Frequently Asked Questions
What is the goal of your site?
To help “serious traders” make money. The most important factor to a day trader is what stocks are moving with momentum and when to jump in. Every day I find the stocks that are moving up and will give me immediate profit. My scanners find these stocks and I can give you real time call out on my entries.
Why are you not giving out your picks free anymore on Stock Twits?
I have found that posting on ST has a delay and it could be 30 seconds to a minute before someone sees my entry price. In the stock trading world, time is money. So I have decided to transition to a real time chat room where traders can follow me and hopefully get much better entry prices.
Why don’t you post your exit prices?
I do post my exits when I post my daily summary. Exiting out of a trade is strictly a personal thing, as every trader has their own unique situation. Some might feel they would be happy with a 5 cent gain. Others might feel 10 cents would benefit them. Some choose to hold a position all day long to get the maximum potential. You need to watching a 2/5 minute chart and L2 and make that decision for yourself. What if I called an exit of a 10 cent profit and the trade ran for another 75 cents? There would be lots of ill-will and hard feelings which I want to avoid.
Why do you only trade for 2 hours in the morning?
I have found through experience that the first two hours are the best times to make money. This is when the stocks move with the most momentum and the time to ride stocks for the quickest profits. Once lunch hits, most stocks become choppy and difficult to make gains. Do I miss opportunities in the afternoon? Absolutely. But the amount of time spent waiting and watching is a waste of good sunshine. So I have decided that I will devote my trading time to achieve the best possible outcome and that is in the morning. The rest of the day is for play.
What platform do you use?
I use ETrade Pro with multiple charts/screens and L2.
What scanners settings do you use?
I have worked extensively on developing my Trade Idea scanners with back tests and have found a scan that works for me to alert me to the fastest moving stocks, early enough for tradable action to be taken. These scans are not gap’n go scans. these are momentum based scans and I believe they find the best moving stocks that any trader can jump on and ride the wave. It’s really not my settings that will make you money, as it has taken me many months of practice to determine which stocks that come across my scanners will actually run and be winners. I’ve developed a knack for that and it’s something I can’t really teach. Volume, gaps, momentum and level 2 all play a part in my decision to enter a trade.
How many trades do you plan to do each day?
I never have a set number. Some days I could be done with as little as two trades, other days I may fight and struggle and make 12 trades. A traders goal should be to try to make as few trades as possible that will help them attain their daily goal while maintaining a low level of risk.
Will you offer up any swing trade opportunities?
Yes. I find new ones every day and will be glad to alert the members when I see them.
When you enter a trade, do you go “all in” or do you scale in and out?
I always go “all in” using a limit order when I enter and a market order when exiting. If I miss getting filled at the ask, I never chase as there are plenty of new opportunities around the corner.
What size of an account do I need?
First and foremost. I believe you have to be able to trade without fear of the pattern day trading rules and regulations. You need to either trade with a broker like Sure Trader that is based outside the US and doesn’t do pattern day trading restrictions, or fund you broker account with $25,000 so that you have the freedom to trade. You cannot trade my style and have to deal with the three day clearing restrictions. I am not totally up on all the PDT rules, so please do your due diligence as to how to handle these rules. I use a maximum of $5000 risk on each and every trade. No exceptions.
For example, if a stock is $1 I will buy 5000 shares. If a stock is $4 I will buy 1250 shares. For me to be in 4-6 trades in the same time day, I need $20,000 to $30,000 in trading capital. This dollar amount gives me the flexibility to be in multiple trades at a time allowing me to take advantage of the most opportunities in a given morning. With that said, there are many mornings that I only play one stock at a time and for that reason I would be able to trade profitably for as little as $5000.
My advice, start slowly and take small gains. I believe there are approximately 224 trading days. So remember this, $250 per day =$56,000 a year. $500 per day = $112,000 per year, $1000 per day =$224,000 per year. 4-6 of those a day and you might be able to give up your day job someday.
You seem to control your losses extremely well. What am I doing wrong?
This is directly related to my position size. I always try to limit my losses to $100 or less. If the trade isn’t working within the first couple of seconds/minutes I am out and looking for a new opportunity. My position size allows for smaller losses and bigger gains. I always use a mental stop loss because when you place a system stop loss, the market makers can see your order and often take you out. It requires more discipline but you won’t get burned so often.
You’re charging $50 a month which seems so much cheaper than other services out there. Why?
True, but really I’m not doing this for the money, but more to help other traders. But I feel you need to be invested in a service if you are truly serious about trading. I’m also only trading for 2 hours a day, as I have a life outside the market. I feel paying $2.50 a day for the opportunity to make $500 to $1000 (based on your trading capital) in two hours is extremely reasonable. Plus it gives traders an affordable option as every dollar should be used for trading capital.
Can we post trade ideas in the chat room?
You can, and not to be rude, but I won’t trade them. I have a system that works which means sometimes you need to sit on your hands and wait patiently for the right opportunity to come along. Again, my mission is to post tradable symbols and entry prices when they fill my criteria for members to profit.
Do you ever go short or are you always long?
I never short and never use margin.