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Ken
02-01-2012, 01:49 PM
(from an email originally sent Feb 1, 2012 to my traders):

Trading Tips, Your Daytrading University "Check List for Success":

#1: Only trade days in which the NASDAQ composite is taking out
new 2-day highs or lows, in-trend (like today: see our 2-day high?
http://www.DaytradingUniversity.com/2DayBreakout01Feb2012.gif )

#2: Focus your time on minor gap continuations (like today's STX BRCM)
http://www.DaytradingUniversity.com/STXGapContinuationWinner01Feb2012.gif

#3: Start all positions as small as possible, and then scale into
the winners, to keep your risk low.

#4: Forex traders, look for new 7-day highs or lows, and
avoid trading when your pair is in the middle of the 7-day chart

#5: Emini traders, look at micro-cup patterns using 1-minute
candle charts, and also be sure to check the Arms Index (TRIN)
and the VIX to see if they support the direction of your entry

#6: Stock traders, remember to check the Sector percent change
from open, and focus on trading those stocks that are in the
strongest sectors (oil, retail, semis, banking, etc).

#7: Trade high-percentage candlestick patterns like hammers,
shooting stars, 3-line breaks, and engulfing patterns correctly.

#8: Set a maximum dollar-cost stop loss value before each and
every trade... how much money does the trade need to go against
you before taking a stop? (personally I like to keep my stops
as small as possible, eg from $10-$50 maximum as the goal).

#9: Focus on becoming a breakout trader, and stop trying to
outguess the market on pivots... many traders go broke trying
to buy bottoms or sell tops. Instead, try and trade by getting
a piece of the breakout.

#10: Stop overtrading choppy charts! Many traders don't trade
instruments with wide range prices and high volume, instead making
the big error of trading things with for example a 2 point range
on a 15-day chart, instead of a 6-15 point range.

#11: Document your progress: both good and bad. Where are your
victories? Were they due to lucky guesses, or careful planning?
How about stops? What could you start doing differently next time?

#12: Keep your eyes on the money at all times. We trade to make
money, as the goal. Not to just academically understand chart
patterns, or mindlessly trade other people's alerts or software.
Be a thinking, strategic, money-focused trader who looks step by
step at your PROCESS for entering and exiting, with a goal of
always getting better, step by step in your trades.

Those are some top lessons learned, things I wish someone had
told me earlier in my trading career, decades ago... so I hope
they are of value and service to you, in helping you on your
personal journey to trading successfully. Just a few quick notes.