My Day Trading Strategy
My trading strategy is to find the right stocks every day. perform proper due diligence analysis; to look for the best potential stocks for trading that have a relatively lower risk and a higher return; decide on the size of the entry position to know my maximum potential risk; and to determine where to enter and exit a stock to minimize my loss, if my initial equity direction forecast is wrong, and to maximize my earnings if my initial equity performance forecast is correct.
Take a look at my trading strategy below. You are welcome to comment or add your own thoughts.
Step 1. Complete the stock watch list from the Market News subscription.
Step 2. Identify stocks with trend setups.
Step 3. Determine if trend stocks have a support or resistance level.
Step 4. Analyze how high the risk is and how high the yield is.
Step 5. Calculate the reward / risk ratio. Determine if it is greater than 2;
Step 6. If the Reward / Risk Ratio is greater than 2, determine the position size.
Step 7. Enter the item with the size you specified in step 6.
Step 8. Immediately set the stop loss to the specified level of risk.
Step 9. Actively manage the position in the prepress. To prevent the stock from reaching risk
Step 10. Once the stock is risk free, periodically move the stop loss to the exponential moving average (EMA) of 10.
Step 11. Leave half of the position as the stock approaches the target price.
Step 12. Finish all when the supply reaches the target price.