Try to keep a common sense approach and minimize edge expectation. Main tools are LIS identification, Futures/Cash convergence and Manage risk scaling out.
Outlook LIS remains valid during IB (1st Hr), then VWAP comes into play as dinamic Bull/Bear Line. Key levels are not absolute, watch them as zones.
Trading is like a dance, it's better to dance with a couple. Always looking for correlations, either with the tape or market internals.
Trading is all about 'Timing'. The most profitable sequences are the Initial Balance close, then the last half hour before the NYSE close. Trade the AM session to follow the big money. If you get decent success rate in the morning, trading the PM session is totally unnecessary.
You can plan anything but (1) Execution is the King when to get in and when to get out. (2) Should know your strengths: Am I good during volatility or during range bound action? (3) What Times I'm profitable trading: 1st two hours/lunch/last half hour?
Entries and exits always depend on each trader account size, risk tolerance and time frame style (swing or scalp). Combine Scalp/Swing in a scale-out trade, where 1st lot is scalped and 2nd lot is left open for a possible runner.
Consider the habits of the product you trade, such as 10 Handle Rule, Value Area Rule and One Tick Failure. Trading is not a game of perfect. It's an art, not an exact science. Don't waste time looking for the 'Holy Grail' formula.
3 common 'too' mistakes: 1. Trade 'too early'. Avoid the initial battle. Let's market settle down a bit. 2. Trade 'too often'. Avoid overtrading. Don't force trades. 3. Trade 'too tight'. Don't use hard tight stops, replace it by exit according to order flow and profile structure.
1. Do not over-trade
2. Do not take a loss home
3. Never add to a bad trade
4. Concentrate on one product.
5. Don’t be a one-way trader. Be flexible.
6. Once you've profits in a trade, never let it become a loss.
7. When making a new trade, set loss idea, don’t start hoping.
8. You’re trading to make money, not for fun or video game.
9. Try to avoid trading in the middle of the session (Lunch).
10.Don’t leave your desk without leaving a stop loss order.
