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Stack the Odds for Daytrading Success

Trading is all about stacking the odds for success.  Risks must be taken in order to get paid, but the key is gauging under which circumstances the potential reward really outweighs that risk.

I discussed taking risks [1] in a recent post, and I felt that a follow-up and an example of what I was referring to was in order.  Here it is.

Many of my trades are continuation plays.  They can be great for offering situations which warrant putting some money on the line once clues of a continued move are present.stock-bounce [2]

However, there are many opportunities on the intraday timeframe which are exhaustion/reversal kinds of setups.

Buy or sell programs, news, and just plain old momentum drive stocks far beyond the pain thresholds of traders, carrying price a considerable distance in one direction or the other.  That opens the door for some recoil, and catching the turning point can be quite lucrative.

Stacking The Odds

Here in a moment, I’m going to show you exactly what I mean in a video, but first let me outline a few keys which combined to produce a great trade in this situation.

Here’s a video explaining it. Select the HD option and go full-screen for best quality:

Stack multiple factors in your favor for a great trading situation.  They’re worth waiting for!

Trade Like a Bandit!

Jeff White
Producer of The Bandit Broadcast [3]

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