Building Intraday Skills

  1. Have a proactive plan for the first and last hours. Experienced traders can play these periods aggressively, but newer traders should just sit on their hands.
  2. Become a student of time of day tendencies. Markets tend to trend within narrow time windows, while fakeouts take control for the rest of the session.
  3. Choose a set of intraday indicators and then leave them alone. Learn to interpret conflicting information, rather than searching for the perfect signal
  4. Stalk the NYSE TICK, watching for intraday highs and lows that might define an entire session. TICK has a life of its own and will save your neck, if you let it.
  5. Keep one eye on your positions and the other on the indices. When a position moves more sharply than an underlying index, it should continue to do so.
  6. Look for breakouts and breakdowns of 2- and 3-day trading ranges. These short-term swings will tell you if your positions are trending or running in place.
July 16, 2010 • Posted in: Market Mechanics

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