Stillkicking's Rules for Day Trading

stillkicking

Junior member
45 7
#1
Hello to all. Been awhile since I've posted. Been trading and learning and now have some time to share with the group.

Have moved away from swing trading for the most part. Honestly, there just was no fun in it for me. I'd place a trade and then sit and wait for something to happen. At my age, 65, life is just to short : )

Went back to reading all my day trading books from the late 1990's when I tried to make my fortune and loss lots of money. Have also watched a ton of Youtube videos related to day trading and this has gotten me up to speed on current procedures. I can now say I have the process down pat and can easily make money almost every day I trade.

The two most important and, in my opinion, the only two studies you need on your daily chart for day trading is the VWAP and the 200 (DMA) day moving average.

I've been day trading with just these two lines on my screen and I'm doing very well, thank you.

Here are my rules for day trading. Follow them and you will not go wrong.

Do Not Buy:

- before the 9:45am shakeout

- if price is below the VWAP or the 200DMA

- unless volume chart is reading <hundreds of thousands> of shares traded

- on a red candle

- if you see heavy selling volume

Also, no second trades in that equity unless the price breaks HOD (high of the day)

I'm running three screens and that really is all any home trader should need.

3screens.jpg


The screen on the left has ThinkorSwim, my trading platform, and the screen I will trade in and out with. The middle screen also has TOS running four smaller charts. This is where I place the stocks I will follow on any given morning. The right most screen has Finviz Elite, which gives me my daily stock screener.

After the bell, I will generally pick only two stocks to watch. I place them in the left side of the quad screen as one minute charts and as five minute charts on the right side. The one minute gives me up to the second price movement and the five minute takes all the noise out of the movement.

I only trade stocks between $1 and $10 and the lower the better for me. I take large positions of 1,000 to 5,000 shares so I can make a quick profit and get out. As I build up my cash account, I will take even larger positions. I expect to be taking 10,000 shares fairly soon.

I do not trade on margin and I do not short stocks. This way I stay out of trouble.

I try to not get too greedy. I'm happy to make $500 to $1000 a day, by 10:15 in most cases, and then close up shop for the day.

I'll be updating this post from time to time, so stay tuned.
 
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Panic!

Member
54 4
#2
Thanks for sharing! I have very similar setup in terms of what I have open on my screens. I don't trade intraday anymore, but when I still did I traded around VWAP mostly.

Why do you only trade stocks beow 10 USD though, any particular reason for that?
 

stillkicking

Junior member
45 7
#3
Thanks for sharing!
You're welcome.

I have very similar setup in terms of what I have open on my screens. I don't trade intraday anymore, but when I still did I traded around VWAP mostly.
The VWAP is the most powerful indicator I've found for day trading. I will not take a trade if the bars are below the purple VWAP.

lines.jpg


BTW: I had TOS send me another version of that study that only has the single purple line. Much easier to see what's on the chart. Ask them for it.

The same goes for the 200 DMA. I never take a trade below that cyan line. BTW: the version in TOS only works on a one year chart since it is a one bar indicator. If you use it for daily charts, it will be completely wrong. There is a fellow who sells the proper 200 DMA study for TOS that will work on any time frame. Ask me off list if interested. He can also supply his as a single line trace for clarity.

Why do you only trade stocks below 10 USD though, any particular reason for that?
I trade so-called penny stocks. Equities of $5 or less. They can be very volatile and their moves can be quite large intra-day. I buy as many shares as possible in one trade. If I pay $2 for a stock and buy 6000 shares, and it goes up just 15 cents, I can make $900. I'll take that any day of the week.

For example, here is my one trade for today.

slno.jpg


Happy trading. If you have more questions, just ask me.
 
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Likes: barjon
#4
I broke my first rule and it cost me!


This is why you should not take a trade until after the 9:45 shake out.

mtfb.jpg


Had I waited until after 9:45, I would have seen what was about to happen and not taken this trade. Point of fact, there was no reason for me to have entered when I did. The green candle did not make a new high.

The stock never recovered and I lost money. I screwed up.

Food for thought.