Trading Trends and Making Money Daily

Overloading Charts with Information

• Issue: Many traders overload their charts with too many levels and trends.
• Result: Leads to confusion and difficulty making decisions.
• Ideal: Keep charts minimal with only necessary information.

Purpose of Trading

• Goal: Understand how to make money every single day.
• Levels: People are at different skill levels in trading.
• Observation: Traders often mark too many levels leading to cluttered charts.
• Impact: Difficult to make informed decisions with cluttered charts.

Marking Levels and Trends

• Mark levels and trends only when they provide actionable insights.
• Ensure marked trends and levels help in making decisions to trade.
• Avoid marking unnecessary information that doesn't aid in decision making.

Example Walkthrough

1. Weekly Trends: Example of actionable information for making decisions.
2. Minute Charts: Importance of marking trends in short time frames.
3. Trade Opportunities: Identifying moments to make profitable trades.

Decision Making Based on Information

• Trend Hits: Multiple entries at the same level can dilute effectiveness.
• Trade Frequency: Analyze trend hits to decide on the number of trades.
• Level Collapses: Recognizing when a level collapses to exit trades efficiently.
• Higher Time Frames: Mark trends and levels on higher time frames for clearer analyses.

Simplifying Chart Information

• Focus: Only include information that helps in making trading decisions.
• Remove Clutter: Regularly clear charts of unnecessary levels and trends.
• Daily Targets: Define daily targets and potential trade opportunities.

Setting Parameters

• Worst Case Scenario: Identify potential lows and highs for the day.
• Four Hour Holds: Using larger time frame holds as targets.
• Daily Range: Define the daily range to understand market behavior for the day.

Trading Strategy

• Minimize Risk: Only take trades at well-defined levels (bottoms and tops).
• Reject Noise: Ignore unnecessary information on the charts.
• Daily Review: Regularly reset and update charts to reflect current trading day.

Healthy Trading Habits

• Avoid Night Trading: Refrain from trading late at night to maintain mental health.
• Set Routine: Treat trading like a day job with specific work hours.
• Family Time: Ensure balance by spending time with family and other activities.

Summary

1. Precise Charts: Maintain minimalistic charts for better decision making.
2. Daily Trade: Focus on daily targets and actionable levels.
3. Health: Prioritize mental and physical health for effective trading.
4. Review: Regularly clear and update charts based on daily market behavior.