The Best Intro Trading with Dow Jones

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Day trading with Dow Jones … where do I start?

As with other instruments, the Dow Jones trading day has its own specifications.

This article won’t go into much detail of how I’m trading the Dow Jones.

I’ll probably follow up with a second article on that.

For the time being, I will share with you some of the important moments that you should pay attention to apart from London open.

Sometimes a very bullish or bearish day starts when London opens.

Therefore, this trading session should not be underestimated.

Still, the increased volatility of Dow Jones traders usually experience around the US Open.

This happens at 9:30 AM EST.

Let’s take a look at a breakdown of some of the essential moments for Dow Jones trading day.

So, I’ll walk you through 5 real Daily Dow Jones trades.

The best time to trade Dow Jones

The Times listed below are EST (Eastern Standard Time).

That’s when the stock market opens.

Usually traders are seeing an initial push in one direction.
Dow Jones US Open trading day

Depending on the day, but it could take around 15 minutes for traders to find their feet in the frothy trading waters.

A very common pattern is for Dow Jones to invest immediately after the initial boost.
Dow Jones Day trading reversal

At this time, the trend is already established or will be challenged once again.

In many cases, the trend will re-test a significant level as a support / resistance level and then resume the trend.
Dow Jones trading day deadlines

The market generally continues the movement and in a higher percentage of cases it will slow down as volatility wears out.

Traders are preparing for lunch and therefore volatility is reducing.

Get ready for a range…
Dow Jones trading day deadlines

This is the weather that by Presumption is the quietest of the whole day.

It’s not always the case, but it’s usually smart to stay away around these hours.

And why not have a lunch or dinner, depending on where in the world you are…

Expect more volatility right now.

Range trading is very likely to see a breakout in one direction or another.
Dow Jones trading day

Around this time we are approaching the end of the trading session.

Traders will be asking questions like, Will the trend continue further down (as in our example).

Is there a possibility that it will be reversed at this point?

Perhaps there is an important level of support that was reached…


Expect some shaking here.

The trend could reverse and erase some of your gains if you did not make a profit at the “important support level”.

He could also continue his powerful fall with even more force.

In my opinion, it is all supply and demand and price action.

Everything is in the hands of market participants.
Day trading with Dow
15:55- 16:00

Just a few minutes before the close, liquidity runs out and many of the traders are closing their positions.

Or they are running a market risk overnight.

These are just exemplary figures and graphics.

In real life such movements can be different.

Note that no two days on the trading day are the same, even if there are so many common trading patterns.
Dow Jones trading day saying
Example 1-Dow Jones daily trading with late entry and late exit

The first day of trading Dow Jones example is a gain of 210 points on each trade.

My entry was based on a new test of a higher level in a downtrend.

I was following the trend and was waiting for a place on the chart where I can shorten the Dow.

Let’s take a look at the table now:
Dow Jones Trading Day example 1

As you can see from the chart below, my perfect entry (point 1) was higher than my actual entry (point 2).

I did not manage to enter on time and this cost me some extra points, but experienced traders know how difficult it is to enter precisely at the point I wanted.

It is also unnecessary.
Dow Jones trading day

With this trade I managed to book a few points less than I was initially aiming for.

I thought the price would continue the fall, but recovered from my target level (main pivot point of the larger time frames).

That gave me a clear indication that the trend is reversing and better to be safe than sorry.

As you can see below, the price was completely reversed and I made the right decision.

In trading, it is only proved that it is right or wrong later.
Dow Jones trading day

Keep this statement in mind!

Dow Jones Day Trading example 1 error: did not enter and exit at default levels

How to improve: there is a very small space for improvement here. These are not major mistakes and therefore this trade was almost exemplary.
Example 2-the trading day I left too early

In the following example of Dow Jones trading day, I have made an obvious mistake.

It only became apparent after I took the trade.

Again, there is no way that you can predict the future.

We are in the business of reading the market!

If someone is trying to sell you a system that predicts market movements they are trying to make money from you.

In the following example, I’ll walk you through a trade that could have made multiples of the risk assumed, but only generated a small profit.

Experienced traders know that these trades are more painful than losing trades!
Example of Dow Jones #2
Dow Jones trading day Example 2

In the previous trade, you can see how perfect the entry was.

It was so good that if I dragged my stop loss to breakeven and let the trade run for a few days, I would have made more than 15 times the risky equity in this trade!
Dow Jones trading day

For a personal reason I left this trade prematurely and this was a big mistake.

There was no obvious reason to get out of this trade.

No important technical level was touched!

No price action signal was given to exit this trade.


I needed to get off the screens and instead of moving my stop loss to an equilibrium level or a little higher, I decided to book a small profit and run away.

Big mistake!

Let’s take a look at where the price is currently located, a few days later.
Dow Jones Trading Day huge return

This is almost a perfect entry point.

I’m not saying I would have clung to this trade until this point, where our risk: reward is 1: 15.
Day Trading Dow Jones risk reward

But even taking profits halfway, he would have made a very decent return.

These are the kind of trades that you should look for to catch.

