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Charts Don't Lie: 3 Hours Can Make You 3% or More: How to Trade for Half Day and

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[* Charts Don't Lie: 3 Hours Can Make You 3% or More *]

How to Trade For Half Day and make Consistent Profits

By Steve Ryan

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Shakespir Edition

Copyright © 2017 Steve Ryan

All rights reserved. No part of this publication may be reproduced, distributed, or transmitted in any form or by any means, including photocopying, recording, or other electronic or mechanical methods, without the prior written permission of the publisher, except in the case of brief quotations embodied in critical reviews and certain other noncommercial uses permitted by copyright law. All pictures are held by commercial license and may not be duplicated by anyone without express permission.

Shakespir Edition, License Notes

This ebook is licensed for your personal enjoyment only. This ebook may not be re-sold or given away to other people. If you would like to share this book with another person, please purchase an additional copy for each recipient. If you’re reading this book and did not purchase it, or it was not purchased for your use only, then please return to Shakespir.com and purchase your own copy. Thank you for respecting the hard work of this author.

WHAT IS THE HALF DAY TRADING SYSTEM?

[_ I cannot begin to tell you how important the first hour and half is gonna be. I want you to hit every bite you can find: dealers, brokers, clients, your *mother* if she's buying. _]

Sam Rogers, Margin Call. 2011

What the hell is this concept?

You might ask “Is this another brainchild of Tim Ferris?”

You might also think this is just another shady trading newsletter trying to squeeze your money out of your pocket, just like the market.

Nah, none of the above.

The half day trading focuses on making (at least) 2%-3% profits in every trade we make from the opening to before 1 PM.

If you think this is a scam, well, think again.

Let’s take a look at the two examples below. Can you spot the similarities between these two charts below?

Hint: It is not the direction. It is also not the industry. PVH’s sector is retail while MDVN’s is biotech.

PVH stock March 24, 2016

MDVN stock March 17, 2016

Have you found out how these two stocks related?

Yeap, both made their biggest movement of the day before noon (look at the big black arrow pointing down to the hour of the day).

The market is at its most volatile stage in the morning. News, rumors, analyses, and pre-market movements are everywhere, making the trading floor a chaos.

Our job as a half day traders is to make that chaos into a controlled chaos.

How? By executing the strategies you will learn in this book and the other Amazon.com best-selling books.

One thing I can guarantee you:

THERE ARE ALWAYS STOCKS MOVING 2% OR MORE DURING THE FIRST 2 HOURS. UP OR DOWN.

There are millions of stocks out there. There are good, great, bad, blue chip, cheap, expensive, super-expensive (hello Priceline!), oil, retail, technology, growth, dividend, stocks of broken companies, and etc.

It is mathematically improbable and practically impossible to look at everything.

And thus, we have to handpick the stocks that we know are liquid, commonly traded, and most importantly, are ready to move, up and down, at least before noon or 1 PM.

We call this “The Setups.”

These are groups of stocks that have, based on their price actions, “prepared” themselves to move within the near future.

So you might ask, “[_ Why aim low? Why 3% profits only? _]”

3% is just a MINIMUM. Based on my personal experience, you will feel some significance increase in your trading account.

Anything less than 1%-2% means we are scalping. And when we are scalping, we are exchanging long term profitability with short term gratification.

We will make ourselves tired as we have to keep looking at our monitor screen, trying to catch every pullback in 1 minute or 3 minute charts.

This is not what we want to do with our trading life.

Instead, we want to hit 4%, 5%, or even 10% profitability while keeping our sanity. We want to trade less, but make more in every trade.

I cannot and will not guarantee that you will make 3% profits every time. Sometimes you will make 1%. Sometimes you make 4%. If you are in the right stocks that happen to be both “In Play” with a momentum, you can make 7%-10%!

And of course, you can lose money too.

UNDERSTAND: What I am trying to do is merely directing you to focus on the right stocks at the right time.

Past performances are not indicators of future performances. And thus, as you continue to read this book, you agree to never hold me accountable of your trading losses.

Let’s get started.

[_ In many countries around the world, shorting (betting that the price will go down) is not allowed and even illegal. _]

In the US market (NYSE, NASDAQ, AMEX), shorting is allowed for most of the stocks. There are many factors such as liquidity and the quality of the brokers that determine whether you can short certain stocks or not.

Shorting is essentially anticipating a decrease in the price. Done irresponsibly, the 1930s Great Depression will happen again.

Done correctly, shorting can be a weapon in our trading arsenal.

So now the next logical question will be: What time is the good time for day trading?

If you ask 10 traders in the room, you will most likely get 10 different answers with ONE similar advice.

Definitely avoid the lunch hour.

Lunch hour break is THE worst time to trade. It is notoriously known for the choppy environment, where a lot of fake moves, UP and DOWN, occur.

I have read several tweets and blog posts about the best time in a day to enter a trade. All traders seem to come into agreement that lunch hour is the worst period to trade due to the lack of volume, bigger slippage, high shakeout potentials, and choppy price action.

We all know for certain the outcomes when trading in choppy environment:

1. Small Profit

2. Small Loss

3. Big Loss

4. Richer, Happier Brokers and Market Makers

So unless your objective is to make those already-rich guys richer, stay away from a choppy market!

The lunch hour period is defined differently by different traders. Some consider 11 PM – 2 PM is lunch hour and thus, he avoids trading during that period. Some consider 11.30 PM – 2 PM, and I also found traders who will stop trading at 12 PM or 12.30 PM to take their lunch.

The traders also agree to each other that the best time to day trade, as volume and volatility are both high, is in the morning (before noon).

This is when the market is most active. And this is also the “bread and butter” of the Half Day Trading Strategy.

HOW MUCH I CAN MAKE REALISTICALLY WITH THE SYSTEM?

You’d have to come out of the gate storming… 40 percent done by 10:15 and 70 percent of your positions need to be gone by eleven, cause by lunch the word will be out.”

Sam Rogers, Margin Call, 2011

Why not $100, $500, or $1,000,000?

Because $100 means I undermine my trading system, $500 is only the average, and $1,000,000 means I am bullshitting you.

Why $1,000?

Our target is to make 2% profits of every trade executed. Our minimum is 1% profits after commission, and our maximum is, well, unlimited.

“[_ What?? 1%? 2%? Are you f-ing kidding me?” _]

Yes, you are right. 1% or 2% is far from sexy. That being said, let’s step back for a second here.

US traders are, per SEC Regulation, required to have at least $25,000 to be able to day trade (liquidate all positions before the market closes at that particular day).

Most US-based discount brokers (TradeStation, Interactive Brokers) and mainstream brokers (E-Trade, Fidelity) offer 4:1 in margin.

This means each trader will, at the minimum, starts with $100,000! ($25K the minimum SEC requirement times 4 margin power).

If and only if, we can come up with a system that targets 2% IN EVERY TRADE….

Assuming we control our risk well and allocate JUST $20,000 of the $100,000 buying power we have…

1% of $20,000 is $200. 2% of $20,000 is….(you do the math).

And mind you, that is only 20% of our buying power.

What about margin? Isn’t it risky to trade with margin?”

Yes, trading with margin is risky in two conditions:

• You don’t have stop loss (you are hopeless and should quit the market, NOW)

• You hold position overnight (attention: swing traders) in which you have zero control over the market movements after the market closes and before it opens the next day

Minus those two conditions, trading with margin is as risky as trading with your own money.

This system is designed for short-term traders.

And we want to do it before the market enters the doldrums during lunch time. After all, don’t we all have better things to do rather than sitting in front of computer monitors for 7.5 hours?

Onwards.

