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Stock Day Trading Strategy





A SIMPLE & PROFITABLE STOCK DAY TRADING STRATEGY



The strategy that you are about to see is by far the most effective Day Trading strategy in the catalog of strategies that we have at the collective. It is a very simple and robust method that will pay well if you can commit to learning it and being disciplined in your implementation.


Let’s take a look at the long term performance of the system and then we will walk you through the strategy step by step.





The strategy that we will be looking at is Gap Trading but we will be showing you the right way to trade gaps. This is a high probability scalping strategy.


First we need to understand that a gap is basically when there is a lack of activity between two price points. This is usually caused by a lack of liquidity between the two price points and is a form of price discovery since the price is moving like this in order to find the new “value area” i.e price at which buyers and sellers are willing to trade with each other.


Another key thing that you need to know is that not all gaps are equal. In fact there is only one type of gap that can be used with this strategy. We only pay attention to stocks that are gapping up or down 3% or more.


Any gap smaller than this should be ignored. These big 3%+ gaps tend to follow through in the direction of the gaps far more often than the smaller gaps. In fact, based on our data, about 78% of gaps of 3% or more will follow through in the direction of the gap.


Now that we have that down. Let’s take a look at this strategy in detail:


Step 1: Create a watchlist of stocks in the pre-market that are gapping up or down by 3% or more.


Step 2: You should further filter this list by focusing only on those that have an Average Daily Volume of more than 750,000 and an Average True Range (ATR) of $1.00 or more. This way you will ensure that you are trading only the stocks that will move.


Step 3: You will be trading on the 1 minute chart so pull that up and try to zero in on the stocks on your list that have the biggest gaps in the pre-market. This way you will get a feel for the action just before that market opens.


Step 4: Once you have settled on 1 or 2 stocks from the list. Just wait for the first minute to pass and then make a note of the high and low of that candle.


Step 5: Remember to only trade in the direction of the gap. So, as you can see in the example below, KBR is gapping up so you would go long on a break above the high of the 1 minute candle.


Step 6: Your stop should be placed at the low of the first 1 minute candle.


Step 7: Your profit target should be based on the size/range of the first 1 minute candle. So if the candle is say $1.50 in range ( taken from the bottom of the candle to the top), then your profit target should be $1.50 from the top of the fist 1 minute candle. Does it make sense?


Good. Check out the example.





Now let’s consider a situation where one of the stocks on your list is gapping down and you decide to take the trade.


First you would need to wait for the first 1 minute candle to close and then mark the top and bottom of the candle.


Second, remember you should only trade in the direction of the gap, so you will need to see the break below the bottom of the range before you take the trade.


Third, set your stop at the top of the range and your profit target will be based on the size/range of the first 1 minute bar.


Take a look at this TRIP example:





Pretty simple right? But here are some key things to keep in mind when you are trading this strategy:


(1) Not all the +3% gaps will follow through. In fact only 78% of them will do so.


(2) Sometimes you will feel like you are leaving a ton of money on the table by using a range based profit target. You can always use a trailing stop instead but I like the certainty of a profit target.


(3) Some gaps will reverse in the opposite direction and tempt you to hop in for the ride. Sometimes it will work but most times it won’t. So just be disciplined and stick to the rules i.e only trade in the direction of the gap.


(4) Similarly, in slow markets you will come across lots of gaps that are less than 3% and you will be tempted to take the trade anyway. Again, some will work but most won’t. So be patient and disciplined and wait for your set up.


This was really just a quick run through of this very solid strategy. If you really want to get down into this strategy, go ahead and check out the Trading Video Lessons by clicking here.



Options Day Trading Strategy





THIS MIGHT BE THE MOST POWERFUL OPTIONS DAY TRADING STRATEGY



Options Day Trading can be tough simply because you are not only trying to figure out the direction of the move, but you also have to get the timing of the options right. Here is a very effective Options Day Trading Strategy.



The fact that you are not holding any positions overnight means that you need to focus on trading Options on stocks that move big intraday and you need to have a way to tell when they are about to move.


