Posts Tagged ‘Day Trading Strategies’

Alert, Alert – How to Make 68% in 4 Hours with ETF Options

A lot of people ask us how our Alerts work.

There's not much to it actually.  Alerts are free to Premium Members but they are just Emails that come from our normal daily Member Chat from myself, Optrade or the Oxen Group.  Opt and Oxen usually send out trade alerts but I tend to concentrate on things I consider important enough to send out in case someone is away from their computers or (Heaven forbid!) on some other site.  One Alert I send out almost every morning are our daily level watches and then, if something big changes, I'll send out another one but I don't do it often as I don't like to bother people with Emails.  We have special feeds for members who want to have every comment sent to them anyway

Usually I send out my first alert just after the bell so we can see what the market looks like at the open.  Sometimes we see a good play, sometimes we don't.  Today looked uncertain so posted two possible DIA plays at 9:33 in Chat that were sent out on our Alert system (it's just an Email!):

So that's it.  This comment from Member Chat gets converted into an Email and ends up in your in-box a few minutes later.  On top are my normal level selections for the day with comments about what to look for.  As I had mentioned in the morning post, I didn't even feel it was possible to make it to our 10,300 levels so I didn't even bother cluttering this post with them this morning.  We looked a little weak so I was more concerned about the downside but we held our downsides like a champ and bounced back nicely.

In chat, we took quick profits on the $99 puts and my follow-up comments were:

9:37: "Boy, we can almost count on these morning sell-offs lately.  EU funds I think so I still want that upside play."

9:56: ".95 was plenty for the puts.  For me, that’s a .15 buffer to enter the longs, now .75 but I don’t want them unless they either get back to .70, (where I’ll risk 1x with 1x at .60 and 2x
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Day Trading Expiration Week at Philstockworld

Day Trading StrategiesI don't want new Members to get the wrong idea

We don't day trade a lot at PSW, EXCEPT during option expiration weeks so call it 12 times a year we turn into day-traders as the front-month premiums get low enough to make the trades interesting.  The rest of the time, my usual motto is "I'm not a day trader but I'm certainly not adverse to taking profits in a day."  Our goal with any option trade is to make a 20% profit and we put up at least 20 trade ideas almost every week so that's over 1,000 opportunities a year to make 20% – that means when we do make it – getting back to cash and moving on is a wise strategy as there will certainly be something else to trade tomorrow.

During expiration weeks, we have a unique (if 12 times a year is considered unique) opportunity to gain tremendous leverage on trades that have good risk/reward ratios to hopefully give us a series of small, quick wins so our focus shifts away from the longer trades (and we are often waiting out the week before rolling our longer positions anyway) to zone in on these wonderful opportunities.   

This is covered under our Strategy Section so I won't rehash it here but I thought I'd use my new chart tools to try to illustrate what we're doing by going over a few of today's trades.  As we do discuss in the strategy section, allocation of assets is key and no single trade should ever be more than 5% of your virtual portfolio and day trades should be more like 2% so, in a $100K virtual portfolio, these quick trades should be opened in blocks of $1,000 or $2,000 entries.  Ideally, we want to be comfortable doubling down if the trade goes against us right off the bat (and we still believe in it).  

Our first trade of the morning was a short on USO.  At 9:42 I made a comment to Members: "Jan USO puts have little premium left (the $41 puts are $1.06 – .19 premium) and can be played as a mo trade but I’m in the Feb $39 puts, now $1.01, patiently waiting to make .50." 

The January trade was, of course,
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Zero Hedge

Chinese Company Replaces Humans With Robots, Production Skyrockets, Mistakes Disappear

Courtesy of ZeroHedge. View original post here.

Submitted by Tyler Durden.

"I believe that anyone who has a job and works full time, they should be able to pay the things that sustain life: food, shelter and clothing. I can't even do that."

That rather depressing quote is from 61-year old Rebecca Cornick. She’s a grandmother and a 9-year Wendy’s veteran who spoke to CBS News. Rebecca makes $9 an hour and her plight is representative of fast food workers across the country who are campaigning for higher pay. 

The fast food worker pay debate is part of a larger discussion as "states and cities across the country [wrestle] with the idea of rais...



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Kimble Charting Solutions

Commodities – 20-Year bear market in play?

Courtesy of Chris Kimble.