FREE 5-DAY TRADING COURSE

Would you like to know some secret reasons some traders and investors can make profits consistently, whether the market is bullish or bearish?

Play the YouTube Video:

This FREE course was actually $49. Some cool things you will learn:

• The 7 money-making principles you might not pay attention to

• How everyone can make money in the market with these 3 ways

• The 1 way to recognize best entry and exit spots

• The single biggest reason most traders lose money

• How you can focus on these 12 things to make more money

• And more…

I want the course while keeping my $49!

This book or course is for educational purpose only. The writer is not a registered professional financial advisor and nothing in this book should be treated as financial advice. If you lose money trading and investing, no complains, let alone charges, can be filed against the writer or anyone associated with this book. Find your professional advisors and see if you can do better.

Table of contents

WHAT IS THE HALF DAY TRADING SYSTEM?

HOW MUCH I CAN MAKE REALISTICALLY WITH THE SYSTEM?

FREE 5-DAY TRADING COURSE

HOW TO TRADE FOR HALF DAY AND MAKE PROFITS # 1

TREAT TRADING AS A BUSINESS

HOW TO TRADE FOR HALF DAY AND MAKE PROFITS # 2

YOU MUST WANT AND LOVE TO MAKE MONEY

HOW TO TRADE FOR HALF DAY AND MAKE PROFITS # 3

YOU CAN GIVE MIDDLE FINGER TO ALL THE FINANCIAL ANALYSTS AND EXPERTS OUT THERE

HOW TO TRADE FOR HALF DAY AND MAKE PROFITS # 4

LEARN MULTIPLE TIME-FRAME CHARTING AND CHART PATTERNS

The Time Frame of Stock Charts

Types of Stock Charts

Patterns of Stock Charts

How to Set Up Your Charts

HOW TO TRADE FOR HALF DAY AND MAKE PROFITS # 5

KNOW THAT YOU ARE YOUR OWN WORST ENEMY WHEN IT COMES TO TRADING

ENJOYING THIS BOOK SO FAR?

HOW TO TRADE FOR HALF DAY AND MAKE PROFITS # 6

STOP GAMBLING AND CAMOUFLAGE IT AS TRADING

HOW TO TRADE FOR HALF DAY AND MAKE PROFITS # 7

MASTER CALCULATING RISKS AND REWARDS

HOW TO TRADE FOR HALF DAY AND MAKE PROFITS # 8

MITIGATE THE RISKS

CONCLUSION

THE STOCK MARKET IS SEVERELY MISUNDERSTOOD

MUST READ NEXT

WHY I’M DOING THIS

CARE TO BE HAPPY?

HOW TO TRADE FOR HALF DAY AND MAKE PROFITS # 1

TREAT TRADING AS A BUSINESS

For those who have learned how to be consistent, or have broken through what I call the “threshold of consistency,” the money is not only within their grasp; they can virtually take it at will”

Mark Douglas, Trading In The Zone

Investing and trading must be treated as businesses.

Sounds too weird to be true?

For many people out there, it does.

Coincidentally, these are the very same people who believe the market is nothing but a gambling arcade.

So which one is true? Is trading merely gambling sugarcoating as speculating?

This is the most harmful misconception the public believed and still do believe.

One thing I want to make it clear. Whether it is The Warren Buffet’s Intelligent Investing Model, The Peter Lynch’s Ten-Bagger Investing Model, or any other trading systems and models, it will never work if the person executing cannot treat trading as normal business.

Trading without a sense of business acumen is merely gambling.

What is gambling anyway?

The Merriam-Webster dictionary describes the word gamble as:

: to play a game in which you can win or lose money or possessions

: to risk losing (an amount of money) in a game or bet

: to risk losing (something valuable or important in order to do or achieve something)

I believe those descriptions are true…in the surface.

The devils are always hiding in the details.

The descriptions above loosely brush aside the details of risks and rewards. Based on the descriptions above, all activities in which certain numbers of resources are at risk can be considered gambling.

Therefore, were Steve Jobs, Bill Gates, Mark Zuckerberg, Elon Musk, or Jeff Bezos gamblers? The things they did in the past certainly fit the bill.

Jobs, Gates, and Zuckerberg dropped-out of their colleges, which happened to be Princeton and Harvard (two of the most prestigious universities in the United States of America) to pursue their dreams.

They lost some resources (time and energy), not to mention the big mullah in the form of tuition fees.

Musk invested all the money he made from PayPal to three groundbreaking ventures involving space shuttle, electric car, and solar energy. None of them was a safe bet.

Bezos left his secure and well-paying job at Wall Street and moved to the other side of the continent establishing an online retailer (back in 1994 when internet was, well, IRC, modem connection, and Netscape). He started in his parking garage.

Were they simply gamblers?

Or they knew something that most didn’t know? Something that prompted them to take the leap of faith despite the world obviously were against them?

Try tell your family that you are dropping out of college, or you want to quit your well-paying job to start a business in your car garage. You will know what I mean by “the world obviously were against them.

Yet, they did it anyway. They lost resources (lots of them) and were ready to lose more. They “gambled” on themselves.

And Apple, Microsoft, Facebook, Tesla, and Amazon were born. And suddenly, those five now were considered entrepreneurs and businessmen.

Wait, what? But their actions fit the description of “gambling”.

Let me tell you the difference. Here is my definition of gambling. Whether you agree or not, it is for you to decide.

Gambling is flipping a coin. Gambling has to have a 50-50 chance. It has to be at least 50-50. If it was 75-25 (offered by most casino table games) or 185,000,000-1 (offered by the Powerball jackpot), you are not even gambling.

You are just being “duped”. Why? Because your chance of winning is way less than 50%.

Furthermore, let me ask you this. Say that I have a business opportunity. In order for you to get in, you will need to deposit $100. Considering I have experiences in this area, you can expect $400 to $500 returns in 180 days.

Would you consider this gambling? After all, if the business fails, you will lose the resource of that $100.

If you answer yes to this question, you might want to consider not moving forward with this book (and other books I have written).

Why so harsh? Because if you cannot internalize the fact that there are times you will need to risk some money to make more money, you will not make it in the market.

Stocks, bonds, Forex, futures, options, and even real estates.

And businesses.

Boys and girls, this is IT! This is the reason Musk, Jobs, Gates, Zuckerberg, and Bezos are entrepreneurs instead of gamblers.

They knew, calculated, and believed that their rewards far outweighed the risks they had to incur.

And they were right. They bet on themselves and they won.

They fully knew their risks of doing what they were doing, they embraced the risks instead of got paralyzed by them, and they thrived.

Not all of us had the brains of Jobs, Gates, and Zuckerberg. Not all of us had the tenacity of Bezos. Definitely not all of us had the balls of Musk, who risked all of his money to build SpaceX, Tesla, and SolarCity.

Yet, most of us are blessed with the capability to calculate risks and rewards. And most of us are blessed with access to trade in our local stock market, Forex market, real estate market, or mutual fund market.

We are blessed with the capability to turn our trading into our business.

It’s just the matter of how.

HOW TO TRADE FOR HALF DAY AND MAKE PROFITS # 2

YOU MUST WANT AND LOVE TO MAKE MONEY

“More men have become great through practice than by nature.”

Democritus

I looked at my watch. It’s 3.30 AM and I was in the middle (well, okay, corner) of the Aliwal Street. It’s the lounge and pub area around the Kampong Malay territory in Singapore.

The scene is famous for its lounges and bars. It is one part of the country that sleeps late. Bugis and Orchard might be more well-known areas of Singapore, but if you like the lounge and bar scenes, Kampong Malay (in particular the famous Arab Street) is the place to be.

