Home > Trade Replays > Day trading: Trade replay

Day trading: Trade replay

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Last night we did a free workshop for online stock trading on our NYC office. There was a student in the room who refused to believe that intra day trading is as simple as defining the supply demand equation.

She proceeded to ask a litany of questions about fundamental analysis and how it would relate to a day trading decision. Of course we went through all the necessary fundamental factors to be aware of, but ultimately a traders decision will be based on what is going on right now.

This trade displayed in AMD is a perfect example of what I mean. The short term momentum from the 15 minute chart was rising and made it’s way above the 20sma. As we teach in our Equity Trader 101 course, this tells us we should be zooming into the lower time frame to time an entry to the long side (we will be trading with the most immediate momentum)

The entry is the bull flag on the five minute chart. The trade played out beautifully for a profit of just about a quarter. As you can see here, there were TWO reasons to exit the trade where we did, there was resistance from the previous days trading and we had perfect “exhaustion bars” that indicated the end of the move.

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Categories: Trade Replays
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