5 Day Trading Tips for Success

If someone tells you that you can get rich quick day trading...run for the hills! There are no overnight successes, unless
you are very lucky!

Day Trading isn't easy, but with experience, dedication, self- control and hard work, you *can* become a successful day
trader.

1. How to Treat Gap Openings.

A gap up or gap down open is an emotional move, and it often will reverse course and turn in to "trap open".
Gaps that are less than 4 points on the SP Future tend to get filled in the same day, especially Tuesday through Thursday.
Turns will occur within 20 to 40 minutes after the open. A trader must be on the lookout for a reversal as soon as early
momentum is lost.

A gap into a good support /resistance zone is almost always a good "fade" - with stops no more than 1 point on
other side of the support /resistance zone. (A "fade" is simply entering a position opposite of the direction
of the gap. If the market gapped down, a "fade" would be entering a long position (buying) in to the selloff.)

2. When the Market Moves Against You, When Do You Exit a Trade?

The way I trade, I exit as quickly as possible. There's no sense in waiting around for your "stop-loss" to get
triggered when the perceived edge is gone. I like to stay in control of my trades, and if the market doesnt do as anticipated,
I don't wait for my stop to get hit. When there is no longer a high probability situation, exit and take a second look.

3. When Are The Best Times of the Day to be Trading?

For me, the best times of the day for trading are the first hour and the last 2 hours. Here's an old rule of thumb (and
this used to work like clockwork in the "old days", and although it has diminished a bit, it still happens):

"The Minor Time of Day"- f the Market opens higher, then there tends to be a pullback within the first 20 to
40 minutes. If the pullback is weak, there will probably be a continuation of rally into the early afternoon. But, if the
pullback is sharp, then you've likely seen the high for the day and you'll want to be selling the bounces.

"Major Time of Day"- Around the 2:20pm to 2:40pm time frame, we'll often see moves reverse or gather steam in
that timeframe. People that have been holding positions all day long become a bit "antsy" - they have to do something
with them before the Market closes for the day. When people holding losing positions into late into the day see the time
until the close is near, that can cause the market to make some sharp turns in the last 90 minutes. The program gang also
likes to get active that time of day.

4. How Can Anyone Trade a Choppy Market?

I take a number of scalps in choppy markets. I time entries with Tick extremes, especially when price pops into previous
high areas of congestion, or other intraday support and resistance. Moving averages are not good during choppy days.(Scalps
: small profit, "hit and run" type of trades)

5. How Do You Measure Pullbacks?

In a trend move, I like to see shallow pullbacks to a steeply sloped moving average on one of the 3 time frames I follow.
(more time frames, the better) Pullbacks to symmetry in a persistent trend are useful when present.

Example: Rally, dip 2.00 points Another run up, then a dip of 2.25 points A another push higher, then a dip 1.75 points.
Note continued dips of 1.75-2.25 points repeatedly hold. A pattern has developed, and you want to be buying those shallow
pullbacks. This works great used in conjunction with a steep slope of the 20 ema on the 5 minutes charts, or slightly bigger
picture, the 60 ema on the 5 minute chart.

About the Author

Mike Reed author of TradeStalker's RBI Trader's Updates. Mike has been trading the Market for 23 years. Mike's support
and resistance numbers have been published on the internet since 1996. Mike's nightly support and resistance zones are specific
and incredibly accurate. He offers an unlimited free trial of his nightly TradeStalker RBI Trader's Updates. http://www.TradeStalker.com

More free information how to succeed with trading systems