Daytradingregler

By 30 augusti, 2011Blogg

Day Trading Rules #1

KNOW YOUR MARKET. The best day traders specialise on only a small number of indices, or stocks, and get to know them intimately. The authors of the Camarilla {b} Equation themselves day trade the S&P 500 Index almost exclusively, unless a REALLY interesting opportunity pops up. In this way, over time, you will naturally become attuned to the rhythm of your chosen instruments, and will come to have a 6th sense as to when you should and shouldn’t trade. Follow this rule and you will understand why you shouldn’t try day trading penny stock.

Day Trading Rules #2

PREPARE FOR THE DAY. You need to have done your homework, and decided where you will be looking to get in and out of the market. The Camarilla {b} Equation will tell you the boundaries for your day trading today, requiring only the open, high, low and close from yesterday. It will also tell you where to place stoplosses, i.e. those points where the breakout has failed, and when you should therefore take a small loss. It will finally tell you where a likely falter in the breakout is located, giving you a good place to take profits. And it will do all this objectively. We don’t mean prepare by reading news reports or watching the financial channels on satellite:- the professionals aren’t smart enough to figure out which way a stock will go on any particular announcement, and neither, in all likelyhood, are you.

Day Trading Rules #3

STICK TO YOUR PLAN. Once you have decided to follow a certain strategy, stick to it. If the strategy is sound (and your preparation should have told you this) then over time, you will make money. If you chop and change, and try to jump horses midstream, you will, on the other hand, most likely fail, and quickly. A good strategy is objective, leaving little room for your human emotions to get in the way. In a very real sense, you are competing against yourself, because if your emotions do get control of you, or you panic, you will do something you will regret. The Camarilla {b} Equation is about as objective as you can get. Over time, it works phenomenally well. If you stick to it, you will in all probability, make a lot of money.

Day Trading Rules #4

DON’T BE GREEDY. Do NOT try to squeeze the last tenth of a point out of each day trade:- the Camarilla {b} Equation is looking to get you into moves that go the equivalent of 6 or 7 points on the S&P. This is a huge distance – you can easily afford to be slightly late on your entry and slightly early on your exit. By never hanging on for ‘top dollar’, you won’t suffer the pain of seeing a winning trade somehow turn into a losing trade.

Day Trading Rules #5

TAKE A LOSS WHERE NECESSARY. Most day traders who fail do so NOT because they can’t create winning trades, but because they fail to kill their losers soon enough. Knowing when to take a loss is the most important lesson any day trader ever learns. If you keep your losses small, you can come back to fight another day. The way to think about this is to cast your mind back to school – exams consist of many questions. You can get some of the questions wrong, it doesn’t really matter. The end result (i.e. the overall score) is the important thing. In the same way, if you have a bad trade, so what? As long as you control the loss in a calm, professional way, keeping it within the limits you have set for your money management strategy, it is STILL a good trade! It is how your profit & loss looks at the end of the month that is the important thing. The Camarilla {b} Equation will suggest stop loss positions, and if they are hit, take them and exit the trade. One note to this – we have found that if you have 3 losers in a row, it is best to take the rest of the day off, as you are obviously out of tune with the markets – it is important to focus your attention when day trading commodity or futures contracts.

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