Reviewing my trading system

1. I will trade only high volume stock with the price range is $10-$150.

2. Daily volume at 10 am is 300k-600k.

3. 10 minutes chart but also check 30 minutes charts too.

4. Avoid extremely wide opening ranges(including wide body & the shadow)

5. Choppy price action( means when I will see more long shadow in the charts)

6. Not get into any position before 10.am (because this time when all the order from the previous evening get filled & market makers, institution traders are most active.)

7. Narrow range bar is the best candle to enter for obvious reason

8. 5 EMA need to be close to the candle.

9. Enter stop loss as soon as get into a position.

10. Before entering a position I must know the stop loss and possible exit, I will exit half of my position at next round number or at a dollar gain or support or resistance & rest of them when strong reversal candle will appear or when a opposite type candle overlap the intended trade candle(green, or red).

11. Position size will determine by dividing the fixed amount by opposite candle size.

12. Patterns that I trade or like

· Pull back then resume with full swing.(VVI)

· Pause in the trend(VVI)

· Opening breakout

· Flag

· Base form & breakout

· Wedge

· Triangle

13. I will never let my loss become bigger then my predetermined stop loss amount.

14. Before entering a trade I must know previous days high & low, support & resistance, most of the stock get stuck in previous days support or resistance.

15. I will never turn a gainer to a looser, if I am in profit & I want to give stock a playing space, but it doesn’t mean I will make a loss to give a stock a playing ground.

16. I will not decide the market direction, market will tell me the way it’s going, and I will not force the direction.

17. What I thing about the movement of the stock does not mean anything but what I see is the main thing.

18. Loss is the part of the trading, but it is the most important in my trading to keep it under control.

19.I will follow my plan what ever happens.

Internet down

last two days i did not have any internet,today i traded from hotel chopenhagen but took a loss
Summery -312

Quick short

Market was choppy so i deceided to take quick profit.

Summery: +259

What is level 1 & level 2

Level 1 means where a trader can see the bid & ask price & the size. A trader can also see the last price & last size.


Level 2 is more detail ,a trader can see the highest bid & size, lowest ask & size.

On the left we can see open buy limit orders which is called bid, starting with the highest price. On the right we can see the ask prices, which are open sell limit order arranged starting with the lowest.Next to the bid & ask price we can see the size .

Snow white

Order Types traders use:

1. Market Order - an order to buy or sell a stock at the best bid or asks price. A market order will get filled for you fast, but you might not like the price! By then you have no choice but to take the price and hope your day trade is heading in the right direction. If the market is moving fast and you simply have to get in, sometimes a market order is the only way.
2. 
   Limit Order - an order to buy or sell a stock at a specified price or better. This is the day trading order of choice for day traders and indeed traders of other types..
3. 
   Stop Order - an order that becomes a market order when a specified price is reached. This order mostly use to protect a day trading position from incurring larger than acceptable losses . A "buy stop" order is placed above the current price and a "sell stop" order is placed below the current price.

Not a bad day

Summery +442

Round or decade numbers act as huge support or resistance

Trying to be a photographer

Do you like the colours?

Some beautiful charts

Some opportunity i missed

CNH is not very good very setup, but i liked the narrow bar/candlestick.

copulation

Me & depression

How low is low ?

As we know every one is looking for low risk setup. But the question is how low is the low we are looking for? In my short trading career i fund it really hard to find a low risk setup that really satisfied my wishes. According to my trading plan i should risk only 1% of my account(fixed amount),but i fund it hard to loss that much. So i made a change,the change is ,i will be only trade a stock if the previous candlestick of my entry candle is narrow enough to give me the same amount(or less) the stock price is ,but in cents. For exm in a 20 dollar stock i am willing to take .20c risk.

No trade

I couldn't find any opportunity today & i did push me to make any trade which i am proud of.

Me & mimic

Trying to be a photographer.

Can you smell the bear:

The shadow of candlesticks:

Why the shadows of the candlesticks are not less important then its real bodies? There are many occasions when shadows become more important then their real bodies.

What we understand when long shadows appear:

· Shadow indicate uncertainty
· The bigger the shadow the bigger the uncertainty
· In an uptrend upper shadow should be noticed as a caution sign.
· In a downtrend the lower shadow should be noticed as a caution sign.

Candlesticks i use to find trades:

Inverted Hammer

Hammer


Shoothing Star

A Doji, Dragonfly Doji, Gravestone Doji

Hanging Man

What is more important in day trading, Entering or exiting a position?

According to my trading plan I don’t enter a trade until I found a candlestick which is short or narrow enough to give me the risk I am willing to take ,what does it mean? It means I only enter a trade when I found an excepted risk: reward ratio. Now the problem anyone can face is you can know your risk easily (could be predetermined) but reward, how do you know, what is the reward, before closing the position. What I do? I look at the next round number, support line, resistance line to find my exit point. I also exit a position if it drop below 5EMA,but it is not possible to before hand.So exiting a trade is not less important then entering or vice versa.

Pendulum in the stock market

Remember February 27, 2007, biggest one-day loss since 2001, yes that was the top left of the pendulum. Unfortunately that was the fast shake of it, so it kicks the start button, now we are moving from left to right until it lost its momentum. Every trader knows how hard it is to trade in this kind of market, where fed wants to boost the economy by lowering short-term interest rate from time to time ,which comfort the investor for short period of time .After those very short lived green days we stuck in the red light for unpredictable time. This pendulum could probably bring the bear down, by hypnotizing the Wall Street bull. Some traders who sold short from the top of the head and shoulder top which started at mid October assumingly they are better off, though long term investors are in agony.

My trading system

• 
  High volume stock ,price range $10-$150.
• 
  Daily volume at 10 am 600k-300k.
• 
  I will use 15 minutes chart but also check 30 minutes charts to find opportunity.
• 
  Avoid extremely wide opening ranges( shadow)
• 
  Choppy price action.
• 
  Not get into any position before 10.am
• 
  Narrow range bar is the best candle to enter.
• Exit trade when i gain round figure like .50c ,1 dollar or if the price move below 5 EMA.
• 5 EMA need to be close to the candle.
• 
  Enter stop loss as soon as get into a position.
• 
  Before entering a position I must know the stop loss and possible exit.
• 
  Position size will determine by dividing the fixed amount by stop loss.
• 
  Pattern that I trade a. opening breakout b. flag c. pullback d. base breakout e. wedge f. triangle h. tweezers top & bottom
  

Trying to be a photographer

Tallest building in sweden(Turning torso).