Entry and exit confirmation signs

[Wandering Dragon]

I am new to day trading and looking to meet new like minded people who are into day trading so i can grow and learn more and this is the path i'v committed myself too learning. So i'm hoping experienced people can look at what iv been doing and correct my mistakes or make new suggestions to might help me.

I self educated my self on day trading crypto's on Binance for about 8 months now by days and nights of just analysing the charts, patterns and indicators until i could recognise patterns and out of maybe 500 trades 80% to 90% were successful and i made very good money, but the few bad trades i made wiped my gains, so i sort of know i'm on the right track but i feel very green and i need to fine tune my entry and exits.

Here is what i do

My chart setup

Chart 1
. Candle stick 5m 1hr 4hr 1d 1W 1M
. 8EMA 20SMA 50SMA 200SMA
. Stochastics

Chart 2
. Candle stick 5m 1hr 4hr 1d 1W 1M
. Bollinger Bands
. Stochastics

Here is what i do

1. I wait for a downtrend by looking at the moving averages and establish support lines and put my order 2 points above the support line and once it goes through i put a sell order for 3-4 points above that or 2 points bellow the next resistance level

Problems

1. Sometimes Support levels don't hold up and it crashes to next support level making my entry point a new resistance level

2. Expected support levels arn't reached, and price bounces back up and you miss the boat. Or vice versa the resistance levels arn't reached and price stops just 1 point bellow your sell price.

3. I am not using stop losses, because you can only put one trade at a time on the same stock and so i put a limit sell order 3-4 points above purchase price for 1% gain

Conclusion

1. i want to know how i can improve what i'm doing and better confirmation of entry and exit points (maybe there's better tools/indicators im not using) or maybe i can use stop loss in a effective way)

2. I want to know maybe better day trading strategies, iv seen other strategies where people buy once the resistance levels have been crossed as a confirmation of up trend

3. I want to know of other indicators or tools i should be using to improve my game

4. Does anyone use 3comma's - seems very handy but as im new im skeptical

Cheers

 

[peter2]

You've got an 85% chance of a small win and a 15% chance of a large loss and overall you're losing or at best breaking even.

The first thing you've got to do is prevent your losses getting too big. If you can't place a stop loss order on the platform at the same time as a limit sell order, get a better platform. If this means going to another broker then do it immediately. If you can only place one sell order in the market (after you buy) then your broker is guaranteeing that'll you lose.

 

[tech/a]

Day trading
Or short term say under a week.

You need to learn VSA.
Volume Spread Analysis.

Then spend 1000s of hrs working out how to apply it.
Its powerful but if you apply it literally out of what you read
youll fail.

The answer for you is far too long given the Time I have.
But here is my short answer.

 

[Wandering Dragon]

You've got an 85% chance of a small win and a 15% chance of a large loss and overall you're losing or at best breaking even.

That's definitely been true in my case, you are 100% right

The first thing you've got to do is prevent your losses getting too big. If you can't place a stop loss order on the platform at the same time as a limit sell order, get a better platform. If this means going to another broker then do it immediately. If you can only place one sell order in the market (after you buy) then your broker is guaranteeing that'll you lose.

Unfortunately in the crypto world i am limited by exchange options as its still relatively new market, and Binance is the most reliable one with the most volume and the most Alt coins, most other exchanges have just the big names like Bitcoin, Etherium, XRP etc

Also the few other exchanges iv seen also dont allow you to put more than one sell order on the same stock.

I mean the reason why some of my losses became big was purely because of stupidity and greed, as my eyes are usually glued to the screen while i have an open order or waiting to sell, and on some occasions i was distracted or i was stupid thinking "don't panic, its going to bounce back up" where as i could have easily sold couple of points bellow my purchase price with a small loss.

I guess one way i can control this is, to sell as soon as my support line is broken even if its by the wick and get out, or once the support line is reached wait another another bar and see what happens.

