Stock Trading Systems

Welcome Back! One component of a robust trading system is knowing how to find support and resistance levels. Both levels are barriers.  Knowing where those barriers reside can save lots of frustration.  For example, it wouldn’t be wise to buy near strong resistance and sell near solid support. It’s not that difficult to find support [...]

Here’s a quick, low risk, and profitable trading system for short entries – Find a stock trading below its 200 day moving average.  A stock in this predicament is already weak. When it stops declining and starts rising in price, place an order to go short beneath the low of the first up bar. Continue [...]

Exits are likely the most important component of a trade. Get it wrong and you can lose a lot of money. My suggestion for exiting trades is to use trailing stops.  My method for setting trailing stops uses the ATR (Average True Range). ATR is a volatility indicator.  It doesn’t forecast the direction of price, [...]

photo credit: makdune Have you wondered how some traders know when to get in just before the market takes off and then get out before it tumbles?  They’ve likely found something in the charts that gives them an edge. It takes many hours of chart study to find those little twitches and burps that may [...]

It’s really quite simple, but often so hard to implement. If you want success trading the market, become the expert of one stock trading system.  After several years working with traders one trait stands out among those that struggle and fail.  They study countless techniques, but master none.  Unfortunately, they learn to speak the market [...]

photo credit: Tomi Tapio Short-term stock trading can be profitable and risky!  It really takes an unemotional trader to successfully get in and out of a quick trade.  You must trade like a machine!  Here are a few suggestions for your consideration – Reduce the amount at risk per trade — if normally risking 2% [...]

photo credit: pfala A very useful options trading strategy  in a choppy market is hedging.  Here’s a quick example of how to use a hedge for a long stock position. If you have a stock that has unrealized gains from an increase in share price a protective put strategy can help safeguard those gains.  It’s [...]