understanding day trading volatility

Do you truly understand volatility and how it should affect your day trading decisions? Do you have plans in place for when the market or your stocks are  trending versus not trending?

If your stocks are trending do you have a method of deterimining if you should be holding on to a core position for a bigger move or if you should be booking profits into momentum?

To become a consistent trader you must understand how and when to use leverage. In order to use leverage successfully you must understand that all price movement is not identical.

You must gain enough experience to learn that all breakouts or breakdowns are not alike.  All bull flags or bear flags are not alike. What do I mean by “not alike?”

The scenario LEADING UP TO THE SIGNAL is more important then the signal itself. The price action leading up to the signal is more important than the signal to enter. The volatility within that price action must be consistent for you to understand when to increase or decrease your expectation for follow through and your leverage.

Keystone Trading Group is currently looking for new talent to train and mentor in our winning system If you think you have what it takes to join our team let us know. To find out more click here.

Private mentor transcript

This is your chance to get a peek inside our Private Silver mentoring sessions. The transcript will only be available for public viewing this weekend.

Download it to your computer, prinit out all 61 pages and enjoy.

You can get your copy here.

*** Trade firm capital for 20 days/mentor with experienced traders

day trading trade expectation

Do you know what “should” happen next? If a stock or the market makes a new high what should happen next? It should at least retest that high if order flow (buying pressure) is still good.

Do you have a plan (trade scenario) in place for if a new high is made? Do you have a plan in place if the stock or market fails to make a new high? Do you short sell at this point or do you only continue to look for a long?

What do you have in your plan regarding leverage and trade expectation based on which of these scenarios unfold? Do you increase your position at new highs or do you remain with the shares you have?

If the market fails to make a new high and you short sell, do you realize before you place the trade it is a momentum trade and have NO REASON to expect a bigger move?

What does this mean? It means you should be comfortable with the fact (before you place the trade) that the odds of the trade being a small loss or small profit are high.

This is important because you will manage the trade accordingly. Instead of hoping for a bigger profit on the trade you will know how much you can reasonably expect before the trade is initiated.

We teach all of this in our twenty day workshop KEYSTONE 20.  The next workshop begins April 1st.

http://www.keystonetradinggroup.com/index.htm

managing the trade: patience

Day trading requires focus, a lot of it. One of the most common questions we get from new traders is “how do I hold on to good trades?”

A better question would be how do I recognize when I SHOULD hold my trades longer! Every trade scenario is different. Chart patterns may be similar but the market environment leading into the entry signal must be considered for hold time or what we at Keystone trading call “trade expectation.”

In order to learn how to be patient during good trades you must have confidence you have an edge for the trade you are about to place. The more obvious the edge, the more confident you should be. The lower the edge the more anxious you will act.

In order to make bigger profits you must ask yourself this question and then trade the answer! All trade scenarios will have different expectation for follow through. Learn to recognize this and patience will be easy!

http://keystonetradinggroup.com/

good trading if you are ready!

Opportunity is abundant in this day trading environment. The intra day swings we are experiencing is amazing. It can be a tough time for those of you who may be new to  the business but wow will you be ready for a “normal” market!

I guess the question to be asked is what does an experienced trader see that a new trader does not? The answer is different types of trading days and understanding how to trade them. New traders falsely believe that all chart patterns are the same. All bull flags, breakouts, breakdowns are not the alike.

You must learn the scenarios leading up to the pattern. And then look at the same information in the market.

Is there an existing trend before a breakout? If trading a pullback from a new high or low what are the odds for follow through to new levels? If stocks are in a trading range do you know how to spot the clues for follow through or a reversal?

When you are in the business long enough you will spot these scenarios but more importantly you will trade agressively or not at all based on what the market is offering.

I have seen more and more traders blow out of the business because they traded the same size all the time. They had the same “trade expectation” all the time.

We explain this in detail in our last webinar. You can watch the video by clicking here. 

http://keystonetradinggroup.com/