Here are five quick trading tips that could increase your odds of profitability a great deal.

Five Quick Trading Tips

  1. In up trends you should be primarily buying dips and in down trends you should be primarily shorting into strength.
  2. When you are buying a dip or selling short into an extended up trend wait for a confirmation reversal in your intended direction before entering the trade. This will improve your odds of success reacting to the actual price reversal as opposed to purely guessing and predicting.
  3. Trading in the direction of a price gap on a chart is a successful strategy most of the time. Waiting for the gap to hold until the end of day increases your odds even more. Setting your stop for the low of the day of the gap can increase your odds of a long position catching an up trend.
  4. Trade based on quantitative price action and what is really happening in the market not anyone’s opinions or predictions.
  5. Only trade positions that have the potential to be two or three times as profitable as the loss will be if your price stop level forces you to take a loss.