Day Trading Same Stock or Trading different securities based on pattern opportunities?
- Thread starter sjain100
- Start date
IMHO -- Depends totally on what you are attempting to accomplish:
If, for example your goal is to make a daily profit of $100 plus with a small account then your focus is on that and what you would need to do that. Also, on how much time per day you have to trade. Then, unless you are trading a larger account will dictate how many markets you will need to follow to accomplish your goals. The KISS principle and Occam's Razor will apply. One futures market like the ES mini is all most would need.
Best of luck with your trading...
If, for example your goal is to make a daily profit of $100 plus with a small account then your focus is on that and what you would need to do that. Also, on how much time per day you have to trade. Then, unless you are trading a larger account will dictate how many markets you will need to follow to accomplish your goals. The KISS principle and Occam's Razor will apply. One futures market like the ES mini is all most would need.
Best of luck with your trading...
In which future market do you trade?
1. there are thousands of fake / lousy signals.
so Intermarket correlation analysis helps improve the success rate.
take for example yesterday 9 Nov 2021.
ES, NQ, Russell 2000 went down around the same time during the early part of
the US session.
2. There are times when the market movement is choppy and chances of failure is high
due to whipsaw.
Eg during the US session, you want to trade ES / NQ but the market is choppy.
Look at other Intermarket correlated futures (eg DAX, Hangseng, CAC40 ...).
see whether DAX, Hangseng, CAC40 .... movement is more decisive / less choppy.
If it is, trade the more decisive futures.
And that is the million dollar question! But for $20 a month, you can figure out how to answer it! Did I mention you get the first 20 days free?
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Point 1. are you saying intermarket analysis is like CONFIRMATION? for example, if all the 3 us index futures are moving in the same direction their is a less chance of a fake signal?
Point 2. definitely makes sense and will look into this. I'll consider the European index futures and whether their trend is decisive vs. a possible choppy US futures market with whipsaws and trade whichever is following better price action, decisiveness or less whipsawS!
Thx
point 1 - not really confirmation.
it gives me higher confidence when 2 or more index futures are moving in tandem.
In such a case, I'd trade with greater quantity.
I just updated more info about the intercorrelation analysis in my Journal.
today is a great day for trading as there are many many futures that move in tandem. eg
China A50 and Hangseng
FCE CAC40, OMXS30, NQ and ES
CME crude oil and Shanghai Crude oil
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