/biz/ - Business & Finance

did some more day trading today, made some more bucks. it's actually surprising how effective understanding price action and volume patterns can be when you combine it with proper position sizing and DCA'ing your position at key levels instead of going all-in at once. now instead of "oh god i hope it doesn't come down and barely stop me out and then go my way" it's like "okay i'll take a starter position here. if it comes down to this pivot, i'll buy some more. if it breaks through there, it's really extended so i honestly don't think it'll get past the whole dollar value. then if it can get at least $0.10 past THAT, *then* i'll get stopped out and agree that i'm wrong". and "okay when it returns to the top of this range i'll take half off in profit. if it breaks through the top great i'll see what level i can sell it at based on resistance levels above it, from previous days if i have to. maybe sell half of the half position on the way up. if it comes back down i can rebuy my position or even buy in lower if the wick got to a lower area before reversing". makes it way less stressful and much more "yeah i want to buy/short in this *general* area" instead of having to be extremely exact. i haven't lost once in these past two weeks, as in gotten stopped out at an ultimate line in the sand. if price/volume start to look shitty i'll often just exit my position, taking my profits and waiting for another setup.

see if on pic related you can figure out how i was playing this range. you can probably see what im talking about. i ultimately got bored and sold at the top of the range there on my last bit, but of course as soon as i did that it broke out to the upside which feels bad but oh well, i made money.