Need Help Day Trading

FF7VIICloud

New member
Hi Everyone,

I am a new member and I need help. I have been a day trader for the last 2 years but I have lost over 50% of my portfolio. I use Think or Swim (TOS) and I have a few indicators set up but like I said I need help. You probably know or have heard of things that I am struggling with such as holding on to losing trades too long, impatience, revenge trades, etc, etc.

I have nailed down a few things that I think can help me trade better and hope if anyone can help me here.

I am a day trader so I am only talking about these scenarios for day trading and not over a longer time frame. What I have noticed is that a stock will have a trend such as uptrend or downtrend during the day. It will continue to go up or down until a true reversal happens. What I do is wait until the RSI shows overbought/oversold and I take a counter trend trade. However, I would say 80% of the time, the reversal is short lived and I take a loss. What I realized is that the market or the specific stock will have a head fake, it will continue to follow the trend. But, sometimes that trend will truly reverse and will continue for a while. What I'm trying to figure out is if there is an indicator or indicators that will show a true reverse or a stronger reversal. I noticed that sometimes a reversal starts around 11:30AM but sometimes 12:30 or 1PM or 2PM or even 3PM. During this time, I may have taken at least one bad trade and I would lose $$$. I just want to make profitable trades. Maybe I need to look at volume, the day's macro news, candlesticks, support/resistance, etc but please someone help me!

Ultimately, I would like to make profitable trades. I would like to take the first trade on the day when the market opens on the correct trend and close the trade when I know with high conviction that it's a true reversal.

Thanks in advance.
 
If you are talking about day trading I would trade futures(micros first ) and invest in to stocks. Use a 12 range chart (it can be fast at times) and trade supply and demand. study market structure. Its scalable and you know right away if it’s going your way or not. Keep your stops to 1 2 points (depending on situation ) Forget all indicators only use relative volume vwap And market internals to see $adspd $tick @FutureTony has a nice top 5 study (u have to plot the internals on a separate time based chart)
Opening range brake out for the open and don’t trade after after 1130.

Nothing is 100 percent or even 50 percent but try to watch that chart for a week with that setup and see if that helps

Paper trade so you get the hang of this setup before marking a single trade!!
I mean it it’s completely different from time charts

0 es/mes on a 12 range chart
1 market structure
2 supply and demand with volume/rvol as a conformation
3 market internals as your indicators
4 get out quick

**
correction to original post from "10 range" to "12 range"
 
Last edited:

ganq

Member
2019 Donor
If you are talking about day trading I would trade futures(micros first ) and invest in to stocks. Use a 10 range chart (it can be fast at times) and trade supply and demand. study market structure. Its scalable and you know right away if it’s going your way or not. Keep your stops to 1 2 points (depending on situation ) Forget all indicators only use relative volume vwap And market internals to see $adspd $tick @FutureTony has a nice top 5 study (u have to plot the internals on a separate time based chart)
Opening range brake out for the open and don’t trade after after 1130.

Nothing is 100 percent or even 50 percent but try to watch that chart for a week with that setup and see if that helps

Paper trade so you get the hang of this setup before marking a single trade!!
I mean it it’s completely different from time charts

0 es/mes on a 10 range chart
1 market structure
2 supply and demand with volume/rvol as a conformation
3 market internals as your indicators
4 get out quick
Which indicators do you use for:

2 supply and demand with volume/rvol as a conformation ?
 
use a balck back ground with gray candles turn off fill up candles and on 12 range

declare upper;
input RV_length = 10 ;
input rvolpaint = yes;
input rvol_color_id = yes;

def AvgVol = average(volume, RV_length);

def CurrentToAvg = ROUND(volume / AvgVol);
input rv1 = 1.6;
input rv2 = 2.0;
input rv3 = 2.6;

AssignPriceColor( if
rvolpaint and CurrentToAvg > rv3 then color.yellow else if
rvolpaint and CurrentToAvg > rv2 then color.green else if
rvolpaint and CurrentToAvg > rv1 then color.WHITE
else Color.CURRENT);
ADDLabel(rvol_color_id, RV_length + "rV " + CurrentToAvg,
if CurrentToAvg > rv3 then color.yellow else
if CurrentToAvg > rv2 then color.light_GREEN else
if CurrentToAvg > rv1 then color.dark_orange
else color.gray) ;
addlabel(rvol_color_id, "V" , if close > open then color.green else color.red);
 

ziongotoptions

Active member
Hi Everyone,

I am a new member and I need help. I have been a day trader for the last 2 years but I have lost over 50% of my portfolio. I use Think or Swim (TOS) and I have a few indicators set up but like I said I need help. You probably know or have heard of things that I am struggling with such as holding on to losing trades too long, impatience, revenge trades, etc, etc.

I have nailed down a few things that I think can help me trade better and hope if anyone can help me here.

