Day Trading for Beginners

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Day Trading for Beginners
Instead you want something like: “Buy when price breaks above the upper trend line of a triangle pattern, where the triangle was preceded by an uptrend (at least one higher swing swing highs
and higher swing low before the triangle formed) on the 2-minute chart in the first two hours of the trading day.”
It can also be based on volatility: For example, if a stock price is moving about $0.05 a minute, then you may place a stop loss $0.15
away from your entry in order to gives the price some space to fluctuate before it moves (hopefully) in your anticipated direction.
One strategy is to set two stop losses:
However you decide to exit your trades, the exit criteria must be specific enough to be repeatable and testable.
In the triangle breakout example on the 2-minute chart, do you wait for the breakout bar to close above the
triangle before entering, or do you enter as soon as the price crosses above the triangle trend line?
Once you’ve got a specific set of entry rules, scan through more charts to see if those conditions are generated each day (assuming you want to day trade every day)
and more often than not produce a price move in the anticipated direction.
Entries – the point at which you buy a stock – only occur if the market produces
a specific set of conditions which, more often not, produce a favorable result.

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