How Do I Trade During a Flat Day!

I am mentoring two friends. The questions was asked yesterday, "How do you trade during a flat day". Well, first of all, we are only supposed to place 5-10 trades a month, so being content studying the market for a couple of days is not a crime. Nevertheless, I wanted to provide a level of training to each of them on how to make money during a "flat day". First of all, everyone should have 4 or 5 stocks they are very familiar with. I made it clear to them that the Dow and NAS might be almost dead, but if you have diversified your basket of stocks, most likely something will move in the direction of a trade. I made it clear that this is not suggested, until they have practiced for at least a year, and they have placed successful practice plays when the market is flat- DURING THE TRADING ZONE THE TRADE IS BEING MADE. If not, do not take the chance.

I walked them through yesterday's activity in the market. A lot of stocks were flat or slightly down, but one stock in my basket (AMZN), moved up quite well. I was showing a FP on my 4hr. chart (darn I miss my 233). I used the 4hr as my trend. The candle was sitting on my 8ma and starting to paint another above the 8ma. I was also seeing a FP on my 1hr chart and good movement in a positive direction. I could have easily made a trade for 20-30% gain, and honestly, this was more of a science play opposed to art. Under normal circumstances, I would have placed this trade, but unfortunately, I still do not totally trust my charts (Just switched from Qcharts to TOS). Apparently, I would have been fine.

I am teaching them that being patient and disciplned are imperative. On the contrary, there will come a time when you know your basket so well until you will enter a trade during a flat market just as if it were any other day. When do you know it is a trade- regardless of the market. It jumps out at and and says, "ITS A TRADE!!!!!! ". You place the trade because you trust your research and you are taught to trade the evidence.

I think we sometimes over analyze trading. In essence, it is basic (not easy), once you learn Gary's concepts and implement his strategies.

Again, I am no pro. I only have almost two years in this trading game, but I am a man on a mission. I anticipate "QUITTING" my 9-5 when I have my W/O fully funded. I spend about as much time trying to perfect this art as I do on my 9-5, so I am A MAN ON A MISSION! If someone wants this as bad as I do and ask for my help, consider it done! Have a great weekend!

There really is very little difference between Strategy Desk and Qcharts. I do not know about TOS. I do like TOS for buying my options. On Strategy Desk you can have all the charts Gary gave us to use including the 233, they are free and they are connected to TOS.

My S/O uses a laptop and has 6 charts on one screen (Strategy Desk) and has TOS available when needed for buying options. My S/O uses a 55, 21, 5 and 1 and then uses just two charts with only moving averages of a 5, 10, and 20 plus money flow. The charts are a 10 and 21.

I purchased AMZN but I purchased it on the 9th right on the open for a Put sold it on the open on the 10th (comb lines used) and then I purchased a call right before the close on the 10th and sold it before 2 in the afternoon on the 11th (knowledge of stock used). It is like you said knowing your stock is a huge part of trading but I think even more important is to trust what you see and believe.

I think you will find AMZN moved well because it is going into earnings. Listen to what CNBC (if you can) talks about a lot. AMZN was mentioned so many times I thought it was running for President!

AMZN also hit a 52 week high and generally (and as you know not always) when a stock hits a 52 week high it will pull back before going higher. If the high is a “head fake” it will REALLY pull back! AMZN was no head fake...talking heads proved that the week and days before the gap.

AMZN had a gap on the daily and the 55. Drawing those gap lines on the Daily and 55 helps me figure the 80% chance of the direction of the stock the next day. I jumped on AMZN right off the open on the 9th (Put) and right before the close on the 10th (Call). Looking at the gap lines informed me that AMZN was not going to close the gap any time last week.

I know it is easy to look back at trades and I would love to tell people what I see for next week but that is my test paper and for my eyes only! It took 8 years of study to get to that point.

Here’s to ya on retiring soon! You are well on your way!



Edited 1 time(s). Last edit at 01/12/2013 07:16PM by Darcy.

Really good stuff! I really want to trade with charts that are as close to Qcharts as possible. When trading with Qc, I used the 55, 233, 21, 13 and 8-alot! I downloaded SD yesterday, but the program would not take my User Name or Password. I am calling Ameritrade this morning. When I opened my account, I was told that SD was no longer available, but the ones who are using it will keep it. They are in essence "Grandfathered In". If I was allowed to download the product, I hope I can simply be granted access to use it. I am calling with every intention of having access granted to me. If I get opposition, I will contact the CEO if needed!

Ideally, if I can use SD in conjuction with TOS, that might be best. I am not trying to reinvent the wheel- just trying to grow as a trader. I really appreciate your guidance again. This forum through RTT has been worth well more than any book I could have read. It helps to have people out here who actually provide positive guidance. I try to do the same.

I really hope no one held APPL through the weekend. No one in Gary's camp should have because the charts screamed "Do not hold over weekend". It got creamed in After Market!!!!

TD Ameritrade told me that they are no longer supporting strategy desk, and eventually, it will go away. I stopped using it and switched to TOS that day. TOS is a bit more cumbersome in a couple of ways, but at least it's a going-concern.

You CAN use a 233, 8 or any other custom time frame in TOS. In the chart, under the style icon, choose intraday, 20 days, custom, and enter 03:53 (233 minutes). Unfortunately, The maximum look back is 20 days, so research is tough. I keep requesting that they modify this, but at this time that is the way it is.

I am not sure where this news is coming from but my S/O just spoke to SD assistance and was told it is not "going away". According to the information we just received they had talked about it last year but decided too many folks were using SD.
That's the info we just got at 10:54AM Jan 14, 2013.

I got my info from TD Ameritrade tech support, but that was a few months ago...

jslavell...It is possible that TD Ameritrade considered it but SD assured my S/O it would not happen. SD said they had discussed it last year...and that would have been last month. Happy trading!