Shown in the picture above for the s&p that in the upward trend has passed on his way to the rise of
The tests have succeeded, during which the two formed the Qain important affirm the power of the upward trend
Monday, May 2, 2011
Technical Analysis for s&p in 2011
Shown in the picture above for the s&p that in the upward trend has passed on his way to the rise of
The tests have succeeded, during which the two formed the Qain important affirm the power of the upward trend
Technical Analysis for Dow Jones in 2011
Shown in the picture above for the Dow Aljones that in the upward trend has passed on his way to the rise of The tests have succeeded, during which the two formed the Qain important affirm the power of the upward trend
Shown in the picture above for the Dow Aljones he had exceeded the peaks of the points of resistance Have become for the current trend points to support
Sunday, May 1, 2011
DAY TRADING STOCKS
DAY TRADING STOCKS
In this phase, you plan out your stock trades. This strategy must include an entry price, a target price, a stop loss price and a time frame. Once you have completed the strategy for your trade you move on to execution.
Execution is done during market hours in which you simply execute your stock trading plans (strategy). This is the fun part. You have worked so hard to find day trading stock candidates for your next trade. You have developed a trading plan for each one of the candidates. Now, all that is left to do is execute your trading plan.
Day Trading Stocks for a Living
This is a full-time job! In fact, it is more than a full-time job. Day trading stocks and any form of Short-term stock trading consists of three key elements:
- Stock Trading Research
- Stock Trading Strategy
- Stock Trading Execution.
In this phase, you plan out your stock trades. This strategy must include an entry price, a target price, a stop loss price and a time frame. Once you have completed the strategy for your trade you move on to execution.
Execution is done during market hours in which you simply execute your stock trading plans (strategy). This is the fun part. You have worked so hard to find day trading stock candidates for your next trade. You have developed a trading plan for each one of the candidates. Now, all that is left to do is execute your trading plan.
STOCK TRADING SOFTWARE
STOCK TRADING SOFTWARE
Real-Time Stock Scanning and Stock Screening
With over 12,000 stocks to look at every day, you can use a state of the art stock trading software tool to quickly and effectively find stocks to trade. The technical scanning trading software, Oz Scanner, applies technical screening formulas to a large population of stocks. It then returns a list of stocks that meet a pre-determined filter criteria throughout the trading day. Once you receive the list of stocks generated by the scanner, you can then proceed to evaluate potential risk and potential reward prior to establishing a position in the stock.
Understanding the Stock Market
What is a stock market? The stock market is a marketplace where buyers and sellers meet. The items that are being bought and sold are stocks also known as shares which represents ownership in a company. Professional stock traders see the stock market as nothing more than letters and numbers changing rapidly. Four letters in the NASDAQ stock market represent the ticker symbol for that specific stock that is being traded which is followed by a number which represent the price the stock last trade took place at. The four letters being the ticker symbol remains the same. It does not change unless the exchange removes the stock from being listed or the company may have merged with another company or applied to change its ticker symbol which happens rarely. The number that follows the stock symbol is the price per one share (unit) of that stock. The price of course changes many times during the day because of the forces of supply and demand. When there are more shares for sale then buyers then the price of a stock will go down, and when there are more buyers then shares available for sale the stock price will go up
STOCK TRADING SYSTEM
STOCK TRADING SYSTEM
Buying a Dip Stock Trading System
These different instances will qualify as buying a dip in a stock. I will employ similar strategies in each one of these examples:
1. A stock which is trading in a rising channel or horizontal channel and is at or near the bottom line. I will buy 1/3 of a full stock position at 5 -15 cents over the trend-line. I will be more flexible on my stop loss because I took a relative small position and give the stock a chance to bounce. If it falls below a predetermined price, I will sell. If the stock held at the trend-line or slightly below it and started to move up, I will add 1/3 of a full stock position at some predetermined point.
