Archive for July, 2012

HOW TO FADE THE GAP $BHI

Fading the gap is my second best setup to trade after Base breakout. $BHI is one of the names which was gapping up premarket and was on our watchlist premarket which we had build in our free online live free trading room. A thing to note  on $BHI daily chart was the downward trending 200 day moving average and also price of $47 which was a key resistance on the daily chart. Initially I was looking to go short this name as long as it was below $47.

Once I saw the break of support on the 5min, your truly pounced on it and made a quick 4-4.5R  reward to risk trade on it in just under 10mins. I lot of people have been saying markets are slow and boring and what not and it’s stock picker’s market . But my question is when has it been not a stock picker’s market. As a trader, you ought to be in the right names, if you are, then it will give you multiple opportunities to get in and make money from these markets. If your having trouble in being in the right names, drop by our free online live trading room for idea generation.

Email me : dchsn6@gmail.com for free online live day trading room

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dchsn6

 

2012
07/20
CATEGORY
TRADE REVIEW
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TIMING TRADES WITH THE MARKET $LULU

Basebreakout my favorite play was back in action today. Right off the bat in the morning in the free live trading room, I mentioned best case scenario for the bulls would be a slight up or down day in $SPY $QQQ $IWM, basically long story short a DOJI Candle is what I was looking for.

At this point of time unless a stock has some catalyst behind it, I don’t wanna be shorting any stock. I was looking around for some names to go long all morning, but most of them acted really sloppy and the candles on those charts were all over the place. As usual I ask my guys in the trading room to look for stocks which are clean, hence lesser chances of getting chopped out. I came across $LULU which was one of the strongest stocks from yesterday and was eyeing for an entry to go long. Once I saw the pattern , basebreakout in this case,  yours truly pounced on it and  made  a quick 5R reward to risk trade. The best of all, I timed it the markets as $QQQ was just breaking it’s intraday high as well, it helped me to get in pretty big in size with this trade.

Picture are worth a thousand words, so here it is

My top idea going into tomorrow is $LNKD, drop by in the free trading room , if you would like to see how I trade it.

Email me : dchsn6@gmail.com for free online live day trading room

Follow me on twitter @dchsn6

Follow me on stocktwits @dchsn6

dchsn6

2012
07/19
CATEGORY
TRADE REVIEW
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THESIS ON $SPY and $QQQ GOING FORWARD

Here is a quick followup on the post  http://goo.gl/Di8dH  which I did   on July 10th, 2012 as to why I went long  $SPY $QQQ at 3:50pm EST .

Let’s take a look at 6 things which has happened since then, all of this has been reviewed in our free online trading room , where we bounce ideas all day as well.

1. ON July 11th, we had a flush down which was quickly bought back up. Read this post http://goo.gl/frtfG about why it happened

2. ON July 12th, 2012 we once again had some bs news which came out and everybody was thinking for the world to be over again. But hey guess what the dips again got bought and we ended near the open of the day.

3. ON July 13th, 2012, as always after a few dip buyers, we see some conviction buyers aka followthru candle which was beauty. Enough said.

4. ON July 17th, 2012 once again Mr. Ben speaks, we get a flush down but hey guess what we tested 20ema on daily and dip buyers came back in. We did call it out in free online trading room  to start putting out feelers before we loaded the boat to go long.We also closed right above the neckline of the head and shoulders pattern which as been forming since Feb 2012.

5.  Today on July 18, 2012 we are back above the key 136 level and are going strong with no signs of weakness in the markets.

6. Next resistance is at 138.70 and after that is 141.75 which is almost the highs which we saw back in 2008.

Email me : dchsn6@gmail.com for free online live day trading room

Follow me on twitter @dchsn6

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dchsn6

2012
07/18
CATEGORY
$SPY $QQQ $TNA $TZA $ES_F $TNA $TZA analysis
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Trade Review $V

Inside day in $SPY $QQQ made it kinda hard to trade, with no followthru in most names on either side. The most convincing play of the day for me was $V Visa to the short side which was called out in free online trading room.. It had some settlement news premarket, which made it gap up above 127.60 on the daily chart. But with the market being an inside day not a lot of conviction to the upside so I tried eyeing it for the short side. $V went down 2 points from where I shorted, however from my trading plan perspective it was still a 4.5 reward to risk trade.

Shorting the gapup names are always tricky as you never know when those bag holders are gonna jump back in and drive the prices up.

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dchsn6

2012
07/16
CATEGORY
TRADE REVIEW
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6 STEPS TO BE A PROFITABLE DAY TRADER

1. Financial Instrument: As a trader, you should understand the financial instrument that your trading whether it be stocks, options, futures or cfd’s. Each instrument has it’s own characteristics and personalities. Find which one is similar to yours and concentrate on that financial instrument. Best way to find out which one suits you is try demo accounts for those instruments, with the number of brokerages out there, you would be able to find a brokerage to have demo accounts for trial.

2. Capital: Once you determine the financial instrument you would like to trade , determine how much capital you would need. Remember, risk only what your willing to lose. If your a newbie, you might have a beginner’s luck in one-two trades i.e. why having sufficient capital to start your trading is utmost important.

3. Broker: Whether your profitable or not, you will always have to pay commissions for whichever financial instrument your trading. Find out which broker can provide you the following:

  • Low commissions
  • Stable and reliable platform
  • leverage
  • excellent customer service
  • easy to deposit and withdraw funds
  • trading room with trading mentors.

If you trade stocks then you reach out to me for which broker I use.

