Today seemed to be another bullish day. Stocks from scanners are mostly gap-uppers. And economic news at 10am was good. Everything seemed fine. However, every stock I longed in the morning seemed to be a “no-go”–they simply wouldn’t move up. And the feeling was like…..the pre-stage of an earthquake. Everything seems normal, the stocks opened up high and still steadily moved up, but the volume of trades seemed small and momentum was not there.
This is a typical sign of market correction. Take a look at the S&P daily chart for …

Yesterday, I came across an article by Harvey Walsh on Money Management rules for day traders. I was deeply impressed by it and thought that that was the piece of puzzle I missed in the game. Here is the link to the article.
Position sizing means that you first should determine how much money you can afford to lose for a single day, and how many trades do you plan to make each day. Assume every trade you entered is a loosing trade, then determine how much money you can afford …