The simplest way to assess relative strength is to divide price by price to develop a relationship on the current price and compare that relationship through time. It can be normalized on a scale of 0 to 100 were treated as a raw unbounded number. Normalizing on a scale of 0 to 100 allows for consistency and simplifies the comparison between different instruments against an index or against each other.

If you are looking to be a full time trader, you can expect to have to routinely sense and adapt to changing market conditions on a regular basis. It is worthwhile then to develop a mindset that expects this kind of routine change, and a system to routinely manage the transitions.

We can apply this advice by streamlining our decision making process by rehearing, by reducing our required information to the minimum needed to act, and by anticipating events in order to have a plan of action worked out ahead of time.

From a systems design perspective then, instead of trying to master the entire market from the beginning, we should be looking for ways to master certain defined segments that minimize risk and yet provide enough opportunity to learn and master the craft.

Trading the markets on a daily basis with short term strategies places a premium on efficiently and effectively developing a comprehensive daily trading plan. Short term trading can be a very rewarding part of an overall trading and investment strategy. Without a sound and comprehensive plan, though, there are just too many ways to go astray for the novice trader.