Finding a Catalyst
Our job as traders is to find readable order flow and capitalize on the opportunities that present themselves. This order flow is caused by large institutions buying or selling a stock. Generally if you can find an...
Read MoreAuthor: Erik Solomon
Going long a weak stock in a strong sector
Goldman Sach’s upgrade of South Western Energy ($SWN) pushed the energy sector up on Monday. On Friday I had been shorting Conoco Phillips ($COP,) but today I was looking to go long. It was by the far the weakest of the...
Read MoreSetting Up Your Plays
Trading is all about preparation and adjusting to the market day in and day out. During the trading day you should be executing your trading plan not trying to come up with trades. If you are coming into the trading...
Read MoreGreecing the Bull!
Today’s market action was a roller coast of good turned bad. The Dow pushed up to 10955.51 on positive news from jobless claims that were at an 18 -month low. Around 2:00 though, the Dow abruptly sold off over 100...
Read MoreThe Idea and the Trade
I think it’s helpful at the beginning of the idea to break trading into two parts. The first being the idea of what you think a stock will do based on its previous daily performance, performance of the market and...
Read MoreImportance of Higher Timeframes
Being day traders we are always focused on what is happening right now. The mistake some traders make is focusing too much on level 2 and the 5 minute chart. These traders who are focused on the shorter...
Read MoreConsolidation Play
As traders we are always looking for situations with great risk/reward setups. When these setups present themselves it is your responsibility as a trader to “hammer” these setups and trade them with some size...
Read MoreBeing Persistent
As I have discussed in previous posts the current market environment has not been offering many consistent opportunities. Sometimes there is easy money to be made for about an hour or two each day. Another...
Read More$$Golden Indicators
Today I came into the day wanting to short $GG and $IAG, two gold mining stocks. The dollar rallied against the euro overnight and the gold spot chart was also moving lower with gold trading just under 1110. I didn’t end...
Read MoreMy favorite day trading set up
One of our favorite plays is a weak stock closing strong. Tomorrow’s play is to sell short a failed test of the previous days high. This is a trade with terrific risk/reward. The existing order flow is selling pressure and...
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TraderPlanet’s Quick Guide to Candlesticks