CLICK ON CHART TO ENLARGE

This chart looks at the Thompson/Reuters Commodity Index on a monthly basis for the past 50 years

The index took off in the early 1970’s and rallied over 200% in a little over a decade at (1). Then it created a potential double top. What followed at (2)? An unwinding of the rally that lasted nearly 20-years, taking it to the bottom of its rising channel.

In the early 2000’s, the index took off again, gaining over 250% in a decades time at (3) and the rallied looks to have ended in 2011, as it was hitting the top of this long-term rising channel.

Since hitting the top of the channel the index has been pretty soft,...



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ValueWalk

Jeffrey Ubben 2010 Interview: Standing On Principal

By VW Staff. Originally published at ValueWalk.

Jeffrey Ubben: Standing On Principal

Combining a keen eye for value with a tenacity for instigating corporate change has proven to be a winning formula for Jeffrey Ubben's ValueAct Capital.

ValueAct Capital's Jeffrey Ubben describes how he hedges without shorting, why he may take 18 months to build a core investment, why he expects M&A activity to take off in the coming year, why he resists the “macro” fetish, and why he sees unrecognized value in Willis Group, VeriSign, Valeant Pharmaceuticals Intl Inc (NYSE:VRX) (TSE:VRX) Pharmaceuticals, C.R. Bard and Misys.

In what ways do you distingui...



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Phil's Favorites

Power and Compassion

Courtesy of The Automatic Earth.


Harris&Ewing “Slaves reunion DC. Ages: 100, 104, 103; Rev. Simon P. Drew, born free.” 1921

Time to tackle a topic that’s very hard to get right, and that will get me quite a few pairs of rolling eyes. I want to argue that societies need a social fabric, a social contract, and that without those they must and will fail, descend into chaos. Five months ago, I wrote the following about Europe:

Europe, The Morally Bankrupt Union

The European Union is busy accomplishing something truly extraordinary: it is fast becoming such a spectacular failure that people don’t even recog...



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Market News

News You Can Use From Phil's Stock World

 

Financial Markets and Economy

Hedge Funds Boost Bullish Treasury Futures Bets to Two-Year High (Bloomberg)

As oil prices tanked, hedge-fund managers and other large speculators increased bullish bets on Treasury securities to the most in two years, even as the Federal Reserve moves closer to raising interest rates.

Crude Tumbles Near $46 Handle As US Oil Rig Count Rises For 2nd Week (Zero Hedge)

After last week's surge in total rig count, this week saw a modest 2 rig drop to 874 total rigs. However, oil rigs rose...



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All About Trends

Mid-Day Update

Reminder: David is available to chat with Members, comments are found below each post.

Click here for the full report.




To learn more, sign up for David's free newsletter and receive the free report from All About Trends - "How To Outperform 90% Of Wall Street With Just $500 A Week." Tell David PSW sent you. - Ilene...

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Insider Scoop

MagneGas Conducts Demonstrations for Fossil Fuel Division of Major NE Utility

Courtesy of Benzinga.

MagneGas Corporation (NASDAQ: MNGA) this week completed metal cutting demonstrations with over 40 representatives from the Fossil Fuel division of a major northeast Utility. The Company believes the demonstrations were successful as they have received multiple requests for fuel as a result of those meetings.

The Utility is one of the ten largest in the United States with over $35 billion in assets and large volume use of acetylene. Multiple company officials and representatives from the Fossil Fuel Division of the Utility were in attendance. This particular division is the largest user of acetylene and propane at the Company. The test used MagneGas® to cut 2 inch steel plates and resulted in very little pre-heat time with clean cuts. Officials have indicated an int...



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Chart School

Markets Remain Near and Above, Yesterday's Highs

Courtesy of Declan.

Tech indices finished strong after they overcame the opening half hour of selling. The Fed statement was greeted favorably, although market breadth is not looking pretty. The Nasdaq still has a distance to travel to make back all of its losses, but has done well to hold up against Semiconductor weakness.


The Semiconductor Index is struggling to make inroads against past losses as the Nasdaq and Nasdaq 100 push respectable gains. I find it hard to see how this scenario can continue, ...

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Sabrient

Sector Detector: Lackluster earnings reports put eager bulls back into waiting mode

Reminder: Sabrient is available to chat with Members, comments are found below each post.

Courtesy of Sabrient Systems and Gradient Analytics

In this weekly update, I give my view of the current market environment, offer a technical analysis of the S&P 500 chart, review our weekly fundamentals-based SectorCast rankings of the ten U.S. business sectors, and then offer up some actionable trading ideas, including a sector rotation strategy using ETFs and an enhanced version using top-ranked stocks from the top-ranked sectors.