A quick review of the daily chart shows us that there is no reason to exit this trade right now in case we are still long.
Dow Jones trading day

As you can see, we are still around 150 points away from the main resistance level at 27600!

Dow Jones trading day Example 2 error: exited trading too early without a clear price reversal signal

How to improve: do not exit a trade for a personal reason if the trade has not shown a reversal sign

Example 3-day trading Dow Jones outside regular trading hours

The following example of Dow Jones Day Trading is taken from outside normal working hours.

I entered the trade about 3 hours after London opened and closed the trade about 1 hour before it opened for us.
Dow Jones logo trading day

In other words, this trade was made when traders generally do not seek to make a trade.

Let’s take a look at the trade now.
Example of Dow Jones #3
Dow Jones Trading Day example 3

Trading was taken according to my daily trading strategy.

I have been looking for a specific level, which was reached and then followed my rules to add two more positions.

In total I had 3 operations in the same direction.

I kept them open for just over 2 hours and scored between 200-300 points on each.

This was a great trade that reached my goal much faster than expected.

He could have been greedy and kept trading for much longer, but this would not have been the right decision for two reasons.

Trade reached the initial target
The price action was showing me that an imminent reversal is possible

Sometimes you should keep your operations for as long as they show signs of strength.

Other times, you just need to get profit as quickly as possible and move on.
Day Trading Dow Jones and consistency

I think there is simply no other recipe for consistency in trading.

In other words, consistency hides in being flexible and disciplined enough to do the right thing at the right time.

Cliche as this sounds, this is about the biggest secret anyone in the trade could share with you.

Dow Jones Trading example Day 2 error: trading in not particularly large trading hours

How to improve: sometimes your level would be hit outside of active trading hours, but this should not be a reason for you not to take a trade
Example 4-Dow Jones trading day good entry and perfect exit

Let’s take a look at another recent trade I took.

There are two positions that each scored about 230 points.
Day trading Dow Jones example 4 entries

You’ve probably heard the saying that the exit of a trade is as important as the entry,if not more.

This trade shows that if you have the right trading strategy, discipline and a little luck you can get out of where you left off.

The entrance could have been better, but the exit is perfect.

I want to emphasize how important it is not to pay attention to perfect inputs or outputs in trading.

Since they are part of the” magic “of trade, I wanted to include a”perfect” trade.

Although this is not the goal of this article, perfection is a part of the whole picture, so here it is.
Dow Jones Trading Day example 4

Once you have a target set, it is recommended that you see how the price is reacting to this level.

Of course, you must first reach the level.

In my trading courses, I’m going over this, so for the sake of this article I’m not going into much detail.

I’ll just illustrate one of the ways I’m checking if this is my level.
Dow Jones Trading and objectives
Day of trading Dow Jones targets

Here is a simplified version of it.

Once I reach my goal, I want to see some technical aspects lined up and this is one of them.

Sometimes, in very strong trends, you may see this pattern appearing near your target and only later see the main trend continuing:
Dow Jones trading day

There are quite a few variables, but it is usually a good idea to have hard targets and make sure to withdraw at least some of your position.

After all, perfect exist are as rare as perfect entries and therefore should not be your goal!

I’m much more inclined towards a big risk: reward relationships.

You should be, too!

Dow Jones Trading example Day 1 error: there was no major error in this trading example day

How to improve: sometimes a trade goes smoothly from point A to point B.
Example 5-Dow Jones and day Trading-mastering stacking positions

I’m not a fan of Martingale trading systems.

On the other hand, I think that once you are proven right (and only if you are proven right) you should try to maximize your returns.

How do I do that?

Let’s take a look at the following Dow Jones intraday trading:
Dow Jones Trading Day example 5

What can you see here?

It’s definitely not a perfect outlet.

I certainly did not 30x my risk in trading

Each of these trades made between 220-350 points.

This is still very good performance considering the risky amount.

What you should have noticed are two things:

I took my earnings a little too late, but still managed to get a decent return on trading
It took 3 different trades, which were all part of the same trading idea (go short Dow)

Why did I choose to open two more short trades in the places I did?
Trading day and proper positioning
Trading day and positions

This is a classic example of a new test of a higher level.

I entered a trade in precisely where I wanted based on my trading strategy.

Then, I added two more operations in levels, which were at a good enough distance from the first operation.

In the end, I scored almost 1,000 points from this trade.

Dow Jones Trading example Day 1 error: I left later than I should have

How to improve: there is a very thin line between taking profits on your target and giving a little extra space to see if you can even squeeze out more than one trade. Always follow your plan!
Summing up-Dow Jones and day Trading

The success of day trading takes years to master and thousands of hours of screen time to reach consistency.

There is no secret way to achieve that, just hard work, good trading strategy and strong discipline.

The Dow Jones Day trading examples above are some of my recent trades that I have taken based on my day trading strategy.

In trading, sometimes you will also have losers.

Do not be fooled by this article that trade is always roses and lilies.

You will have the loss of trades.

What matters in trading is not to take these emotionally and try to cut your losers as fast as possible.

Having a hard stop-loss helps with that.
Do you want to keep learning? I teach all my trading knowledge of the day in my trading course of the day.




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