When it comes to learning how to trade, it really comes down to having a simple approach to the markets. If you over complicate your trading strategy, you are going to run in to analysis paralysis.

I focus on a simple 3 step day trading strategy to keep things as simple as possible:

Step 1: Identify The Location

Step 2: Identify The Pattern

Step 3: Place Trade With Appropriate Risk : Reward

 

Location is, by far, the most important factor for traders to find. Without a good location to day trade, the rest of the process can’t even begin. This means that our primary job as traders is to find the absolute best locations and wait. Once the market reaches the proper location, we push forward with an entry pattern.