If you need a day trading strategy, then you should take a look at "The Simple Strategy."
It's my favorite trading strategy for the following reasons:
- Clear Entry Rules
When trading “The Simple Strategy”, there’s no second-guessing. As you will see, the entry rules are based on indicators - and it’s black and white. Either the MACD is above the zero line or it isn’t. And either the RSI is above 70 or it isn’t. The entries are easy to identify and to execute. That’s why this strategy is called “The Simple Strategy”
- Clear Exit Rules
When trading “The Simple Strategy” you’ll know when to exit even before you enter the trade. So, you know exactly how much you risk on any given trade which is essential for precision position sizing and money management. Plus, you can put the trade on auto-pilot once you are filled on your entry order. This reduces the trade management to a minimum. And Many traders fail because they over-manage their trades. Using the exit rules of “The Simple Strategy” you won’t run into the risk of over-managing your trades. It’s like the “Showtime Rotisserie” - You set it, and forget it 🙂
- Take advantage of small intraday trends
Trends are short-lived. The times when you could enter the market in the morning and exit the market in the afternoon are over. These days the markets can turn around on a dime. Low trading commissions and computerized trading have destroyed the nice and long intraday trends. However, with “The Simple Strategy” you can take advantage of the small intraday trends that we are seeing in today’s markets since we are only trying to capture 15% of the average daily range. More about this later.
- You don’t need a sophisticated trading software
As you will see, you only need a charting software with “basic” charting capabilities: Your charting software needs to be able to plot RANGE BARS, BOLLINGER BANDS, MACD and RSI. More than 90% of the charting software packages that are available today have these capabilities. There’s no need to buy any proprietary indicators or expensive charting software!
In short: “The Simple Strategy” can greatly simplify your trading. Using this strategy has helped ME tremendously in my own trading.
Before I traded “The Simple Strategy”, I was an indicator junkie. I plotted so many indicators on my chart that I could barely see the price action any more. And all these indicators didn’t help!
In fact, all of these indicators led to only ONE thing - Analysis Paralysis.
It’s a common disease amongst traders - you analyze so many things that you become more confused. It happened to me! When I looked at all the indicators on my screen, half of the indicators were indicating BUY and the other half was yelling SELL.
“The Simple Strategy” uses only three indicators and that’s all I need to make my trading decisions.
No more ANALYSIS PARALYSIS - Clear entries and exits.