Looking in the rear view mirror on occasion can be helpful, not just in life but in your trading as well! Don’t live in the past or dwell on it, but review it from time to time for the lessons it will no doubt offer.
When doing so, try to find some common themes for what’s working well, and what is not. Understanding the kinds of plays to seek more of or to avoid helps you stay on the right track.
I wanted today to look back on some of the single-day plays from last month which worked out well (swings are updated here). I like to trade on both the day and swing timeframe, so these single-day plays are in my view the cashflow trades which get me through the week – especially during April when the broad market was so choppy and therefore fewer swing trades surfaced.
The idea isn’t to jump into and out of trades like a maniac! Rather, the daily charts on these had them looking ripe for a move, but not as multi-day swings. By grabbing them for trades lasting from a few minutes to a few hours, there was some good opportunity to capitalize on without incurring much risk at all. In fact, on nearly all my single-day trades, I’m only risking 1% from my entry, which keeps losses small when they happen and allows for a nice multiple of that on the profit side when trades get going.
These kinds of trades are shared nightly with Bandit members, and I tend to turn to them when I don’t trust the chart or the market for a lasting move, or when the bases are too loose to justify a much wider swing stop. Once in, I look to ride any existing momentum or follow through by way of the intraday chart.
Understand that although the charts below highlight winners, I do take plenty of losing trades. Those of you who read my posts know the importance I place on losing properly, as losing trades are part of trading. By sharing the charts below, my aim is to shine some light on the best kinds of plays working for me lately.
This is not a comprehensive list at all, as there were many trades in the 1-3% range which added up nicely. But this will give you a snapshot of the kinds of plays I take for the single-day timeframe.
The best plays lately on the long side have largely been buys after pullbacks, while the short side has offered some nice failed bounces as well as breakdowns through lateral support levels.
You could be making more from your trading! If these are the kinds of plays you like to take, now you know where to find them.
I dig out the best setups in the market each day, structure my trading plan for the following session, then share those trades with members via the nightly report. They include swing trades and single-day trades like those above. Not only am I explaining where I’m looking to trade them, but I also explain why I’m looking to trade them.
If you’re not a member, why not give it a try today?
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