4. Trading Mentor: This is going to be one of the trickiest part, with some many traders out there and so many trading rooms. It has become confusing at times to find out which mentor is good for you. But once again, most mentor out there who run a trading room, they would have free trials to their room, so try to get access to it and spend atleast a month at a bare minimum and understand his strategy or personality and see if it resonates with you. @stocktwits has a lot of traders in there, you can see the posts of those traders and see if they fit your personality.

5. Trading Plan:  Trading is like a business, if you don’t have a plan of action your bound to fail. It’s only a matter of time, once you determined your trading mentor.  Ask the mentor to develop trading plan for you and help you with understanding risk management.

6. Trade Small Sizes: As a new trader when you start and have done all above 5, you will feel your pretty much invincible. But let me tell you straight up, if you keep hitting big sizes as a newbie, your account will shrink faster than you can hit those keys on your keyboard and you won’t even know what happened.

Hope all of this helps.

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dchsn6

2012
07/14
CATEGORY
Education
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HOW TO IMPROVE TRADE MANAGEMENT $STZ

$STZ one of the strongest names from yesterday  and was on top of my list. My entry was PERFECT which was called out in our free online trading room but trade management was a bit all over the place. Even though the rest of the guys made some decent cash on it.  For me if I had to rank it, I would give it 2/10.

As can be seen from the chart I got the right price for entry, I even scaled out some of on the 1st piece near the .20s, for the rest I should have moved my stops to breakeven and let it breather and see what is going to happen, instead I closed out on that pullback near .07-.08 region.  Even though it still came out to be high reward to risk- trade because of my entry price, the trade could have been even better. As traders, there are times like these which will happen. That’s why we LIVE AND LEARN and Survive to trade another day.

I am also offering a 6 HOUR POWER DAY TRADING COURSE for new and experienced traders.

My previous Market Calls

dchsn6

http://www.dchsn6.com

2012
07/13
CATEGORY
TRADE REVIEW
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Trade Review $LXK

Base Breaks are my favorite patterns and we play it in the online live trading chatroom all day. Yes, the HITS keep coming. Another gap down day in the markets $SPY $QQQ. With initial momentum to the downside, I scanned around for weak names across the board and came up with a few names but $LXK is the name which trigerred and yours truly, jumped on it as usual.

$LXK was an easy 5R reward to risk trade, do this a couple of times in the day in a week and you should be good. This is what we do in our live daily trading chatroom. Come check us out.

I am also offering a 6 HOUR POWER DAY TRADING COURSE for new and experienced traders.

My previous Market Calls

dchsn6

www.dchsn6.com

2012
07/12
CATEGORY
TRADE REVIEW
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TRADE REVIEW $SINA

Base Breakout is by far one of my favorite patterns, also my bread and butter trades. Not all base breakouts are the same. While day trading , a lot of base breakouts happen but which one works and which one doesn’t is what differentiates between a profitable day and a losing day. We discuss all the probabilities in our LIVE ONLINE DAY TRADING ROOM.

Even though today in the morning it was a choppy day for me personally with no followthru in many of my trades, I managed to keep my losses really small and when this opporunity in $SINA cameby, I literally pounced the table and informed my traders in the trading room that I was doubling up on that trade. The $SINA chart pretty much tells you everything that I did. I messed up the trade a bit cause I took profits way too soon. But nevertheless, for me it turned out to be a 5:1 reward to risk trade and in this market environment in $SPY $QQQ, I will take that anytime.

I am also offering a 6 HOUR POWER DAY TRADING COURSE for new and experienced traders.

My previous Market Calls

dchsn6

2012
07/10
CATEGORY
TRADE REVIEW
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FOR ALL NEW AND EXPERIENCED TRADERS

2012
07/10
CATEGORY
Education
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Why I am long $SPY $QQQ $IWM going into tomorrow.

I have been eyeing to go long S&P 500 $SPY, NASADQ $QQQ and Russell 2000 $IWM  since June 1, 2012 when we had the false breakdown on volume which had no followthru the next day.

$SPY $QQQ $IWM all trended up till June 19, 2012 before we had that big down move which was called out in my post ‘ WHY I am long $TZA’. We had a sever down move on June 21, 2012 and I was watching how the market was gonna react on June 22, 2012. Once again we had very little follow thru to the downside.

Between June 26th and Jul 3rd we once again trended up nicely, I blogged about ‘ Is it time to buy the DIPS’ on July 4, 2012 before we had a down move today on July 10, 2012.

AT 3:50pm I tweeted out to go long  $SPY and also mentioned in  free online live trading room

Follow me on twitter @dchsn6 for my tweets.

My Thesis why I mentioned long $SPY $QQQ $IWM, as traders we look for opportunities which favors the reward to risk.

As can be seen from the chart ,

1.  Tested trendline B which is the upward slopping trendline.

2. Tested Trendline A which is the downward sloping trendline.

3. 134 on $SPY is also the region between 38% and 50% retracements on fibonaccis.

4. We did the gap fill created on June 29th gap up.

5. We have the volume accumulation signs in $SPY

6. 20EMA and 50SMA as support on daily.

The above are the 6 points why I mentioned to go long $SPY $QQQ $IWM.

My thesis is nullified if $SPY goes below 130. But once again as a trader we look for risk-reward with 4point downside, I am looking for 1st tgt atleast to 142 on $SPY.

I am also offering a 6 HOUR POWER DAY TRADING COURSE for new and experienced traders.

My previous Market Calls

dchsn6

www.dchsn6.com

2012
07/10
CATEGORY
$SPY $QQQ $TNA $TZA $ES_F $TNA $TZA analysis
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