Welcome to the Tradingsim Blog.  Please browse the various trading categories which cover everything from trading psychology to chart patterns.  Another great resource we offer is our trading simulator which allows you to practice placing trades against real historical tick data.

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


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 →

8 Things to Consider when using Most Active Stocks Lists

Most Active Stock List

Most-Active-Lists Story Highlights Focus on high volume stocks trading on one index Avoid the urge to trade every high flying penny stock Have a plan for how you are going to trade the most active stocks in the market or the market will have a plan for you The key to placing winning day trades Read the full article →

How to Use the Average True Range Indicator

Average True Range

Average True Range Trading Strategies Story Highlights The average true range (ATR) is a great tool for determining the level of volatility across stocks to align your investment choices with your risk profile. The ATR should not be used to identify stop loss and exit targets as past volatility is not a predictor for future activity. Read the full article →

6 Ways to Effectively Manage an All-in Trade

All-in Trade

In this article, I will be covering 6 steps for managing and preventing traders from taking all-in trades. Before I dig into the details of each step, let us first come to an understanding of what is an “all-in” trade. What is an all-in trade? The way I am framing “all-in” for this article, is Read the full article →

Day Trade, Swing Trade or Invest in Leveraged ETFs?

Pro Shares Ultra S&P500

In the true spirit of the Tradingsim blog, we will quickly cover the definition of leveraged ETFs, so we can dive into the details of whether you should day trade, swing trade or invest in leveraged ETFs. Background on Leveraged ETFs What are Leveraged ETFs? Leveraged ETFs are an investment vehicle that provide additional exposure 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 →

5 Ways to Identify Blow Off Tops

IWM Breaking Down

In this article I will cover 5 ways to identify that a stock has had a blow off top. Because blow off tops are so violent, it’s best to allow the 5 events I will describe in this article to play out before jumping into the stock. At the end of this article you will 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 →

5 Reasons Why Not to Overreact to the Death Cross

Death Cross

The death cross sounds so dramatic.  The death cross is when a short-term moving average crosses to the downside through a long-term moving average.  The most commonly used moving averages when assessing a death cross are the 50-day moving average and the 200-day moving average. After reading the above paragraph, that’s pretty much all you will find 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 →

What are the components of a stock chart


First Why Use Charts? Before I start diving into this article, all you experienced traders out there can skip this one as I will be covering the basics of how to analyze a stock chart. So, now that we have addressed the elitist – why use charts?  For me it’s about being able to quantify 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 Sell a Stock at Resistance


Why Selling at Resistance is a good idea The purpose of trading is to make money.  It’s not to pick up an expensive hobby, or a place to gamble away your retirement fund.  So, while this article may sound like a common sense topic, far too many traders forget that selling or closing a position Read the full article →

How to buy a Stock at Support

Buying Pullback to Support

Overview of buying a stock at support Buying a stock or security at support is a tried and tested strategy that has proven to work successfully over the years. This principle is based on the basic laws of supply and demand. To put it simply, buying at support is the process of identifying when the Read the full article →

How to Calculate Point and Figure Price Targets when Swing Trading

One Box Count

I can honestly attribute the use of point and figure charts as one of the turning points in my trading career.  Earlier on as I studied the works of Richard Wyckoff, point and figure (P&F) charts were a staple of his trading methodology. As I began to define and refine my own trading systems, I Read the full article →

Why I no longer obsess over the Broad Market

NYSE Broad Market Tops

What are broad market indicators? Broad market indicators are breadth indicators that attempt to identify the underlying strength of the market.  Essentially, these indicators will uncover how many stocks are participating in a rally or decline, thus providing further insight to you the trader as to how you should weight the significance of a move 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 →

How to Identify When a Stock is Starting to Trend

P&F Chart Example

In now my fourteenth year of trading, if I had to boil down one of the key turning points in my ability to consistently make profits it would be my ability to understand when a stock is starting to trend.  This concept earlier on in my career would baffle me because I could not find Read the full article →