My rules on trading are simple –
- BE PATIENT
- Always wait for the right setup before taking the trade.
- Don’t trade at the opening bell – wait and analyze before jumping into a trade as it is extremely volatile at the opening.
- Have your stop loss ready – always use a stop loss.
- Scan for momentum and wait for confirmation (chart trending) before jumping into a trade.
- Get in and get out quickly. Don’t hold onto a bag, take your profits and get out. If your in the red, your stop loss should have saved you minimizing your excepted loss.
- Always go into the trade knowing what is at stake, Don’t blow up your account. Live to trade another day.
- Need the tools for the “trade”- Stock Scanner, Charting platform (join our community for access to the best scanners and charting) and a reliable computer with hard wired network connectivity (multiple monitors a plus).
- The Market will humble you quickly – never go against the market, work with it and alongside it.
- Stay away from penny stocks and stocks that are over $15 a share. For my trading style I like stocks between the $1 – $10 range.
- Check the index’s ($SPY, $QQQ, $VIX) to get a sense of the overall market performance for the day.
Scalping is a strategy where we take quick trades on an “in-play” stock. A couple of things need to happen. The stock must have momentum, it should have alerted us on our scanners and we have confirmed chart analysis that it is trending. Once all confirmed, we get in for calculated profit/loss and get out in-full. If the stock continues to perform after re-analyzing we may take another trade (scalp) on the stock in-play. – Simple
Tools of the “Trade”
To be successful in any business you need to have the right tools for the job. We use the best tools from TradingView and TradeIdeas for our daily alerting and charting. Our broker platform of choice currently is ThinkorSwim (TOS). We will be creating some training content on our YouTube channel on how we have ours setup and configured for our type of trading style. By joining our paid memberships you will have access to view our alerting and live charting via Discord live stream. Be sure to check it out here!