How many and which assets must you watch and/or trade? Most seasoned traders would conclude that basically day trading at least three to five offers a great variety of opportunities. However, when you trade more than this number will surely make you look crazy. One number is not the same as other trader’s numbers. You may choose to watch for more assets to grab more opportunities, or you can watch for lesser assets. In an industry where there are hundreds of opportunities surrounding you, you have to sift out most of these assets and look for some to watch and then trade. Here are some easy ways that for you to watch trades efficiently.
1. Only trade one asset – if in one day the USD EUR is moving too much, say for example 110 pips an average in a day, you will typically day trade it. This can offer good trading opportunities. When you find that a stock is volatile and has promising volume, you can trade it alone for some weeks. You can also trade futures. You can also only trade S and P 500 E-mini. By doing so you will only need lesser research and homework thereby developing a mood for that asset. The drawback with this is that its trading conditions are not ideal all the time when you trade a single asset. This means that you will have to know the perfect time of cutting back on your trades and not trade yet while periods are still tough.
2. Screen Stocks every night – Screening stocks is a famous move when you are day trading. You can download a stock screener. There is lots of it online. By using it you can manage your list and then refine your criteria to a short list of three or five stocks. You may have a lot of stocks to observe and with this you may end up omitting good moves. When you screen, you can look for a higher volatility level and look for patterns on charts thus allowing you to trade breakouts which can quickly happen. Thus, if you are watching for more stocks than you can take, you will end up losing them.
3. Trade from your master list – when you have a master list you have to trust it and rely on it. Trading off your master list is a typical approach especially when you are trading binaries. During the day you can review the charts of say six or seven trading pairs and then you can select one or that moves well. It is ideal to day trade these selected pairs in the morning. At night, you can look at your swing trade chart and place your trades on pairs with promising setups. You do not need a lot of research to do this. It is manageable and at the same time produces numerous opportunities. Yes, it may consume your time Compiling your list but this is just at first. You can create an asset list that you prefer to trade based on their movements. Also create a list with assets that will agree with your strategies. The charts on the lists that you have created are the ones that you will only monitor.
There are no correct or incorrect answers here. you can always trade a single asset at all times. You can even choose to look for a few assets every day. However, it has to be manageable. When you realize that there are some trades that you missed which you ought to have taken, you are most likely focusing on too many assets and cannot trade all of them effectively. When you only trade a single asset and it is not moving in a good way, you can create a master list giving you lots of assets to trade. Make sure there is balance to achieve good trading opportunities but at the same time not overpowering yourself with numerous choices or alternatives.