But it was Monday (or real early Tuesday – it was 3.30 AM!) and even the karaoke place next to my hostel suddenly got quiet.

I shut down my laptop and enjoyed the tranquility offered to me by nature. It was not a great trading day for me, but I made enough profit. Could have done better, as always.

Some people might ask at this point, “How much did you win?” My answer is always the same.

I did not win anything. I earned it.

For many, trading is gambling. Some people think the market is some kind of legalized, yet rigged, gaming arcade. Some people think buying a stock online is equivalent with putting your money on BLACK or RED at the roulette table.

Well, they were right. I did gamble when I traded before, albeit unconsciously.

But after years of harsh lessons from the Mother Market, I managed to come up with a trading style that allows me to be consistently profitable in the market.

The lessons were not easy, I admit. There were times I yelled at myself, “What the f are you doing man?

And ironically, most people also think they are the next Warren Buffet or George Soros, while what they do are merely gambling.

Trading or investing (if you decide to hold the stocks past its earnings announcement days) is just like anything else in life.

The more energy and focus you put into it, the better you will be.

I will be the first one to admit that even with that inspirational quote, trading and investing are still NOT easy. But then come this question.

How bad you want it?

Because I wanted it bad. Back when I first started trading, I lost every day. The market was up, I lost money. The market was down, I lost even more money. I was dejected, devastated, frustrated, and at one point, depressed.

I saw $1,200 got wiped out in less than 2 minutes (thanks, Apple!) and within half an hour, another $900 in less than 1 minute (thanks, Tesla).

But I wanted it bad.

I read all trading books I could get my hands to. I talked to many people (not always the best solution!). I browsed the virtual world looking for ways people trade and make money consistently.

My best move? I found a mentor who changed my trading mindset.

I used to believe that I could learn trading on my own. Well yeah, I was not wrong. I could.

But then there were also reasons most successful traders needed in average of 5 years and $50,000 in capital losses before turning profitable.

The mentor helped me shorten my learning curve. And I bet a mentor would do the same for you.

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IMPORTANT: For more on this subject, read Charts Don’t Lie: Art of Winning in Stocks: 18 Biggest Leaps Required to Start Making Money Consistently in the Market. Find it @ Amazon.com here https://www.amazon.com/dp/B00RBKPZWK

=========================

Now consistently profitable and making a living trading while traveling and venturing, I could look back and pointed out one key to profitability.

The key? To be successful in trading, one had to take a hard look at himself and challenged his demons.

Greed, vanity, fear, recklessness, overconfidence, negativity, hope, sloth.

All traits are human nature. And we all know that human nature never changes.

So the key to successful trading: Be content with the fact that we are imperfect. The things we think will bring us success in real life can actually be our nemesis in trading.

If we don’t conquer these demons, we forever will treat trading as gambling. We see the market as a place to satisfy our thirst of thrill. We see the green and red of stocks as if they are the red and black of roulettes.

The market can be the most expensive place to gamble. In a click of a mouse, your whole life saving can be wiped out.

At least they require you to bring your cash to the cage and change them for chips in the casino. Not in the market.

In order to make our trading our business, we have to change.

Getting rich has a steep and brutal learning curve, indeed.

Changing our mindset and challenging our belief are never easy. But then, I always ask THE ONE question again:

How bad you want it?

HOW TO TRADE FOR HALF DAY AND MAKE PROFITS # 3

YOU CAN GIVE MIDDLE FINGER TO ALL THE FINANCIAL ANALYSTS AND EXPERTS OUT THERE

Carl Icahn is one of the best investors of our time. He is worth $17.9 billion in 2017.

Bill Ackman is one of the most prominent hedge fund managers of our time. His is $1.65 billion in 2017.

And the two hate each other.

This battle has been going on for close to 2 years, but let me ask you this: In the Herbalife battle (Click here to read more about that) between Bill (bearish) vs. Carl (bullish), who won?

F*ck if anybody 100% knows.

In July 22nd, 2014, Carl Icahn made $234 million on his Herbalife stake, BUT in 2015, Bill Ackman was the big winner as HLF stock fell about 50% from the time Carl Icahn made his fortune.

In 2016, ridiculously they split the glory. HLF share went down about 10% in January 2016, only to bounce up almost 80% from $45 to $70 from February 2016 to July 2016, giving Icahn many goodnight sleeps in the first half of 2016.

Ackman, however, had the last laugh again as HLF share fell back to $50 level for the rest of 2016, giving him a better New Year’s Eve celebration.

Herbalife share from January 2016-1st week of January 2017

In the meantime, the news (CNBC, Marketwatch, Bloomberg, Mad Money, etc.) had exposed the feud again and again and made it a soap opera.

The financial world has become a showbiz, and the market "experts", analysts, or fund managers are no longer doing their main job --> to act on their clients' behalf.

Instead, sometimes, their actions confuses the heck of the mass. And people are lazy and people love to be led. So the majority listened.

And lost their money because they got confused. Buy or sell or hold? Every financial bits, every TV, every experts, and every analysts seemed to have different opinions.

It was actually normal. The Icahn vs. Ackman feud is, and has always been, just a difference in opinion between two great investing minds.

But look at what the experts have done! They got caught up with the latest rumors, news, and DRAMA!

Look at this piece of classic by the great Jon Stewart making fun at Jim Cramer (the Mad Money host who showed too much emotion as an analyst).

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IMPORTANT: For more on this subject, read Charts Don’t Lie: 10 Counter-intuitive Trading Strategies: How to Make Money in the Market by Not Following Financial Experts and News. Find it @ Amazon.com here https://www.amazon.com/dp/B00YFEZ28W

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So, Icahn vs. Ackman, who won?

F*ck if I know (okay, too many f*cks already!).

But I know what’s funny.

Despite the drama between two of the most prominent investors in our time, there were people who actually made fortune by buying and selling HLF stock consistently and taking the advantage of the stock’s volatility.

Sure, these people did not make $234 million like those billionaires above. But wouldn’t you agree that $234,000 was not a bad amount at all?

How?

By ignoring the popular opinion because…..

Conformity is the source of irrationality.

The legendary and professional market players are different from us. Their personalities, their sources of wealth, their access to corporate information, their risk tolerances, their motives, their parents, their kids, their houses, everything about them is different!

We are not they and they are not us. So why follow?

If we really want to make money in trading, we have to develop our own method.

For instance, my trading system is based on the premise that the stock market is at its most volatile stage during the first couple hours of most trading days.

Built to suit impatient personalities such that many of us have, the system liquidates everything by the end of the day. Additionally, the accomplishment of this achievement is at medium risk tolerance (the system only executes trades with at least a 3:1 reward to risk ratio.

Please pay attention to the two factors I mentioned above.

Impatient personality and medium risk tolerance.

Let me tell you why I did not develop my system based on the latest financial news CNBC or Bloomberg shows, the latest tweet Jim Cramer made, the MACD indicator, or the company’s P/E Ratio?

That is because I have discovered the one secret of trading success.

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IMPORTANT: For more on this subject, read Charts Don’t Lie: 24 Most Uncanny Steps to Make Money with Your Mind: How to Simplify and Apply Winning Trading Psychology. Find it @ Amazon.com here https://www.amazon.com/dp/B00QSBZSFC

=========================

Psychology. You are your worst enemy.

However, the baseline of such deep psychological issues is (drumroll please…):

Because trading is eighty percent mental, without the proper trading and money mindsets, traders are prone to self-sabotage themselves from becoming the consistently profitable trader.

There are many incorrect, limiting mindsets about money out there. There are pros and cons on them, with some people vehemently defend their limiting beliefs. Hey, after all, it is the same reason most people refuse to sell their stocks even though they have been losing money on those stocks.