Iv recently also realised that the market trend of the Alt coins is in direct opposition to Bitcoin, so if bitcoin is bullish almost all alt coins are bearish and the severity of the trend depends on the severity of the bitcoin trend. e.g if strong bitcoin bullrun it means its likely alt coin support levels will be broken.

 

[Wandering Dragon]

Day trading
Or short term say under a week.

You need to learn VSA.
Volume Spread Analysis.

Then spend 1000s of hrs working out how to apply it.
Its powerful but if you apply it literally out of what you read
youll fail.

I will definately be on to this

The answer for you is far too long given the Time I have.
But here is my short answer.

Please give me the long answer when you have time

also are you or anyone on here a successful day trader that's been doing it for a long time, or is it mainly just investors and swing traders here?

cheers

 

[tech/a]

I don’t day trade on a regular basis

Don’t want to don’t have to.

When I do trade futures DAX it’s for a few hrs.
Manly short term position trade
Long term systems trade.

Wide variety of traders here.
Most new comers want to trade full time
In 25 years here only a handful of the 100s
Have made it.

 

[Wandering Dragon]

In 25 years here only a handful of the 100s
Have made it.

in your opinion what was the reasons for their success?

 

[tech/a]

They stuck at it.
They didn’t do what everyone else does.
They understand how to make a profit trading
They have enough capital to run their business.

They are not procrastinators
They keep it simple they don’t over think.
They understand it’s not about being right.
They know how to make a profit being wrong
more often than they are right —- not that they
Can5 and don’t have long streaks of being right.

 

[jjbinks]

They stuck at it.
They didn’t do what everyone else does.
They understand how to make a profit trading

I think two threads which may give you an idea of how it may be done are:

https://www.aussiestockforums.com/threads/a-modest-futures-trading-log.30093/
https://www.aussiestockforums.com/threads/the-transition-to-futures-trading.26509/

Both long reads and will need multiple reads but I think you will find some gems posted there by people like Tech/A, p2 and @tremblinghand
Both also reveal confirm that you need to spend a lot of time mastering your strategy. (I think both pav and modest mentioned they have spend 1000+ hours).

I personally have struggled to find the time to give this a real go.

 

[Wandering Dragon]

I think two threads which may give you an idea of how it may be done are:

https://www.aussiestockforums.com/threads/a-modest-futures-trading-log.30093/
https://www.aussiestockforums.com/threads/the-transition-to-futures-trading.26509/

Both long reads and will need multiple reads but I think you will find some gems posted there by people like Tech/A, p2 and @tremblinghand
Both also reveal confirm that you need to spend a lot of time mastering your strategy. (I think both pav and modest mentioned they have spend 1000+ hours).

I personally have struggled to find the time to give this a real go.

Thanks alot for this, perfect timing for a long read

well i have a obsession for learning this, i personally don't watch tv or movies or going out getting smashed and partying anymore, so i have plenty of time

 

[Wandering Dragon]

I think two threads which may give you an idea of how it may be done are:

https://www.aussiestockforums.com/threads/a-modest-futures-trading-log.30093/
https://www.aussiestockforums.com/threads/the-transition-to-futures-trading.26509/

Both long reads and will need multiple reads but I think you will find some gems posted there by people like Tech/A, p2 and @tremblinghand
Both also reveal confirm that you need to spend a lot of time mastering your strategy. (I think both pav and modest mentioned they have spend 1000+ hours).

I personally have struggled to find the time to give this a real go.

I noticed both threads are Futures trading related, do you happen to know of threads for stock trading long positions?

Or do the same methods still apply for normal day trading of stock?

cheers

 

[willoneau]

Hi Wandering Dragon , welcome you will find most things in the threads just spend the time reading them. The biggest problem you will have is to want to rush in, it is great that you have noticed were your problems lie and as Peter2 said stop trading that platform. There is a large array of ways to trade, what to trade and when, just start looking into it as bitcoin trading is only a small part of it.

 

[willoneau]

The biggest problem for beginners is under capitalization and commission drag while learning to be consistently profitable.