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InTheMoneyStocks Day Trading/Swing Trading Market Moving Action

Discussion in 'Trade Journals' started by inthemoneystocks, Apr 5, 2016.

  1. inthemoneystocks

    inthemoneystocks Well-Known Member

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  2. inthemoneystocks

    inthemoneystocks Well-Known Member

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  3. inthemoneystocks

    inthemoneystocks Well-Known Member

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    Here’s My Morning Routine Before The Trading Day Starts


    It is fair to say that humans are creatures of habit. We all seem to do better when we have a routine to follow. Children often do better when they are on a set schedule and I believe adults function in a similar fashion. For the most part, we all need to go to work, manage our families, and it always seems like 100 other things at once. All of these things take up a large portion of our time, and they certainly do for me personally. So with that, a morning routine has been very important for me since my schedule is extremely busy. I believe my routine has a great effect on my trading day and I will share it with you today, in the hope that you can gain value from it. Here it is:


    1. Rise and Prime! I wake up at 6:00 am. The first thing I do is have a large glass of green drink. This is basically wheat grass which helps to hydrate and alkaline the body. I shared this tip with the ITMS team years ago and it has certainly helped us all. I read somewhere a long time ago that we function better when we are hydrated and alkalined, I am a firm believer in this. I then wash my face, shave, brush my teeth, etc.


    2. Positive Mindset! Next, I will usually read something positive for 15 minutes. This puts my mind in a positive mindset for the day. I will usually read the bible, or a motivational book from some of my favorite authors. Unfortunately, throughout the day I will be dealing with some negativity. So starting the day in positive vibration is very important. By doing this it will help me offset any negativity that comes my way in the coming hours.


    3. Get Flowing! Try to grab a quick 30 to 40 minute workout. At this stage of my life, I enjoy morning walks, this gives me time to appreciate the outdoors and be grateful for all that I have. I usually get to the gym about 3 days a week to do some weight training. About 20 years ago, I read that you need an hour to yourself to really have an optimal day, I agree. Then I take a quick shower and get ready for the workday. Please note, I do not eat breakfast. Eating before trading does not work for me. I will have a light lunch later around the noon hour. This allows me to sustain clarity and energy throughout the day when it is most needed – remember, focus when trading is key!


    4. Game Plan! It is now around 7:30 am and I feel like I have already accomplished a lot for myself before the workday begins. I start to look at the futures markets and the foreign stock market indexes. Then I check to see what is trading up or down in the pre-market. It is important to compile a list of stocks that you may want to trade in the session. I also check my notes to see if an equity is entering my buy and sell zones.


    5. Time For Action! Now the opening bell rings and the stock market is officially opens. It is now time to go to work and find the best trades and chart pattern setups. I keep a few notebooks with me and try and keep track of stocks that are coming into important trade levels.


    I hope this insight into my morning routine was able to offer you some value. Starting your day on the right foot is vital to creating the best day you can have. Like anything else, practice makes perfect. Put your routine in place, do it daily and stick to it! From what you eat, to your physiology and mindset… master these and positivity in all levels will follow!


    Nick Santiago
    Chief Market Strategist
    InTheMoneyStocks.com
     
  4. inthemoneystocks

    inthemoneystocks Well-Known Member

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    Dead bottom plays are starting to run (even before year end). $TUP +12% today and $APRN up almost 20% in the last week - Gareth S
     
  5. inthemoneystocks

    inthemoneystocks Well-Known Member

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    Another from Gareth...



    Multi-Factor Stock Trade Alert On Kraft Heinz (KHC)

    Shares of Kraft Heinz Company (KHC) have been one of the worst performers in 2019, down 40%. Since 2018 Kraft Heinz has collapsed over 60%. Based on the recent mult-factor chart alerts, 2020 may be a banner year for the company. Kraft Heinz will likely be one of the best performers in the S&P.
    The multi-factor chart alert starts with a classic bull flag on the daily chart. Going into year end, this tells smart investors and stock traders there is major accumulation going on to offset the end of year tax loss selling. In addition, price is trading just above the 20, 50 and 200 daily moving averages. Bull flags that form just above these moving averages have a 80% success rate of playing out. This stock chart pattern is extremely bullish for a sharp move higher in January 2020.

