You're a slave to the market
Forget about trading 1, 2 hours a day forget about trading by the pool, by the seaside, whatsoever.
Day trading is a full-time endeavour.
Let me just break it down for you.
There are 3 different stages:
- Pre-market hours
- Market hours
- Post-market hours
1. Pre-market hours
You're not just going to open your computer, then draw some lines and buy when the price hits support or sell when the price hits resistance.
No, it doesn't happen that way.
You got to come in prepared!
And how do you prepare?
Firstly, before the market opens, you have the pre-market hours.
During the pre-market hours, you want to be aware of the high-impact news that might affect the market you're trading.
You want to draw the key levels like support resistance, pivot points, etc. that you want to be trading for the day.
Then you want to develop a trading plan for the day.
For example, what is the current market structure?
If it's trending higher, I want to be buying dips in this market session.
If it’s ranging, I want to enter at support or resistance.
If the market is in a downtrend, then I want to be selling rallies.
So the pre-market hours is when you’ll prepare for your trading day ahead.
Conservatively, you need 1 to 2 hours to plan for your trading session.
2. Market hours
Market hours are when the market is open, and you’ll be sitting in front of the screen.
You’ll be watching the market to see if there are any trading opportunities.
You can set some alerts and stuff like that.
But it's unlikely that you can get away from the desk for very long.
Why is that?
Let's say that you're trading on the 5 minutes timeframe.
Every 5 minutes, a new candle is going to paint.
Yeah for the 4 minutes and 59 seconds, you run away and play a game on PS3, go to the toilet or drink some water.
But you got to be back.
You’ll need to see how the next candle performs because that could be your: