There are many trading strategies and different trading styles. In my 7 years of trading I have tried different types of trading and in this kind of market condition we face today, day trading strategies carry the day. The question is, which of these day trading strategies can you successfully implement that will help you stay focus and profitable in the long term?
Well, I believe the London Close Strategy win this battle. I have seen many others and heard about some, however, the only day trading strategy that has proven to work over time with constant update and public progress is the day trading strategy based around the London Close trading session. With a careful record keeping since january 2010 and public update of the results and the trades taken and a complete journal of these trade, anyone can quickly look at their charts around 4 pm to 6pm CET or 10 am to 12 noon EST and be able to see recurring patterns within this time period almost everyday.
So if there are recurring patterns that setup around the London Close trading session, can we then extrapulate from this that the open London session, New York Open and New York Close or Japan Open and Close or Australia Open and Close can also produce such recurring patterns? Well, that is a possibility, but no one has yet to meticulously keep results like what we have with the London Close Strategy. At this time of writing, here are the results so far from the London Close Strategy: Out of a total trades 655 since 2010, 602 trades are winners for a total of 13,214 pips, 21 trades are losers for a total of 200 pips and 32 breakevens. That is why London Close strategy is what you may want to consider for your day trading strategy. This is an accuracy rate of 92%.
Discipline and focus are key to this kind of trading success. If you are disciplined and focused, any trading strategy will win 80% of the time. However, implementation is usually where the winners separates themselves from the losers. If you really want to day trade, then I will suggest you look out a successful trader like Shirley Hudson and strive to emulate what she does. So to succeed as a day trader you have to:
1. Develop and prepare your mind for success. Make up your mind to find a mentor and do it until you find someone.
2. Emulate what your mentor is doing, learn discipline, focus on the strategy they are using until you can produce the same results or even surpass your mentor.
3. Avoid jumping to another strategy at a moment that one of two trades fail.
4. Ask questions and keep your trading journal like the one Shirley Hudson has for the London Close Strategy.
You can always look back at your journal to pin point where you missed the mark. Your trading journal will help you jot down why you entered a trade and why you exit a trade. This in turn will force you to learn discipline and will keep you focused.
Keep it really simple and you will reap the results of discipline, focus and patience by seeing your pip counts grow, day after day and year after year.