-Avoid trading first 5 minutes of the open. Many false moves occur here.
-If the sock gaps up over alert price, wait for first 15 minutes to see whether it comes back to test alert price and how it reacts around alert price and buy it after the alert retest or if it breaks out of first 15 minute high with stop below the range of the day . Use Intraday 5 minute chart with 20 EMA/9 EMA for guide.
-If the alert triggers during the trading day, make sure to check it has a nice tight base below the alert price and not extended for the day. It it has come too far from morning low, the alert price might act as resistance. Sometimes if the stock is running huge volume, it will hit the alert price and base around it before exploding higher. Chance is higher if the stock gaped up in the morning.
-Intraday 5 minute chart, 9/20 EMA is your friend. The further the stock is from these EMA’s , the riskier it is. Try to buy close to EMA’s and sell at least partials far from it.
-Once a trade is taken and it starts to work, it is always a good idea to lock in some profit and set a stop for the rest at break even or below low the of the day if you are planning to swing trade.
-Stop loss is your friend. Always have one. When it come to setup I post here, my stop is very conservative as I try to find setups that seems low risk with high reward potential. Try to keep risk reward ratio at least 1:3. Another word, risk 10c for a .30c gain.
-Low priced stocks are riskier than more liquid big cap names. Proper entry is a must for trading low priced stocks.Please do not chase those stocks if you miss early entry and keep the time frame short. Always and always have a stop to limit your losses. Always take a partial profit once the stock moves in your direction and set a reasonable stop for the rest.
-Low priced stocks are riskier than more liquid big cap names. Proper entry is a must for trading low priced stocks.Please do not chase those stocks if you miss early entry and keep the time frame short. Always and always have a stop to limit your losses. Always take a partial profit once the stock moves in your direction and set a reasonable stop for the rest.
-Take only the setups that you really like and understand. Successful rate will be higher if you understand the trade.
If you are interested in trading these setups and more live in a chat room, send me an email for info. thenyctrader@gmail.com.