The method that you are about to see is very solid and has been producing great results for many years through different market cycles.


Let’s take a quick look at the performance of the strategy and then we will walk you through the exact set up and execution.





Step 1: Specialize- you will need to have a pre-set list of 5 to 10 stocks that you trade daily. These stocks need to be big movers with decent volume and a big Average True Range.


In fact, the actual numbers are at least 750,000 Average Daily Volume and ATR > 1.00. Stocks that meet these criteria are likely to give good intraday movement.


Step 2: Set up your trades. Now that you have a list of 5-10 stocks that you want to focus on, now you need to decide how you want to trade them.


This is where your actual trading strategy comes in. You want to use the same 15 minute Opening Range Breakout (ORB) strategy as outlined above in the Stock Day Trading Signals Strategy. Obviously you would just be taking options trades instead of trading the stock.


Step 3: This means that you will want to choose a stock from your list and check the Daily trend to make sure you have a good idea of what the overall trend is.


Step 4: Then you want to get the 15 minute time frame and wait for the market to open. Once the market opens, you will need to wait for the first 15 minutes to pass and then mark the high and low of the opening 15 minute bar. By doing this, you will create an opening range.





In this case, BA was in an uptrend coming into the session so you should only be looking to take a trade on the upside. You only take a trade if it breaks to the upside and ignore any other move.


Step 5: At this point you will need to pull up your Option chain so that you can select the strike and expiration. As a rule, you want to buy At The Money (ATM) options that have a minimum of 3 days to expire. This will help you play with some time on your side and avoid significant IV crush & time decay.


You will be affected by both as there is really now way around it, but by getting the extra time cushion you can reduce the impact.





Step 6: You will then wait for the range to break and go ahead and buy your contract. Once the trade triggers, you can place a stop below the low of the first 15 minute bar and then adjust the stop upwards as the trade moves in your favor. Remember that your profit target will be set at 1x the Opening Range from the top of the range itself, just like this:





Step 7: If you are going short, you want to wait for the first 15 minutes to pass and then mark the high and low of the first 15 minute bar and create your range like this:





Step 8:You would then buy your Put contract when the range breaks and place you stop at the high of the range. Your target would be 1x ATR below the low of the range.





I hope you found this quick tutorial helpful. If you want to take things to the next level and really learn the depth of this powerful strategy, you can get a hold of the Video Lessons and watch them in your own time and put them into practice. Click here to watch the videos on demand.



Futures Day Trading STRATEGY- Emini S&P500





This Is The Strategy That The Pros Use To Trade The Emini Futures



There are basically dozens of strategies that can be used to trade the ES Emini Futures Contracts but here is a simple and very effective method that works much better than any of the others that I have ever come across.


Let's take a quick look at the performance and track record of this strategy and then we will look at the strategy.





How To Trade The Strategy:


For this setup you are only going to need the following:


(1) The 5 minute chart of the S&P500 Emini Contract


(2) The Volume.



That’s it. As you will see this strategy is pretty simple and very robust and has stood the test of time.


The Fundamental Principle Behind The Forex Day Trading Signals Strategy


The driver behind this strategy is volume. We are basically using the volume to spot momentum moves and take advantage of them.


This works because big volume shows up at the beginning of a move or at the end of a move. Knowing this can put you in a position to anticipate what comes next and position yourself accordingly.


How To Enter The Trade


The first, and perhaps most important part of this process, is to be able to identify what is big or significant volume. As a rule, any move that produces more than 40,000 contracts is considered to be significant and these are the bars you want to pay attention to and trade around.


So here is what you will do whenever you see significant volume:







Step 1: Once the candle with the big volume closes, you want to mark the high and low of that candle.


Step 2: You will only enter the trade when the high or the low of that candle breaks. More specifically, you want to wait to see if the next candle closes above or below the big volume candle. If the next bar closes above it, you want to enter on the long trade and if it closes below it, you want to go short.


Step 3: It is very important to note that you should always try to take the trades that trigger in the direction of the general market trend. So if the market is weak or trending down, you want to take the trades that break below the big volume candles.


