Three metods for intraday trading

Hello and Welcome,
Below is my recent video with a discussion about the frame of mind required for scalping successfully. Below the video there are more details with some sample charts. Further information is available in previous posts, please navigate to the corresponding posts for more information.

1. Trading the news

This is a very specialized form of trading, I often use software to get me into the trade as the economic news is announced. There are many announcements during the month, some better than others but a large number are tradeable. The software I use ‘Fast Economic News’ is a subscription based software that allows you to enter at the millisecond the news is announced. Of course it requires caution as you don’t want your broker to fill you at the top/bottom of the spike. I use ‘Maximum slippage allowed’ with my brokers and set the slippage depending on the event and my expectations of what is possible.  This software provides me with approximately 10%-15% of my monthly profits. I have posted several videos showing it in live action. You can see it here Click Here.

When the news is very decisive, like the Non Farm Payrolls for August 09, it may be possible to enter on a retracement, as it happens, the move up on the Dow and S&P was sharp and quick, however by 10:05 the Dow had retraced to pre news levels allowing a great entry based on fundamentals from the 9300 area (whole number, strong support) and it then rose consistently to 9400 area (strong resistence at whole number). Thus it is often possible to trade the fundamentals once a good retrcement has occured. You need to review many charts and come to your own conclusions, as only when you actually see it and experience it will it become an easy part of your trading strategy.

2. Pivot point trading

Click on the link above for the relevant post. This is a tried and tested method that is pretty consistent and easy to understand. If you need further information, please comment below and I will dig up more resources and examples. This method makes up about 40% – 50% of my monthly profits, and combining it with support and resistence lines and clear Fibs makes it even more powerful. This is a method we have been using in our trading room for several years, click here.

3. Scalping

This accounts for around 50% of my monthly profits and relates to what I discussed in the video. Click here to see previous post about it, where the method is discussed in detail.

I’ve added s new chart below showing my various entry and exit points during the day. This method of trading is by far my favourite and requires immense focus and concentration. If you’re not there, don’t delude yourself and don’t jump into the shark infetested ocean. If you need to sort yourself out, do it before placing your money on any trade. Spend some time and money on a meditation or some other programme that will help you get there. My original inspiration has been Guy Finley’s course – click here. it will cost you a fraction of any “Guru” trading course and will improve your trading ten times over. There are lots of other resources, courses you can try, NLP, Binaural beats, meditations etc. Do whatever it takes to get your mind focused and fully conscious before throwing money around, I MEAN IT

Ok, check out this chart, see the support and resitence lines drawn, see the Fibs and mostly watch the Bollinger bands, not all scalps are the same. Some bounces off the lines are bigger than scalps taken with a developing momentum. It is difficult to explain this precisely as it’s more of an art than a science, it’s more of a union of the market and you. Practice it with micro lots until it’s part of you, start very small. Watch your reactions, learn about yourself, make winning a habit that does nothing to boost your ego, it’s just something you, like a Tennis player of footballer (although it may be difficult to beat Beckhams pay ).
Click on the thumbnail to enlarge the charts.