Cutting loss is the same as getting rid of limiting beliefs. Both scream, “I was wrong before”.

Most people do not like to be wrong. The narcissistic ego in us is in constant worry of being ridiculed or being left out behind.

Most people love being led and to be part of a certain group. Thus, when society deemed that “money is the root of all evil” just because the Bible said so, most churchgoers nodded and agreed.

Moreover, if one believes that making money is evil, then subconsciously, one will block any effort to make money.

Have you now seen how a proper mindset is the key to your trading success?

Trading is a crazy profession. It is one of the hardest and most stressful professions in the world (okay, being the POTUS might beat it). So unless we can change our mindset, we have zero percent probability to make money consistently in the market.

This book will touch upon the change of mindsets everyone might have experienced at one point of his or her life. Additionally, that these mindsets are commonly had by most people. Unfortunately, subconsciously without realizing it, the same people are actually adopting very poor and negative attitudes towards money.

I listed the money-limiting beliefs you must banish in the next seven sections and how to conquer them.

Why are they important, you might ask? Because they will help you make money trading the financial market.

Without the proper mindset, there is almost zero percent chance one can make it successfully in the market.

Take control of your finance life, starting today!

HOW TO TRADE FOR HALF DAY AND MAKE PROFITS # 4

LEARN MULTIPLE TIME-FRAME CHARTING AND CHART PATTERNS

The illusion of randomness gradually disappears as the skill in chart reading improves.”

John Murphy

Stock chart is our map in trading. Technical analysis has the edge over fundamental analysis when it comes to practicality.

This is a tool that is extremely important for both investors and traders. Whether we are long term investors, value investors, swing traders, momentum traders, day traders, or even position traders, a stock chart would add immense values.

Every investor and trader, regardless of the type of favored analysis (fundamental or technical), will also be required to use charts in the analysis.

In a stock chart, we can follow the movements of that particular security, find out where the support and resistance currently are, and feel the mood of the traders in that security and its peers in the same sector.

We can also gauge the strength and the mood of the whole market.

With all of that information, combined with any catalytic news of the particular security, we have the ability to shape our trading plan.

Every investor or trader uses stock charts in their analysis, although it is fair to say that technical analysis traders use it much more than their counterpart.

The Time Frame of Stock Charts

The time frame of stock charts is one of the most underrated aspects in charting and technical analysis in general.

While a longer period is critical to deter mine the major trend, the smaller time frames are equally important because they provide the microscopic views on those longer time charts.

The most important longer time charts are

1) Monthly chart

2) Weekly chart

3) Daily chart

The longer the period is, the stronger and more orderly the trend is.

Meanwhile, the shorter time (intraday) charts are:

1) 15 minute chart

2) 5 minute chart

These 2 intraday charts are used to get a clearer understanding on what really is going on with the particular stock.

Of course this is just simply a recommendation. For research and stock picking purpose, all 3 options above are more the sufficient, in my opinion.

When setting up your longer term charts, no matter which one of those 3 above you pick, you would want these 7 indicators to show up in your monthly, weekly, and daily charts:

1) Moving averages 5

2) Moving averages 10

3) Moving averages 20

4) Moving averages 50

5) Moving averages 100

6) Moving averages 200

7) Pivot Points

Now you might be asking what the pivot point is.

I include the description about the pivot point from the first book of the Charts Don’t Lie Series.

THE UNTOLD INDICATOR # 1

PIVOT POINTS

What Is Pivot Point

According to Investopedia, pivot point is a technical indicator derived by calculating the numerical average of a particular stock’s high, low and closing prices. These points can help our conviction of when to buy and sell a stock. These points are very powerful because the floor traders are actually using them too as reliable predictive tool of support and resistance.

Examples:

Pivot points consist of Resistance 1 (R1), R2, Support 1 (S1), S2, and the Pivot Point itself (P). Some traders draw as far as S3 and R3. It is your preference if you would like to do so.

If price manages to fly through these points with no trouble, one can be certain the movement is strong and react accordingly by entering into a short or long trade.

And that is Pivot Points in less than 150 words.

When setting up your shorter term charts, no matter which one of those 3 above you pick, you would want these 4 indicators to show up in your 15 minute and 5 minute charts:

1) Pivot Points

2) Moving averages 5

3) Moving averages 9

4) Moving averages 20

In Charts Don’t Lie: 4 Untold Trading Indicators & How To Profit From Technical Analysis, these indicators will be discussed in depth, including how one should set them up for their trading perusal.

Why pivot points and moving averages are that important? As The Mentor stated, the biggest edge for small investors and or traders is the capability to measure the risk accurately.

Pivot points and moving averages convey that purpose.

Types of Stock Charts

Line charts

Line chart is the most basic of the chart types. Line chart only represents the closing price because closing price is considered the most important price in a stock chart, even more than the high range or low range of the day.

Example of a line chart

OHLC chart

O.H.L.C. stand for “Open.High.Low.Close”. Pretty self-explanatory.

This chart is most useful for short term trading, especially for trend spotting.

Example of OHLC chart

Point and figure charts

Possibly the oldest chart type in the word, P&F chart reflects price movements and completely ignores the time and volume (in the formulation of the points).

This chart removes the fakeouts and noises, getting rid of all the irrelevant price movements that might “shake-out” traders or investors out of their position.

The green Xs represents uptrends and the red Os represent downtrends.

Example of P&F chart

Candlestick charts

The most important chart type for our purpose, this one chart pattern is the most sophisticated pattern in the whole charting universe.

Originated in the 17th century by the Japanese rice traders, this technique was perfected by Charles Dow in 1900.

The most amazing part is the fact that in one candlestick, all the information that a trader/investor needs to know can be found.

Candlestick formation

We will be able to use this chart type by recognizing whether the candle is “bullish”, “bearish”, or “indecisive” as shown below.

Indecisive means buyers and sellers are splitting the control.

How to interpret a candlestick chart

We will not go through this great chart pattern in depth. We covered the basic and if you would like to go deeper, there are many books out there and even some websites like * this* that discusses candlestick chart in details. And even better, this site gives us the complete patterns of the candlesticks (such as Hanging Man, Dark Cloud, Piercing Line, Doji, Hammer, and more)

Patterns of Stock Charts

There are tons of chart patterns out there. Below are the most important ones. We can and will see these patterns again and again when running our analysis.

These patterns below also serve as fairly strong indicators of the price action (reversal or continuation).

REVERSAL PATTERNS

Double Top & Double Bottom

Head and Shoulders (Top & Bottom)

The bottom head and shoulders is also known as Inverse Head & Shoulders

Inverse Head & Shoulders

Triple Top & Bottom

Wedges (Falling & Rising)

Watch the discrepancy between price and MACD above

Watch the discrepancy between price and MACD above

Rounding Bottom (Reversal)

CONTINUATION PATTERNS

Descending Triangle (Bearish) and Ascending Triangle (Bullish)

Both triangles as shown by InformedTrades.com

Flag / Pennant

Cup & Cup with Handle

Cup and handle…one of the most popular patterns in technical analysis

A long cup

Rectangle

How to Set Up Your Charts

Below are the screen shot showing how I set up my charts in StockCharts and TradingView.

Daily/Weekly/Monthly Charts:

The setup required for intraday chart @ StockCharts.com

How the setup should look

How TradingView.com setup will look

15 minute/5 minute Charts:

The setup required for intraday chart @ StockCharts.com

How the setup should look

How TradingView.com setup will look

This book is also not meant to be a super technical book, consisting of many technical details and jargons that might become impediment to the level or practicality.

