Day Trading Tips and Tricks

December 11, 2015

Erich Senft

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Making Good Trades in Thin Markets | End of Year Trading

Holiday Trading

That’s it.  All Done!  Wrapped up and checked off.  Think I’m talking about Christmas shopping?  I WISH!  Actually, now I can begin that task because we’re DONE TRADING FOR THE YEAR!  If you feel you must absolutely trade this week, tread carefully in these thin markets. Keep in mind, we recommend trading very cautiously after this week until the second week of January at the earliest!

Our systems will do an excellent job of keeping you out of the dangerous inaction, but holiday trading makes for slow conditions. 

Here are a few tips for using the Diversified Trading System (DTS) in Thinner Markets.

Make the SECOND Move:  Wait to find movement FIRST, then look for good trades.  many times during thinner markets, only some instruments will move, while others will stagnate for hours or longer. Going after the instruments that seem to have “more life” will increase the likelihood you are swimming in the deeper end of the shallow pool.

Follow The Leader:  Interestingly enough, many times during the holiday trading season, when many of the bulls and bears have already stopped work, Some instruments will move nicely.  Finding the instrument(s) that lead in a new direction can be surprisingly rewarding,  But only if you follow the next two tips.

Take Short Swims:  Don’t stay exposed for too long.  Rather than looking for the bigger move, just try to be conservative in the ticks you seek.  Make more, smaller trades, because although the market may seem calm and mellow, news during the lower volume can have dramatic whipsaw effects, something you don’t want to be a part of unless you are extremely talented or like losing money.

Support and Resistance still Rule:  Take signals that correspond and agree with your Support and Resistance analysis.  By combining that with pure DTS signals, it will give you the highest chance for success.

Take Some Time Off:  We recommend you simply DON’T trade Christmas or New Year’s week….EVER… Period!  Enjoy the time off my friends!  It’s way too dangerous anyway.  These times are just unprofitable for all but the elite, or very lucky… but luck runs out eventually.

Enjoy the season!

 

December 11, 2015

Erich Senft

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