Let's face it...trading the afternoon market is not the same thing as trading the morning session. Often there is lower volatility due to lunch breaks and a lower news cycle. But, for the trader who is trying to make some extra money by trading the afternoon market, you'll find some suggestions on this page.
This page describes two immediate options for improving your trading. One provides a solid foundation for technical analysis and the other is a book geared specifically to trading the afternoon markets. As the headline states, one is free and one is cheap. First, here's the free resource:
This is a FREE 7-day, 7-video series that teaches you the basics of Support & Resistance. If you're looking for a place to start understanding price movement, then this series is a great place to start. Just click here to get started.
The second option is a book I wrote about Trading the Afternoon Market. It's available as a PDF download and you might find it helpful as well. The rest of this page is about that book.
When you've got thousands of dollars invested in
stocks, and the slightest movement in price can make a big difference in your bottom line, then you've got to be careful. And you need to know everything possible about what you're doing.
Unfortunately, a lot of traders get started in stocks without much education. We value the entrepreneur who wants to learn by the seat of his pants. We value the person who, through sheer determination, can make things succeed.
The problem is that determination is not enough. And that simple concept of "buy low and sell high" is a bit more complicated than anyone told you. Sure, you've got some good trades under your belt. But you've also made some bad trades. And it always seems like you hold the losers too long and cut off the winners too quickly.
Well, the good news is that you can learn how to trade stocks. In fact, if you can see two shapes, one square
and one circle, and be able to tell them apart, then I'm confident you can learn how to trade.
You see, the trick is learning how to see. It's not some magic formula. Success in trading stocks comes from being able to recognize the patterns and shapes that the market creates for us. And it is something that anyone can learn how to do.
If you can match two patterns together, then you can learn to trade. You can stop floundering about as you chase rising stocks, only to have them crash and burn as soon as you enter the trade. You can stop holding trades overnight, hoping they work out the next day. You can stop letting your losing trades just linger on for days, tying up your valuable equity.
Instead, you can recognize the patterns that repeat themselves every afternoon. You can learn to trade with the flow of the market, regardless of the market direction You can learn where to find stocks to trade, after the morning excitement is over. You can learn how to establish precise entries and exits, trading the strategies that work best for that market environment.
If the market is going down, then you pick one of the stock strategies for the bearish market environment. If the market is going up, then you take one of the stock strategies for the bullish market environment. It's a simple matter of matching two patterns together and collecting the profits.
Some people think that trading with the technical indicators is difficult. It's not. It's a simple matter of recognizing patterns, such as "when this line crosses that line, then do this". Not too hard. And when you see these patterns repeat themselves over and over again, then you'll gain more confidence in your trading. You'll feel more conviction in letting the stock make as much profit as possible before selling it.
Most traders let the losers run on, wasting their equity and causing stress. And they cut off the winners too quickly, scared they'll lose their profits. All of this stems from several trading fallacies, chief among them the lack of strategy for trading the afternoon market.
So, you'll also learn some valuable money management tips. Such as:
* why good luck is bad for you
* why holding a trade over-night is bad for you
* how to measure your success as a trader
* why "averaging down" is not smart trading
* the seven land mines of the afternoon market
So, if you're not consistently making money by trading stocks and you sincerely want to learn how to improve, then let me tell you about this package.
I've created a package of material that teaches you everything you need to know for Trading the Afternoon Market. Now, your first question might be "Why are you focusing on the afternoon market?" So here's the answer. The afternoon session has to be treated as a separate part of the trading day. It is different in character. The lines of support and resistance that we use for trading are different. And there are more opportunities for failure. In fact, I once had a person admit to me, "Bob, I do fine when I'm following your trades in the morning. But then I give it all back in the afternoon."
I don't want that to be your story.
So, I put a lot of study and analysis into trading the afternoon market. Yes, you can apply some things learned here to your overall trading. But the focus is on the afternoon session, to try and help you keep those morning profits.
