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

The Robots Win: Blackrock Bets On Computers Over Human Stock Pickers, Fires Dozens

Courtesy of ZeroHedge. View original post here.

The writing had been on the wall - and countless online articles  - for a long time...

... and on Tuesday it finally hit the world's largest asset manager, where in the war between passive-investing robots and active-investing humans, the humans lost. As the WSJ reports, at Blackrock, the era of the s...



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Chart School

Rallies Come Through

Courtesy of Declan.

Bulls were able to deliver across the board gains, helping to position yesterday's action as a swing low. Weakness at this point would offer itself as a buying opportunity, but markets wouldn't tolerate more than a couple of days of losses if they were to go down this route.

The S&P is at resistance of the prior swing low and the 20-day MA, but today's action is looking good for an upside break tomorrow? Technicals are firmly in the red and need more than today's gain to fix them.



The Nasdaq did today...

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ValueWalk

Following 'Repeal And Replace,' What's The Fate Of Health Care?

By Knowledge Wharton. Originally published at ValueWalk.

On March 24, President Trump and congressional Republicans pulled their proposed American Health Care Act before it could come up for a House vote, realizing it was dead on arrival. They had failed in their self-proclaimed mission to “repeal and replace” the Affordable Care Act (ACA), a.k.a. Obamacare. Many Republicans have been angling to get rid of the law ever since it was enacted in 2010.

DarkoStojanovic / PixabayHealth Care

The ACA remains in place for now, but many on both sides of the aisle feel it’s far from perfect. And the day after the cancelled vote, Trump tweeted that Obamacare would...



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Kimble Charting Solutions

Silver bear market could end here!

Courtesy of Chris Kimble.

Below looks at the performance of Silver, Gold and the S&P 500 year to date. Metals and miners are off to a good start in 2017. Even though the stock market has received a good deal of attention this year, metals have done even better. Is the performance in 2017 the start of something even bigger for Silver & Gold?

CLICK ON CHART TO ENLARGE

It’s been a long time since buy and holders have experienced a bull market in Silver. How long has it been? Silver has created a series of lower highs since 2011. The trend ...



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Phil's Favorites

Consumer Confidence Strongest Since December 2000: A Strong Contrarian Indicator?

Courtesy of Mish.

Consumer Sentiment and Consumer Confidence are similar measures by two different organizations. The former is from the University of Michigan, the latter is by the Conference Board.

Consumer Confidence soared to 125.6 in March, up from 116.1 in February. This is the strongest reading in over 16 years.

Bloomberg Econoday cites the strength in both the current index and the expectations index, emphasis mine.

Highlights

It was two cycles ago that the consumer confidence index has been this high, at 125.6 in March for the strongest reading ...



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Market News

News You Can Use From Phil's Stock World

 

Financial Markets and Economy

The Biggest Risk From the Dollar's Drop May Not Be What You Would Guess (Bloomberg)

Whipsawed by the greenback and confronted by U.S. policy confusion, carry trades were supposed to be a rare bright spot for investors who want to stay away from the world’s biggest reserve currency.

These Charts Show Alarm Bells Ringing on the Trump Trade (Bloomberg)

Investors on Monday further unwound trades initiated in November resting on the idea that the election of Donald Trump and a Republican Congress meant...



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OpTrader

Swing trading portfolio - week of March 27th, 2017

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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Members' Corner

More Natterings

Courtesy of The Nattering Naybob

[Click on the titles for the full articles.]

A Quick $20 Trick?

Summary

Discussion, critique and analysis of the potential impacts on equity, bond, commodity, capital and asset markets regarding the following:

  • Last time out, Sinbad The Sailor, QuickLogic.
  • GlobalFoundries, Jha, Smartron and cricket.
  • Quick money, fungible, demographics, QUIK focus.

Last Time Out

Monetary policy is just one form of policy that effects capital,...



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Digital Currencies

Bitcoin Tumbles Below Gold As China Tightens Regulations

Courtesy of Zero Hedge

Having rebounded rapidly from the ETF-decision disappointment, Bitcoin suffered another major setback overnight as Chinese regulators are circulating new guidelines that, if enacted, would require exchanges to verify the identity of clients and adhere to banking regulations.

A New York startup called Chainalysis estimated that roughly $2 billion of bitcoin moved out of China in 2016.

As The Wall Street Journal reports, the move to regulate bitcoin exchanges brings assurance that Chinese authorities will tolerate some level of trading, after months of uncertainty. A draft of the guidelines also indicates th...



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Mapping The Market

Congress begins rolling back Obama's broadband privacy rules

Courtesy of Jean Luc

I am trying to remember who on this board said that people wanted to Trump because they want their freedom back. Well….

Congress begins rolling back Obama's broadband privacy rules

By Daniel Cooper, Endgadget

ISPs will soon be able to sell your most private data without your consent.

As expected, Republicans in Congress have begun the process of rolling back the FCC's broadband privacy rules which prevent excessive surveillance. Arizona Republican Jeff Flake introduced a resolution to scrub the rules, using Congress' powers to invalidate recently-approved federal regulations. Reuters reports that the move has broad support, with 34 other names throwing their weight behind the res...



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Promotions

Free eBook - "My Top Strategies for 2017"

 

 

Here's a free ebook for you to check out! 

Phil has a chapter in a newly-released eBook that we think you’ll enjoy.

In My Top Strategies for 2017, Phil's chapter is Secret Santa’s Inflation Hedges for 2017.

This chapter isn’t about risk or leverage. Phil present a few smart, practical ideas you can use as a hedge against inflation as well as hedging strategies designed to assist you in staying ahead of the markets.

Some other great content in this free eBook includes:

 

·       How 2017 Will Affect Oil, the US Dollar and the European Union

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Biotech

The Medicines Company: Insider Buying

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

I'm seeing huge insider buying in the biotech company The Medicines Company (MDCO). The price has already moved up around 7%, but these buys are significant, in the millions of dollars range. ~ Ilene

 

 

 

Insider transaction table and buying vs. selling graphic above from insidercow.com.

Chart below from Yahoo.com

...

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All About Trends

Mid-Day Update

Reminder: Harlan 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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FeedTheBull - Top Stock market and Finance Sites



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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