This post was originally written for r/RealDayTrading Jan 14, 2022
One of the things that I can’t teach traders is patience. It is critically important to wait for your windows of opportunity to set up. If you do this you will increase your win rate and a handful of trades are all you need.
Let’s say you are “gnawing at the bit” to buy a stock with relative strength. “OMG, look at that baby run, I gotta get me some of that!”
- Take a deep breath and look around. What is the market doing?
- There is no trade that warrants chasing.
- Don’t buy stocks with relative strength if the market is going down. You should be looking for shorts, not longs.
- Hold off on that stock purchase until you get confirmation that the market is going higher. If the market has been in rally mode, wait for a dip and support (3/8 cross). If the market has been down, wait for signs of support.
You can use price analysis (candles, trendlines…) or any indicator that you find to be reliable for the S&P 500. I use 1OP because of its predictive nature. Know that the market goes through cycles each day and your job is to time them.
I recorded this video today. I believe it will help you to improve your timing and consequently your win rate.
Please don’t ask me how 1OP is calculated or the inputs it uses – I won’t respond.