Intraday trends are hard to catch. That is the common wisdom of day traders and in their pain they try to do it more elaborate by spotting breakouts, chart formations and crossings of indicators.
Oh no, that is the wrong day trading style! You are on the road to nowhere, at its best, or more likely straight to trader’s hell if you try the microtrading dance. Trends are also for the intraday time frame the way to go.
Markets and price behavior are scale invariant. That means what works for larger time frames works also intraday. But the random factors are also present on all time scales. You just have to be quicker and take larger slippage losses intraday.
So, the trend is the way to go and actually you didn’t expect anything different from a site about trend signals, right? Of course, there are other methods like penny stock moon shooting. If volatility or the potential for volatility is high enough, this special form of trend trading, when there is actually no trend yet, becomes possible.
Back to day trading. What is the biggest problem? We want to fight the random jitters that increase the probability that our stops get hit without the trend coming to a real halt.
How to do it? We have to turn the tables on the random monster and use it to our advantage. The basic trading idea goes like this:
- Choose the right intraday trend, which is more likely than not the index trend itself.
- Wait for a small pullback. They are always there, random induced.
- Place your bet.
- Prepare a stop loss level that makes sense.
- Ride the trend with a trailing stop.
Sounds easy and it is. BUT — only for experienced traders. Day trading is not easy, you will have to learn it. You will need:
- A robust trading system. That is one that is also simple enough for execution on the fly.
- Someone helping you with real live advice.
Here is it. A robust trading system combined with a trading room for making the first steps day trading the stock indices or Forex.
Will you make it? There is no way to predict this. You will have to try it and you may find out that this trading style is for you. In that case you will have found your butter and bread wonder.
Otherwise you will know that day trading is probably not for you, including all other day trading methods and that you should try longer time frames – with trend trading – of course.