Hi All, it's been a while since I posted anything of substance but I have had some time recently to get back into day-trading mode. Day trading is a different way of thinking than swing or investment type investing. There are a few set of rules to follow to manage risk to your account funds--you can read about these rules just about anywhere on-line or in most highly-rated day-trading books.
I recommend:
How to Day Trade for a Living: A Beginner’s Guide to Trading Tools and Tactics, Money Management, Discipline and Trading Psychology
One of the rules is to look for low-float stocks with some sort of catalyst behind them. StockTwits is a great place to look through the "social" lens as a social catalyst based on something tangible is an excellent way to get in on some rather significant trades. Another way is to use the free stock-ideas live trading room until you are comfortable enough to pay and have control.
Regardless what I wanted to share with you is a chart that sums up a bunch of the trading rules and how it's quite possible to apply low-risk fundamental day-trading strategies to make, well, a ton of money.
Below is a capture of Marathon Patent Group (MARA), look on StockTwits for $MARA to see what's going on with this. However, if you look at the trend (candlesticks) and the volume indicators their is a very good bullish sentiment and then a fairly clear ABC pattern from 12:55 - 14:40. The AHs took this to the low 2.70's and will probably climb significantly tomorrow with the bullish social sentiment and tie to, yes I am going to say it, Bitcoin. Setting a stop 10% below your buy-point would have kept you in a trade returning upwards of 70-90%. Let' me lay that out differently, a 1000 share purchase for around $1550 would made you almost a $1000 in profits, well above the standard 300-500 goals most retail day-traders are working for. If you straight-line the risk a $15000 investment would have netted you a low-risk profit of around $9000. Just saying.
I found this trade in the a.m. by knowing some of the fundamental day-trading rules and watching in the Stock-Ideas free Live Trading Room: https://www.trade-ideas.com/trade-ideas-university/live-trading-room/. The catalyst behind this Intellectual Capital company was/is they are purchasing a bitcoin miner company to start mining Bitcoin. This fueled traders based on other companies acquiring or merging into Bitcoin activity and flying on the expectations for BTC.
Happy Trading...
No comments:
Post a Comment