Home > Lessons from the trading floor > day trading for bigger gains

day trading for bigger gains

Holding good trades longer:


First it requires a tremendous amount of focus!


As a stock is moving up or down how many shares print at the next price level? You will be shocked at how this one tip can change your focus.


If it is consistently printing at the bid in a down trend is there a buyer who constantly refreshes (not good) or does it moves relatively quickly through the shares bid?


If you are long, offer some shares out, if it is easy to get filled you want to stay in the trade, if it is hard to get filled get out.


How obvious is the 15 min 20sma and the 15 min price action? The more obvious the more you will want sit through the noise.


Are the market internals obvious or is the $trin flat lined?


How is the order flow in the market?


How far has the stock already moved compared to a “normal” move in that stock?


Based on that information how much more can you expect the stock to move?

What is the next level of support or resistance on the 5 day chart? If you are off that chart what is the next level on the daily?


How is the stocks sector performing today? (most stocks have an ETF you can follow)


Use our basic chart reading techniques: If there are no momentum reversal candlestick patterns on the 15 minute chart stick with the trade and look to add on a pause.


Is the 5 minute chart making consistently higher lows in an uptrend? This means the stock is very well bid and buyers are around. If it is choppy and inconsistent there is no obvious order flow.


One thing that is very important to remember is that you only need two or three of these trades to work out each day. Think of the movie industry. How many movies does a studio produce compared to how many actually make big money?


It only takes one blockbuster to pay for all those bombs. Trading is the same way; you must take all the trades never knowing which one is going to be a big winner.


You can however give yourself a better chance of a movie (trade) producing big gains by hiring a top star (obvious trend/order flow) to be in your movie.


  1. eugene sloane
    July 3, 2008 at 12:58 pm

    hello Pete, needed some help on focusing on the trading plan. The mind set and dicipline and to develpe it so that you don’t trade outside of established rules. I only trade (when following my trading rules) when todays bar has traded out side the prior days bar in a up trend higher and visa versa for a down trend. I only want to trade the first 2hours of the day. These trades work out most of the time. The problem comes in when i continue to trade and began to trade inside thoses bars in complete violation of the trading plan. For the life of me i can’t seem to resist the urge to trade even though it is very clear to me that i don’t trade this way and it is completely out side of my trading rules and plan. What can be done that will help me resist the urge to violate my trading rules that work so welll when i apply them and stick with them.



  2. July 3, 2008 at 1:29 pm

    Hey Eugene,
    Its great to hear from you. We receive many similar emails talking about the same issue you are facing. “I make money in the morning and give it all back the rest of the day.”

    You have a very focused trading plan and that is awesome! Since your plan is so well defined around yesterdays highs and lows I would recommend you place resting buy stops and sell short stops in the market ahead of time and don’t do anything unless they get triggered.

    If you need help doing this on the Sterling Software give me call i can walk you through how to do it. It is very easy to do.

    Have a great 4th of July!

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