How to Improve your Trade Entry and Execution

Trading Low

When you review your historical trades, you will notice that given a better entry price, your loser could have actually been a winner.  It’s like anything in life timing is the key. When day trading, you will have the natural inclination to go back and tweak your system, or look to pull in additional indicators to Read the full article →

3 Strategies for Trading Flags and Pennants

US Flag

Flags and pennants are foundational chart patterns of technical analysis.  What I mean by this is most technical traders have heard of the patterns, as these are easy to recognize.  Most of the trading strategies documented for flags and pennants are straightforward and somewhat boring to be honest. In this article, I plan to challenge the Read the full article →

5 Examples of Keltner Channels versus Bollinger Bands

Keltner Channel Inputs

I am a self-proclaimed ATR fanatic, yet I have not explored Keltner Channels.  The Keltner Channel is a lagging on-chart indicator that uses a combination of exponential moving averages and the Average True Range (ATR) as inputs.  Unlike Bollinger Bands, which uses standard deviations to calculate the width of the channel, Keltner Channels uses the Read the full article →

Top 4 Awesome Oscillator Day Trading Strategies

Awesome Oscillator

I don’t know about you, but what was Bill Williams thinking when he came up with the name awesome oscillator? With names floating around as complex and diverse as moving average convergence divergence and slow stochastics, I guess Bill was attempting to separate himself from the fray.  To learn more about the awesome oscillator from Read the full article →

5 Reasons I Use Stop Limit Orders to Enter Trades

Stop Limit Order

I exclusively use stop limit orders to enter day trades.  This is because I trade breakout strategies and I like to wait for the price to exceed the most recent high or low. In this article, I will cover the 5 Reasons stop limit orders have helped improve my trading.  Before we get into the Read the full article →

6 Reasons Not to Trade During the First 30 Minutes

Emotions

The first 30 minutes is the most volatile time in the equities market. As a new or even seasoned trader, you will gravitate to the first 30 minute slot like a moth to a flame. It really comes down to the level of action present in the market early in the day, which keeps us all Read the full article →

How to Measure Your Trading Performance

Trading Performance Graph

Trading performance is something that I have personally been studying for over 15 years.  It’s one of those topics that many traders either avoid or spend little time researching.  Most traders, simply think of performance in terms of dollars made and loss. The bottom-line in terms of dollars is always the ultimate score; however, along Read the full article →

5 Benefits of Day Trading without Margin

Options

As I say day trading without margin aloud, it is almost as if I am taking all the fun and excitement out of trading.  I would compare it to riding a super charged Harley with a helmet. The trading business tends to reward and revere those of us that have an ability to take on Read the full article →

5 Simple Steps for How to Day Trade Penny Stocks

List of Penny Stocks

Story Highlights Day trading penny stocks requires a methodical approach for locating and trading the best opportunities in the market Penny stocks are not like other securities in that their price movements can be quite volatile The use of Fibonacci extensions is a key tool for unlocking hidden support and resistance levels on the chart Read the full article →

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 →

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 →