marym
Active member
It is possible to make easy money in the first hour of the day if you are prepared; making it simple to earn a steady income. Sometimes in this internet era, it can be very easy to overload on information when you have a lot to choose from. You can feel like you have all the tools in the box but have no idea how to use them.
These tips are some of the main components of our trading plan:
#1 The position size comes last! Many traders enter trades with the same stock size all the time, regardless of stock volatility or market conditions. Your first consideration should be how much you are willing to risk on each trade; this is a specific dollar amount. The next decision is the stop-loss, based on charts or any other criteria you use. Make sure to allow the stock enough breathing room and never set your stop at the exact number. When you know your risk amount and stop-loss parameters, you are customizing the stocks.
#2 Be ready to be open-minded. You must have a plan prepared before the market opens. You need to know which stocks you plan to trade in the long term and which are short. I am amazed at the number of traders I guide who primarily "wing it" in the first 45 minutes. Which stocks on your morning list are cream of the crop? If you have a list of 10 stocks being traded simultaneously with the market, have any of them consolidated in the past few days that would establish an easy breakout trade? These are the people you can't miss. It's easy to read the order flow in the morning, and you should take advantage of it. Our traders have their first 60 minutes planned out; it's just a matter of reading the order flow and letting the market influence itself.
#3 You have an idea but not an opinion for today. What's the difference? If you have an opinion, you will only see what you want to happen, or to be more blunt, you will only see one side of the market, the side you want, the side that proves your point. This is not what trading is about. Trading is not about being right; it's about making money. When you have an idea, you see both sides of the market and have the flexibility to make money.
These tips are some of the main components of our trading plan:
#1 The position size comes last! Many traders enter trades with the same stock size all the time, regardless of stock volatility or market conditions. Your first consideration should be how much you are willing to risk on each trade; this is a specific dollar amount. The next decision is the stop-loss, based on charts or any other criteria you use. Make sure to allow the stock enough breathing room and never set your stop at the exact number. When you know your risk amount and stop-loss parameters, you are customizing the stocks.
#2 Be ready to be open-minded. You must have a plan prepared before the market opens. You need to know which stocks you plan to trade in the long term and which are short. I am amazed at the number of traders I guide who primarily "wing it" in the first 45 minutes. Which stocks on your morning list are cream of the crop? If you have a list of 10 stocks being traded simultaneously with the market, have any of them consolidated in the past few days that would establish an easy breakout trade? These are the people you can't miss. It's easy to read the order flow in the morning, and you should take advantage of it. Our traders have their first 60 minutes planned out; it's just a matter of reading the order flow and letting the market influence itself.
#3 You have an idea but not an opinion for today. What's the difference? If you have an opinion, you will only see what you want to happen, or to be more blunt, you will only see one side of the market, the side you want, the side that proves your point. This is not what trading is about. Trading is not about being right; it's about making money. When you have an idea, you see both sides of the market and have the flexibility to make money.