I am a day trader so I am only talking about these scenarios for day trading and not over a longer time frame. What I have noticed is that a stock will have a trend such as uptrend or downtrend during the day. It will continue to go up or down until a true reversal happens. What I do is wait until the RSI shows overbought/oversold and I take a counter trend trade. However, I would say 80% of the time, the reversal is short lived and I take a loss. What I realized is that the market or the specific stock will have a head fake, it will continue to follow the trend. But, sometimes that trend will truly reverse and will continue for a while. What I'm trying to figure out is if there is an indicator or indicators that will show a true reverse or a stronger reversal. I noticed that sometimes a reversal starts around 11:30AM but sometimes 12:30 or 1PM or 2PM or even 3PM. During this time, I may have taken at least one bad trade and I would lose $$$. I just want to make profitable trades. Maybe I need to look at volume, the day's macro news, candlesticks, support/resistance, etc but please someone help me!

Ultimately, I would like to make profitable trades. I would like to take the first trade on the day when the market opens on the correct trend and close the trade when I know with high conviction that it's a true reversal.

Thanks in advance.
Read Al brooks books specifically “Trend” make sure you actually read it. This will do two things, give you criteria/filter for how to gauge a reversal and B) where to place stops! Day trading is honestly the hardest thing you could do, I still have issues and it all boils down to emotions now, I was trading options but I blew my account, applying for prop trading account so now I gotta learn to trade futures. I’d say, stop trading your own portfolio if day trading and join prop firm helps take the emotion out , but it’s hard to pass their evaluation if you don’t have good risk management. It’s a hard process day trading, at times I think it would be easier to swing trade but the key would be learning patience and giving trade time to work. Again read al brooks books to help you learn how to spot potential reversal points
 

grapetux

Member
use a balck back ground with gray candles turn off fill up candles and on 12 range

declare upper;
input RV_length = 10 ;
input rvolpaint = yes;
input rvol_color_id = yes;

def AvgVol = average(volume, RV_length);

def CurrentToAvg = ROUND(volume / AvgVol);
input rv1 = 1.6;
input rv2 = 2.0;
input rv3 = 2.6;

AssignPriceColor( if
rvolpaint and CurrentToAvg > rv3 then color.yellow else if
rvolpaint and CurrentToAvg > rv2 then color.green else if
rvolpaint and CurrentToAvg > rv1 then color.WHITE
else Color.CURRENT);
ADDLabel(rvol_color_id, RV_length + "rV " + CurrentToAvg,
if CurrentToAvg > rv3 then color.yellow else
if CurrentToAvg > rv2 then color.light_GREEN else
if CurrentToAvg > rv1 then color.dark_orange
else color.gray) ;
addlabel(rvol_color_id, "V" , if close > open then color.green else color.red);
Interesting code. Care to explain how you use this strat?
 

halcyonguy

Well-known member
VIP
Lifetime
Hi Everyone,

I am a new member and I need help. I have been a day trader for the last 2 years but I have lost over 50% of my portfolio.

Ultimately, I would like to make profitable trades. I would like to take the first trade on the day when the market opens on the correct trend and close the trade when I know with high conviction that it's a true reversal.

Thanks in advance.


if this is your plan, you will continue to lose.
..you are trying to force a trade, to capture a big move after the open.
..your desired action is based on time of day, instead of from signals.
..you expect to know when a reversal happens.

why do you need to open a trade at the market open? it is the most volatile part of the day. there isn't a short term trend yet. who says market open is the first trade of the day? according to what rules?

you should have a set of rules or indicators, that signal when to buy and when to sell. trying to buy at a certain time of day isn't going to work.

the only way to be sure of a reversal, is to wait many bars after it appears to happen. by then price can move a lot and take away profits.

no one captures most of a price move. trying to do so will always result in holding too long, selling late, and possibly losing.
traders try to capture a part of a move, not the whole move. get in, get out. then wait for the next one.
 
@grapetux I use it as a reversal signal but only with higher rvol minimum 2.00 (green candles ). usually start with a +5 -3 pts then move the stop . I’ve also used it with Money flow Index(10 ) or bolinger bands you get less signals but its second conformation.
12 range chart (this is important easier to see structure)
Mfi =10
So when mfi is crossing up 20 with rvol greater then 2 that’s a long and crossing down 80 short.

With bolinger bands it’s better to wait for a second candle after the signal before going long or short.

If your really patient use both money flow index and BB with rvol greater then 2. Les trades but you can go for bigger profit target

I ran a quick backrest just taking trades with no conformation (entering on the next candle open) its about a 50-60 % win rate on long side and %30 -40 % short side but it’s profitable last /es 1 contract with a +9 -3 pts 11-2 to 11-22 only during regular trading hours was + $4300 to + $28,000 if you want to play only longs or shorts or both just depends how many trades you want to take. if you trade all hours $$ gets up
 

zeek

Active member
2019 Donor
You will most likely continue to struggle if your system is mainly buying when RSI goes into OB/OS territory. It’s not enough to catch the real reversals and you need more tools in your bag.

Something that has helped me a lot is looking at divergences, RSI for example and preferably on higher timeframes like 10 or 15min. VWAP is also useful, look for price to trade 2 or 3 standard deviations away from vwap and see if price starts having difficulties there.

From my experience, the best reversals usually happens when you have multiple indicators lining up at the same time on multiple timeframes @FF7VIICloud
 

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