In day trading, what should you pay the most attention to?
Many people do day trading, and the most troublesome thing is 'watching the market too closely.'
Eyes glued to the screen, with the market fluctuating wildly, your heart is also restless. Unknowingly, you’ve been 'taken away by the market’s rhythm,' completely forgetting what you originally wanted to do.
What’s the result? Often, it’s blindly chasing the ups and downs, with emotions following the candlesticks. In the end, it often results in significant losses.
Therefore, what you should really pay the most attention to in day trading is 'to prepare a plan in advance.'
The key is: wait!
Therefore, the most important thing in day trading is to formulate a plan in advance.
Wait for the market to reach the position before entering.
This is what we call waiting for opportunities.
When the opportunity comes, act decisively and strictly follow the plan you set in advance.
Regardless of profit or loss
Once the order is closed, re-establish the next plan and wait for the opportunity again.
For example, find the support and resistance levels of the day’s high and low points.
After the market tests this position, a pullback or reversal trend may occur.
Don’t keep chasing the rabbit all over the mountain; it’s too tiring and easy to fall into a pit.
Look at the image below:
In the picture, confirm the pressure at the previous high. After the market tests this level and feels the pressure from the previous high, the price begins to pull back. Place the stop-loss at the previous high; set the take-profit near the support level below for a close!
Day trading does not mean frequent trading; as long as you trade with a plan and rhythm.
As long as you don’t get too anxious, you’ve succeeded halfway.