    Chart 1: https://inthemoneystocks-4977.kxcdn.com/wp-content/uploads/2019/12/KCH1.png

    The next factor is even more impressive. It signals a first quarter or even first half of 2020 move higher. There is an inverse head and shoulder pattern. The inverse head and shoulder pattern is extremely bullish for major upside when the neck line is breached. The neck line will be breached when the bull flag breaks out above $33.40. Once this happens, the stock has upside to $48.00. This is my 2020 target price.

    Chart 2: https://inthemoneystocks-4977.kxcdn.com/wp-content/uploads/2019/12/KHC3.png

    Gareth Soloway
    Chief Market Strategist
    InTheMoneyStocks.com
     
  6. inthemoneystocks

    inthemoneystocks Well-Known Member

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  7. inthemoneystocks

    inthemoneystocks Well-Known Member

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    Investor Action: Trading The Volatility Index (VIX)

    The Volatility Index (VIX) is something every trader and advanced investor monitors. It is a measure of fear in the overall market. When it falls, there is little fear in the market and when it rises, fear, market anxiety is rising. Historically, the VIX tends to fall to 10 or slightly below in times of robust optimism and greed. During fear an panic, it can rise above 30. During the financial crisis of 2008 and 2009, it went well above 50.

    Investors and traders pay attention to the volatility index (VIX) because it gives them a sense of overall market complacency. For example, it can tell them when to sell their longs. A smart investor or trader would likely sell some of their long holdings inside their portfolio if the VIX dipped below 12. They would continue to sell if the VIX fell down to 10. Below 12, many investors would even start to accumulate short positions. Fear rising (the VIX rising), likely means the market is falling. The VIX below 12 likely means the markets are extended to the upside and greed is maxing out.

    One of the nice things about the VIX is that it tends to move in mega sized increments. When fear strikes, the VIX can easily go from 10 to 20 within a few days. This gives traders the ability to make big money on a small position.Many traders and investors use the VIX as a hedge against their long positions. For example, if an investor is heavily long and knows the market is overbought, they may buy the VIX to protect themselves in case the market falls sharply. While they may lose a little money on their long stock positions, they will recoup some of it on the VIX when it spikes dramatically higher.In many ways, the volatility index (VIX) is an indicator of greed and fear. Since the markets top on excessive greed and bottom on insane fear, the extremes of the VIX are very useful for investors.

    Gareth Soloway
    Chief Market Strategist
    InTheMoneyStocks.com
     
  8. inthemoneystocks

    inthemoneystocks Well-Known Member

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    Beware Of Trading Recent IPOs


    It really is amazing when you see how excited people get when a hot IPO (initial public offering) is scheduled to be released. All of the hype and media attention seems to get people giddy about buying a company that usually does not even earn a profit. Think about it, a company usually comes public in order to raise capital. They will then use the money they raise to grow the business and ultimately make a profit in the future. Sure, there are many successful IPOs throughout the years, but there are also many failed IPOs as well. As a trader, all we need to do is understand the game and keep the odds in our favor. Let’s take a look at how we can do that regarding IPO’s…

    This year was hot for IPOs. Companies such as Uber (UBER), Lyft (LYFT), Beyond Meat (BYND), Pinterest (PINS), Slack (WORK), Zoom (ZM), Crowdstrike Holdings (CRWD), Peloton (PTON) and others started traded. Many of these stocks are actually trading below their IPO price. To any smart technical trader, one who reads the price performance of a stock for the purpose of locating the best entry and exit points; it is very difficult to trade a stock that does not have a long history. There simply is no past chart data to work off of to discover a proper price for the equity. Therefore, if you buy stocks in this manner, you are simply hoping for it to trade higher. The last time I checked, hope was not a good strategy for finding winning stocks. (That was me being subtle, there is no room for “hope” in trading and investing as “buy and hope” is a failing strategy).

    Personally, I cannot trade a stock that has not been around for at least a year. Typically, I prefer to trade in stocks that have at least a five year history in the public market. I once read that Warren Buffett does not participate in the IPO market and that should be noted by most traders and investors. Now some people might have that gambling bone in their body and enjoy the rush of participating in an IPO. I’m not a gambler, I’m a trader. The difference is that the SMART trader has the odds in his favor, while the gambler does not.