Similarly, if the market is strong or trending up, you want to take the trades that break above the big volume candles. These will be the higher probability trades.



As you can see above, there were four big volume candles in this particular trading session including the opening candle at 9:30 AM EST. Let’s take a look at each of these bars and see how the market traded around them.


To do this we will simply mark the low and high of the candle and extend it out to the end of the trading session.


Let's take a look at Volume Bar number 1 and see how the market traded around it:





And now let's look at the way the market traded around the volume bar number 2:





Now let's look at volume bar number 3:





And now, finally, volume bar number 4:





I hope the point was made with the 4 examples above. It should be obvious that the market trades around high volume bars and creates opportunities for good trades.


How To Manage The Trade


(1) You want to place a stop just below the candle ( if you are going long) or just above the candle (if you are going short).


(2) You can then set a profit target at about 5 points above the entry to exit your long trades & 5 points below your entry to exit the short trades.


Spend some time looking at this play out for a few days before jumping in. Try to get a feel for it and see how it plays out before you start taking trades.


If you want to really step up your Emini trading and see how the market really works, you should click here to watch the Trading Video Lessons.



Forex Day Trading STRATEGY





This Strategy Has Been Changing The Lives Of Many Traders Who Use It



As you know, there are many ways to trade Forex intraday but, naturally, there are some that just work much better than others.


The strategy that you are about to see is the best day trading strategy for forex that I have come across in my 18 years of trading. Here is the track record





How To Trade The Strategy


First of all, you are going to need to focus on one of the most liquid FX pairs. You will have a significant advantage over everyone else if you specialize in just one pair rather than try to trade everything that moves.


Specialists make the most money in this business. So the first thing you need to do is to spend some time thinking about the pair that you want to specialize in and make sure you know everything there is to know about it.


For the purpose of this tutorial I am going to focus on the USD/JPY. This is a Forex Day Trading system so you will be using the Five (5) Minute Time Frame. So here is how you will set up your chart:


(1) Pull up a 5 minute chart of the USD/JPY


(2) Add the Relative Strength Index (RSI) to the chart


(3) The default RSI setting is 14 but go ahead and change that to 2.


(4) Now, the standard parameters for the RSI are 30 (Oversold) and 70 (Overbought). Go ahead and change these settings to 10 (Oversold) and 90 (Overbought). ​





This is all you will need on your charts. Nothing else. But before we proceed let me explain why the RSI(2) is such a powerful tool as well as how and why this strategy works.


The Fundamental Principle Behind The Forex Day Trading Signals Strategy


The basic principle that underpins this entire strategy is that there are certain extreme levels at which traders get trapped and are forced to correct themselves.


And the strategy is designed to take advantage of the traders who are trapped at these levels by going short when they are trapped on the long side and going long when they are trapped on the short side.


To put this simply, it is very common for retail traders to chase a move up or down. They will see the market trading higher and assume that it will continue to go higher so they chase the move and end up getting trapped right at the top of the move.


Similarly, when the market is trading lower, traders assume that it will keep going lower and decide to chase the short side and end up getting trapped right at the lows.


This strategy is designed to take advantage of these people by:


(1) Identifying the levels where they are likely to be trapped and


(2) Letting you know when to enter and exit the trades.


Earlier I outlined what you need to have on your chart in order to trade this method. Now let’s go ahead and take a look at this strategy in detail.


How To Enter The Trade ( Long/Buy Side)


In order to enter the trade on the long side ( Buy) you need to see just two things happen in this order:


(1) An extremely oversold move i.e the RSI(2) has a reading of 5 or less


(2) Then you need to see a "buyer’s candle" which is the first green candle that closes above the one immediately before it. You will buy at the close of the "buyer’s candle". This is called a buyer's candle because it is visual evidence of buyers stepping in after a steep sell off.


These two charts will show examples of the extreme oversold situation and then the "buyer's candle" coming in:





In this example we see the USD/JPY extended and extremely oversold with RSI2 reading below 10.





