Patience = Control

Today’s trade with ARRY was the perfect Gap-Up.  My rule for all gappers is to wait for the first two minute candles to show me the price range.  The third candle usually goes above the price range or below it.  If not the third candle, then the fourth.  Follow the direction of the candle that breaks out of the price range.

The patience required for this trade is great, why?  Because the morning  pre-market always offers a great place to enter too, but often this is not the best price entry, or the stock turns in the opposite direction when the market opens and you end with a loss. Patience thus equals control.  Control of your emotions is a necessary skill for training and its hard !!!

A good trader will trade with little to no emotion, he/she will know this type of trade and have a specific plan for it.  The plan will in fact help you control your emotions and provide the patience needed to wait for the set up to occur.  Therefore having a successful trade.

Good Trading,

Jules

$15,000 !!! How I doubled my money in 2 months !

Trading certainly has a learning curve.  Starting my “Day Trading Journey” May of 2015 was exciting, overwhelming and hard !! There are so many rules, types of trades to learn, time required to study, trading platforms to navigate through, as well as realizing the vital importance of your amount of trading collateral.

Yep, that’s the new learning, trading collateral.  In May of this year, 2016, I upped my collateral from what was just over $7000 to 26k.  Why, you ask? The PDT rule for one.  The “Pattern Day Trading” rule allows for only 3 trades per week.  I was forever getting punished for misbehaving and going over that limit, which resulted in a 90 day suspension.  Starting a new trading Broker seemed to be the only way around, until I reached 4 accounts, three of which had 90 day suspensions. Ugh !!!

Apparently I need to work on my “DISCIPLINE”, which I have been, as well as brought my trading capitol above the PDT restriction.  This changes everything.  I actually had great trading strategies that I learned and was now able to fluidly use them.  Much to my surprise, I started doing very well.  My account was growing quickly.  Since June of 2016 I was trading full time, disciplining myself greatly and defining the style of trades that work best for me.

There is an undeniable freedom that comes with having larger accounts that surpass the PDT rule.  However, you can grow your smaller account like Tim Sykes did.  I was just not as good of a trader as Tim and after a year of struggles and YES, many leanings too, I got the hang of it.  Now I’m trading several trades a day, recognizing the best times to trade and what types of trades to look for and when.  I’ve actually become a better trader.

So I would count my pennies, save all my change, ask for cash only gifts and buy sneakers only when the hole on the bottom just can’t be fixed anymore.

Best of luck,

Jules

 

My first $5009.24 PROFIT with Tim Sykes !!!!!!! Whoopee !! Thanks Tim !!!byJules

My first $5009.24 total PROFIT to date made with Tim Sykes was in 126 trades, just under 9 months winning 62.7 % of the time.  I started with 3 small accounts totaling all together $3500.00 of start up money.

My journey wasn’t easy in the beginning.  I had been an investor for years, long term, but I never did Penny Stocks which proved to be very different.  There was so much to learn and I had no clue what the PDT Rule was.  But I KNOW IT NOW !

I started back in early 2014 reading trading books, technical analysis, candlesticking and such.  I found Tim’s DVD’s and bought “HTMM”, Tim G’s, “Trading Tickers”, and Michael Nichaud, “Textbook Trading”.  I found ALL to have a plethora of information and be extremely valuable.  I still listen to them again and again and pull more knowledge out each and every time.  Lots of new “Light bulb moments” in re-listening to the dvd’s after trading for a while.

Each morning I wake at 7, go to Finviz, Seeking Alpha, and Market Watch.  I pull my watch list and check for news.  I then read Tim’s watch list.  I confirm the stocks I pulled and add a few he may have I may not.  I always choose myself what to go into, have a reason why, and have my plan written out.  I also have extensive watch lists on TD Ameritrade, which I also use for my charting, and Scottrade.  When the bell rings I use these watchlists to see what stocks are the highest % gainers.  It never fails they are usually already on my watch list I just created.  GREAT !!,,,, I now choose my stock of choice and enter.

 

These are TIPS and TRICKS – I LEARNED AND USE IN TRADING !

THE PDT RULE:  This slowed me up for sure but truly taught me the most about making educated decisions in trading, being selective, having patience, and not jumping at anything and everything that moves.  All 3 of my accounts are on lock down till March.  I learned a lot and more than I would have if this didn’t happen to me.  But I will admit I have all plans to put up the $25k to avoid this from ever happening again !!! 

