By Mike Reed
Are you tired of the same old day trading tips? Like, “cut your losses and let your profits run.” “Never let a gain turn into a loss.”, or the most repeated tip, “Buy low, sell high.”
So how about something new? Let me give you some specific day trading tips that will turn your trading around.
A good defense beats a good offense over the long haul. If you want to stay in the Trading "game", then developing a good defense is a MUST.
Rule Number One: Cut your losses immediately when the trade doesn’t go your way. There’s nothing harder to learn and nothing better. I’ll be even more specific. The average “run of the mill” day trading advisor will tell you to enter a trade, place a stop of 2 to 4 points, place a target that’s equal to your stop, or 2 to 3 times greater, and then wait for your stop to get hit. This is a big mistake that is going to end up costing *you*.
The time to wait is before you enter the trade, not after.
I’ve been trading for over 20 years, and I don’t trade like the crowd. The crowd waits for their stops to get hit. They sit there hoping their trade comes back from negative to positive territory, but it usually doesn’t and they lose money. They believe that the edge (probability of success) isn’t good enough on their entries. This is the crowd’s approach and it just doesn’t work.
My day trading advice for you is to use radical soft stops that go against human nature.
I write an emini day trading newsletter each day, my forecast for the next trading day. I'm as specific as possible including Support and Resistance levels that I will be buying and selling against, which provides *you* with great trade set ups nearly everyday.
In trading, your entries and your exits must NOT come naturally at first. Human nature is responsible for the fact that 90% of those day trading eminis lose money. If you follow the herd, you’ll lose money too.
Some of my subscribers tell me it seems impossible to get out of a trade early, just because it doesn’t move immediately into a profit. They worry about commissions. They worry that the trade will turn around and go their way in a few more seconds and they’ll lose opportunity. In fact most of the people reading this right now will try it for a few minutes (hopefully on a trading simulator) and decide it can’t be done.
Like I said, my techniques and day trading tips fly in the face of the untrained “gut feeling.” And that’s precisely why they work.
Exiting my way is not the whole picture when it comes to the method I use for day trading support and resistance.
Any complex process has to be broken down into small chunks at first, a person has to learn one thing at a time, especially when you want to learn day trading.
First I teach my traders a way to demand that the trade goes profitable immediately. When it doesn’t, I teach them to get out immediately.
Radical, but it works.
My day trading advise for them is don’t wait for the market to prove you wrong, instead, if the market doesn’t immediately prove you right, run for the exits.
Example: Let’s say you enter a day trade. In the first 5 seconds it goes 3 or 4 ticks against you.
What is your course of action?
a. Give it a chance, don’t waste the commission.
b. Sit and hope that it turns around before it hits your stop.
c. “Knowing” your entry was excellent, sit tight and / or move your hard stop away.
d. Add to the position (scale in) to bring your break-even point closer.
e. Get out of the position NOW!!! Don’t think about it, just get out.
Believe it or not, “e” is the right answer in my book.
You have to be flexible with everything, but this is the foundation of my trading style. This is the default procedure.
Does it work?... YES it works! This is how I’ve been day trading for the past 20 + years. But it only works IF you know where and when to enter.
Let me show you how it’s done. Want more day trading tips that work ? Put my experience to work for you!
Sign up for my free trial subscription today.
copyright 2005 TradeStalker.com and Mike Reed
Tuesday, September 13, 2005
Day Trading Advice: Identifying and Exiting Losers
Day Trading Advice:
Identifying and Exiting Losers
by Mike Reed
The majority of traders are looking for entries with a very high probability of success. Web sites and book stores are loaded with day trading advice to fill this “need.” Some of it’s pretty good entry advice. A lot of it is average, which is actually not a good thing. But good or average, if they are leading you to believe that “If you can find better entries, you’d be making money.” Than this is poor day trading advice, it’s a lie and they are taking your money and they are taking you for a ride.
Well, it’s time to stop believing the lie. Stop paying for “sure thing” entry methods.
I write an emini day trading newsletter each day, my forecast for the next trading day. I'm as specific as possible including Support and Resistance levels that I will be buying and selling against, which provides you with great trade set ups nearly everyday.
I’ve been day trading futures for more than 20 years and I’ve developed a strategy that makes money consistently. I don’t promise overnight success, anyone who is really serious about wanting to learn day trading, realizes that it’s not a get rich quick profession. Yes, my method does include great entries, but most losing traders have decent entry strategies. My experienced day trading advice doesn’t focus as much on entries as it does on exits…
Offense doesn’t win this ballgame, defense does.
If you’re going to make it day trading the stock market, and actually be successful at it, you must understand why this is, and then you’ll program your reflexes to follow your knowledge.
