Does intraday trading have to be so bloody difficult?
I have been intraday trading for more than fifteen years using many different indicators — you name it and I have probably traded it.
- Elliott Waves
- Moving Averages
- Trend Identifiers
They were all part of my tool kit. There was only one HUGE issue. I would have numerous winning trades, only to be knocked backwards by a couple of losers. Intraday trading was a constant uphill struggle — I would take three steps forward, two steps back. For new traders, it can be even more frustrating. If you are new to trading binary options, then start here.
Frustration was often my best friend!
Then a friend told me, look trading is simple — WE make trading HARD. Traders have to learn to how to read the charts, formulate a plan for entering and exiting, preferably by entering at the lowest point of risk (reading volume at these key levels), then double the risk for the first profit target and NEVER break the rules.
WOW, if only it could be that easy!
I have discovered that trading really is that easy using these 4 very simple steps, if you are using leading indicators like the ones designed by TradersHelpDesk.
First, learn to read the price charts so you can formulate a plan for entering your trades at the lowest point of risk. The TradersHelpDesk indicators and packages are designed to help you identify the lowest point of risk in any trade. Additionally, Gail offers private online mentoring or binary signals for those that are new to trading. Plus, Gail’s latest books trading binary options and spreads is a must have for any new trader.
We define the lowest point of risk as entry at our built-in Average True Range Stop or a Congestion dot. And, we have designed alerts that will notify you when these conditions are met.
Second, understand that volume and divergence LEADS price, it really is that simple. However, most traders don’t understand where to analyze the volume or how to read divergence using oscillators.
We analyze volume and divergence at two critical areas:
- Support and Resistance area
- Overbought and Oversold areas
For example on the EURUSD, there was an alert that price was at a congestion dot. Buying volume was decreasing so entry was valid.
Third, is learning how to SKEW THE ODDS IN YOUR FAVOR — in order to make it in trading, we need to use a risk to reward method that compensates for our losers. This is where most traders FAIL.
Most traders are just so happy to finally see profits they don’t realize they are using a risk to reward of only $1 risk for $1 gain. This can be disastrous! The P/L chart below shows what will happen if you are using this technique with a 50% win/loss ratio (after 650 trades).
No trader wants that! But with one small change, this can change dramatically! Simply changing to $1 risk for $2 gain your P/L could change to positive! Or going from In the Money binary options to Out of the Money binary options — just one simple change.
In the case of the EURUSD, the risk was 20 pips so the reward was 40 pips.
And, last but not least, NEVER break your rules once they are defined. All business owners know that having a plan and adhering to the plan is the key to success. Most traders remain in a state of chaos because they are always changing the rules, changing the indicators, changing the plan. The result is a constant state of turmoil — up, down, down, up, breakeven, down, up, down.
Four simple steps for intraday trading binary options, futures or forex:
- Learn to Read Your Charts so You Can Identify entries at the Lowest Point of Risk
- Analyze the Volume and Divergence for entry
- Skewing the Profits in your favor using Low Risk to High Reward
- Never break your rules once defined
That’s all it takes for you to dramatically change the path of your trading journey and it all begins here!