Take note of the chart of Lam Research Corporation (NASDAQ:LRCX) below for an example.
The day trader should know that a bounce is very likely at strong intra-day support levels despite the intra-day trend being down as long as the daily chart trend is up. As a scalp trader or day trader we can buy the strong intra-day support level for the small bounce. However, it is important to remember as a scalp trader or day trader we are looking to take a small bite or chunk out of the stock. As a day trader your goal is to do this often, accumulating great percentage gains on the day. Once we are in the money on the trade we move our stop loss to break even or in the money to protect against a loss. We never want to get greedy when trading unless we are in the money and have already secured a gain.
If the daily chart trend is down then the scalper must be much more careful trying to trade the intra-day bounce area. In fact, the scalper might be better off trying to sell the bounce short if the trend is down on both the daily and intra-day charts. Scalpers must also always know where the stop loss area will be just in case the stock does something unpredictable. Remember the old market adage, “markets can do anything at anytime.” Become aware of the prevailing trend, how to trade it properly, learn what most people get trapped by and do not fall victum to the same pitfalls. Learning these tools will place you on the road to earning consistent profits. By joining our Intra Day Stock Chatyou will be granted viewing access to the real Pros traders desk. You will view their charts live, hear them live, learn and earn live along side of the best in the world. Enter the world now, start with our Free Trial. click here.
Comments