Quote from nysestocks:
Why Is The Obvious Not So Obvious?
I have read thru some of the recent and distant posts in this section, and have come to the conclusion that; the obvious is not so obvious to many!
There appears to be a lot of textbook information being thrown around, especially in relation to position sizing and risk management.
What every trader has to realise, is that all the risk management and position sizing techniques in the world are of no use what so ever, unless the trader is aware of the obvious pre-requisite to trading any market.
It will be very interesting to see what answers the many traders come up with for the obvious, those with little and lots of experience alike!
Quite a long thread, it took a while reading it and the other related thread 'If you want to fail as a trader, study TA'.
So to summarise what seems to being said:
1. A daytrader requires an instrument with adequate daily range.
2. TA is not needed.
3. Volume is not needed.
4. Trend lines are not needed.
5. Note horizontal S/R levels where the major players react.
6. Enter trades close to those levels for high RR.
7. Set a price target based on measured moves.
8. Set a stop loss based on volatility of bars on the TF being traded.
9. Trading is gambling, so play the odds.
10. Trade what you see, not what you think.
11. There are no experts, except The Expert.