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Phil Lane wrote:
>Breakthrough! I figured out why I can't daytrade worth a damn...
>The seat-of-the-pants method the problem. I like to be sure, so I wait till
>the market absolutely looks like it's going up. I become so convinced that
>I just can't stand to miss out, so I go long. That's the exact top! Same
>with shorting the bottom.
>The only thing that pays for my daytrading efforts (and the bills) is my
>longer-term trades. These are based on objective paintbar signals and
>trading rules I've worked out over the years. Too bad I've never found
>similar stuff that works reliably on intra-day charts. Has anyone else?
I know *precisely* what you're talking about in picking tops and bottoms of
moves. (I'm sure we've all gone through times of saying, "If I could only
fade my own trades!")
The key that turned my day-trading around has been discipline.
No more shooting from the hip, no more "tape reading". I can finally make
more money than I lose doing trading like that but it's 'way too costly in
emotional and psychological wear and tear.
I think I do exactly what you do for longer-term trades, but do it
intra-day. I have a small handful of setups that I know work very well.
All depend on multiple time frame trend indicators. I wait for two higher
time frame trends to both go long or short and then enter off a five-minute
chart when the five turns back into the major trend.
The discipline is tested on a day like today that sees the Spoos off 40
points; sitting here watching and not placing a trade because none of my
entries triggered. (Even though I *saw* a couple of entries that would
have made money... discipline... discipline...)
That's the way it is some days.
Don't you find that it can either be exciting or it can be profitable, not
both?
Happy trading,
Bill
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