    For those junkies who need the IPO action, here is one quick tip that many traders should remember: if the IPO is easy to get into, that is typically a clear sign that it is going to be a flop and likely sell off after it begins trading. I have seen this happen so many times.

    Here’s the moral of the story, I will say it again, smart traders seek to keep the odds in their favor on every trade they take, so how can you expect to do that when trading most stock IPO’s? (you can’t). Consider that and beware of trading recent IPOs.

    See the chart here: https://inthemoneystocks-4977.kxcdn.com/wp-content/uploads/2019/12/UBER-12.20.19.jpg

    Nick Santiago
    Chief Market Strategist
    InTheMoneyStocks.com
     
  9. inthemoneystocks

    inthemoneystocks Well-Known Member

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  10. inthemoneystocks

    inthemoneystocks Well-Known Member

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  11. inthemoneystocks

    inthemoneystocks Well-Known Member

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    Amazing to watch: Window dressing by the big boys is over, an air pocket/void left of in the market, no/minimal buyers, markets drop hard at the open. #LearnWhy
     
  12. inthemoneystocks

    inthemoneystocks Well-Known Member

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    $AAPL a day trade short at a cross of $300 here if it happens before 10:30am ET - Gareth S.
     
  13. inthemoneystocks

    inthemoneystocks Well-Known Member

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    Investors Profit By Learning The “Three Day Rule.”


    True masters of the stock market know all the rules and abide by them. In addition, no investor ever learns everything. Those investors and stock traders that keep studying and learning, continue to increase their profits on a year over year basis. One of the best and most important rules to learn is the ‘Three Day Rule’.

    Stock market investors always want to buy a stock that gets knocked down sharply. The ‘on sale’ emotion grabs us hard. For example, if a stock falls 20% on earnings, many investors rush in to buy the stock, thinking it will snap back. They think a 20% discount makes it an obvious buying opportunity.

    In reality, there are specific reasons why the ‘Three Day Rule’ tells you to wait a full three days to buy the stock. First, margin calls will likely trigger in some investment accounts. This will create further selling on day two and day three (following the initial day one fall). In addition, hedge funds holding the stock that are selling because of the change in outlook or negative news cannot unload their large positions fully in one day. In general, Wall Street takes a full three days for the sellers of a stock to exit completely and calm to reappear.

    The ‘Three Day Rule’ tells investors and stock traders to wait a full three days before buying a stock that has been slammed due to negative news. By using this rule, investors will find their profit expand and losses contract.

    Gareth Soloway
    Chief Market Strategist
    InTheMoneyStocks.com
     
  14. inthemoneystocks

    inthemoneystocks Well-Known Member

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  15. inthemoneystocks

    inthemoneystocks Well-Known Member

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    Investor Education: Stock Chart Wedge Pattern


    Learning stock chart patterns leads to increased profits. Investors and stock traders who expand their knowledge will continue to expand their bank accounts. In today’s investor education piece, we will go over a stock chart wedge pattern (triangle pattern). The wedge pattern alerts investors to consolidation in price. In other words, price action is being digested before the next big move. Will the major move big up or down? That is determined by whether price breaks up or down out of the wedge pattern.

    Wedge patterns only form when you can clearly connect all the recent major highs and all the recent major lows. It creates a wedge or triangle pattern. This means price has to be making lower highs and higher lows. This is important because an investor must draw straight lines creating the wedge. The reason for the straight lines is to give a basis to the investor or stock trader of a definite breakout/breakdown point.

    Note the diagram below: https://inthemoneystocks-4977.kxcdn.com/wp-content/uploads/2020/01/Wedge1.png

    Gareth Soloway
    Chief Market Strategist
    InTheMoneyStocks.com
     
  16. inthemoneystocks

    inthemoneystocks Well-Known Member

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    How To Trade A Double Bottom For Profit...

    The simplicity of profiting in the stock market is amazing. Investors that educate themselves, profit. No investor or stock trader every knows everything. I have traded for 25+ years and I am still learning every day. The amazing thing about it is, the more your learn, the more you profit. Even at this stage of my trading and investing career, I am learning more and increasing my profits.

    In this lesson, we will look at the technical chart double bottom. Double bottoms are classic, easy to spot pattern formations that are bullish. Below I will lay out the keys to understanding and spotting a stock chart double bottom that has a high reward, low risk rate.


