Promising Areas When You Day Trade....
I have long said that day trading is nothing more than a game of cat and mouse. It is NOT random. Never has been and never will be as long as profits are the bottom line of traders and liquidity providers. I mean why else would you trade. The idea is to make money right.
So the question becomes, "not where the market is headed" but rather "why would the market head there". This is your key question to ask for survival. It has to make sense in a way that most other traders miss. In other words you are looking for reasons other traders are missing something. Where they might enter in and where the LP's trap is being set. A lot of people say they understand this but in truth they don't.
For example you look at order flow. You see there are big buyers structured all through a certain area but there are not that many sellers.
What do you do?
Probably not what order flow teachers teach you to do. That is to put an order slightly before the big orders that you can see so that if price goes through you use a tight stop and you are out with minimal losses right.
Wrong!
First of all you are not taking into account the volatility around such a placement. Your 4-7 tick stop will be hit most of the time.
"Why", you say, aren't there enough orders to quickly reverse the market in your favor?
The answer is "No"!
You see you are not seeing the big orders that are already in the market and the ones that you can't see that are waiting to be executed to push the market further away from your entry.
If you trust what you see then you are doomed to be taken out time after time.
There are a host of reasons why this is a flawed topic but simply look at that example for starts. There are a number of other reasons why (which I will teach you over time) but that gives you a heads up to be wary of the obvious. What you want is just the opposite. An area where no one would be looking for an entry. An area where the market is NOT made yet. An area that is NOT obvious to the herd.
Make sense?
I hope so because that is how I trade. Take for example the chart below. You can see all the areas that you should be looking at but there is a reason why you enter and a reason why you perhaps enter once the smaller time frame candle is underway.
You say, "well don't I need confirmation"?
Both yes and no. You use your neural net to see it ahead of time. That neural network is the most powerful one in existence. Your brain.
I will teach you how to use it to spot things ahead of the algo's.
So the question becomes, "not where the market is headed" but rather "why would the market head there". This is your key question to ask for survival. It has to make sense in a way that most other traders miss. In other words you are looking for reasons other traders are missing something. Where they might enter in and where the LP's trap is being set. A lot of people say they understand this but in truth they don't.
For example you look at order flow. You see there are big buyers structured all through a certain area but there are not that many sellers.
What do you do?
Probably not what order flow teachers teach you to do. That is to put an order slightly before the big orders that you can see so that if price goes through you use a tight stop and you are out with minimal losses right.
Wrong!
First of all you are not taking into account the volatility around such a placement. Your 4-7 tick stop will be hit most of the time.
"Why", you say, aren't there enough orders to quickly reverse the market in your favor?
The answer is "No"!
You see you are not seeing the big orders that are already in the market and the ones that you can't see that are waiting to be executed to push the market further away from your entry.
If you trust what you see then you are doomed to be taken out time after time.
There are a host of reasons why this is a flawed topic but simply look at that example for starts. There are a number of other reasons why (which I will teach you over time) but that gives you a heads up to be wary of the obvious. What you want is just the opposite. An area where no one would be looking for an entry. An area where the market is NOT made yet. An area that is NOT obvious to the herd.
Make sense?
I hope so because that is how I trade. Take for example the chart below. You can see all the areas that you should be looking at but there is a reason why you enter and a reason why you perhaps enter once the smaller time frame candle is underway.
You say, "well don't I need confirmation"?
Both yes and no. You use your neural net to see it ahead of time. That neural network is the most powerful one in existence. Your brain.
I will teach you how to use it to spot things ahead of the algo's.
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