In this Daytrading manual, we will explain you how to do daytrading with our T.D.F.Market Timing Software .First let us see the advantages and disadvantages of daytrading.
Advantages of Daytrading:
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1.All the positions are closed on the same day.So there is no overnnight risk in daytrading.
No need to worry about global markets, gap-ups, gap-downs, sudden policy changes etc.
2.Trading funds are not blocked for margins and many brokers give extra margins for daytrading.
So, even a small trader can do intraday trading.
Disadvantages of Daytrading:
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1.Markets always move in trends.So, generally a good trend will continue for 2-3 days.But if you are a
day trader, you can not catch this big trends and many times you will have to exit t for small profits.
2.Markets are generally very volatile in intraday time frames .So, the tension involved interms of percantage
return in day trading is high.
Inspite of all other advantages and disadvantages Day trading is popular with all types of traders.
But many daytraders lose money in daytrading because of so many factors.The two main factors for losing
money in daytrading is lack of trading system and discipline.
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RULE NO.1 :For daytrading you can follow 15 minutes and 30 minutes .
Though you can trade in even small time frames like 5 minutes, 10 minutes etc, it is better to follow standard 15 minutes or 30 minutes as there will be many signals in small time frames..There is no rule that you must carry forward your position in other time frames like 1 hour 2 hour etc .You can even trade big time frames and close the losition on the same day.But big time frames will have less number of signals.So, as a standard rule you can trade 15 minutes and 30 minutes exclusively for daytrading.
RULE NO.2. :In daytrading, you must trade only strong special signals and strong T.D.F.signals.
Only strong special and strong T.D.F.Signals will come in the scanning report of less than 1 hour timeframe.All other signals are visible in the chart .But you should not trade all the signals.You should trade only strong special and strong T.D.F.signals.
RULE NO.3 :.All the rules of entry and stoploss are same as expalined in T.D.F.M.T.S. Manual .Only exit is different :
There is no difference in entry and stoploss rules for the signals .All rules are same as expalined in T.D.F.M.T.S. Manual .
RULE NO.4.: In day trading, you must exit for small profits.
You cannot expect big profits in small time frames.Some times you will get big profits in 15 minutes and 30 minutes also.But every trade will not give you big profits.So as a rule you should try to close the trade for quick profits.Put 1st target at 1:1 risk reward ratio and after reaching this target you must move stoploss of remaining 50% position to breakeven( i.e.you entry price).If a big move comes, this 50% position will catch that move other wise it will get stopped out at breakeven level for no loss and no profit.
You can see some trades which are generated in 15 minutes and 30 minutes in the following charts.
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Please watch all the following videos before asking for Demo.
(Use headphones for audio clarity.)