If you are interested in learning those technical patterns in depth, along with their brothers and sisters (there are many technical patterns), Thomas Bullowski’s website The Pattern Site is the best place to check out. I can assure you that you will not be disappointed.

Too much technicality?

Well, I am sorry to tell you this. I love fundamental analysis, however, when it comes to practicality, technical analysis, in my humblest opinion, has the big edge.

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IMPORTANT: For more on this subject, read Charts Don’t Lie: 24 Most Uncanny Steps to Make Money with Your Mind: How to Simplify and Apply Winning Trading Psychology. Find it @ Amazon.com here https://www.amazon.com/dp/B00QSBZSFC

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HOW TO TRADE FOR HALF DAY AND MAKE PROFITS # 5

KNOW THAT YOU ARE YOUR OWN WORST ENEMY WHEN IT COMES TO TRADING

The key to trading success is emotional discipline. If intelligence were the key, there would be a lot more people making money trading… I know this will sound like a cliché, but the single most important reason that people lose money in the financial markets is that they don’t cut their losses short.”

Victor Sperandeo

Is it the economy? Poor government policy? The Indians’ and Chinese’ faults for hijacking American jobs overseas?

Nah. Those excuses are lame, by the way.

You. And I.

We are our own worst enemies when it comes to wealth building, especially investing.

Whether it is our fear, greed, ignorance, and hopeful nature, whether it is our money thermometer, or whether it is our ego and anger, we are the main danger to our own trading account.

Uncomfortable, right?

For instance, many people think the stock market is merely a gambling arcade.

The market seems extremely sophisticated because of the charts and numbers with funky abbreviations (P/E Ratio, EPS, PEG, and more) that we encounter daily in the news.

The notion that investing is only for people with a finance background is entirely false. Additionally, I used to be one of those ignorant people who thought the same thing.

It is no more than a bad, bad myth.

The truth is: Most people are just ignorant. How do I know?

Because I used to be one of those ignorant people.

The myth above, combined with the negativity surrounding stock exchange (“The market is rigged!”), contributed to my ignorance and resentment towards the financial world, especially the stock market.

During the crisis years of 2007-2009, modern money notions (such as “Money is the root of all evil”, “Don’t make money your life goal”, “Look what those rich bastards at Wall Street have done to us”) even added fuel to my fire.

The results: A complete ignorance towards the area of investing, a flawed money blueprint with a negative bias towards the riches, and eventually, a financial illiteracy.

Not the perfect recipes to be wealthy.

Sadly, it is very common. Just look around you.

If you think this “trading as business” concept will GUARANTEE you making profits anytime you are trading the stock market (or any market, in that matter, from currencies, commodities, futures, bonds, options, mutual funds, or even real estate), you are DEAD wrong.

You are bound to a grave disappointment.

Please stop reading by now and find something else to read because, for you to get involved in ANY market, you have to make UNCERTAINTIES YOUR BEST FRIENDS!

You have to embrace the fact that there is no one, NOBODY, who never lost money in the market, regardless of how good of a trader he or she is.

Jesse Livermore, Nikolas Darvas, Peter Lynch, Warren Buffet, George Soros, William O’Neill, Paul Tudor Jones, Carl Icahn, anybody. You name it.

Google the name and you will see that most, if not all of them, have lost some money at some point in their lives.

Yet, until today, they are known as the best traders and investors that have ever played the game.

You have lost some money in the market before, haven’t you?

Otherwise, you would not have even bothered to download this book, even though this book is free. After all, there are so many more interesting topics out there to read.

So how come those investors and traders above are still rich despite losing money at one point in their lives?

How come some traders, despite their emotional nature, can thrive in the market?

How come some investors holding on to their conviction despite the stock they are holding is losing 55% of its value? (Hello, Facebook first investors!)

The answer is disciplined risk management.

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IMPORTANT: For more on this subject, read Charts Don’t Lie: 20 Most Underestimated Disciplines Required to Win in Trading: How to Make Money with Trading Strategies. Find it @ Amazon.com here https://www.amazon.com/dp/B00XC9R69Y

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ENJOYING THIS BOOK SO FAR?

No one has ever become poor from giving.”

Maya Angelou

You have reached the middle section of the book. Please allow me to say few words.

I can thank you enough for caring to download this book. My only hope is that this book – and my other books – helps you in some ways.

It’s never easy to create. It is easier to hate than to create. However, if you are feeling you are a difference-maker in this world, would you please leave me a kind 4 or 5-star review on Amazon?

Click here to leave review @ Amazon.com

I also understand there is NO WAY I can please everybody. Some of you might disagree with my thoughts, might find my trading method bollocks, might get offended by my humor, or might catch sore eyes because of my grammatical errors.

And that is okay. However, may I prevent you from being a hater whose main aspiration is to hate?

Some of the bad reviews left on my creations are just…well, irrelevant. Some critics are outstanding and inspiring me to write better. But some…well, haters gonna hate, right?

If you don’t like the book or don’t feel that the book is helpful, please kindly let me know your wisdom and kindly email me.

Otherwise, I am asking your help to make a difference and create a better world (for this book).

Please leave review

HOW TO TRADE FOR HALF DAY AND MAKE PROFITS # 6

STOP GAMBLING AND CAMOUFLAGE IT AS TRADING

For those who have learned how to be consistent, or have broken through what I call the “threshold of consistency,” the money is not only within their grasp; they can virtually take it at will”

Mark Douglas, Trading In The Zone

You know what’s comical about the world of investing and trading?

MANY PEOPLE TREAT TRADING AS GAMBLING, LOSE THEIR MONEY, THEN COMPLAIN THE MARKET IS “RIGGED

How do people can gamble like that?

By ignoring risk management.

What is risk management? It is simply the difference between trading (or investing) and gambling.

In gambling, you flip a coin. The probability of you to win is no more than 50%.

The right trading and investing does involve techniques and calculation that allow you to make 40% while risking only 10%.

A calculated risk is the essence of any successful trade and investment.

In order to treat trading as a business, we must be familiar with the background of risk and how to calculate it.

Without the prudent attitude towards risk management, as well as the ability to execute orders promptly, a trader or investor will sabotage himself from achieving the success he desires so much.

Such a crucial yet very commonly unnoticed necessity to a fruitful active dealing, is risk management. Nevertheless, a broker who has produced a considerable amount of revenue throughout their lifetime can in fact fail to keep all of his capital in just a handful of improper trades…

…unless they already have prudent attitudes towards risk management.

Unfortunately, brokers can wind up losing a significant amount of their earning when trying to invest their hard earned cash. Although there are several explanations for this mishap, the single primary reason derives from the ignorance of individual brokers managing their risk.

We know that risk/reward is a familiar theme of commercial lingo. If someone is devoting money into the stock market, he or she incurs an enormous amount of risk.

If an investor is going to incur risk, the profit of the money he or she is going to obtain needs to be higher then what initially invested.

Imagine someone you rely on requests to borrow $30 and compromises to reimbursement the $30 with $40 in the following week. It may not be worth the risk, but it might be if they presented to reimburse you $60. Calculate risk management as and inclusion for your method. There are a few ways to calculate risk management.

Choose a stock in which you have completed extensive research. Level the advantages and disadvantages of existing prices. From there, analyze thoroughly the risk/rewards that will come from it. If it’s under your bar, increase your problem in an effort to accomplish a suitable percentage. If this is too difficult to perform, then restart with another stock.

As the quote above clearly stated, everyone --- who is willing to put the time and efforts --- to learn the correct techniques will be able to be a consistently profitable trader / investor in the market.

And the success is irrelevant to what kind of market the investor is trading....any financial market --- from stocks, bonds, futures, options, commodities, and even Forex trading. --- will do.

