Some Simple DayTrading on the DOW
I haven’t daytraded for ages but sometimes I am tempted and today was one of those days. You can see where I’ve drawn a horizontal S/R line.. this tied in very nicely with the days price action and I was essentially looking for a break or rebound up at this level. As the price broke below, I quickly went short and took a few points before it headed upwards. As it breached, I went long but lost a few points as it headed down.
Then it became clear that it was going down so I shorted and as you can see, it was a very nice leg down! I went in the third time at 16460 and took profits at 16405 for a quick and easy 55 points!
I don’t usually like to daytrade as it’s very easy to get burnt but over time, as you become more experienced, you get a better feel of the markets.
There were still some lessons to be learnt though.. the first two trades were very impulsive.. if you’re patient enough, the market does at a point tell you what is going to happen and then this is the point where you should go in.. it’s much more of a safer trade then.
Also, markets can turn very quickly and the first level I saw was the round number at 16400 so my target was just above that.. as you can see the market went to 16388 but as I watch it live, it did go as low at 16370. It’s never possible to get in at the perfect price and get out at the perfect price. I used to get really angry with myself if I had missed out on a few points here and there but years have taught me to be extremely careful and if something doesn’t look right, get out of the trade!
Nice trade! Good to see you do some day trading again