Sure you can!
Why then do most day traders end up broke?
I think it is because they try to apply a long term strategy to a short term time frame. Once they get on the right side of the trade, they have the illusion that they are going to ride that trade for 60, 80, or 100 pips. Most of the time they get a price reversal, stopped out or scared into a losing trade. There are a few exceptions when you can ride price like that, but normally you can not, so let's deal with the everyday market.
If you are going to be a long term successful day trader; it is imperative that you understand that you are not going to ride a 5min set-up into everlasting pip glory. On a short term trade set-up like your 5 chart, look to get in after a confirmation in the direction of the trend, then get out quickly.
Get 10 Trading Lessons FREE
After a confirmation, you can usually get out with about 5-10 pips, before price begins to retrace(in the candles) on you or it begins to trade sideways. I think your 15 min chart is a better chart to trade from as a short term trader. Be sure to trade in harmony with the trend.
In the morning, draw a short term trendline on your chart. Be sure to also check to see what the trend is on your daily chart. I generally check my hourly, 4 hour and daily, just to see. If I have an evening star pattern on my hourly chart, then I am not going to take a trade to the long side on my 5 min chart. You have a much stronger chance of quick profit if all or most of your charts agree. You will have the opportunity to go short or long on your 5min chart, but your most successful and profitable trades are going to come when you trade in harmony with your trend.
Keep in mind that your trend is likely to CHANGE or take a BIG DIP or a HUGE SPIKE, so watch your candles for that.
I know traders who get 200 or more pips many days. I can tell you I don't even close to net those kind of pips on an average day. I usually set my TP level for 5-7pips on my 5 min chart and 10-12 on my 15 min chart. I use my small trades to build up my accounts, and I use my larger trade set-ups for my profit rides. My smaller trades during the day give me that extra SL money I need to facilitate my longer term trading, so if I am stopped out, then it doesn't hurt nearly as bad.
(K.I.S.S), Keep it simple sexy. Trading is not physics, it is just a bit tricky until you get use to the way price moves.
I am an equal opportunist and trade all time frames, and I can tell you from experience that a valid set-up on a larger time frame is going to give you more accurate and profitable rides. The downside to longer term trading is that you have to wait longer for those trade set-ups. The downside to day trading is that your profit run isn't as long and the trend within a trend can get confusing, and you must be very good at getting in and getting out quickly. The benefit of course is that you get more trading opportunities and you don't wait as long for valid set-ups.
Short term trades - GET IN, GET OUT!!!!!!
Longer term trades - sit back and enjoy the ride!
Learn your candlestick patterns and always let price be your first indicator. Only take trades with proper confirmations.
Traders Friend
Don't miss a post from Traders Friend, Just Click Here to get all of their posts.
