If someone tells you that you can get rich quick day trading...run for hills! There are no overnight successes, unless you are very lucky!
Day Trading isn't easy, but with experience, dedication, self- control and hard work, you *can* become a successful day trader.
1. How to Treat Gap Openings. A gap up or gap down open is an emotional move, and it often will reverse course and turn in to "trap open". Gaps that are less than 4 points on SP Future tend to get filled in same day, especially Tuesday through Thursday. Turns will occur within 20 to 40 minutes after open. A trader must be on lookout for a reversal as soon as early momentum is lost.
A gap into a good support /resistance zone is almost always a good "fade" - with stops no more than 1 point on other side of support /resistance zone. (A "fade" is simply entering a position opposite of direction of gap. If market gapped down, a "fade" would be entering a long position (buying) in to selloff.)
2. When Market Moves Against You, When Do You Exit a Trade?
The way I trade, I exit as quickly as possible. There's no sense in waiting around for your "stop-loss" to get triggered when perceived edge is gone. I like to stay in control of my trades, and if market doesn’t do as anticipated, I don't wait for my stop to get hit. When there is no longer a high probability situation, exit and take a second look.
3. When Are The Best Times of Day to be Trading?
For me, best times of day for trading are first hour and last 2 hours. Here's an old rule of thumb (and this used to work like clockwork in "old days", and although it has diminished a bit, it still happens):
"The Minor Time of Day"- f Market opens higher, then there tends to be a pullback within first 20 to 40 minutes. If pullback is weak, there will probably be a continuation of rally into early afternoon. But, if pullback is sharp, then you've likely seen high for day and you'll want to be selling bounces.