How so? Aren’t they all different instruments?

They are different, but human nature is always the same. And that is the reason understanding the basic of stock chart analysis is critical for every trader and investor out there.

Why? Because human emotions --- especially greed and fear --- are all mapped out on the stock charts.

Building a trading business requires traders and investors to execute without compromise.

The real game of the business of trading is risk management. This next section, and frankly, the core of this book, is dedicated to this matter.

This matter is equivalent to that “red matter” in Star Trek. This can build or break your trading business.

Pay close attention.

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IMPORTANT: For more on this subject, read Charts Don’t Lie: 7 Secrets of Profitable Trading Strategies: How to Make Money in the Market for Stocks, Options, Futures, and Forex. Find it @ Amazon.com here https://www.amazon.com/dp/B00S47Y4EE

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HOW TO TRADE FOR HALF DAY AND MAKE PROFITS # 7

MASTER CALCULATING RISKS AND REWARDS

“Losing money is the least of my troubles. A loss never troubles me after I take it. I forget it overnight. But being wrong – not taking the loss – that is what does the damage to the pocket book and to the soul.”

Jesse Livermore

If you are tempted to guess “master the man management area”, you are not totally wrong.

But it is not the right answer.

Risk.

The only way for us to build considerable wealth and get rich from trading and investing is by treating them as businesses.

And the only way to do so is by mastering the art of risk management.

How to do so in practice?

The art of risk management is to know the maximum risk and the targeted profits are.

For beginners, I suggest a ratio of at least 4:1 (Reward to Risk). This ratio means that you can risk $1 or $0.25 to make $4 or $1 in every trade.

Expected Return & How to Calculate It

The quantity an investor would rely on receiving in an investment that contains several recognized or expected rates of return.

Situating stop-loss and take-profit points are vital necessities to calculate the expected rates. Do not overlook significance of this methodized calculation, this establishes a stable method for brokers to think thoroughly about the trades they are entering.

This also gives them an organized method to associate several stocks and choose ones that will be most beneficial for them. The calculation for expected returns is:

[(Probability of Gain) x (Take Profit % Gain)] + [(Probability of Loss) x (Stop Loss % Loss)]

In practice, though, risk management comes down to one.

Know what your maximum pain threshold is.

Without knowing how much you can lose in a trade, there is no way you can be a disciplined trader.

Once we know that substantial number, we then can execute our trade around that figure.

For that, we have to understand various types of “order execution.”

“A great trader is like a great athlete. You have to have natural skills, but you have to train yourself how to use them.”

Marty Schwartz, Pit Bull

In the market, two major types of order placements are widely used by traders and investors all over the world.

The two types are basic orders and automated orders.

HOW TO CONTROL YOUR TRADING RISKS WITH VARIOUS TYPES OF ORDERS

Basic orders consist of:

Limit Order

Limit order is placed to buy or sell at a particular price (or better). We determine the specific price.

Because there are two methods for this order, it is usually divided into limit buy order and sell limit order.

An example: Your buy limit order limit buy order for a particular stock that you wish to purchase is $30. Because that is your limit, you keep in mind that you won’t pay any more than $30 for that particular stock.

The limit buy order process means the stock price to be at least $30 for purchase to be made. However, any amount less than $30 is up for grabs.

This operation guarantees that the investor does not exceed the amount that he or she is willing to. Limit orders usually cost greater than market orders because of it has complicated files that need to be filled out.

Regardless of that, these rules allow brokers to obtain their stated purchase or retail price. Limit orders are especially useful in a low-key or very unstable stock.

Market Order

A market order is placed to buy or sell instantly at the finest existing price is a market order.

Usually, an investor lays out the payment based on the price of the posted stock, but these types of orders do not provide an initial price. They do, however, promise lawful speedy implementation.

One can infer the general price of a market order by taking a look at the bid and ask prices and aim higher to obtain that stock. These orders are popular among single investors who wish to buy or sell a stock instantly.

An example of this would be, an investor who wants to buy eight shares of LOP stock, the investor will reach at this trade as a market order, and they will purchase LOP at whichever price it was trading at when the order.

The most vital thing to keep in mind is that the last-traded price might not essentially be the price at which the market order performs.

In fast-paced and unpredictable markets, the price at which an investor implements the trade can stray from the last-traded price.

In other words, this is the type of rookie order traders should avoid.

Basic rules require full involvement by traders and investors.

Basic rules have a advantage: Full and total control over the order placement. When using basic orders, there would be less chance to get hit by surprise slippage, which is a nightmare for every retail trader and investor out there.

Nevertheless, for people who are only trading and investing part time, the second type of order provide them with a solution.

Automated orders consist of:

Stop order

This order implied to buy or sell a security when price exceeds a particular value, therefore guaranteeing a higher chance of achieving a prearranged entry or exit price and restricting the investor’s loss or locking in their earnings.

The stop order becomes a market order after the price exceeds the prearranged entry or exit point.

There are many terms for this order such as on-stop buy, on-stop sell, stop loss,or stopped market.

What makes this order so unique compared to limit and market orders is that this order continues to be inactive until a sure price is accepted, during the time it is activated its views as a market order.

An example of this would be:

If investment is made into an on-stop sell order on EZY shares for $50 per share. If the price of this order were to drop below or reach $50, it would switch to active, thus altered to being a market order and retailed at the finest existing value.

An investor should think about using this type of order if they are too busy to keep their eyes the market frequently but are in need of security from a huge obstacle.

The stop loss order is the one we will discuss more. The importance of it cannot be undermined and deserves a whole new chapter.

Good to Cancel (GTC)

A sale to contract or market safety at a fixed value that is dynamic until the depositor chooses to withdraw it or the trade is over with entirely.

If a purchase lacks, in any way shape or form, it will be a good until canceled lesson, and then the contract will perish at the conclusion of the exchange date which the contract commanded.

In the majority of cases, GTC orders are negated by brokerage companies following about 30-100 days. This kind of deal has customarily positioned values that sway away from the worth of the supply at the period in which the contract was put into place.

For instance, if a supply you grasp is presently at $50, yet you trust that it will rise to $60 at which point in time you will then market, you can utilize a GTC contract.

From the time that the GTC contract to market is retained, if the value of the supply reaches $60 at any time over the course of the next couple of months, your stocks will be marketed.

This contract is essentially a time constraint that you can uphold for several contracts. A good-till-canceled order will persist vigorously up until you choose to withdraw from it. Brokerages will characteristically bound the ceiling time for which you can continue to sustain an active order to 90 days tops.

All or None (AON)

The implementation of the An All-Or-None (AON) must be completed in its entirety. to purchase or market the contract execution, or the contract is an agreement that this is a particular supply that must be implemented in its entirety, or not implemented at all.

All-Or-None contract implementations that are unable to be performed instantaneously linger dynamically up until they are applied or invalidated.

This kind of contract performance is particularly vital for those who purchase lower currency supply stocks. Just as its name suggests, an all-or-none contract execution guarantees that you get either the whole magnitude of the supply stock you demanded or absolutely none at all.

The contract is naturally received, Additional contract execution is naturally challenging when a supply stock is very deficient in liquid assets, or a boundary is upheld on the directive. Send this text

For instance, if you put in an execution contract to purchase 3,000 supply shares of ABC yet there are only 2,000 are being marketed, an all-or-none limitation means your directive will not be carried out until there is a minimum of 3,000 shares accessible at your favored value.

If you do not put forth an all-or-none limitation, your 3,000 stock share order would somewhat be occupied for the 2,000 shares.

Day

If, through the GTC order, you do not stipulate a period of termination, then the command will usually be fixed by a date execution contract.