1. A stock which is trading in a rising channel or horizontal channel and is at or near the bottom line. I will buy 1/3 of a full stock position at 5 -15 cents over the trend-line. I will be more flexible on my stop loss because I took a relative small position and give the stock a chance to bounce. If it falls below a predetermined price, I will sell. If the stock held at the trend-line or slightly below it and started to move up, I will add 1/3 of a full stock position at some predetermined point.
I will add the final 1/3 of a full stock position as the stock continues to move in the right direction at a predetermined point and complete my desired position. I will trail a stop and tighten it as
the stock approaches the top range of the trading channel.
2. A stock which has fallen sharply from recent highs and the outlook for the stock remains bullish. I will use the same stock trading system here. I will look for the first signs a rally might take place, looking at intraday activity. I would like to see a reversal pattern (such as double bottom, round bottom, falling wedge, etc.) on an intraday chart with heavy volume at the bottom. I will buy 1/3 of a full stock position there, and 1/3 of a full stock position twice more on the way up at predetermined entry points to complete the desired position, as the stock moves in the right direction. I will again let the stock wiggle when I start the position and give it a chance to prove it wants to go back up, I will be more liberal with my stop loss as it is a small position at first.
3. A stock which has sold off and is at support levels. I will use the same stock trading system here. I will buy 1/3 of a full stock position at 5 -15 cents over the support level. I will let the trade wiggle and keep a stop loss just under support. If support holds, I will add the remaining shares as the stock moves up at predetermined entry points, 1/3 of a full stock position at each point and trail a stop.
4. A stock that is testing a previous bottom and might form a double bottom. I will use the following stock trading system here. Buy 1/4 of a full stock position at the bottom level or close to it. Add 1/4 of a full stock position on the way up to the previous top. Add the remaining 1/2 of a full stock position once the stock breaks out over the previous top. The initial stop loss should be liberal as many times a double bottom pattern has a lower second bottom than the first one.
3. A stock which has sold off and is at support levels. I will use the same stock trading system here. I will buy 1/3 of a full stock position at 5 -15 cents over the support level. I will let the trade wiggle and keep a stop loss just under support. If support holds, I will add the remaining shares as the stock moves up at predetermined entry points, 1/3 of a full stock position at each point and trail a stop.
4. A stock that is testing a previous bottom and might form a double bottom. I will use the following stock trading system here. Buy 1/4 of a full stock position at the bottom level or close to it. Add 1/4 of a full stock position on the way up to the previous top. Add the remaining 1/2 of a full stock position once the stock breaks out over the previous top. The initial stop loss should be liberal as many times a double bottom pattern has a lower second bottom than the first one.
ONLINE STOCK TRADING
ONLINE STOCK TRADING ORDER ENTRY TO OPEN POSITION
Market Order: This is an order to immediately buy or sell a stock at the current market price. By "current" it means at the inside market (best Bid or Ask) or at whatever price the seller/buyer will be willing to fill your online stock trading order at, and "immediately" can mean up to 7 1/2 minutes at times and 5 points later (from my own experience).
When trading online, you should hardly ever use a market order to buy a stock before or at market open. You are almost guaranteed to get a lousy fill. You may use market orders to buy stocks after the open, depending on the issue and its spread (the difference between the Bid and Ask). However, we recommend you try and avoid placing market orders at all times, unless you feel you have to use one. (Please note that the online stock trading execution system you use or are able to use, your broker, etc., are variables that differ for all investors. Therefore, you must determine how you can enter a position in the best and most profitable manner according to all the variables and tools you have.) We will look at advanced order entry systems later in other sections of this website.
Limit Order: This is an order to buy or sell a stock at a specified price. When using this type of online trading order, you specify a price and the order can be executed only if the market reaches or betters that price. It is a conditional trading order designed to avoid the danger of adverse unexpected price changes. This is the type of order that should be used most often to enter positions. It is great to use on stocks with bigger than a 0.03 spread as well as extra volatile stocks.
