This day trading blog directs traders to more information.
It's been a fast and busy week. As Wealthpire shut down the Morning Hours Trading chat room this week, members asked that I start up a new chat room so we could continue our work together. I feel honored by the comments from current and former members as they tell me about their positive experience in that chat room over the past seven years.
But now it's time for a change. I've set up the new chat room and members have already started signing up. One of the exciting things is that I'll be able to provide more content than ever before...more day trade set ups, more educational videos, and now we're adding swing trade analysis as well.
I've posted a seven minute video of the types of high probability trade set ups we'll be looking at in the new chat room. Just follow the link in this blog post to get more information.
Day Trading Assumptions create risk for the day trader.
This page will feature quotes from books that I think are worth reading.
Bonus coaching plan for Day Trading Pro
For the Forex traders in our midst...I do a daily video analysis of one currency pair each morning. Today's link takes you to the YouTube channel for those videos and you can subscribe to that channel.
Just posted a video analysis of the S&P-500, along with today's Heat Maps for stocks and ETFs. You can watch the video on YouTube at the link in tonight's post. There's also a special offer at the end of the video.
"Tell Me" allows traders to post ideas, questions, and comments.
This article looks at common characterics of the best stocks for day trading.
Support and Resistance is discussed by David S. Adams.
Averaging down has pros and cons. But there are deeper questions to be answered.
Forex Trading Course poses several questions you can ask yourself before making a buying decision.
Before you purchase a Forex Trading Course, here are a few questions to consider. See today's link for a short YouTube video.
TNET posted a 36% drop at the open this morning, a BIG gap down by any measure. The link in today's post will take you to a YouTube video analysis of this trade. A big gap down can lead to a short covering rally as well as a later opportunity to short the stock as it drops back down. Hope you enjoy this Fibonacci analysis.
Back testing is the process of looking backwards to check a specific strategy’s performance stats. While it is a necessary process, here is something you should watch. We tend to look for reoccurring patterns and our mind’s eye will focus on the patterns that were true. So, if we think we’ve developed a great new strategy and we’re all excited about it, then our back testing will tend to be biased toward the positive results. Our tendency is to overlook the times when the strategy would not have worked so well. We tend to overlook other variables and bypass the instances it didn’t work out. This is called “confirmation bias” and it can occur in back testing as well as during live trading.
The trick is to realize (and accept) that no strategy is 100% accurate every time. I don’t care how many variables or indicators you place on the screen, there is no “perfect” system. Nor is perfection necessary. Instead, you need to focus on probabilities. Ask questions such as “What are the probabilities for a winning trade using this strategy?” When it works, how well does it work? When it doesn’t work, then ask how bad it is.
While no strategy is perfect, it is important to focus on loss containment strategies. For example, if your strategy works 80% of the time (which is great!), then what is your strategy for dealing with the 20% of the trades that don’t work? How will you contain the losses so the average loss is less than the average win? What is your exit strategy on the losing trades? Do you have the discipline to accept and act on those stop losses? If accepting the losing trades is a problem for you, then what sort of system of automated stops can you put in place to control your risk and develop these loss containment strategies?
I know I’ve asked a lot of questions in this post. But these are the hard questions that you need to ask as you develop your own strategies. Finding the winners is the easy part! Dealing with the losers so they don’t rob your profits is the key.
Just posted a new video analysis of two Forex pairs. The US Dollar continues to strengthen against these two currencies after recent pull backs.
You can see the video analysis in today's link and subscribe to my channel to receive new videos.
Who is Robert Joiner?
Currency Charts are compared to stocks charts and examples shown.
The promises and pitfalls of online currency trading are considered.
The EUR has been falling against the USD for quite some time, as this video shows. On a shorter term, we began falling lower again last night after resisting the 4 hour Kumo and price is currently at the 38% Fib line in its latest price loop.
Today's link will take you to free access to that video analysis.
Trader Training - Free and Otherswise
The swing charts on USD/CHF are a bit more complicated. While we have moved above some key areas of resistance, I'm not convinced that this is a good entry point. A more thorough video analysis is available in today's link.
