Stock Trading Strategies
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Daily Trading Log
There are hundreds of stock trading strategies being peddled on the
internet, quite a few of them claiming to be “the best way to get rich.”
This makes it tough to find an approach that earns decent money.
On the other hand, there are some really decent stock trading strategies out
there. I’d like to talk to you about how I trade stocks.
I’ve been trading for more than 30 years and I have some stock trading
strategies that will help to turn your trading around.
I focus on the chart patterns of a few select stocks that I’ve watched long
enough to know how they respond to other market conditions. I’ve taken note
of how volatile the stock is, how well it tracks with the major indices,
whether it respects the support on the major indices, how liquid it is, and
what its trading rhythm feels like.
One of my first
stock trading strategies is to choose a stock that moves
closely with the major stock indices. This lets me use the RBI future’s
support and resistance zones and the emotional exhaustion timing techniques
I use when I’m
day trading futures.
When the futures turn, the major stock indices, and many of their stocks
also turn, following a little delay. The delay may be seconds, sometimes
milliseconds, but the edge is there to be taken advantage of, short-term.
Among other stock trading strategies I employ, I often use my RBI
“big-picture” indicators to time a stock trade. This works for me because
I’m willing to swing trade a stock, but not an eminis futures contract. Many
of the indicators I use I developed back in the 1980’s. My RBI indicators
are based on market internals and have called the intermediate tops and
bottoms of the S&P 500 very accurately for many years.
When I swing trade a stock, I want to see it move my direction in the first
fifteen minutes to half an hour. If it doesn't, I'm out of the trade. This
is one of the most important stock trading strategies
that I utilize. This is the same kind of “radical soft stop” that I use in
It’s just stretched out to fit the time span of a swing trade.
Another one of my stock trading strategies
that is a must to remember, “In
all trading, defense must come first.” I place a hard stop in the market
when I enter a stock trade, but I don’t let the market hit my hard stop. If
at all possible, I place the hard stop where it is protected by a support or
In my 30 + years of
stock market day trading,
I’ve seen traders make this
common mistake, they hold on to a good trade, hope for more, but usually end
up with less. Don’t let this be you!
emini day trading,
I don’t swing for home runs. I want consistent
gains of any and all sizes. I exit swing trades at major RBI support or
resistance zones, because these are the places where the odds of a trend
turn-around are the highest.
It is true that a trader should “cut losses short and let profits run.”, but
that is one of those stock trading strategies that is way too general to be
worth very much. In practice this generalization probably causes most
traders to hold paper gains until they become real losses, unfortunately
more often than not.
I write a market newsletter each day, giving my "game plan" for the next
trading day. I'm as specific as possible including Support and Resistance
levels that I will be buying and selling against, which provides you with
great trade set ups nearly everyday.
If you’re looking for dependable stock trading strategies, I believe you
will find the
RBI Trader’s Updates to be very useful to you because of their
accurate support and resistance zones on the futures charts.
There’s never been a better opportunity to turn the corner and become a