10 Period Exponential Moving Average (calculated on the close price). Once a move has started the 10 EMA will contain the candles until the move is over. The price (candles) remains solidly to one side of that EMA. Therefore, any break of the EMA signals and exit. Also if the 10 EMA goes flat for several Candle Bars that too is an exit signal.

Whole Number $$ amounts $35.00, $36.00 etc are magnets !!!  Consider whole numbers as support and resistance lines and DECADE #’s as ever stronger support or resistance 30, 40, 50. Prepare to exit or set exits to these numbers especially if it hits a whole number and stalls

3 Bar EXIT Rule– 3 consecutive red bars in a row get out if long, 3 consecutive green bars in a row get out if short. This usually indicates a change in trend. I use this rule on the 5 min Intraday chart AND the 1 minute Intraday chart.  I find when the 1 min starts to show red bars 1, 2 and then 3 the 5 minute may not have this yet.  If the RED bars are large full body I get out, but if small I’ll wait to see what 5 minute chart looks like.  It may not go to 3 red bars and I’ll stay in.  This has really helped me to HOLD ON for longer and capture a bigger portion of the move.  I always use the 1 MIN CHART to give me a heads up but the 5 MIN CHART to CONFIRM my exit and make MY DECISION ON !!!

Cut losses early ALWAYS !!!   This can be just $5.00.  I don’t wait anymore if it goes against my plan.

TRIANGLES and the ABCD PATTERN- I use triangles all the time to determine when a breakout will happen.  I can just see them forming now.  I learned this type pattern early on I believe its the easiest to spot and holds true for ~85% of the time. But easy enough to avoid entry if it goes the other way.  If interested learn about these.

 

Things to consider:  

STOP loss, trailing stops. Consider a STOP as the emergency button because you didn’t get out earlier.  Stops are great to help train yourself to get out regardless of what your mind and heart is saying.  I used these in the beginning to train myself.

Scaling IN and OUT I need to learn more about and have not done yet. Not sure if I understand the importance to this so if anyone has time to teach me feel free.

First 10-20 mins – draw horizontal line at highest and lowest price point to see price action for day.  These lines are your support/resist lines. If the price breaks above resist line this may indicate to enter long. If it breaks below the support line this may indicate to enter short

Reversal period commonly between 10 am-11 am.  Highly advisable not to trade 5 minutes before this period.

 

I wish you all a thrilling, energy charged, trading experience with lots of solid learnings.  Please share these with me, as I learn much from you all as well.

 

Jules

 “BOOKS”..NOT a scary word !!

“BOOKS”..NOT a scary word anymore when you find the ONE that makes the difference.

So many of you ask what books I’ve read and as an avid reader I’ve read easy 30-50 on trading over the past years.  Oddly, most books on trading don’t actually teach you to actually trade, but instead teach the mind set, how to control emotions, and the nuances of trading, except for “How to Day Trade Stocks for Profit”.  I found this book to be the exception and to be the best for just after the beginning stages of trading.

Here are my favorites and MOST useful.

HOW TO DAY TRADE STOCKS FOR PROFIT- By Harvey Walsh

  •  This 211 page book I bought on my kindle for $9.99.
  •  It’s short, sweet and straight to the meat of what you need know and how to apply it, its relevant and filled with specific trading examples, what to look for to determine when to get in and where to get out.  I am now going to purchase the soft cover and use this book as a reference guide.  It is straight to the point, actual trades – several specific types for early morning and several types for later in the day, exercises to help you understand, and the most needed information to make a profit. Again, this comes after the basics when your already trading to improve yourself and your techniques as it does not have the constant repeat beginner info in it.

THE CANDLE STICK COURSE- By Steve Nison

  • Great if you don’t understand how to read candlesticks.  I learned a lot from this book. Buy the soft cover as you will write and mark up this book.

THE DAILY TRADING COACH: 101 Lessons for becoming your own trading Psychologist – By Brett Steenbarger  

  • So many great lessons and disciplines. Hard to use this book on a kindle.  Buy soft cover and use to read a lesson every now and then.  Mark and save the good ones. Useful book to develop control and disciplines

MARKET WIZARDS: Updated Interviews with Top Traders- By Jack Schwager

  •  Great to hear stories from other accomplished traders.  This was enjoyable but did not add to the betterment of my trading. Buy on kindle.