Just posted a new video analysis of GBP/AUD. This pair has been in a strong bullish trend since May. There is some possible overhead resistance, so I'm watching key Fibonacci levels and Chiku for the next possible entry.
Fx trading is the exchange of one currency for another currency. Thankfully...
Just published a video analysis of EUR/JPY in today's link. We've moved above the 23.6% Fibonacci Retracement line this morning, but possibly more chop ahead.
Just posted a new video analysis of GBP/CAD at the URL link shown in this post.
I've started posting Forex analysis at the URL link in today's post. Even if you're not currently trading the currency market, then you might still enjoy the analysis.
Market direction is looked at from Ichimoku perspective after a big down day in the market.
Here's another good article from Forex Crunch on key levels to watch for the EUR/USD. The Greece situation is deteriorating rapidly and all markets will likely see huge volatility beginning with today's currency market open. Today's link takes you to the article from Forex Crunch.
If only our losing trades would hold up a sign that read "This trade is not going to work out". Things would be much easier. But that's not how it happens, of course. We do not enter a losing trade on purpose. In the beginning, we think the trade is going to work out. We firmly believe that this trade is going to be profitable for us. So, when it turns into a losing trade, then we have a problem. We are slow to respond to the change in character because it means losing money and it means we were wrong about something. Our denial of the facts leads to hesitation and sometimes even denial. We begin to hope that luck will shine our way and rescue us from the situation. Meanwhile, the losing trade continues to sit there and rob us of our money.
Perhaps you will find it helpful to think of each trade as a guest in your house. You are throwing a party and you've invited several people over to your house. These are not close friends, but you deem them to be people of good character. But during the party you notice suspicious behavior from one of your guests. They are avoiding eye contact with you and they seem to sneak out of your sight. Then you catch them in the act of stealing something out of your house. It's a small item, but still you recognize now that this person is a thief.
What would you do? Would you calmly "let it go"? Or would you take immediate action and throw the thief out of your house?
In the same way, we need to be watchful of trades that appear to be "good trades" and then reveal themselves to be thieves in our house. Recognize their true identify quickly and get rid of them. The failure to cut losses quickly, and to ignore their impact on our bottom line, is the downfall of nearly every trader who doesn't make it.
Recognize the thieves early one. Stay in the game.
Ichimoku charts are available on many platforms, but the charts will sometimes need to be adjusted.
If 20% of your trades don't create a profit, then that doesn't mean your strategy has failed.
If you accept the imperfection, then you can manage the probabilities. If you expect perfection, then your disappointment will cause you to hold losing positions too long.
The Ichimoku chart is a cluster of indicators that provide the trader with a unique perspective.
Have you ever been in a trade where you got out with a nice profit...and then you look back and see the stock just kept on going? While you're grateful for the profit, you also realize how much more money you could have made on the trade by being a bit more patient.
These trades have some characteristics in common. You can click on the link in this post to see a video and to hear a few of my ideas that you might find helpful.
Just wanted to publish this story. Mark is a member of the MHT chat room and also Ichimoku Trend Trader. He was kind enough to let me share his story:
"Bob, I want to thank you for the amazing service you provide with your Ichimoku Trend Trader. A bit of back story, I was laid off from my job about 3 months ago and through a very fortunate set of circumstances, was introduced to one of your other services. When you opened up your Ichimoku Trend Trader program, I knew I had to get on board immediately! Ichimoku has been the most comprehensive trading education I have received, and your trade alerts have consistently yielded double digit returns in mere days! After 3 months, I am still unemployed and loving life! I thank you Bob, and my Family thanks you – I get to watch my kids grow up!"Mark K
Bollinger Bands Squeeze Play shows a technical set up for trading this consolidation pattern.
This link takes you to the latest video post on Facebook. I'll be posting more to Facebook, so follow me.
A description of three membership sites.
ichimoku swing trading service
I recently sent out a notification that my Forex program "Forex Pip Starter Pro" opened up this week for new students. But that open enrollment period ends tomorrow at 5 PM Eastern. So, check out today's link if you want more information.
Looking for CHFJPY do find support here, based on the attached chart view that shows weekly Kumo support and an oversold 4-hour chart.
