Many times in case of day trading we prefer entry in the trade after some sort of confirmation. For instance lets say I am taking short trade in a stock and previous candle on daily time frame of the same stock is solid bearish candle and the stock opens above yesterday’s close.
Then how am I supposed to get confirmation whether the stock will continue to fall just like previous day and won’t reverse. Because many times it happens that I take short entry immediately after market opens the stock doesn’t cross its previous day’s low and I get trapped in trade in case of sideways market or I get stopped out in case of reversals. Vice versa happens in case of long trades.
Let me know how can I get rid of this problem.
For Day trading, It would be helpful if we can track charts in the lower timeframe (3 - 5 - 15 - 30 minute) , Our risk reward gets more favourable.
First one hour (esp 15 minutes) can be tricky. Maybe you can try taking trade after 9.30 to avoid stop loss hunting and sudden trade reversals.
Btw, are you a breakout trader (taking trades on breakout/down) or retest trader (taking the trades after retest ) ?
If market was to behave as per peoples expectation then every trader would be a millionaire or billionaire.
@Prakashsingh Thanks for the reply. I am more of a retest trader.
When it is day trading, you don’t have much time to analyse the market and check every detail of its movements. Lower time frames will give you all the information you need. Also, try not to go short as the market opens. Wait for some time to take into account the market’s reaction.
That’s the market reality! It’s easy to set expectations but not that easy to fulfil them. You may have to work really hard when you are day trading because you will be executing several trades in a day.