Hi. I’m just confused when placing a trade. For day trading, what is the best timeframe to analyze chart? Is it the same timeframe to use as an entry? And what if it’s Uptrend in D1, but shows downtrend from H1 upto smallest timeframe, what trend mist I follow? And how about the capital… For example 200usd… Is it enough for a day trading?
Hi, focus on higher time frames like H1 or daily. Regards Greg
Put in as much money as you can afford - i.e. you will never get a bill that means you need to withdraw some of your original deposit. After that, think about the percentages, not the dollars. So a $20 loss on one trade is a massive loss out of 200 - its 10%: it doesn’t matter that its only 20 bucks, its 10% on one trade and that’s serious - if you lost 10% of your firm’s capital on one deal that could be career-ending in any industry.
Aim to set a stop-loss (get the price level form your chart TA) so that if its hit you only lose 1% of your capital.
Trade at first on the longest t/f possible - stay on the daily if you can stomach it. Get your entry and SL levels from there too. Use long and short period MA’s to show long and short-term trends. If you must go less than D1, go to H4 and live in there as long as you can.