Many of you had been asking me on how to trade the Dow Jones effectively and I had came up with a roadmap of what you should do. First you need to ask yourself a few questions.
1. What's the timeframe you are looking for?
2. Am I looking for scalping, short term trading or swing trading?
3. What's my game plan before executing the trade?
4. What's my exit plan if things go wrong?
5. How many contracts should I trade and what's the margin calculation?
6. Am I looking for trends to hold for few days to weeks or am I just using the 5 minute chart for quick few minutes/hours profits?
I had develop a GPS system to analyze where the Dow is moving towards and some rules for scalping the Dow Jones effectively. I have also drawn the areas for effective scalping and also areas to look out for in swing trading. I hope you find it useful as that's the way on how I trade the Dow Jones. You don't have to follow everything what I say or drawn here, my way might not be the best or right way but I know for 15 years, I used the same thing over and over again which yielded me success which I don't think I will want to change since it's pretty simple easy to execute and put it to use.
Ronald K - Market Psychologist - A Stock Market Opportunist
