Selecting a Strategy

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When you select a strategy, you first must know what kind of trader

you are and what your time frame is. If you make a buy or sell decision

as a day trader, you cannot then use the trading plan of a

microtrend trader by saying "I will hold it for the long term" if the

plan goes against you.

After you read over the various strategies, select two that fit

your personality and trading ability. Remember, while some of the

strategies work in most stock market cycles, you need to thoroughly

understand more than one strategy and how to apply it.

Electronic trading gives you the ability to enter or exit bullish and

bearish trends with surgical precision. The technology enables you

to control risk and manage money as never before. For this reason,

the use of electronic trading is part of every strategy you select.

Electronic trading is not just for scalping. Microtrend traders, position

traders, and even aggressive investors can use this technology

and the strategies in this chapter to help improve their success.

Remember the magic numbers, and don't exceed the optimum num72

the strategic electronic day trader

her of trades for the day trader, microtrend trader, or aggressive

investor.

Do not fall into the trap of not allowing enough time to test the

strategy you select. The best traders in the world let the market

come to them. Most of the time, you will sit and watch for the entry

or exit opportunity to materialize. Remember, every day is not a

high-probability trading day. Make time your friend instead of your

enemy.

When you select a strategy, you first must know what kind of trader

you are and what your time frame is. If you make a buy or sell decision

as a day trader, you cannot then use the trading plan of a

microtrend trader by saying "I will hold it for the long term" if the

plan goes against you.

After you read over the various strategies, select two that fit

your personality and trading ability. Remember, while some of the

strategies work in most stock market cycles, you need to thoroughly

understand more than one strategy and how to apply it.

Electronic trading gives you the ability to enter or exit bullish and

bearish trends with surgical precision. The technology enables you

to control risk and manage money as never before. For this reason,

the use of electronic trading is part of every strategy you select.

Electronic trading is not just for scalping. Microtrend traders, position

traders, and even aggressive investors can use this technology

and the strategies in this chapter to help improve their success.

Remember the magic numbers, and don't exceed the optimum num72

the strategic electronic day trader

her of trades for the day trader, microtrend trader, or aggressive

investor.

Do not fall into the trap of not allowing enough time to test the

strategy you select. The best traders in the world let the market

come to them. Most of the time, you will sit and watch for the entry

or exit opportunity to materialize. Remember, every day is not a

high-probability trading day. Make time your friend instead of your

enemy.