chil10
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Day trading frustration
in General Trading Strategy Discussion
Posted · Edited by chil10
The price of any stock or asset has a mean (avg) over time. You need to consider taking profit when prices is at 1 or 2 standard deviations from the mean. At 1 standard dev. price will revert back to the mean 66% of the time. At 2 standard dev. price will revert back to the mean 95% of the time. It is a very easy concept you can learn in 5 min
Similar, many traders use the Fibonacci sequence sounds complicated, but very easy to understand.
Understanding these basics will help your timing in entering & exiting trades.
Because so many traders do this, it is somewhat of a self fulfilling prophecy.