Day trading basics must in alignment with trading basics. Day trading is a unique business. Here the product is the perception which the day traders bring in when the market opens. Once the market is open day trading market disconnects itself with the underlying instruments (stock, commodities, indices, forex, etc.), the real market, and becomes a virtual independent market until the market closes. The next day, the day trading market opens with a fresh look and fresh perception about the market. The day trading prices moves based on the trial and error method creating price swings. The swings has got nothing to do with the underlying instruments, but has everything to do with the perceptions of the day traders on any given day. Hence the day trading market is a virtualized market, totally disconnected and independent from real market. Thus day trading is more of a business than gambling compared with positional trading where there is always a strong element of external influence that could upset even the most perfect strategy. Day trading is a very decent business for any trader with a decent business approach. There are many kinds of business but all have the same principle: "Never lose your money". This is the one business principle which is the seed for the entire tree of business philosophy. Principle means priority. If this principle is missing it's priority in the attitude of a trader then it becomes harder to understand trading. Rule No.1: Never lose money. Rule No.2: Never forget rule No.1. - Warren Buffet If a trader don't see trading as a business then most probably he will not have the business principle as a priority in his attitude. Lack of principle means lack of immunity to the market speculations. This is where vast majority of traders are trapped in. There may be exceptional cases where a trader wont believe in business principle and yet successful in trading. It means they have the principle at their subconscious level. Remember 7/8th of our mind is subconscious. We know very little about ourselves. Here is one day trading strategy which is built upon this seed principle of business : https://www.elitetrader.com/et/threads/principle-based-day-trading-strategies.304974 Hope this will be a case study to inspire and develop many strategies based on business principle which our trading world have scarcity for. With proper volatility configurations, any day trading strategy can be made suitable for all segments (stock, indices, commodities, forex)
Funny quote from Buffet considering he is well known for trying to catch a falling knife when trying to buy stuff. From the documentaries, buffet brought Berkshire Hathaway which was originaly a sewing / fabrics company and he almost went under because of it.
This business principle is not a rule, but an attitude. http://www.investopedia.com/financial-edge/0210/rules-that-warren-buffett-lives-by.aspx
Would any vendor share his complete strategy, underlying principle, various perspectives, intuition, inspiration, experience, etc in a public forum ?