This in turn means that proceeding the conclusion of the exchange day, the contract execution will terminate. If it is not conducted (fulfilled) then you required to re-input it the impending exchange day.

A contract to purchase or market a safety-net that inevitably terminates if not dismissed on that very day the contract was put into action.

A day contract is a contract that is valid for that day and that day only. If it is not occupied then it will definitely be negated, and it will not be complete if the boundary or break contract value was not encountered throughout the exchange period.

It is merely one of numerous diverse contract extent kinds that regulate how extensive the contract will be in the marketplace before it is negated.

For instance, a “good till canceled (GTC)” contract will continue enthusiastically up until it is negated manually, whereas an “immediate or cancel (IOC)” contract seals all or a portion of a contract instantaneously and abandons the residual section of the directive.

Stop Loss

“The market does not know if you are long or short and could not care less. You are the only one emotionally involved with your position. The market is just reacting to supply and demand and if you are cheering it one way, there is always somebody else cheering it just as hard that it will go the other way”

Marty Schwartz, Pit Bull

Stop loss order is the condom of all trading and investing.

It protects you from the worst (in this case, losing all your money when you are asleep) and when it is broken, you have to move on.

If you trade or invest without knowing where your stop loss order is, you are having sex with a stranger without any protection.

Would you do it? I know I wouldn’t.

A stop loss order is an order retained with a dealer to purchase or market after the supply stretches to a particular worth. A stop-loss is intended to constrain a trader’s cost on a safety point.

In other words, stop loss order is the spot where your “maximum pain threshold” is.

HOW TO TRADE FOR HALF DAY AND MAKE PROFITS # 8

MITIGATE THE RISKS

“The market does not know if you are long or short and could not care less. You are the only one emotionally involved with your position. The market is just reacting to supply and demand and if you are cheering it one way, there is always somebody else cheering it just as hard that it will go the other way”

Marty Schwartz, Pit Bull

What is this “unpleasant surprise”?

Loss. Failures to make money.

Too many people give up too soon, too easy. Remember that investing has an extremely steep learning curve.

Most people quit before they should. Hence, many were called, few were chosen.

Risk management is one area to master. However, deeper than that, is your (and my) mental stage.

We have to be ready to lose money because hey, in this business, you are great if you are right 60% of the time.

Just ask Paul Tudor Jones, Peter Lynch, or any other legends out there. No one can be right 100% in this business.

Expecting and embracing loss, unfortunately, is easier said than done.

So how to practically do so?

The brief answer: Stop loss order.

For instance, putting in place a stop-loss order for 2% underneath the worth at which you originally purchased the supply stock will restrain your cost to 2% of the capital.

For instance, let’s say you just bought Twitter at $50 per share. Directly following this purchase of the stock, you arrive at a stop-loss order for 10%. This essentially suggests that if the supply drops underneath $45, your shares will then be sold at the dominant selling value.

Mostly, they are customarily perceived of as a means to hinder major losses, hence its name.

An additional use of this implementation, however, is to latch in earnings, in which instance it is occasionally denoted as a “trailing stop”. It is here that the stop-loss order is fixed at a fraction height beneath, not the amount at which you purchased it, but the present marketplace worth.

The value of the stop loss regulates as the supply worth varies. Keep in mind, if a supply just so happens to rise, what you have is an unrecognized advancement, which in turn means you do not have the money in hand up until you market and profit from it.

Using a trailing stop permits you to let proceeds ride while at the same time ensuring, at least, any kind of a recognized wealth increase.

The utmost importance to acknowledge is that a stop order is so that you do not have to supervise on an everyday source to see how an individual supply is accomplishing.

This is particularly convenient when you are on holiday or in a position that inhibits you from inspecting your supply for a prolonged length of time.

The inner splendor of the stop-loss order is that it charges little to nothing to apply. Your steady commission is utilized only once the stop-loss value has been grasped, and the supply must be marketed. You can imagine it as sort of an open insurance plan. Most prominently, a stop loss permits choice creation to be allowed from any emotive guidance.

Individuals are inclined to fall for their stocks, trusting the notion that if they give their supply yet another attempt, it will come all the way around again for them. This causes postponement and suspension, giving the supply yet another opportunity. All the while, the damages pile sky high.

Setting Stop Loss Order

Setting stop-loss and take-profit points is often done utilizing procedural examination, but central investigation can also act as a crucial part in corrective scheduling.

For instance, if an exchanger is grasping a supply forward of its income as the exhilaration forms, he or she may desire to market prior to when the news makes it to the marketplace if anticipations have developed too large, unrelated of whether the take-profit value was reached.

An additional way to place stop-loss or take-profit Heights is on provision or opposition trend lines. These can be pinched by linking former lows or highs that transpired on noteworthy, above-average capacity. Similar to stirring medians, the core is defining levels at which the value responds to the trend lines, and of course, with a large capacity.

Meanwhile, the trailing stop proposes a vibrant gain in that it is more elastic than a static stop loss. It is a striking substitute because it permits the exchanger to remain shielded in his investment if the value falls.

But as soon as the worth rises, the trailing aspect buzzes in, sanctioning for an ultimate defense of revenue while still plummeting the risk to wealth.

To further comprehend a trailing stop, let us consider that the trailing worth is either a static percentage of 10% or a fixed extent of 55 cents. No matter how you slice it, the trailing stop will proceed the day at large by the pre-established quantity.

The significant part is that when fixed, it cannot plummet backward, and if the previous value falls under what the trailing-stop worth was, the stop loss will be activated.

We know that the market is a vicious place to spend our time. The constant movements, the fake moves, the potential to lose a lot of money, the stress, and the hype created by the likes of Cramer and other financial TV personalities, the 7.5 hours a day.

So why do we trade?

And if you are an active trader now. Why spend hours looking at the monitors instead just “set our system and check it back later”?

Why not just “buy, hold, and hope” instead?

The Answer, at least my answer, is the RISK vs the REWARD.

Trading is hard because the amount of time we have to spend is more, when compared to investing (which mostly mean buy and hold for the long term).

Trading can be further divided as scalping, day trading, swing trading, or position trading. In my opinion, there is a lesser risk in day trading, and I am adamant about that. Why?

Because you do not have to deal with any uncertainties that happen during the post and pre-market hours, when you have no control over your action at all.

Day trading also gives you an opportunity to come up with a realistic goal of how much money you can make daily or in average, weekly. It feels like having a paycheck delivered to your bank account if you are working for someone else.

Yes, day trading is hard. Day trading has the fastest movements and thus, day traders have to be emotionally capable of making decisions with incomplete information.

Yet, if you are willing to put the effort do learn and re-learn, while keep doing the preparation properly, day trading can be an opportunity machine for you.

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IMPORTANT: For more on this subject, read Charts Don’t Lie: 10 Most Enigmatic Price Actions in Trading: How to Make Money with Price and Volume for Stocks, Options, Futures, and Forex. Find it @ Amazon.com here https://www.amazon.com/dp/B00UUIR2JO

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CONCLUSION

THE STOCK MARKET IS SEVERELY MISUNDERSTOOD

The market can remain irrational longer than you can remain solvent.”

John Maynard Keynes

Everyone wants to join the ride in the money freeway, doesn’t it?

The truth is: The right way is the hard way.

How so? Because in reality, no one get wealthy just by thinking.

Most people got rich after they “paid their dues”, whether they are employees, entrepreneurs, forex traders, famous stock investors, or real-estate speculators.

Let’s see the proof.

Mark Z didn’t build FB in a week. It took Steve J two attempts and heartbreaks to change the world with AAPL. Jeff B’s AMZN didn’t make money for the first 10 years.

