- Don't buy right at market open.
- Respect price action. Respect previous trading day's close, high, and low. Respect the pre-market high and low. Use those as indicators of support and resistance. Also, mark out intraday levels of support and resistance.
- Respect a rising/declining slope of the 5-min and 15-min 10 and 20 Simple Moving Average.
- Above the 50 MA on the 5-min and 15-min charts determines a bullish bias. Below the 50 MA determines a bearish bias.
- Respect a wide MACD in your direction.
- Look at the daily chart and other time frames for small confirmation bias. Daily and hourly chart can also be used to determine support and resistance.
- Don't chase three consecutive candles.
- The day's news can be used to gauge market sentiment, but the above rules must be followed.
- Only trade between 9:30 am - 12 am EST and 2 pm - 4 pm EST.
- Pick a strike out of the money and no more than $1.50 away.
- Exit the position when
- 8-10% profit has been reached,
- or 20% loss has been reached,
- or price action dictates, e.g., hitting resistance, support levels.
- Say no to FOMO (Fear of Missing Out). Be patient. There is always a viable trade in the future.
- Don't be greedy.
- Only one trade a day.
Last Updated: January 31, 2020
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