Learn Day Trading2018-12-09T13:35:19+00:00

LEARN DAY TRADING

You’ll learn useful day trading tips & techniques once you join us as a valued Trading the Open subscriber.

To help you get started, you may learn from some of the Youtube videos I’ve produced, playing on this page.

==> Trading the Open Tips PDF

==> Day Trading Flowchart (free)

Stay tuned for additional updates by joining our bi-monthly free Monday live room open house gotowebinar events.  Enjoy, and best wishes for success!

LESSONS LEARNED & TRADING RULES

updated 11/5/2018

Successes I’ve Made, to Follow

  • trail tight stops once it’s ran strong 9:30 – 9:50
  • cancel/close any morning ORB trades that don’t fill by 10:15
  • no new directional trades after 2pm (scale-ins only)
  • use whole number s/r levels
  • use mid-dime entries eg 46.35 vs 46.3
  • no chasing, no jumping in too fast either
  • look at color of SPY & your ticker: only buy when both green (red spy for inverse etfs)

Mistakes I’ve Made, to Avoid

#1 Mistake = overtrading bounce attempts (LABD)

FIXES: 3 strikes rule, progressive downsizing, no new bounce trading after 10:30am;
“4:1 Ratio” 2-day high breakout & gap continuation vs bounces rule

#2 Mistake = failing to focus on Simple Intraday swingtrades (LABU)

FIXES: ID 2-3 candidates premarket; enter initial trade orders by 9:30;
no overnight holds to fix;
LIMIT 7 trades per day if your P&L is red at the end of your first 7; no new trades 10:30am – 3pm; scale-ins & tightening stops only; end of day new swing entries ok

TRADING RULES

  • Enter .30 – .50 above current high of day 9:30 – 10am
  • 50 shares for bounces/inside days; 100 shares for 2-day highs & minor gap continuations
  • Initial stop = .30 – .50 under low of day for gap/2dh entries only; for lower-odds bounce/inside range charts move stop to breakeven asap; max .40 initial stop
  • Trail close stop on ½ position as it reaches whole numbers and 11am-noon, use breakeven stop on remaining shares
  • Trail close stop after 3pm
  • Maximum 3 tries per ticker; do not overtrade
  • (Optional) add more shares .30 above whole number resistance to scale in
  • If you scale in later in the day, tighten in trailing stop to breakeven; scale in/add on no later than 1pmET
  • no  entries after wide range days; remember wide/flat alternating rule
  • downsize bounce attempts after initial stops; only upsize once profitable; 3 tries max; do not overtrade; stick to 3 strikes per ticker rule
  • LIMIT 7 trades per day unless up > $200 or more minimum; no trading after 10:30am
  • 20% bounce attempts maximum, 80% 2-day high rule; 4:1 ratio breakouts vs bounces ; max 2 bounce attempts total per day
  • MAIN goal is 2-day high intraday swing long trades = foundation (LABU vs LABD)
  • overnight holds for those closing near high of day only

WINNERS OF THE WEEK ARCHIVE