HOW TO MAKE MONEY DAY TRADING SILVER

Too tired to answer all your questions, but the crux of intraday trading is experience, a bankroll, and discipline. I do not intraday trade SI, only CL. I do not think anyone will teach you for free. Besides, what challenge is that? It would feel like taking a helicopter ride to the summit instead of hiking it yourself.

In my opinion, people who successfully intraday trade are self-taught. If you are unable to spend MANY hours sitting at a desk, alone, thinking intensely with acute attention, you will fail at this craft. It will require ALL your intellectual and emotional energy. You will have to want to succeed at it like a drowning man wants a breath of fresh air, like a med student wants to see MD after his/her name, like a navy seal candidate wants to be an official seal.

Are you ready for that intensity? Most are not.

If you think you are, here is what you do:

1) Fund an account with a few thousand dollars and get a reliable trading platform.

2) Watch SI--if that is what you wish to trade--  during pit hours like a cat watches a mousehole.

3) Take notes in an ongoing text document.

4) On the weekend, spend several hours reviewing data

5) Begin to make inferences.

6) Simulate trading those inferences.

7) Achieve consistency and establish your own trading plan of statistically significant methods and strategies.

8) Begin to trade with real money.

9) Enjoy your new lifestyle and congrats on the awesome feeling of accomplishment from hard work.

Cheers!

Since I'm not trying to sell you a system or newsletter, I'm not going to go through your rigorous exercise. I don't work for free :) But I have proved my system to myself. If you want to paper trade it, please do and you'll see that it works very well. Turd's system is not a day trade, it's a swing trade, so I think we should leave his system out of the topic.

My system is very simple and involves several Forex.com trades daily and requires strict discipline to be effective. Forex trades are spot/futures derivatives with no actual direct interest in the contract market. It's a pure electronic trading game, no deliveries and no hard equity other than your account balance in fiat plus/minus whatever your present open positions are. Leverage may or may not be employed at the user's discretion and risk tolerance. A reasonable starting acct balance would be $10k USD to give enough breathing room to take the small hits without losing your ability to continue trading. My system will generate many small gains, some small losses with overall small risks. It pays green at least 70% of the time. That's a very high percentage for day trading. If followed, it requires keeping one eye on the chart almost all the time and concentration when target signals are close. When this isn't possible, you would be flat (sleeping, office meeting, vacation, etc.) It works best with market orders. It's a time/effort commitment but it's scalable too when confidence in the system is gained.

The basic system is to use the 5 minute gold or silver chart view (I use Netdania) and buy 1 position when the 5min RSI is 20 (low volume overnight hrs) or 30 (higher volume daytime hrs). Then as the trade moves in your favor, you target selling at 5min RSI of 60 (high vol) or 70 (low vol). You can do the same in reverse by shorting high RSI and covering low RSI. You always play the RSI, even if you end up taking a loss.  This doesn't happen to often. More often you'll break even if the trade is a dud (this happens a lot in low vol overnight periods), but most often win.

Advanced versions of this strategy can include carrying multiple positions added near(but not outside) of previous support/resistance points (depending on if you're playing long or short side), long gold/short silver pair or vice versa to hedge risk, playing the "trend" by favoring heavier position carries on longs (in metal bull trend) or shorts (metal bear trend), et al.

I invite folks to pick this apart. I've tuned it pretty well for myself but I'm always interested in the opinions and analysis of others :)

Good morning, all. 

Pailin, you described your system as before.  Thank you for again helping others to see your world view.  Quite nice of you.

I have two questions.  First, at what point (if ever) do you sell before the RSI rises to 60 (and how often might that happen)?  Second, how are you determining support and resistance?  I ask that b/c you've often referenced longer-term chart Bollinger bands, as well as obvious horizontal support lines.

Intuitively, your system seems to be a disciplined buy high/sell low strategy using RSI extremes to minimize risk.  I view RSI as a loose measure of extreme emotions, helpful in determining when the trend has reached extremes.

For those considering day trading, I would clarify this.  Consider that you need to identify a low-risk/high-probability of success entry point that will allow you to skim profits quickly on a clear-as-day move in price.

I've seen references to systems on Turd's blog where it seems the strategy is to throw maximum dollars with max leverage on a few ticks of movement, make a decent amount, and call that success.  Yes, that's good for most trades.  But when it goes against you, it likely wipes you out or destroys your psych.  My advice would be hold out for a lower risk, higher probability with lower profit system.

- Jim M.

Thanks bro. I'm always up for being helpful :)

Today's 4:30 am - 7 am action is a picture perfect example of running the long side of my strategy, capturing a .50 price move. My platform, Forex.com, has me set up at min. size 500 oz of silver, so that makes this trade (which I did not do) worth $250. Do this twice/three times a day and your $10k becomes $20k in a month or so.

--> NCOT (and anybody else) - like all speculative day trading games, don't do this if you can't afford (really and truly) to lose 100% of your account balance and live to see another day (e.g. wifey doesn't kill you in your sleep!)

I'll fully disclose that I do not trade every single opportunity my system presents. It works best in a high volatility market, which the summer is not giving us right now. Also, I'm enjoying watching more than trading right now, and the weather is really nice here in New England. I'm going out more for early morning running and sitting outside reading books, etc. I'm just seasonally lazy, actually enjoying my unemployment (vs. over the winter w/blizzards etc) while my peers are slaving away at the office :)

pailin-

Thanks for posting your system again. I appreciate the fact that you are willing to share this info with newbs like me. I am long on household beans and rice so you and wife are always welcome to share a bowl if in FL when TSHTF.

My question, can you place a market limit order in Forex based on the RSI? I'm thinking you can't. If not, do you have alerts sent to you on the RSI signals so that you can place orders? As far as I can see, limit orders can only be placed based on price. If you want to buy based on RSI, you have to watch the charts, correct?

Hat tip to Pailin for attempting such an exhaustive answer to an exhausting question!

Very nice of you to help us out Pailin. Seems like a pretty easy to follow system. Might be a good starting point for me as I get a better feel of the trading.

Do you place stops on your trades? Or just hover over it?

Pailin, thanks for explaining your system.  With Forex.com you can open a Metatrader account and with the Metatrader platform you can write a simple program to execute trades based on the RSI levels or any other indicators you choose.

Answer inline in bold.