Nine chapters deal with all aspects of trading the afternoon market. The book includes 40 charts detailing the strategy patterns.
* The Seven Land Mines to Avoid
I'll give you an over-view of the whole course in this lesson, so you'll know where we're headed. There's also a document called "The Perils of the Afternoon Market" in which I cover the seven landmines to avoid when you're trading the afternoon session. Sometimes, knowing what not to do is the important first step. So, I'll ask for a little introspection in this lesson.
* Support and Resistance
In this lesson, I lay out nine different lines of support and resistance for the afternoon session. This is the foundation for your trading. Stocks respond to known areas of support and resistance. But sometimes they "break the mold", so you have to combine S/R with other tools in later videos. Still, this video will help you see things in the charts you never saw before.
* Contextual Trading
Many day traders fail to see the context in which their trades exist. Big problem - because the market will either lend its support to a trade or not. While some traders may keep an eye on the overall market, they may not know how to gauge what will happen next. The truth is that the market reacts to its own lines of support and resistance. Knowing this will help you place your trades in this context. There is also the matter of a stock's own multi-time context.
* RSI & Stochastics
Relative Strength Index (RSI) and Stochastics are covered here. Even if you stopped at the end of this lesson, combined everything you've learned so far, and incorporated it into your trading, then your profits would improve dramatically. So, you'll learn how to use these two indicators to judge how a stock will respond to its lines of support and resistance. Combining RSI, Stochastics, Contextual Trading, and S/R is a knock-out.
* MACD, Volume, PVT, and Money Flow
I consider MACD one of the most abused and misleading indicators out there. Not that I don't use it. I just don't use it in the way that most traders use it. Volume and Money Flow are secondary indicators. But I'll show you a nifty way to combine them in your trading. Then, in Video # 9, you'll see how it all combines for some very precise trading. This lesson simply sets the stage for that lesson and adds three more technical indicators to your arsenal of tools. (There's a separate video in this section that focuses on PVT & Money Flow.)
* How to Find Stocks for the Afternoon Session
Knowing all of this information is pretty useless if you don't have any stocks to look at. So, in this lesson I'll walk you through the exact same scanner I use for finding stocks worth trading. I'll show you a completely free service you can use for finding stocks. Once you know how to use this free tool, then you can use it many other ways, whether you're a day trader, a swing trader, or a long-term investor.
* Money Management
This topic is important enough to merit its own lesson. So, in this video I'll cover some of the key money management tips for trading the afternoon market. I'll give you some specific recommendations and tell you how to measure your success as a trader.
* Eight Specific Strategies
Everything you've learned so far leads us to this point. This is where I give you the names of eight specific strategies you can use for trading the afternoon market. I tell you the context for the trade and the trade set-up. I give you examples of charts and cover the exact details you'll see repeated in the market over and over again. But don't jump right to this section in the very beginning. I know it's tempting. But you simply won't "get it" without doing the preliminary study of the previous lessons.
* Entries & Exits
In this lesson, I bring all of the material together and show you how it works. I show you examples from bull and bear trading days, so you can be prepared for either one. I walk you through the whole process of finding the stocks, putting them in context, seeing the strategy set-up, and using the indicators to nail the exact entry and exit for the trade. Hopefully, by the end of this lesson, a light bulb will go off and you'll see the visual landscape of the afternoon market. Soon you'll be making money by "Trading the Afternoon Market" with a whole new set of trading skills.
This material is nothing less than your master guide to Trading the Afternoon Market. Your skill level in trading will increase. "How much is this going to cost me?"
You can click here to be taken to see the storefront for the books I've published. You'll find Essentials of Trading the Afternoon Market there.
The book is available as a 91-page, spiral bound book. Some traders prefer the printed text and charts for easier viewing.
But, too make this material available to as many traders as possible, I also created a PDF download of Essentials of Trading the Afternoon Market. That's only $9.95 and it's available at the bookstore link as well.
Hope you enjoy the material. And if I can help in any way, then you'll know how to get in touch with me.