Archive for July 20th, 2009

I try to do at least one bet per day. I am not looking for huge return but solid 20-30 points. First the timing is important. For this strategy I think it works well when the market is calm. So 15:20 is a good time for the Dow.

Then I use 20 minutes bet but my secret is to open a position even before the actual time. For example if I am going to bet on the time frame 15:20 to 15:40 I will place my bet on 15:19. So my maximum risk is only 52 points.

Then I try to analyze the market using MACD / RSI and EMA on 5 minutes chart. So I try to take an educated guess where the index will go in the next 20 minutes.

You have to remember that prices are not moving in straight lines. They going up and then down, up and down until they find direction. If it is a regular day then during the 20 minutes the index will go up and down several times give you 2-3 options to bank a profit. So even if it seems that you chose the wrong side you still have time that the index will come back to you. Most of the time I close the position after 2 minutes with profit. Sometimes I even play again and again on the same time frame.