Trade Aptitude
Tuesday’s Best S&P Turning Points Results: Price opened above the suggested short @ 3766.50 and shorting the breakout stopped out. The buy @ 3693.00 never triggered.
Today’s Best S&P Turning Points (consider wider stops and less size in fast moving markets):
Short 3778.00 stop 3783.00. Buy 3693.00 stop 3687.75.
Quick Tip: Day Trades Vary
When you hear “day trading” you may envision a trader glued to an array of monitors buying and selling all day long. While that is certainly a style of day trading it’s not the only style.
Day trading simply means you are entering and exiting your trade within that day’s session.
The three basic styles of day trading include scalping, reversal/breakout, and hold-to-close.
You’re essentially slicing the session into different time frames and expectations.
Scalping is moving in and out of trades for small gains taking very small risk. Strategy edge, attention, and discipline are critical due to the transaction costs (commissions/spread) you’ll incur.
Reversal/breakout trades look for bigger moves than scalps. The trades can last several minutes to an hour or more. You still need edge and discipline, but the pace is slower.
Hold-to-close trades usually require little to no management. You’re entering a trade with the expectation that the move will persist throughout the day, and you’ll close it when the session ends.
All three are day trades, but execution is very different. The best way to find your style, the one that resonates with your personality best, is to practice each style in simulation mode.
For example, in our trading room we have a proprietary trend strategy that can be fine-tuned for all three styles. You could easily practice them simultaneously using one basic strategy to find your preference quickly.
The World Sentiment Index: (+100/-100) PLUMMETS from +64 to -7 in a world of mixed sentiment. Historically higher closes from the open occurred 74% of the time.
Catalysts: Housing Starts & Permits @ 8:30. EIA Petroleum Status Report @ 10:30. TSLA & IBM report after the close.
Trade Fearlessly,
Mike Siewruk
P.S. Multiple strategies, software tools, teammates, and coaching. Learn why you should join our team here. For a personal consultation to assess fit (without selling) email me for an appointment: mike@thedailymarketforecast.