Think of it this way…large corporations spend millions of dollars inventing boatloads of products that are worthless. But in the early stages of research and development, the company can’t tell which products will make money. If they take all their new products to market, and only a few sell, the few won’t offset the losers, and the company will go under.
Most new companies (about 95% by some estimates) fail. The same is true of traders, they want to be successful, but just don’t know how to go about it, which day trading advise should they believe, and who’s just trying to take their money .
But there is an upside to all of this, successful companies know a secret. They find a way to identify their losers in the early stages… and close the projects down quickly before losing a lot of money in the marketing process.
As James Surowiecki puts it in his book, “The Wisdom of Crowds”
“…companies place huge bets on losers all the time. What makes a system successful is its ability to recognize losers and kill them quickly.”
The same is true of stock trading strategies. Experienced professional traders place bets on losers all the time, but they know how to identify losers and kill them quickly before much (if any) money is lost.
I close bad trades well before my hard stops are hit, but anyone can do that. But, you also have to recognize your losers early. Otherwise you’ll be killing your good trades along with the bad ones.
Every successful trader I’ve met has a way of getting out early on bad trades. If you are day trading support and resistance, I can teach you how I do it. You may be able to find a way to do it on your own, but it will probably take years. I’ve been trading for more than 20 years, and publishing my day trading advice on the internet since 1996.
No matter which route you take, Identifying and exiting losers is the key to trading.
I can give you day trading advice and specific trading tips to improve your entries. My strategies are time tested and I have been successful with my methods of trading for over 2 decades. What’s even better, I can show you intra-bar timing of your entries. And it’s true that the timing of entries affects your ability to recognize the losers before they hurt you. But it’s your ability to kill those losers quickly that really counts.
Be sure to sign up for my Free delayed RBI Updates before you leave our web site. Follow these for a few days, and you’ll understand how helpful my day trading advice can be to your trading.
Or if you want to jump into a winning strategy right now, go ahead and subscribe to my “Real Time” Daily RBI Trader’s Updates, they are delivered each trading day complete with the most accurate and powerful support and resistance areas in the business, as well as my own daily trading plan and how I am going to trade the market the following day.
Copyright 2005 TradeStalker.com and Mike Reed
Identifying and Exiting Losers
by Mike Reed
The majority of traders are looking for entries with a very high probability of success. Web sites and book stores are loaded with day trading advice to fill this “need.” Some of it’s pretty good entry advice. A lot of it is average, which is actually not a good thing. But good or average, if they are leading you to believe that “If you can find better entries, you’d be making money.” Than this is poor day trading advice, it’s a lie and they are taking your money and they are taking you for a ride.
Well, it’s time to stop believing the lie. Stop paying for “sure thing” entry methods.
I write an emini day trading newsletter each day, my forecast for the next trading day. I'm as specific as possible including Support and Resistance levels that I will be buying and selling against, which provides you with great trade set ups nearly everyday.
I’ve been day trading futures for more than 20 years and I’ve developed a strategy that makes money consistently. I don’t promise overnight success, anyone who is really serious about wanting to learn day trading, realizes that it’s not a get rich quick profession. Yes, my method does include great entries, but most losing traders have decent entry strategies. My experienced day trading advice doesn’t focus as much on entries as it does on exits…
Offense doesn’t win this ballgame, defense does.
If you’re going to make it day trading the stock market, and actually be successful at it, you must understand why this is, and then you’ll program your reflexes to follow your knowledge.
Think of it this way…large corporations spend millions of dollars inventing boatloads of products that are worthless. But in the early stages of research and development, the company can’t tell which products will make money. If they take all their new products to market, and only a few sell, the few won’t offset the losers, and the company will go under.
Most new companies (about 95% by some estimates) fail. The same is true of traders, they want to be successful, but just don’t know how to go about it, which day trading advise should they believe, and who’s just trying to take their money .
But there is an upside to all of this, successful companies know a secret. They find a way to identify their losers in the early stages… and close the projects down quickly before losing a lot of money in the marketing process.
As James Surowiecki puts it in his book, “The Wisdom of Crowds”
“…companies place huge bets on losers all the time. What makes a system successful is its ability to recognize losers and kill them quickly.”
The same is true of stock trading strategies. Experienced professional traders place bets on losers all the time, but they know how to identify losers and kill them quickly before much (if any) money is lost.
I close bad trades well before my hard stops are hit, but anyone can do that. But, you also have to recognize your losers early. Otherwise you’ll be killing your good trades along with the bad ones.
Every successful trader I’ve met has a way of getting out early on bad trades. If you are day trading support and resistance, I can teach you how I do it. You may be able to find a way to do it on your own, but it will probably take years. I’ve been trading for more than 20 years, and publishing my day trading advice on the internet since 1996.
No matter which route you take, Identifying and exiting losers is the key to trading.
