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Day Trading Strategy rule #1

You need a day trading strategy if you are going to profit from your online day trading activities, as no stock day trading tip will make you money automatically. This day trading strategy must be robust, simple to implement, and NOT involve you in any large drawdowns.

It must be robust because modern markets demand a resilient day trading strategy nowadays. Increasing volatility and expanding competition have made it more important than ever that your day trading strategy is watertight.

Your day trading strategy must be simple, because you will implement it every day. A complicated day trading strategy will soon tire you mentally and leave you struggling to remember the rules, especially at the pace todays markets move.

A good day trading strategy will NOT hit you with large drawdowns, as no matter how big your wins, large losses will demoralise you more than your wins will incentivize you..

 

Day Trading Strategy rule #2

For your day trading strategy to work, you need to follow it tightly. If you have a day trading strategy rule that says 'always buy if xx happens', but you only apply the rule occassionally, you will probably find that the occassions when you DON'T apply it are the profitable ones! This is known as 'sods law'.

 

 
 
 
 

This does not imply that a good day trading strategy cannot be discretionary - the implementation of the rules needs to be mechanical, not the rules themselves.

 

Day Trading Strategy rule #3

Keep evaluating. Markets change, and even the best day trading strategy can start to become less effective as conditions change. Almost every day trading strategy you find will work best in only a subset of market conditions. Either it is a good day trading strategy for channeling markets, or a good day trading strategy for breakout markets, rarely both.

This is the beauty of the SureFireThing Camarilla Equation as a day trading strategy. It works in all kinds of markets, because it expresses an internal truth about the nature of those markets. It needs no 'curve fitting' to remain an excellent day trading strategy for ANY liquid instrument, meaning it is robust. It is a simple day trading strategy, as the day trading course available for free on this website will indicate, and it does NOT involve large drawdowns (we recommend small stops, such as a couple of points on the S&P, and to quit for the day if you lose 3 trades in a row, limiting your daily drawdown to a fraction of your profit potential).

 

Day Trading Strategy rule #4

The best day trading strategy will keep you OUT of the market most of the time. This sounds counterintuitive, but is true. The less time you are IN the market, the less risk you suffer. And a good day trading strategy will focus first and foremost on minimising your risk. Once again, exactly what the SureFireThing Camarilla Equation does. Happy trading!
 
If this has got you interested, here is a day trading tutorial to help you - course.