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Best time frame for day trading?

videdeandy

New member
VIP
Greetings everyone,

I hope you are all having a great day. I am asking for your expertise. What is the best time frame when it comes to day trading? Is the 1D:10min an ideal one? What works best for you?

Thank you
 

codydog

Active member
Depends on how much risk you take,eg, if you're ok with a 10 point stop loss, a longer time frame seems ok, if your stops are 2 or 3 points, a shorter time frame seems better

I use 1D, 2 min, with extended hours on
 

MerryDay

Well-known member
VIP
Depending on the asset that you are trading, multiple time frames are necessary when using many of the standard strategies. You can read more on how to choose time frames here
 

Chuck

Well-known member
I use the 1Day, 2min, 5min, 10min charts. I look at the 1 Day for overall price expectation. I then use the 10min for initiating a bullish trade once the 8EMA, crosses over the 20SMA, and a stochastic that is set to 12,3,3 is in the oversold condition. I look to the on the 2min and 5min for early warning, but usually only exit when the 8EMA on the 10min chart cross bellow the 20SMA with a candlestick close signaling the stochastic is in the oversold condition. All this with one caveat, if the price goes exuberantly above the 8EMA I look to close the position looking at the 5min chart for confirmation as I find price will come back and test the 8EMA.

This gets me in with a positive push to the upside on bullish trades most times and gives me a clean exit. I do just the opposite for bearish trades. I find this does not get all the highs and lows, but gets the cream out of the middle.
 

Thomas

Active member
VIP
What no one will tell you:.....https://www.cnbc.com/2020/11/20/attention-robinhood-power-users-most-day-traders-lose-money.html

"A study published in June of almost 1,600 Brazilian day traders that tracked their activity for one year concluded that only 3% made money... Only 1.1% earned more than the Brazilian minimum wage and only 0.5% earned more than the initial salary of a bank teller"
"An older study, going back to 2000 analyzed 66,000 trading accounts at Charles Schwab from 1991 to 1996. They found that those who traded the most earned an annual return of 11.4%, while the market overall returned 17.9%."
Everyone thinks they can make it in this game, very few do. Even fewer get rich, What are you doing different from the other 99%? What is your edge? There are many moving parts in trading and the market will constantly push you around and shake you out and then run you over. The key is having a very specific ruleset and always be in control and not let the market do that to you. Main thing people lack is a setup. I trade 3 setups and I try to teach mainly 1 of these setups on stream. (hint: you only need ONE solid setup to make 10s of millions) Then you need to know proper position and risk management. Then you need to know when these setups work/don't work. You also NEED to trade less and smaller size when conditions are not favorable. When conditions are favorable you need to step on the gas. You need to LEARN when conditions are favorable or not for a setup. No one is born with any of these skills, they can be learned. The more you study and push yourself out of the comfort zone, learn from many different traders and study different setups until you find one that fits YOU, the more likely you are to succeed. Also one last thing, to get to the big money you also need to be able to SCALE your trading. In the new Market Wizards book, the last chapter was about a guy whose trading account hadn't grown in 10 years. He had all of these concepts figured out except scaling up his trading. If you double your account (not by luck but by trading a solid setup and following your rules and risk management) you should eventually get your position sizes and absolute risk to a double too. It can take some time to get comfortable at a new level, While keeping your relative risk and position sizing in percentage terms the same. This is where the big money will be once you get this last concept, It's really about finding something that works and you do it over and over and over again. We talk in depth about these concepts and setups daily on the stream. The reason I started streaming is it helps me to become a better and sharper trader by keeping me in check and accountable, I can help out others and also have a community since trading can be very lonely. To answer my question "What is your edge?" My edge is trading 3 very specific setups that have worked for over 100+ years. how do I know this? I've spent thousands of hours studying charts and fundamentals. These setups occur over and over again when specific criteria are met I trade those setups using specific position management of not putting more than 20-25% of my funds in any stock overnight, ever. Per trade risk is usually 0.2-0.5% of my funds, I rarely risk more than 1% on any trade. You don't need to risk more to make 100/200%+ per year. I do have a somewhat good ability to know when to push it and when to take a step back. You don't need to be perfect, ever. just be good enough. And I have figured out how to scale up my trading both practically and mentally. There was a time when I was in suicide mode over losing $500 and a few months ago I got into the Wall Street Journal after losing $1.5M. A couple of weeks ago I lost $3M in an hour on the stream and it was annoying but nothing I lost sleep over. Huge sums in absolute terms, yes. But in relative terms just a regular drawdown. That's the level I want ALL of you to reach. Just wanted to put some thoughts out there. I want to thank all my followers and wish you a Happy Thanksgiving! You don't have to be a rocket scientist to make it in trading but you can't be an idiot. -Kristjan Kullamägi Yes I am shamelessly quoting myself, I keep saying this all the time on the stream. Now go study setups and get off twitter guys and girls,....


I cannot emphasize enough learning from this trader, he blew up accounts, but learned how to trade correctly.....investigate.
 

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