Basics of Daytrading
		







                
		All trading should be based upon THREE basic actions which are
		
		1. SETUP
		
		2. ENTRY
		
		3. EXIT	
		
		SETUP is what gives us our edge in the market and against other
		
		traders. It could be support or resistence levels, candlestick patterns
		
		or moving averages. It actually doesn't matter what it is as long as we
		
		consistently apply the same setup rules across the board and patiencely
		
		wait for the setups to appear.
		
		ENTRY is our actual entry point where we pull the trigger and execute a
		
		trade with our broker or spread company. In a fast moving market we can 
		
		get slippage where our price of entry is different or slipped.
		
		EXIT strategy is often overlooked, but there should be TWO exit points
		
		called your PROFIT TARGET and STOP LOSS. These are the points you will
		
		exit all or part of your trade either with a SMALL LOSS or a LARGER PROFIT.
		
		These three components should be included within your trading plan ie
		
		what setups are you going to trade for the next month or three. What entry
		
		and exit point will you have and how many points profit. Obviously profit
		
		target should be at least 2 to 1 on the stop loss. If your stop loss is
		
		15 points like mine on the FTSE100 then your profit target should be at
		
		least 30 points minimum.

                I recommend trading part time until you build up experience.
               
                Part time trading for full time profits