Today I want to talk about my daytrading approach… while I trade other ways I’ve heard a lot of chatter around daytrading lately, so I want to address that.
Plus this is as good a time as any. As we’re moving through November and straight into December, it’s really important to stay nimble — have very short-term trades on. That’s what’s been especially helpful throughout my career.
Even more so this year, as we have discussions of tweets, and tariffs, and other things swarming around. It’s so important to stay nimble, Gang…
And the way I daytrade is perfect for that.
Well for several reasons… But the first is that I only trade until about 11:30 my time every day, then I just watch the markets (or sometimes I don’t at all), and I wait for the next morning to come around.
Here’s an example of why…
STEP ONE: My Morning Daytrade Approach
On Tuesday of this week, during the open, we focused on my daytrading approach.
So I included the video below where I walk you through EXACTLY what we looked at in the room from about 9:30 to 11:30 that morning.
Here’s what we saw…
Immediately we had a short firing on the Russell, and we focused on the conservative VWAP and the Fibonacci zone of the clearing range. Now while it did go slightly above our entry zone, in the video above you can see that actually the entire green zone I highlight… is shortable, Gang.
Because it still remained below the clearing range high.
Then it followed through nicely into 11:00am.
What’s so special about 11:00am though, Gang?
STEP TWO: 11 O’Clock
Now this is my daytrading approach, and a nice follow through to 11:00am is kind of a big deal. For me, 11:00am serves as a bit of an “eject” button on my trades.
So when that followed through, we took some nice profits, put in a breakeven stop… and that’s pretty much all she wrote.
However, I won’t overlook that the Russell did continue to climb a little bit throughout the day. But that doesn’t matter to me. It doesn’t fit my morning daytrading criteria. So frankly, I don’t care, Gang.
Daytrading for me is very much a more “focus on the morning, and call it a day” approach.
STEP THREE: After 11:30AM
I mean come on…
How nice is it to just wrap your trading day up at 11:30 and do whatever you want for the rest of the day, right?
Of course, I also swing trade and other things, so I’m not totally done with the market. But as a daytrader, I am.
Which brings me to my next point…
When you put on these morning trades, and you carry them through the rest of the day, I think that’s a tactical mistake. Anything I do later on in the day will follow a completely different series of considerations, levels, tactics, etc.