Corporate earnings reports have been mixed at best, interspersed with the occasional spectacular report -- primarily from mega-caps like Google (GOOGL), Facebook (FB), or Amazon (AMZN). Some of the bul...



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OpTrader

Swing trading portfolio

Reminder: OpTrader is available to chat with Members, comments are found below each post.

 

This post is for all our live virtual trade ideas and daily comments. Please click on "comments" below to follow our live discussion. All of our current  trades are listed in the spreadsheet below, with entry price (1/2 in and All in), and exit prices (1/3 out, 2/3 out, and All out).

We also indicate our stop, which is most of the time the "5 day moving average". All trades, unless indicated, are front-month ATM options. 

Please feel free to participate in the discussion and ask any questions you might have about this virtual portfolio, by clicking on the "comments" link right below.

To learn more about the swing trading virtual portfolio (strategy, performance, FAQ, etc.), please click here ...



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Digital Currencies

Gold Spikes Back Above $1100, Bitcoin Jumps

Courtesy of ZeroHedge. View original post here.

Gold is jumping after the overnight double flash-crash...testing back towards $1100...

Bitcoin is back up to pre-"Greece is Fixed" levels...

Charts: Bloomberg and Bitcoinwisdom

...

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Pharmboy

Baxter's Spinoff

Reminder: Pharmboy and Ilene are available to chat with Members, comments are found below each post.

Baxter Int. (BAX) is splitting off its BioSciences division into a new company called Baxalta. Shares of Baxalta will be given as a tax-free dividend, in the ratio of one to one, to BAX holders on record on June 17, 2015. That means, if you want to receive the Baxalta dividend, you need to buy the stock this week (on or before June 12).

The Baxalta Spinoff

By Ilene with Trevor of Lowenthal Capital Partners and Paul Price

In its recent filing with the SEC, Baxter provides:

“This information statement is being ...



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Mapping The Market

An update on oil proxies

Courtesy of Jean-Luc Saillard

Back in December, I wrote a post on my blog where I compared the performances of various ETFs related to the oil industry. I was looking for the best possible proxy to match the moves of oil prices if you didn't want to play with futures. At the time, I concluded that for medium term trades, USO and the leveraged ETFs UCO and SCO were the most promising. Longer term, broader ETFs like OIH and XLE might make better investment if oil prices do recover to more profitable prices since ETF linked to futures like USO, UCO and SCO do suffer from decay. It also seemed that DIG and DUG could be promising if OIH could recover as it should with the price of oil, but that they don't make a good proxy for the price of oil itself. 

Since...



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Promotions

Watch the Phil Davis Special on Money Talk on BNN TV!

Kim Parlee interviews Phil on Money Talk. Be sure to watch the replays if you missed the show live on Wednesday night (it was recorded on Monday). As usual, Phil provides an excellent program packed with macro analysis, important lessons and trading ideas. ~ Ilene

 

The replay is now available on BNN's website. For the three part series, click on the links below. 

Part 1 is here (discussing the macro outlook for the markets) Part 2 is here. (discussing our main trading strategies) Part 3 is here. (reviewing our pick of th...

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Help One Of Our Own PSW Members

"Hello PSW Members –

This is a non-trading topic, but I wanted to post it during trading hours so as many eyes can see it as possible.  Feel free to contact me directly at jennifersurovy@yahoo.com with any questions.

Last fall there was some discussion on the PSW board regarding setting up a YouCaring donation page for a PSW member, Shadowfax. Since then, we have been looking into ways to help get him additional medical services and to pay down his medical debts.  After following those leads, we are ready to move ahead with the YouCaring site. (Link is posted below.)  Any help you can give will be greatly appreciated; not only to help aid in his medical bill debt, but to also show what a great community this group is.

http://www.youcaring.com/medical-fundraiser/help-get-shadowfax-out-from-the-darkness-of-medical-bills-/126743

Thank you for you time!




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About Phil:

Philip R. Davis is a founder Phil's Stock World, a stock and options trading site that teaches the art of options trading to newcomers and devises advanced strategies for expert traders...

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About Ilene:

Ilene is editor and affiliate program coordinator for PSW. She manages the site market shadows, archives, more. Contact Ilene to learn about our affiliate and content sharing programs.

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