of a pair of losing trades and start making more and more new mistakes, trying to get back. It is very, very difficult to stay calm, risking 5-10% of the deposit in every trade, because we open trades quite often during the day and have no time to calm down, to assess the situation thoughtfully and without emotions. Therefore, the best option is to risk only a small part of your capital. So that in case of a series of losses, you remain morally balanced and can continue trading, so that later these very losses will be recovered. Try to set yourself a goal at first not to earn a lot, but to earn steadily.
Keep up with the news
If this factor is offset by the timeframe value when trading on daily charts, then in intraday trading one should pay attention to the news release. Do not trade half an hour before and after the news release. If you see some set of price action, but the news is released in half an hour – wait. After the news release, if the market moves in the direction indicated by the setap, you can enter the market. But not before the release of one or another news.
In addition, you can study bloomberg basics, which will help you better approach the issue. So you will have all the necessary tools at your disposal so that you can achieve interesting results.