Hey traders and Happy New Year!
In a recent blog post we spoke about focusing only on assets that are in play for the day, even tough with day trading you can still make solid profits, especially on the tick charts, trading ranges, a trend will generate you much bigger and more importantly, easier profits.
This is why it is vital to focus on assets which could generate momentum, because at the end of the day in day trading you are only as good as the assets you trade.
Below you will find a chart of NASDAQ (left) and a chart of XAUUSD (right), one has moved significantly upwards while one was stuck in a whipsaw range which ended up breaking to the down side towards the end of the day on December 31st.
Choosing to trade XAUUSD would be much easier to make a profit.
As a day trader you will come across setups every week where your risk small while your reward can be drastically high, in this case XAUUSD was that kind of setup, and it came right on the last trading day of the year! (woohoo)
These are trades that I, and you, cannot afford or accept to miss out on, simply because they can turn an ordinary week into an extra ordinary one.
This Friday I took a total of 6 trades on XAUUSD, each taken at a different time but all in the same direction, buy!
It is not to hard to find these setups, all you need is some technical analysis knowledge, understanding of basic fundamentals and time invested into building a watchlist!
It is important to note that I usually find these type of setups around 2 to 4 times a week, but there are weeks in which we can have 5+ setups and I believe that we will have plenty of action in January as it is a rather busy trading month, looking at the economic calendar will tell you just how important it is!
While I also made good money trading the New York open on NASDAQ, my trading on XAUUSD was almost effortless, price action was trending up and each time our system gave me a buy signal I simply executed it and reaped the rewards!
All in all, it is vital to do your work on the charts and prepare a watchlist because what you trade is what will make you as a trader, since at PrimedTraders we are fully reactive to the charts and have a complete system which guides us on when to enter and exit, all that is left to do is find what we are going to trade!
That is it, I'm keeping this post short and sweet so you can take away the most important factor from it, and that is WORK YOUR CHARTS!
Before I let you go, remember this:
"In the markets, just as in life, you reap what you sow"