I though I would write a simple Guidance Not on shorting etc.,
- In general, sell rallies (refer below for guidance)
- use candle wicks at rejection points.
- wicks + inside bar - a good limit grid point to sell.
- trade limit order book exhaustion - not mid range unless news etc., determines otherwise.
- be careful of short covering forces and bargain buying.
- using closing price to identify the floor / ceiling - candles are range IN time - closing prices are range OVER time.
- nice to have a market with you - look for other evidence not just noise trading i.e. SOPR peaked out or negative.
- marry-up trading aggressiveness to capital management.
- trading style is aligned to your temperament
- trading style aligns to the time you have available to monitor. More aggressive, more scalping, lower time frame -> more time commitment required!
- Taking profits is as important as stop losses.
- Identify market breakeven points - price action normally follows where traders are trying to breakeven.
- In general, sell rallies (refer below for guidance)
- use candle wicks at rejection points.
- wicks + inside bar - a good limit grid point to sell.
- trade limit order book exhaustion - not mid range unless news etc., determines otherwise.
- be careful of short covering forces and bargain buying.
- using closing price to identify the floor / ceiling - candles are range IN time - closing prices are range OVER time.
- nice to have a market with you - look for other evidence not just noise trading i.e. SOPR peaked out or negative.
- marry-up trading aggressiveness to capital management.
- trading style is aligned to your temperament
- trading style aligns to the time you have available to monitor. More aggressive, more scalping, lower time frame -> more time commitment required!
- Taking profits is as important as stop losses.
- Identify market breakeven points - price action normally follows where traders are trying to breakeven.
