Some Simple DayTrading on the DOW
I haven’t daytraded for ages but sometimes I am tempted and today was one of those days. You can see where I’ve drawn a horizontal S/R line.. this tied in very nicely with the days price action and I was essentially looking for a break or rebound up at this level. As the price broke below, I quickly went short and took a few points before it headed upwards. As it breached, I went long but lost a few points as it headed down.
Then it became clear that it was going down so I shorted and as you can see, it was a very nice leg down! I went in the third time at 16460 and took profits at 16405 for a quick and easy 55 points!
I don’t usually like to daytrade as it’s very easy to get burnt but over time, as you become more experienced, you get a better feel of the markets.
There were still some lessons to be learnt though.. the first two trades were very impulsive.. if you’re patient enough, the market does at a point tell you what is going to happen and then this is the point where you should go in.. it’s much more of a safer trade then.
Also, markets can turn very quickly and the first level I saw was the round number at 16400 so my target was just above that.. as you can see the market went to 16388 but as I watch it live, it did go as low at 16370. It’s never possible to get in at the perfect price and get out at the perfect price. I used to get really angry with myself if I had missed out on a few points here and there but years have taught me to be extremely careful and if something doesn’t look right, get out of the trade!