All of the content published on this website is to be used for informational purposes only and without warranty of any kind. The materials and information in this website are not, and should not be construed as an offer to buy or sell any of the securities named in these materials. Trading of securities may not be suitable for all users of this information.
Market Order: This is an order to immediately buy or sell a stock at the current market price. By "current" it means at the inside market (best Bid or Ask) or at whatever price the seller/buyer will be willing to fill your online stock trading order at, and "immediately" can mean up to 7 1/2 minutes at times and 5 points later (from my own experience).
When trading online, you should hardly ever use a market order to buy a stock before or at market open. You are almost guaranteed to get a lousy fill. You may use market orders to buy stocks after the open, depending on the issue and its spread (the difference between the Bid and Ask). However, we recommend you try and avoid placing market orders at all times, unless you feel you have to use one. (Please note that the online stock trading execution system you use or are able to use, your broker, etc., are variables that differ for all investors. Therefore, you must determine how you can enter a position in the best and most profitable manner according to all the variables and tools you have.) We will look at advanced order entry systems later in other sections of this website.
Limit Order: This is an order to buy or sell a stock at a specified price. When using this type of online trading order, you specify a price and the order can be executed only if the market reaches or betters that price. It is a conditional trading order designed to avoid the danger of adverse unexpected price changes. This is the type of order that should be used most often to enter positions. It is great to use on stocks with bigger than a 0.03 spread as well as extra volatile stocks.
All of the content published on this website is to be used for informational purposes only and without warranty of any kind. The materials and information in this website are not, and should not be construed as an offer to buy or sell any of the securities named in these materials. Trading of securities may not be suitable for all users of this information.
Technical analysis in stock trading
Technical analysis in stock trading can be described as the study or use of technical indicators in an attempt to forecast future price movements in the stock being analyzed.
Technical Indicators are merely representations of several price points on stock charts based on pre-set formulas.
In addition to using some of the indicators listed below, you can also add "Trend Lines" on the charts. Trend Lines connect two or more high or low price points to form a line. You can find some examples of using Trend Lines here:
Trend Lines form support and resistance levels on a stock chart. These can be used as additional confirmation that a trend is still in place, or has been broken and started to reverse causing a "Breakout" to occur.
You can find an example of identifying a potential Breakout using trend lines as it actually occurred here: Read More.
When performing Technical Analysis, charts are used with technical indicators added to the charts to look for patterns that have occurred in the past under certain conditions. Once the patterns are recognized, the Analyst or Trader then looks for the same or similar conditions that occurred in the past to happen again.
When these conditions are noted again, you can use the past studies to make a trading decision with increased probabilities of success because it has happened before.
Read our other article here to learn about how to forecast markets using Technical Analysis with a chart and example.
While there are many technical indicators and techinques that can be used, here is a list of some of the most common:
Technical Indicators are merely representations of several price points on stock charts based on pre-set formulas.
In addition to using some of the indicators listed below, you can also add "Trend Lines" on the charts. Trend Lines connect two or more high or low price points to form a line. You can find some examples of using Trend Lines here:
Trend Lines form support and resistance levels on a stock chart. These can be used as additional confirmation that a trend is still in place, or has been broken and started to reverse causing a "Breakout" to occur.
You can find an example of identifying a potential Breakout using trend lines as it actually occurred here: Read More.
When performing Technical Analysis, charts are used with technical indicators added to the charts to look for patterns that have occurred in the past under certain conditions. Once the patterns are recognized, the Analyst or Trader then looks for the same or similar conditions that occurred in the past to happen again.
When these conditions are noted again, you can use the past studies to make a trading decision with increased probabilities of success because it has happened before.
Read our other article here to learn about how to forecast markets using Technical Analysis with a chart and example.
While there are many technical indicators and techinques that can be used, here is a list of some of the most common:
- Volume
Subscribe to:
Posts (Atom)