A friend told me about the tradingview.com site this week. I've starting posting a few trading ideas on the site with annotated charts. You can follow the link in today's blog post to see one example. You can also follow me on that site and on the twitter links to those charts (twitter/bobjoiner).
A quick note in case you're interested in learning how to day trade. The chat room I've been leading since 2008 (yes, 6 years now) is accepting new members at this time. The open season for new members doesn't happen very often, so grab your seats now. About a month ago, we changed the format so now I'm able to share my charts and talk about the technical set ups for each morning's trades. (Wish this were available when I was learning how to day trade.) If you're interested, then look under the "Membership Club" tab on the home page of this site and scroll down for the link to Morning Hours Trading. Again, this is a limited time opportunity.
Saturday mornings are a great time for doing trade reviews. I look back at my trade journal from the previous week and I ask myself two questions. What did I do well? What could I have done better?
I've always learned more from this daily journal and weekly review that from any other book I've ever read about trading. But I wanted to share one of the thoughts I just wrote in today's review.
There are times when we have to step away from the computer. We might be in the middle of a trade and price is debating various areas of support and resistance. While we like to be right and have our targets hit, we also need to protect ourselves from ourselves and set stops.
You don't have to step away from the computer to use this idea, but you can think of your trade decision as a type of bracket order. Let's say you're long on a stock or a Forex pair. You can set a target at an area of overhead resistance so that you'll make a profit. You can set a stop at an area of support so that you'll stop out of the trade if it moves too far against you.
Either way, your emotional response is important for your trading. You can be happy if the trade moves up and hits your target. You can be thankful if the trade moves down and hits your stop. You can be thankful because you did not hold onto a losing trade and thankful that you no longer have the stress and guilt of holding onto a losing trade. You can be thankful that you did not lose more money than you did!
Either way, you can be happy or thankful on every trade. And this is a much better place from which to trade.
annotated charts gives examples of support and resistance for stocks and forex trading
The link in today's blog post will take you to a YouTube video I just posted. It's an idea about day trading stocks based on support and resistance and it's a pretty simple idea. I don't remember where I first heard about it, so I can't give anyone credit for it. But it's an interesting idea and it might help you with your trading. So, click the link and give it a thumbs up if you like it. Thanks.
The link in today's blog will take you to a YouTube video I just recorded. In this video, I look at various areas of support for the S&P-500.
I've been writing a book off and on for the past year and I'm trying to wrap it up within the next six months. Some of you have already responded to my requests for input, but I'd really like to hear from more of you. The working title for the book is "The Top 12 Ways to Lose Money in the Stock Market". The link in today's blog entry will take you to a very short survey. You might find it helpful to answer the questions and print a copy for yourself.
The video course, Trading the Afternoon Market, teaches traders how to see stock charts, using technical indicators and contextual trading.
How to prevent day trading losses from eating up your gains.
After yesterday's big rally in the market, I expected some chop in both the stock and the Forex markets. And we saw plenty of that. But that's what markets do. They expand and they consolidate. They wobble and they fall. But, after a day like yesterday, it's okay for the market to tread water for a day and consolidate those gains.
The problem is that some traders expect today to be like yesterday. And if that is your expectation, then you might tend to hold onto losing trades too long because you just can't believe the stock is not going up. That sort of disconnect between expectations and reality can catch you off guard. In your mind's eye, you're buying the stock long because you can see it going higher. And it when it quickly retreats, then your day trade can quickly becoming a losing trade and your mind is still trying to get a handle on what just happened.
This is why we have stops, of course. We need systems in place to protect us from ourselves and from our inability to accept reality when it doesn't match up to our expectations.
Just like it's okay to have a break even day in the market, it's okay to exit a trade at break even also. If a trade is not going in the direction you thought it would, then it's okay to get out of the trade. Some traders think "well, it hasn't hit my stop yet, so I'll just hang on a little longer". But you're not getting paid to hope. You're getting paid to make decisions, quick decisions based on what the ever-changing charts tell you about what is happening with price action in this moment. So, it's okay to recognize the change and exit the trade at break-even. Remember, you can always get back into the trade.