MOMO TRADERS: By Brady Dahl, Nathan Michaud contributor.

  • Momo Traders features extensive interviews with ten top day traders and swing traders, such as Lx21, Nathan Michaud and Tim Gritanni.  I loved this book because they expressed what it was like to start trading and all their ups and downs.  Also a few of these traders are in and out of our trading room so that was cool to get their personal experience in the book too.

 

Hope this is useful info,

Jules

WHERE DOES ONE BEGIN ??

 

In the overwhelming world of trading one can get easily get distracted as to what direction they should take to get started.  I hope my journey into the trading profession helps to provide some guidance.

Study and Learn:  I began studying day trading as an aside to my investing portfolio 3 years ago. Never thought it would become the be all end all for me.  I read books continuously (find list of books in BOOK menu) all kinds to broaden my thoughts around the field.  I focused on day trading stocks mostly pennies when I came upon an ad for Tim Sykes my path was made clear.

  • Books:  Read, Read, Read.  Not many books actually teach a particular type of trade and how to do it.  I hope to fill that gap here in my blog, but books are valuable for so many reasons.  Check out my Book list for some great ideas.
  • Tim’s DVD: “How to Make Millions“, although the title is cliche is provides all the basics to day trading pennies and more.  It was the beginning and from there I grew.
  • Nathan Michaud “Textbook Trading“, this is true textbook trades.  Nathan explains very clearly and makes trading for these trades appear easy.  Probably got the most  out of this DVD because I had been trading for a while and thus everything was relevant.
  • Tim Gritanni “Trading Tickers“, is an awesome DVD as Tim trades live and uses level2’s and you can really get the grasp of timing your trades just right.
  • All the DVD’s, 1000’s of training video’s, Blogs and more are all offered through Profit.ly.

Join a Trading Community: This is a must to provide support, comradery, and trading ideas.

  • Became a member of the Profit.ly community.  This is a 100% transparent community that allows you to see 100’s of other traders and their specific trades, what kind of trade they made, where they enter and exit, how much they made, the ability to follow them and chat with them as well.  This site was most valuable to me and my learning.
    • In searching for a community to join I found many.  Many are just money seekers.  I found Profit.ly to be the the real deal with many well known traders in the chat room. Profit.ly is the most affordable and best to begin in my opinion.  Investors Undergound is another terrific community with more advanced traders but also highly credible and costs more.  I may join IU one day.

Join a Chat: Most communities will have a chat room to use.  Chat rooms are beyond valuable.

  • Profit.ly Chat is the chat room that comes with the Profit.ly community subscription. Chat rooms are great to get the jist of the day.  Hundreds of eyes searching for stocks over just yours.  Ideally you want momentum around your stock pick so this clearly helps to see what everyone is talking about.

Find a Broker: 

  • The hardest to do but cant trade without one.
  • Depending on the size of your account, under $25,000, will require you to abide by the PDT rule.  Which is the pattern day trader rule and means you can only make up to 3 trades in a 5 day trading period.  Ha !!
  • For small accounts you must keep track of the commisions/fees.  You can really get eaten up by these quickly if you don’t do the math.
  • See “Trading Platforms” on menu for more info on Brokers.

Find a Scanner:  Scanners help you run pre-market scans and intraday scans to locate stocks on the move.  Although the chat rooms are great you eventually must learn to run scans and become a self reliant trader.

  • FinViz: I use mostly because its FREE.  They have a more advanced scanner for a price.
  • Yahoo Finance runs %gainers and more for FREE
  • Your trading platform usually has scanners as well.
  • EquityFeed, Stocks to Trade, Trade Ideas are all terrific scanners that will cost a pretty penny per month.  If your a very active trader that makes mucho $$ you may want one of these more advanced Scanners.
  • The key here is to locate a scanner that gets the job done, provides you with the best trades that continually makes you money.

Lastly– Keep monthly expenses down !!!

  • Trading costs money to make money !!  Consider it the cost of doing business.  But in business you do turn the lights out, turn running water off and so on not to simply waist or over spend the valuable dollar.  Do that with your trading too !!

Hope this helps,

Jules