3 Phases of Day Trading Strategies; Learning In a Diamond

– Learning in a Diamond

o As a new trader you know nothing

 Knows nothing else besides what is right in front of him/here
 “ignorance is bliss”

o As a rookie trader you try and know everything

 You buy books and you learn more techniques
 Trouble shows up when you have too much information and not enough market experience
 “im drowning in a sea of useless info”
 Example: listening to Squak Box

o As a veteran trader you know only what you need to profit.

 Takes all the time watching charts
 Adds a little experience
 Adds a few losses and tough days
 And finally a veteran trader knows exactly what to do, when to do it, and which tools to use.

– Testing the lows vs. breaking the lows

o Test of a level does not make new higher highs or lower lows
o A break of the level makes new lower lows or higher highs

– Which OPEN do we use?

o I watch 24 hour charts, so I don’t use the standard open/close from the pit

o Example: crude oil pit opens @ 900am EST but we can trade crude oil 23 hours a day 5 days a week because its traded electronically.

o I use the 12am OPEN as my OHLC for my charts
o I don’t add indicators, I add templates to my charts.
o OPEN and CLOSE levels will be different depending on the timeframe you are using.
o I use the 4-range for my OHLC levels

 The faster timeframe shows me the EXACT price point from when we opened.

– Matching my HOD/LOD with yours

o Using a 24-hour chart, no stop and starting, so my levels use all 24 hours in the trading day
o 12AM start and 12am finish
o Load my templates, which will make sure that all the indicators are used properly.

– Oversold / Overbought momentum?

o Make sure you avoid trading long with overbought, or short with oversold

– What does the value you mean on momentum indicator?

o Strength or weakness of the move in the market
o Stronger the momentum the more we expect price to rise, and visa versa

– Where can you learn more about the Fast Track Method?

o Member = log into the advanced course and watch the training on the Fast Track method and download the rules in the download section

o Guest = more info on Fast Track Method Here