Thursday, May 04, 2006

Best time to trade for me is the market open, Scalping


I will start to analyze my trades when I have more time.
I already know I'm over trading and that I'm taking unneccesary risks on scalps without good setups for a potential runner.
As it is right now, I trade best when there is lots of volatility, during the market open, which allows me to scalp, and sometimes turn scalps into good runners.
During the afternoon I try to scalp, and I get screwed, because of lack of volume and volatility, and also lack of patience and discipline to trade the right setup for the right time period of the day.
I will do more analysis of what type of trading I will be looking to commit myself to during the different time periods of the day.
For example, I may only scalp my favorite basket stocks the first 2 hours of trading and then leave with a profit. If I were to stick around and keep trading I would want to switch my style to looking for stocks with strong trends or chart patterns which show a potential breakout from a consolidation period.
I also need to setup my charts for the different time periods of the day. For the market open, I think the 6 second and 1 min charts side by side work best.
After the first 2 hours of trading, I should switch to 1 min and 5 min charts and start looking for the best stocks to trade based on chart formations.
When I have time I will record with my camcorder everything that I am doing for the trading day to help me with the analysis. I might use the computer screen recorder as well, but that tends to slow down things, and may only be good for slow periods of trading on 5 min charts.

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