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 →

Day Trading the Three Bar Reversal Pattern

Three Bar Reversal

The three bar patterns is one of the more common trading setups.  The reason its so common makes it an easy target for newbie traders when they do their scans.  The problem with the three bar reversal pattern when it comes to day trading is the setup can be found all over the place.  So, Read the full article →

Day Trading Bottom Tails for Profits

Goldman Sachs Bottom Tail

The bottom tail formation is a trend reversal pattern that comes at the end of a down move.  Below is the setup for the bottom tail pattern: There is a downtrend in progress Select two popular time frames that are close together (i.e. 1-min & 5-min or 5-min &15-min) Identify a bottom tail candle on Read the full article →

Day Trading Cup Breakouts

day-trading-cup-breakouts

Video Example of a Day Trading Cup Breakout The below video breaks down another working example of the Day Trading Cup Breakout. This article is a review of the day trading cup breakouts strategy presented by Ken Calhoun in Stocks and Commodities Magazine. Let’s lay down the ground rules for the pattern. 1. The pattern Read the full article →

Day Trading Breakouts at the End of the Day

Video thumbnail for vimeo video Day Trading Breakouts -

When you think of day trading breakouts the first time frame that comes to mind is likely the morning.  This is a natural first reaction as the morning presents the greatest odds of volatility with overnight news, morning earning reports, and early morning economic data.  There is however the possibility to make money trading breakouts Read the full article →

Automated Day Trading

Automated Day Trading Definition Automated day trading is when a trading system places orders in the market without any human interaction.  These systems work best for traders who are unable to manage their emotions and or have poor money management techniques.  With a number of direct access brokers providing automated trading, it is no longer Read the full article →

Day Trading Money Management

Day Trading Money Management Day trading as a business can be very profitable. It is probably the safest form of investing, as you are focusing on a small number of positions, you are not holding any positions overnight and you are able to enter and exit trades with pinpoint accuracy. However, many day traders find Read the full article →

Gap Pullback Buy

Our next strategy, the gap pullback buy, is one of my favorite setups.  It allows us to let the morning action play out and enter into a trade with a strong setup and relatively low amounts of risk. Trading Characteristics of a Gap Pullback Buy The gap pullback buy is predicated on the concept that Read the full article →

Symmetrical Triangles & Day Trading

Day trading with the symmetrical triangle formation is a great way to take advantage of late day breakouts.  Some traders will look for symmetrical triangles on a very short timeframe (ie. 30 minutes); however, I like to see this pattern develop over a few hours after a strong morning advance.  Symmetrical triangles are considered to Read the full article →

Early Morning Range Breakout

The first morning trading strategy we will discuss is a very simple, commonly used, and reliable trading pattern; the early morning range breakout. This strategy allows traders to take advantage of the violent whipsaw action that can result from the flurry of buy and sell orders that come into the market on the open, up until Read the full article →

Morning Reversal Gap Fill

The morning reversal gap fill is another great trading setup for the first hour of trading, preferably within the first 20 to 30 minutes of trading. This strategy is a play on a shift in market momentum and is directly tied to market manipulation by the market maker on the open. As we discussed in our introduction to Read the full article →

Day Trading Breakouts

What are Breakouts? When you think of day trading breakouts, what comes to mind?  Stocks making daily highs, two-day highs, weekly highs, all-time highs?  As you see, breakout means a lot of things to a lot of people. So, why do so many people lose money day trading breakouts? Why are traders constantly buying stocks Read the full article →

Day Trade Setup – Three Bar Reversal and Go

three-bar-reversal-and-go

Day Trading Setup – Three Bar Reversal and Go This article is going to discuss a very simple, yet powerful, day trading strategy that is used to capitalize off of the greed and fear from a group of novice traders. I refer to this setup as a “three bar reversal and go“; it can be described Read the full article →