First of all, I am no pro, but I am learning how to earn a living by picking the low fruit from the tree. I am going to walk you through a trade I placed this morning. I hope this will help some of you who are trying to learn how to trade small charts. I am struggling as I use big charts, but I have a style that works right now, so I will continue to practice off big charts.
Ok- I traded NFLX. It is one of my expert stocks. As most of you know, I trade off the 13. I use this chart as my bread and butter. I will sometimes snipe a trade and never care what the 55 says. I can sometimes snipe from the 13 as long as I am thrusting through resistance or support, breaking previous day's high (calls), market going in my direction, MF in my direction, and ADX in my direction, and the "E" formed.
Take a look at what happened with NFLX at around 10:20AM. It broke through resistance (real body high at (9:30). So took a sizable position at 10:20ish, only looking to ride momentum. All the indicators I mentioned above were in alignment. I knew there would be reservations during the first 1 hour or so of market open based on the threat of war. I also knew I did not want to stay in a position long because I am not as well versed on what is going on with this threat on war as I should be (my lack of studying). I knew I wanted a crumb. I bought calls at 10:20ish AM at 287.45 and sold at 11:00 for 290.55. I am buying much larger positions now, so this $3 move served me very well financially. My golden rule is, win or lose, once I sell a position, I close up shop for the day. I am finish for the day with the stock market. I will look at it tonight and set up possible trades for tomorrow.
My humble suggestion is, find what works well for YOU and your personality. Fine tune it, fine tune it, fine tune it. Once you have massaged and molded it, it is yours for the duration of your life. It takes work and time, but it is worth it.
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When trading off small charts, you need to know how your stock responds to the broad market. If you have not watched how it responds to the broad market, you are setting yourself up for failure.
You must have indicators that have been tested. In some of my previous posts, I talk about finding "gold nuggets". I have nuggets that work well together because I have tested them. Honestly, I have two combinations that when all aligned, they work EVERY SINGLE TIME! YES, EVERY SINGLE TIME! It takes work, work, work to discover those. When you are broke, and you get sick and tired of being sick and tired, you will find those nuggets. They are there. Some of you are closer than you think to finding one. All you need is one. I recall spending hours, and hours, and hours, trying to discover specific consistencies. I took several months of hard, grinding work, but I found them. I was awakened at 2:30 AM, by thoughts of process and approaches that I overlooked. I jumped up, cranked up the computer, and started testing. It worked, 10 time in a row, 20 times in a row, 30 times in a row, 40, 50, 60...... I was like Yipee! Yipeee! I found it, I found it! I could not go back to sleep and had to work that day. I was so hyped up until, I could not contain myself all day. Sorry to offend, but GOD IS GOOD! Just so you know, those "Iron Clad" processes show up about 3 times a week within my 5 expert stocks. There are several people who read the posts, but choose to never respond or comment. Several of them followed Gary's processes, and have found their "Golden Nuggets". I have always wondered why Gary would say, "I make money as easy as I breath". Hmmmmm...... This is why! He has nuggets stacked on top of nuggets.
I think too many people over complicate trading. Just find a few stock and process that work for you. I do not know anything about most of the stuff that people talk about in trading. I do not have all the terminology. I do not sound very sharp when people talk to me about trading. I just had someone state to me, "I shorted AAPL, and I think you should do the same". He might be right, but I have rules. I have exited my trade, made a chunk of change (my perception), so I am OUT! I have lost my shirt by going back into trades. My little laptop is shut down and back in my car. I am sure AAPL might go in his direction, but that is based on his research and not mine.
Trading is something that you start to "feel". When you start to feel that trade as you see your process forming, you just know it is going in your direction. For me, I have probably practiced the equivalency of people who have traded for 8 or 10 years.
Those of you who PM'ed me, I will definately respond. Just give me a day or so. I have a few to respond too. I want to make sure I answer your question and or help you with what I can. As always, I appreciate the opportunities to communicate with those who trained under the same concepts as I have. There are not many of us out there, so we have to help each other reach our goals.