For examples closer to home: How many years do you think doctors and lawyers have to study --- and spend money in tuition --- before they can be professionals?

What gives society the right to think trading, or investing, is any different?

The old renegade said it the best below.

You learn in this business. If you want a friend, get a dog.”

Carl Icahn

Sounds harsh, but it is true.

The market, whether it is the market for stocks, options, futures, commodities, or foreign exchanges, is full of deceitful ebbs and flows.

I am not trying to be dramatic, but there is a reason many people have tried to make a living from trading and investing.

And a staggering 85% failed to do it.

Why?

Does the remaining 15% have better eyes than the 85%?

Does the remaining 15% have better brains than the 85%?

I don’t believe so.

The main problem is focus. Too many people focus on the wrong things.

All the jumping and screaming a la Mad Money, or the so-called financial experts arguing over a stock, or the chest-puffing statements “We are very confident the market will rally next week due to blah blah blah…” are just drama.

Wrong focus there.

The only thing matters is price. And sometimes, price moved up or down and nobody fucking knew why.

Then the news, “analysis”, speculation started to flow. And the financial soap opera started.

Wrong focus there.

Want to make money in stocks? Time to get rid of the financial drama. And treat every trade, every investment as business opportunity.

MUST READ NEXT

Charts Don’t Lie: 23 Quickest and Most Consistent Trading Strategies: How to Make Money in the Market Day Trading and Swing Trading

1

SUPPORT | RESISTANCE

Frankly, I don’t see markets; I see risks, rewards, and money.”

Larry Hite

And it is not as easy as you may have thought before.

Support of a particular stock is a line or an area where it psychologically holds the price of the stock to stop going down further.

Resistance of a particular stock is a line or an area where it psychologically holds the price of the stock to stop going up further.

Support and resistance always comes in the form of many points that can be connected with a straight line.

Example of technical support and resistance of a particular stock

When determining a support or resistance, it is imperative to remember that these connected points are connected using a marker instead of a pencil.

What, what, what?

Here is what I am trying to emphasize. Let’s take an example when AAPL had $700 as its resistance. Nevertheless, because we are drawing support and resistance using a marker, then the resistance can also be at $700.75, $701.50, or maybe $702.

The resistance can also be at the level $699.80, $698.90, or even $698.50.

The numerical numbers will not be far apart, but it will not be right at $700. Hence, when determining support and resistance, we have to always prepare to trade around the numbers close to the main number.

You might ask: “Why there are such things as support and resistance?

The answer: Because price has memory.

Remember that market is the place where supply meets demand. Thus, for every person wanting to sell Apple stock, there must be a person who is willing to buy it.

The spots where the battle between supply and demand reach a conclusion become support and resistance.

Looking at TSO example above, there were a support at $46 and a resistance at $58.

Price bounced at $46 because there were more people who believed the price was too low below $46. Some also considered it the right price to buy possibly because of their understanding and knowledge of the fundamentals of the company.

The same logic applies at the $58 resistance level. Price reversed back below the resistance level because there were more people who believed the price was too high at $58 and they considered it the right price to sell or to take profit.

Never forget the people who were “stuck” in this stock. There were people who in the past purchased TSO at $58 but then got “screwed” as the price fell down. Now that they have waited for some times with patience (desperation?), they could not be more excited when price approached their original buy point at $58. Wanting to recoup their money back, they sold.

And we know what happened when more people sold the stock. Hence the reverse back down from the resistance point $58.

3-hour traders based their target on supports and resistances. We make supports and resistances spots to either cut losses or take profits (depending on the side of the trade --- long or short).

Knowing how to draw them is a must for every 3-hour trader. As the matter of fact, it is the skill that all traders --- and investors --- should master.

***********************************

SHORT TERM INVESTING FORMULA #1:

Learn to Draw Supports and Resistances

***********************************

2

ENTRIES | EXITS

I just wait until there is money lying in the corner, and all I have to do is go over there and pick it up. I do nothing in the meantime.”

Jim Rogers

One of the hardest things to do in trading.

Do you like the excerpt? If you do, please feel free to check the book

WHY I’M DOING THIS

An investment in knowledge pays the best interest.”

Benjamin Franklin

Thanks for picking up my book. I do hope this book can add some values to you.

Who am I??

Well, I am just a normal guy like everyone else with high interests towards the world of personal finance.

I am not always like this. I had poor mindset before that inhibited me to achieve things in life I always wanted to achieve. Trading, travels, adventures, building online businesses, making a differences, learning foreign languages, and many more.

Being a trader is only one of those goals. One that stayed elusive until I came up with my own method that focuses strictly on US stocks and ETFs.

I focus hard on trending and momentum stocks. After wasting close to $13,000 in commission during my early years trading, I said “fuck you” to the penny and cheap, illiquid stocks. I trade only liquid stocks nowadays.

My method is to scan 250 stocks every night to find out the potential opportunities the next day. I then looks for the best setups that would allow me to go for the maximum profits, whether it is long or short.

It took me exactly six years to be a consistently profitable trader.

My biggest belief about the market? It has become a business where conflicting interests are prominent. I don’t, and won’t, ever trust any of the CNBC analysts or fund managers, regardless how popular they are.

I founded QuikInvest.com with the intention to show the world that trading, and investing, do not have to be complicated and can be treated as a business.

It doesn’t have to be 7.5 hours of watching the computer monitors too.

When I am not working on QuikInvest.com, writing the next book, or trading stocks, I can be found reading, drinking coffee, enjoying a little bit (or a lot of) alcohol, playing poker, traveling, playing basketball or football, watching sports, working out, or hanging out with my old and new buddies.

Shoot me an email anytime or connect with me via Twitter @QuikInvest , Facebook, StockTwits @QuikInvest , or Pinterest.

May the trend be with you!

CARE TO BE HAPPY?

No one has ever become poor from giving.”

Maya Angelou

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Thank you for your business again. If there is anything I can do for you, please let me know.

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If you don’t like the book or don’t feel that the book is helpful, please kindly let me know your wisdom and kindly shoot me an email anytime.

I am a trader and writer in the enormous pond full of great sharks and experts. It means the world to me if you can kindly leave a review for the book you just read.

Here’s to the better, wealthier and happier world.


Charts Don't Lie: 3 Hours Can Make You 3% or More: How to Trade for Half Day and

Remember what John Tuld (the evil financial CEO from the movie, Margin Call, said to his trading analyst: "Please, speak as you might to a young child, or a golden retriever." This one book intends to simplify trading so everyone will HAVE A SHOT to become a consistently profitable day trader (or short term trader). How can someone, in reality, make money consistently trading everyday? Too many courses and books offer theories and fluffs with zero practicality. In the process, the courses and books fail to explain trading in the simplest manner so that a child can understand. How this book will SKYROCKET your trading: 1) Prompt Execution: How to day trade with the 23 actionable hacks 2) Intelligent Selectivity: How to pick the best opportunities. 3) Trade Optimization: How you can minimize risks and maximize potential profits. 4) Stress Elimination: By entering and exiting your trades with simplicity and conviction, you will feel more confident. Hence the biggest enemy of day traders are not volatility (actually, volatility can be day traders' best friend). The biggest enemy(ies) are: Paralysis by analysis and Over-complication. Learn to practice short-term investing in 3 hour or less with these simple yet profitable techniques.

  • Author: Steve Ryan
  • Published: 2017-06-11 18:05:17
  • Words: 12435
Charts Don't Lie: 3 Hours Can Make You 3% or More: How to Trade for Half Day and Charts Don't Lie: 3 Hours Can Make You 3% or More: How to Trade for Half Day and