EnhancedMarket
about 1 year ago
š Want to unlock consistent profits in day trading? It boils down to mastering ONE strategy. Here's a glimpse into the approach that turned my initial investment into millions. Thread š [img:s3_Z8owMp]
When you dedicate yourself to a singular trading method, your odds of succeeding skyrocket. It's not about knowing a little about many but about mastering one.
Early in my trading journey, I dipped my toes in various strategies. The result? Overwhelm and diluted focus. The game-changer was choosing to master one.
The heart of my strategy? Harnessing the power of supply & demand to pinpoint precise entry and exit points. These zones can hint at potential reversals or trend continuation.
š Chart Setup: Begin with a clean $SPY chart. I prefer the daily timeframe for spotting the major zones. But for intraday action, the 15M and 30M charts are my go-to. [img:Dqdy2Qqdv]
š Drawing Zones: ā¢ Supply zones: Areas showcasing a sharp price drop. ā¢ Demand zones: Where there's a noticeable price surge. Remember to encapsulate both candle wicks and bodies when marking. [img:Vp_GjoaNJ]
š Validation: Every zone isn't of equal weight. A price revisiting and strongly reacting to a zone (like bouncing or plummeting) is a nod to its potency. [img:9hQBSoAGk]
š„ Option Selection: When $SPY nears these zones, my action plan is: ā¢ Demand zone? Buy CALL options. ā¢ Supply zone? Purchase PUT options. [img:02D-cfaVN] [img:b1JX-E73c]
š Expiry Selection: Mon-Wed: Go for Friday expiration, ATM. Thu-Fri: Aim for the following week's expiration, slightly OTM. Remember: Options erode over time. Keep theta on your radar!
š Stop Loss: Positioned based on a zone's opposite end. If $SPY breezes past and seals beyond a zone, that zone might no longer be valid. [img:OisPXl99F]
šÆ Profit Target: My sights are usually set on the next counteractive zone. Buying a CALL at a demand zone? The subsequent supply zone above is my target.
š Review: Post-trade analysis is vital. Reflecting on zone accuracy and trade outcomes helps in refining and optimizing the strategy over time.
š” Risk Management: Markets are unpredictable. Never invest everything in one go. Diversify risks by allocating only a fraction of your funds to any single trade.
In a nutshell, honing one robust strategy has been the key to consistent profitability in my trading journey. And remember, in trading, continuous learning is the real MVP. š
I hope this thread sheds light on the depth and precision required for successful day trading. It's more than just numbers; it's about strategy, discipline, and constant evolution.
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