Trading Less is More

May 1, 2008 by day_trader

Today was an overall good day. Funny thing was that I only put 1 trade on. In reality, you do not need to overtrade to make money; its all about quality and not quantity. After putting on thousands of trades, I can say that you will know pretty quickly if you are right or wrong. What do I mean by this? If you enter a trade long or short and have to wait 45 minutes for it to move in your anticipated direction, you are probably wrong about the trade. Day trading is about following trends and money throughout the market. If your reading the tape correctly, this should happen pretty quickly.

Let's take a look at today's trade, HOLX. It was a setup that I love; basically fading a rally off a large morning gap. The candlestick setup was there and I saw heavy selling so I took the trade. It moved quickly in my favor and I peeled off about half of the trade for a 3.09% gain and then the second half for a gain of 9.57% for an average profit of 6.33% in about 36 minutes!

HOLX Trading Example

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