6 Reasons Day Trading While at Work is a Bad Idea

I totally get your motivation of day trading while at work. Odds are you are a logical person and fully understand the risk you are taking by even considering trading as a means of income. Naturally you say to yourself, “I have a job and are able to pay my bills, so why place my Read the full article →

How to use the NYSE Summation Index as a Trading Guidepost

NYSE Summation Index

Why Care about the NYSE Summation Index Let me first start off by saying that this article will not cover the nuances of how the Summation Index was created, all the detailed math behind the equation or even exactly how it works. The purpose of this article is to dive into how to use the Read the full article →

8 Reasons Why Not to Sell a Stock Short

XOMA 30-Week Moving Average

Selling Short requires more skill than going long.  That statement alone may trigger a response from my readers, but I believe that is an accurate statement for a number of reasons. First, the market has a bias to the upside, as most market participants buy and hold stocks.  Secondly, depending on how you hedge your Read the full article →

Learn How to Pull the Trigger on a Trade

5-6-2014 8-48-02 PM

First Let’s Try to Understand Why you are Afraid? Fear is one of the emotions that can hold you back from reaching your full trading potential.  Trading is primarily a mental game and those that exercise clear judgment have the greatest odds of success. So, before we can delve into why you are having trouble Read the full article →

How to Trade with Margin

What is trading with Margin? Trading with margin is simply using borrowed money to buy or sell stocks short.  Brokerage firms will allow you to use your cash on hand as equity in determining the amount of margin you are allocated in your trading account. This leverage is different for the types of markets you Read the full article →

Is Day Trading Like Gambling – 8 Signs You have Lost Your Way

Dice

This answer to this question is based on the strategy and investing style of the participant.  I can tell you without a doubt that trading in the markets is not like gambling at all. Gambling has a fixed odds system for all major games, while trading in the markets is truly unpredictable.  The “house” or Read the full article →

How to Let Your Winners Run – 7 Tips for Success

How to Let Your Winners Run

Letting your winners run is a topic which polarizes traders.  There are those that swing for consistency and trade with strict profit targets.  These are the traders who likely view letting your winners run as a sure fire way to lose your focus and open yourself up for more risks. Then there are those traders Read the full article →

How Stocks Work – From a First Graders Perspective

How Stocks Work

How does the Stock Market Work? Stocks, oh where do we begin?  Let me first commend you for taking the time to try and understand how the stock market works.  When researching this topic you will notice a lot of people attempting to sound super smart.  Far too often the explanations for how stocks work Read the full article →

Trading Days in a Year – So How Many are There Really?

Trading Days in a Year

How to calculate the number of trading days per year Since you have posed the question question of how many trading days in a year, let me first provide you an answer.  On average there are ~ 251 days per year.  This calculation is broken down into the following inputs: # of Days in the Read the full article →

Stop Loss Orders – Why They Don’t Work

Stop Loss Orders

How do Stop Loss Orders Work? If I had to define a stop loss order, it’s just that, a protective order which stops you from losing more money than you would like.  In a nutshell these are orders that are placed a certain distance from your entry price and if reached your position is closed.  Read the full article →

Day Trading Setups – 6 Classic Formations

Day trading is all about getting in a rhythm.  Over time you will begin to identify day trading setups that consistently work for your trading style. Whether you have a high win ratio or the average winning profit runs much greater than your losers, you just need to come out ahead. Your trading style is Read the full article →

Can the Turtle Trading System work with Day Trading?

Turtle Trading System vs. Al’s Trading System The turtle trading system fascinates me on many levels.  First you have two guys (Richard Dennis and William Eckhardt) debating over whether they can mold untrained every day people into master traders.  Apparently, Richard who was claiming you could was right in his belief that winning traders can Read the full article →

First Hour Trading – Simple Strategies for Consistent Profits

Assuming you have either started day trading or are looking to get into the game, I am going to shock you in this article.  What I will cover here would have saved me 20 months of headache if I just had someone give it to me straight.  Recent studies have shown that the majority of Read the full article →

Best Moving Average for Day Trading

Breakout example

Why Moving Averages are Good for Day Trading Keeping things Simple Day trading is a fast game.  You can be up handily in one second and then give back all of your profits shortly thereafter.  As a trader, you need a clean way to understand when a stock is trending and when things have taken Read the full article →

How to Day Trade Buying and Selling Climaxes

Facebook Trend Channel

I have written a few articles on trend reversal patterns, but I would like to dive into the topic of buying and selling climaxes when day trading.  The obvious question you probably have is if someone is buying a lot of shares and I am long, this is a good thing right?  Well, it is Read the full article →

When Should I Sell My Stock?

Facebook Swing Trade

When should I sell my stock?  If you have been trading for less than an hour you have probably already asked yourself this question.  If we figure out the old adage of buy low and sell high, we could all live the good life.  Trading however is a bit more challenging.  There are indicators, systems, Read the full article →

3 Trades a Day

When you get up every morning to go to work you know what hours your employer expects you to work.  What about your favorite store.  For me it’s a toss up between Best Buy and Wegmans (I know a grocery store).  Even though these two establishments would gladly take my money, they will only do Read the full article →

5 Ways to Secure Seed Money to Start Day Trading

Day trading requires you to have quite a bit of cash on hand for your trading activities.  Margin aside, I have said you need 50 to 1 cash to monthly expenses ratio.  There is a little bit of room here if you have other means for income to offset your expenses, such as rental income.  Read the full article →

Day Trading a Two-Day Range Breakout

Two Day Range

A breakout of a range presents an opportunity to get long or short.  But how do you know when the range has enough “juice” to generate a trending move.  As day traders you will have a slew of data to analyze in a short amount of time.  So, why not take the simple approach and Read the full article →

Day Trading with Price and Volume

Bank of America Down Trend

price-and-volume from Tradingsim on Vimeo. Price and volume are the oldest indicators you will find in the market.  As day traders we are always looking for an edge, hence the endless supply of indicators and trading methodologies.  When you really boil it down to its root, trading is nothing more than capitalizing on the imbalance of supply Read the full article →