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Showing posts from July, 2020

Day Trading Strategies

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Price action Technical indicators Candlesticks and chart patterns Another point to remember is that in the market right now, over 60% of the volume is algorithmic high frequency trading. That means you are trading against computers. The majority of changes in stocks that you are seeing simply the result of computers moving shares around. Trade Management and Position Sizing     It is important to understand order entry, exit, position sizing and trade management. Two traders enter into a trade based on one strategy. The positions go their way and then pull back a bit. The first trader fears losing their gain and takes a quick, small profit. The second trader adds to the position on the pull back and books a large gain. Same idea, different outcomes, all as the result of two different mindsets and trade management styles.      Managing trades is the key to success. Trade management is referring to what you do with the position after you've entered it and be...

Candlestick chart History

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     The Japanese using technical analysis and some early versions of candlesticks to trade rice in the 17th century. Much of the credit for candlestick development and charting goes to a legendary rice trader named Homma from the town of Sakata, Japan. While these early versions of technical analysis and candlestick charts were different from today's version, many of the guiding principles are very similar. Candlestick charting, as we know it today, first appeared sometime after 1850. It is likely that Homma's original ideas were modified and refined over many years of trading, eventually resulting in the system of candlestick charting that we now use. In order to create a candlestick chart, you must have a data set that contains: opening price highest price in the chosen time frame lowest price in the period closing price values for each time period you want to display      The time frame can be daily, 1 hour, 5 minutes, or any other period ...

Applications, Websites and Books

Application   TOS (Think or Swim) Books   One Good Trade by Mike Bellafiore, co-founder of SMB Capital The Psychology of Trading by Dr.Brett Steenbarger The Daily Trading Trading Coach Websites   www.dastrader.com https://www.sterlingtradingtech.com Two long standing trading rooms www.ibrgroup.com   (Linda Bradford Raschke's trading room) www.tradethemarket.com  (author John Carter and Hubert Senters) Educational programs www.marketsinprofile.com  (Jim Dalton and Terry Liberman) www.marketdelta.com www.trade-ideas.com Well-known trading forums www.elitetrader.com     (Elite Trader) www.trade2win.com  (Trade2win Review/ to get info www.finviz.com www.briefing.com

Vocabularies, Notes

Ask - An ask is what seller are demanding in order to sell it. Average daily volume - The average number of shares traded each in a particular stock. Average relative volume - How much of the stock is trading compared to its normal volume. Average True Range/ATR - How large of a range in price a particular stock has on average each day. Averaging down -  Bear - a seller or short seller of stock, if you hear the market is bear it means the entire stock market is losing value because the sellers or short sellers are selling their stocks. The sellers are in control. Bearish candlestick - a candlestick with a big filled body demonstrating that the open was at a high and the close was at a low, it tells you that the sellers are in control of the price and it is not a good time to buy. Bid - A bid is what people are offering to pay for that stock at the moment. Bid-ask spread -  The difference between what people are willing to pay to purchase a particular stock and what other pe...

Offshore Traders (US)

SureTrader (Bahamas) Capital Markets Elite Group Limited (Trinidad and Tobago) Alliance Trader (Jamaica)

Stock Abbreviation

DAS          (DAS Trader platform DAS   is a connectivity provider for low latency order validation to the CBOE, CBSX, Nasdaq, NYSE/ARCA, BATS/Direct Edge and OTC. We provide direct market access and Service Bureau FIX connectivity to all the major exchanges and market centers via the Nasdaq and SFTI data centers.    ) ECNs          Electronic Communication Networks EMA          Exponential Moving Average FINRA          Financial Industry Regulatory Authority FOMC          Federal Open Market Committe PDT          Pattern Day Trade R&D          Research and Development ROCE          Return on Capital Employed RSI               Reversal Strength Index ROE        ...