In this next one we can see the "buyer’s candle". Notice it is the first green bar that closes above the bar immediately before it. This is the trigger for the trade.


How To Manage The Trade


You can place a stop loss just below the low of the buyer’s candle and trail the price either manually or automatically using a trailing stop.


How To Exit The Trade


You can set a profit target or simply allow the market to take you out when your trailing stop is hit.


In this example below, we exit the trade when the RSI2 gets back to overbought and we see signs of sellers showing up.





Entering The Trade On The short Side


In order to take a trade on the short side, you need to see the same two things, only from the other end:


(1) You need to see an extremely overbought situation where the RSI(2) has a reading of 95 or more.


(2) You will then need to see a "seller’s candle" i.e the firs red bar that closes below the bar immediately before it. You will go short on the close of the seller’s candle.


The chart below shows an extended move where the RSI(2) has a reading well above the 95 level.





In this next example below, we are going to see the seller's candle kick in after the big push up.


Notice that it is not merely the first red candle. It must be the first candle that closes below the candle immediately before it..that is the seller's candle. This is important for you to remember.





How To Manage The Short Trade


Once you get filled you can place a stop above the high of the seller’s candle and trail the price manually or with a trailing stop.


How To Exit The Short Trade


You can allow the market to take you out of the trade with the trailing stop or simply set a profit target.


The example below shows the trade being exited on the first sign of a buyer's candle after the sell off.





Try It Out


Just like everything else, you will need to practice in order to get it right. If you want to get a deeper lesson in this particular strategy, click here to check out the Trading Video Lessons.




Crypto Day Trading Strategy: Bitcoin





It Will Be Hard To Make Consistent Money Without This Crypto Trading Strategy



The strategy that you are about to see is a little bit newer than the others but it has been putting up some very good numbers.


It can be used to trade just about any Crypto currency but we are going to show you how it works using Bitcoin. This is a very simple and powerful strategy that is easy to grasp and follow.


With just a little patience and lots of practice, you can use this to make some serious gains. Let's take a look at the performance and then get into the strategy:





How To Trade The Strategy


In order to trade this method, you will only need the Five (5) minute chart of Bitcoin and the 20 Day Moving Average. That is all. This strategy is very simple and exceptionally robust.


The chart below shows the basic chart set up for this strategy





Step 1: The first thing you want to do is to check the bigger trend by looking at the Monthly, Weekly & Daily charts to see what the overall trend is.


Step 2: Once you have figured out what the broad trend is, you want to take a note of it because this is the context against which you will be trading.


Buying /Going Long: If the overall trend is up and the market is strong, you want to be buying/ going long BTC when it crosses above the 20 DMA. Place a stop loss just below the low of the candle that you got in on. Your profit target should be based on the Average True Range (ATR) or you can choose to use a trailing stop.


Selling/Going Short: If the overall trend is down and the market is weak, you want to be selling/ going short BTC when it crosses below the 20 DMA. Place a stop loss just above the high of the candle that you got in on. Your profit target should be based on the Average True Range (ATR) or you can choose to use a trailing stop.


This chart shows some long/buy setups based on the rules:





Remember, you only buy or go long when the overall trend is to the upside. This way you will have higher probability trades because the general trend is in your favor.


The temptation will always be there to try to chase both sides but doing so will only get you in a situation where your many small losses will simply outnumber the winners you picked up and put you in the negative.


You MUST remain disciplined and only trade on the long side when the trend is in your favor.



And now this chart below shows some short set ups based on the rules.


When it comes to the short side you will need to be equally as disciplined in terms of simply ignoring all the long signals that you will get when the market is in a downtrend, and commit to only taking the trades that trigger below the 20 DMA.


The strategy by itself is pretty good but it is the discipline that will make you a winner.





I am sure you notice from the charts that some of the signals produce big moves and others do not. This is natural and normal.


There is no system that will give you a 100% hit rate and that is why it is important to have good risk management and position sizing.


There is an entire Video Catalog that goes much deeper into this strategy and more. You can clock here to watch the trading video lessons.





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