Daytrading Tips

Daytrader's Bulletin Method - Part VI

Reviewing Your Trades

You’ve just made a great return on one of your Bulletin trades. The trade is over. Right? Wrong! To become a better trader, it is mandatory that you analyze your trades and learn from them. Review and self-analysis go hand in hand with consistent, profitable trading. You can learn from history and profit accordingly.

At the Bulletin we closely monitor the performance of our systems and ourselves. The markets change (day-to-day in some cases) and people change as well. We make sure our system rules are still appropriate for the markets and for us.

Likewise, you must be certain that you follow the Bulletin Signals in a timely manner. To do this you must have confidence in the Signals. To this end, review the FAQs, the Daytraders Bulletin Guide, the Current Performance and the Trading Statistics on the Overnight Updates. Follow the Signals real-time using our free trial and a live data-feed. 

Your review of these documents and following the Signals real-time with a live data-feed should give you a great deal of confidence in our method and the Bulletin Signals.

We have included a Trade Analysis Worksheet for you to print and copy. We suggest you use this worksheet to follow your trades, record ticket numbers and verify that you are executing the Bulletin Signals in a timely fashion.

Review your trades at the end of each day. This is an ideal way to determine your strengths and weaknesses as a trader.

Free: Trade Analysis Worksheet

“If the Lights Go Out”

The Daytrader's Bulletin Signals have been extensively tested, modified and engineered to be reliable and timely. In the unlikely event of a technical problem on our end, your end, or in between, you the Subscriber should take appropriate measures to protect the capital in your trading account. Listed below is a series of possible trading positions you could be in "if the lights go out."
 

Trading Position	Appropriate Response
You are in a trade and have a stop-loss in the market.	Keep the stop-loss in the market. If price moves in your favor, move the stop-loss to protect more and more of your open profits.*
You are in a trade and have no protective stop in the market.	Place a protective stop in the market and move the stop-loss to protect more and more of your open profits. *
You have a stop order in to enter a trade.	Cancel the order.
*If long the market, move the stop-loss just under a support area and if short the market, move the stop-loss just above a resistance area.

Interpreting the Overnight Update Commentary

No one can predict what the market will do the next trading day or even one hour into the future. One can access the available market information and make informed projections. In some cases, there will be many possible price movements the market may make. In other cases, the market almost must move in one direction.

These are the trades that we at the Daytrader’s Bulletin search out.  Be aware, however, that the market will do whatever it wants! No market analysis in infallible.

What is important about our Commentary is that it enumerates logical possibilities based on our analysis. The acts of analysis and anticipation based on that analysis gets one closer to the market. This is the intent of our Commentary -- to get you closer to what the market is doing and to suggest what may occur. 

We do not predict the market. No one can.  We look at possibilities and statistical likelihood. In some cases we are off track in our Commentary; however, this doesn’t mean we won’t make winning trades the next day. 

We frequently have excellent days even when the Commentary is incorrect. Why? Because we are close to the market: we know what Support/Resistance, Cycle Timing and other studies suggest about the market.

If you read and absorb the Overnight Update, look at the price action, place Cycle Timings and Support/Resistance on your charts and follow the subsequent price action, you too will begin to see likely, low-risk set-ups.

A detailed overview of the Overnight Update can be found in The Guide, Appendix B. Archives of the past Overnight Updates are located in Historical Results.

The 5-Minute Rule

The Daytrader’s Bulletin enters trades with the expectation that price will move in our direction within 8 to 10 minutes. If price doesn’t cooperate within this time period, some aspect of the trade may be wrong. 

Our approach, if this occurs, is to start unwinding the trade, usually one contract at a time. If this unanticipated price behavior continues, we will also bring our protective stop closer to the current price action.

The point of this maneuvering is simple - we are protecting our capital. Our first and foremost goal is to protect our capital, period. When we are at a break-even or better position with the trade, we can begin to more actively work the trade for profits.