Institutions rarely hold risk into the weekend. Every Friday between 2:00 PM and 3:00 PM EST, expect a sell-off. Use this to buy dips for a Monday morning pop, or short the close.
: Identifying Supply and Demand zones rather than just arbitrary support and resistance lines. 22 stock market trading secrets pdf
: Identification of the major obstacles that prevent profitable trading. Technical Strategies in Similar "22 Secrets" Guides Institutions rarely hold risk into the weekend
The crowd is almost always wrong at major turning points. When taxi drivers, barbers, and your brother-in-law are bragging about their stock gains, sell. When CNBC is running "death of equities" specials and everyone is depressed, buy aggressively. : Identifying Supply and Demand zones rather than
Between 3:50 PM and 4:00 PM, funds rebalance their portfolios. Volume explodes. If you need to enter a large position, do it in the closing cross to get the true market-clearing price. If you trade with a retail broker, avoid trading in the last 10 minutes unless you have a specific closing strategy.
Position sizing is critical for managing risk and maximizing returns. By adjusting your position size, you can control the amount of capital at risk and optimize your returns.
If the S&P 500 is tanking, your "perfect" long setup in a tech stock will likely fail. Always check the broader market's health.