Day Trading Video Lesson….
The impending/possible Greece exit of the Euro has given us a nice day trading lesson to review.
One of the most common errors a day trader can make, is to guess when an intra day trend will end. This is most common when the stock market is in a resilient trend. Such as the case for the last two years.
In the current example, the game plan is “buy- because the market always comes back…” for the most-part, that has worked out.
The problem, is that too many traders see that as a strategy.
It’s not. It simply means you were fortunate to trade a market with a strong bias. There is nothing wrong with having this bias, it’s hard to argue a “only look to be long” approach. But, having a bias and having a strategy is not the same thing.
Believe it or not, this temptation is worse on days of significant news, such as today’s headline about Greece exiting the Euro coming to a head. Many traders this morning were talking, “Wow! What a great lower open to be a buyer!”
Well. What if the gap lower does not find buyers? What if that happens all day? Will you nibble or will you get aggressive when you feel the gap lower has gone “far enough?”
What is your day trading plan to safely enter a new trade?
Day Trading Significant News Using a Low Risk Strategy
The above chart (click to open full picture) shows the:
- SPY hourly Chart.
- Opening Price Indicator.
Today’s video teaches a simple, but effective method that keeps you on the same side of institutional order flow and prevents the one big blow-up day that happens to all of us when we get stuck in an opinion.
*Please leave your comments and questions below…