I can give you day trading advice and specific trading tips to improve your entries. My strategies are time tested and I have been successful with my methods of trading for over 2 decades. What’s even better, I can show you intra-bar timing of your entries. And it’s true that the timing of entries affects your ability to recognize the losers before they hurt you. But it’s your ability to kill those losers quickly that really counts.
Be sure to sign up for my Free delayed RBI Updates before you leave our web site. Follow these for a few days, and you’ll understand how helpful my day trading advice can be to your trading.
Or if you want to jump into a winning strategy right now, go ahead and subscribe to my “Real Time” Daily RBI Trader’s Updates, they are delivered each trading day complete with the most accurate and powerful support and resistance areas in the business, as well as my own daily trading plan and how I am going to trade the market the following day.
Copyright 2005 TradeStalker.com and Mike Reed
Saturday, September 03, 2005
TRADING Servive, EN FUEGO
This is the TradeStalker's Trial delayed edition.
Resistance to support, and back up again...
You can subscribe to the real time version of TradeStalker
at http://www.tradestalker.com/order-page.htm or call us
at 866-438-3244 (toll free).
.................................................
TradeStalker's
R.B.I. Trader's Update
09 / 01 / 2005
(Published Since 1996)
...............................................
Dateline: 8:19 pm eastern time, 09/01/2005
Early strength was sold on Thursday and the market backed
off in the first hour of trading. The SP fell to 1216.75
while the Nasdaq futures touched its 1575 support, and then
the market turned up. In a mini parabolic run to the upside,
both the SP and Nasdaq futures peaked just under the
1229.75-1230.50 and 1591-1593 resistance zones and stalled.
The day's ranges were in place by noon, as the market
drifted lower into 2 pm. After getting down to 1218.75 on
the SP futures and 1577 on the Nasdaq futures, the market
bounced back to the middle of the days ranges and then
chopped sideways into the close.
The market is acting soggy and it looks like we could be in
for another early sell-off if Thursday's close is an
indication. Both the SP and Nasdaq futures were turned down
from pretty strong resistance areas on Thursday, and they
both settled at discounts to the cash indices.
It will likely be quite with thin conditions on Friday, not an ideal
environment. In any case, after the morning action it might be
good to get away early for the weekend.
If there is early weakness, the market should get its
footing on a test of the initial support areas and restart
its uptrend. If that doesn't occur, then things will have
changed and we may have seen a short term top on Thursday.
However, if the market *can* get down there early on Friday
and turn back up, then another run towards the Thursday
highs may be in the cards going into the long weekend.
Initial resistance is at the 1224.75-1225.25 area on the SP
futures and the 1584.50-1585.50 area on the Nasdaq futures.
The market needs to get over and hold those areas in order
to get out of the late trading range. A move up here that
gets reversed could set up a rough day for the market.
However, if those areas are cleared, then a run up to test the
1229.75-1230.50 and 1591-1593 areas is likely coming. If
the market gets up there again, and the move fizzles, it's a
gift on the short side.
The first good support is at the 1217.50-1216.75 area on the
SP futures and the 1575-1573 area on the Nasdaq futures. If
the market gets down here, and cannot turn around, the
downside could pick up some stream. The next good support
would be down around the 1211.75-1210.50 area on the SP
futures and/or the 1565-1563 area on the Nasdaq futures.
The next update will be on Monday night. Everyone have a
safe and enjoyable holiday weekend.
September 2005 SP futures resistance
symbols: emini = esu5 / big contract =SPu5
1224.75-1225.25
1229.75-1230.50
September 2005 SP futures support
symbols: emini = esu5 / big contract =SPu5
1217.50-1216.75
1211.75-1210.50
September 2005 Nasdaq futures resistance
symbols: emini = nqu5 / big contract = ndu5
1584.50-1585.50
1591-1593
September 2005 Nasdaq futures support
symbols: emini = nqu5 / big contract = ndu5
1575-1573
1565-1563
September 2005 Dow futures resistance
symbols: emini = ymu5
10479-10487
10528-10636
September 2005 Dow futures support
symbols: emini = ymu5
10427-10419
10371-10355
---------------------------
REMINDER:
Real Time subscribers can view these updates on
the web at this site:
http://www.tradestalker.com/members
---------------------------
Good Trading,
Mike Reed
Copyright (c) 2005 by TradeStalker.com, Ft Wayne, IN.
TradeStalker Updates may not be redistributed without permission.
www.TradeStalker.com
PO Box 9783, Ft Wayne, IN, 46899
Disclaimer
The financial markets are risky. Investing is risky.
Past performance does not guarantee future performance.
The foregoing has been prepared solely for informational
purposes and is not a solicitation, or an offer to buy
or sell any security. Opinions are based on historical
research and data believed reliable, but there is no
guarantee that future results will be profitable.