    1: The first low MUST be a 52 week low or all-time low. This is important as they are the strongest pivots.

    2: The stock then must bounce significantly (5% minimum) and not retrace to the low for at least a two week stretch. This creates the basis for a double bottom to occur.

    3: The stock/commodity/market/currency must then come down at hit the previous low or make a slightly lower lower.

    This creates the double bottom and buying opportunity. Investors should buy the exact low or even a slight cross below. For strict investors and stock traders, the stop would be at confirmation (taught in a different lesson) below the double bottom, or maintain a 5% stop loss on the trade. Investors and traders can use this technique to buy stocks with explosive upside potential.

    Note the chart below...
    https://inthemoneystocks.com/investor-education-stock-chart-double-bottom/

    Gareth Soloway
    Chief Market Strategist
    InTheMoneyStocks.com
     
  17. inthemoneystocks

    inthemoneystocks Well-Known Member

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    inthemoneystocks Well-Known Member

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    Oil collapsing, wiping out two weeks of gains in one day. $USO. The key to being short oil was to note the minimal upside of 2-3% with the Iranian/US confrontation escalating just says ago. That told the whole story.
     
  19. inthemoneystocks

    inthemoneystocks Well-Known Member

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    Key reversal on marijuana stocks today. Might have finally put in a major bottom. $TLRY$CRON$CGC$MJ$ACB - Gareth S
     
  20. inthemoneystocks

    inthemoneystocks Well-Known Member

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    The Importance Of Limit Orders

    Many average investors do not understand the difference between a market order and a limit order. When buying or selling a stock, the difference is huge. Using a market order instead of a limit order could cost you big. Market orders give you whatever price the stock is being offered at when your order reaches the electronic market place. A limit order gives you a specific price of your choosing.


    Why A Market Order Is Risky...


    Market orders are most risky for investors on thinly traded stocks (small caps). For average investors, this often times allows for a bad entry price when there is a wide spread. The spread is the difference between the bid and the ask (what buyers are willing to receive and what sellers are willing to pay. A market order entry on a stock with a bid of $2.20 and an ask of $2.40, with a last print of $2.25 will be $2.40. This is horrid for the investor or stock trader. On larger stocks like Apple Inc (AAPL), the algorithms can cause entries to be multiple pennies worse by pulling the offers in the split second between when you click the market buy button and when the order actually hits the market and gets filled. For instance, the spread on a stock could be $50.05 x $50.07. An investor doing a market order thinks they will get $50.07 but just as they click the buy button, the $50.07 gets pulled and it gets filled at $50.10. This happens millions of times a day as the algorithms look to capitalize on millisecond moves they can create.


    Why A Limit Order Is Best...


    A limit order on the buy or sell side gives control to the investor or stock trader. It takes control away from the institutions. If you put a limit buy order at $5.00, the only price you can get filled at is $5.00 OR better. This means you know your worst case scenario is $5.00 as an entry price. The algos cannot play games, the spread does not matter, you decide your entry price. There is always a chance you do not get filled, but having control is much more important as an investor.


    How I Handle Trading With Limit Orders...


    I ALWAYS use limit orders to buy and sell stocks. I have traded for 25+ years and this is the key. When a stock is trading with a bid of $25.45 and $25.47, and I want to buy it this second, I use a limit order. I place my limit order at $24.47 (at the ask). This ensures that I get the shares being sold there but if the algos play any games, I will not fall into the trap and get a worse price. In addition, by using a limit order, the algos know not to play games because I will not take a higher fill. Sometimes, I even get a better fill. This is a way to take the shady games away from a stock and the institutions. On a small cap that is thinly traded, I always use limit orders as well. With a stock trading at $2.20 bid by $2.40 ask, I will usually put my order at $2.21. This ensures that any seller will fill me first, since I am top bid now. I also use a little known tactic that most advanced trading platforms have. They allow you to only ‘show’ a certain amount of shares on the level II (which other investors can see). If I want to buy 10,000 shares, I will only show 500 shares on the bid at a time. This keeps other investors from front running me, seeing the big size buy.


    Using limit orders for stock trading and investing is by far the smartest thing you can do. Over time it saves you thousands if not millions of Dollars.


    Gareth Soloway
    Chief Market Strategist
    InTheMoneyStocks.com
     
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