We are not advocating trading futures. The prices and
contracts in the TradeStalker Updates specify a manner
in which you could trade. We occasionally mention the
SP500 and Nasdaq futures markets because it is
extremely liquid and tends to lead the other markets.
This is not an endorsement or recommendation of the SP500
and Nasdaq futures markets. The risk of loss in futures
is substantial. You can lose more than your original
investment. We are not Registered Investment Advisors or
Commodity Trading Advisors.
*************************************************
Resistance to support, and back up again...
You can subscribe to the real time version of TradeStalker
at http://www.tradestalker.com/order-page.htm or call us
at 866-438-3244 (toll free).
.................................................
TradeStalker's
R.B.I. Trader's Update
09 / 01 / 2005
(Published Since 1996)
...............................................
Dateline: 8:19 pm eastern time, 09/01/2005
Early strength was sold on Thursday and the market backed
off in the first hour of trading. The SP fell to 1216.75
while the Nasdaq futures touched its 1575 support, and then
the market turned up. In a mini parabolic run to the upside,
both the SP and Nasdaq futures peaked just under the
1229.75-1230.50 and 1591-1593 resistance zones and stalled.
The day's ranges were in place by noon, as the market
drifted lower into 2 pm. After getting down to 1218.75 on
the SP futures and 1577 on the Nasdaq futures, the market
bounced back to the middle of the days ranges and then
chopped sideways into the close.
The market is acting soggy and it looks like we could be in
for another early sell-off if Thursday's close is an
indication. Both the SP and Nasdaq futures were turned down
from pretty strong resistance areas on Thursday, and they
both settled at discounts to the cash indices.
It will likely be quite with thin conditions on Friday, not an ideal
environment. In any case, after the morning action it might be
good to get away early for the weekend.
If there is early weakness, the market should get its
footing on a test of the initial support areas and restart
its uptrend. If that doesn't occur, then things will have
changed and we may have seen a short term top on Thursday.
However, if the market *can* get down there early on Friday
and turn back up, then another run towards the Thursday
highs may be in the cards going into the long weekend.
Initial resistance is at the 1224.75-1225.25 area on the SP
futures and the 1584.50-1585.50 area on the Nasdaq futures.
The market needs to get over and hold those areas in order
to get out of the late trading range. A move up here that
gets reversed could set up a rough day for the market.
However, if those areas are cleared, then a run up to test the
1229.75-1230.50 and 1591-1593 areas is likely coming. If
the market gets up there again, and the move fizzles, it's a
gift on the short side.
The first good support is at the 1217.50-1216.75 area on the
SP futures and the 1575-1573 area on the Nasdaq futures. If
the market gets down here, and cannot turn around, the
downside could pick up some stream. The next good support
would be down around the 1211.75-1210.50 area on the SP
futures and/or the 1565-1563 area on the Nasdaq futures.
The next update will be on Monday night. Everyone have a
safe and enjoyable holiday weekend.
September 2005 SP futures resistance
symbols: emini = esu5 / big contract =SPu5
1224.75-1225.25
1229.75-1230.50
September 2005 SP futures support
symbols: emini = esu5 / big contract =SPu5
1217.50-1216.75
1211.75-1210.50
September 2005 Nasdaq futures resistance
symbols: emini = nqu5 / big contract = ndu5
1584.50-1585.50
1591-1593
September 2005 Nasdaq futures support
symbols: emini = nqu5 / big contract = ndu5
1575-1573
1565-1563
September 2005 Dow futures resistance
symbols: emini = ymu5
10479-10487
10528-10636
September 2005 Dow futures support
symbols: emini = ymu5
10427-10419
10371-10355
---------------------------
REMINDER:
Real Time subscribers can view these updates on
the web at this site:
http://www.tradestalker.com/members
---------------------------
Good Trading,
Mike Reed
Copyright (c) 2005 by TradeStalker.com, Ft Wayne, IN.
TradeStalker Updates may not be redistributed without permission.
www.TradeStalker.com
PO Box 9783, Ft Wayne, IN, 46899
Disclaimer
The financial markets are risky. Investing is risky.
Past performance does not guarantee future performance.
The foregoing has been prepared solely for informational
purposes and is not a solicitation, or an offer to buy
or sell any security. Opinions are based on historical
research and data believed reliable, but there is no
guarantee that future results will be profitable.
We are not advocating trading futures. The prices and
contracts in the TradeStalker Updates specify a manner
in which you could trade. We occasionally mention the
SP500 and Nasdaq futures markets because it is
extremely liquid and tends to lead the other markets.
This is not an endorsement or recommendation of the SP500
and Nasdaq futures markets. The risk of loss in futures
is substantial. You can lose more than your original
investment. We are not Registered Investment Advisors or
Commodity Trading Advisors.
*************************************************
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