Oct 11, 2015 : Strongly Trending Stocks

The fascinating world of Pit Trading

These videos give an insight into the world of floor traders trading futues.
Enjoy,
Sanjoy
DreamTai Stock Trading Software
http://www.dreamtai.com

Video by Dr. Brett Steenbarger - Improving Trading Performance

Here is a good trading video by  Dr. Brett Steenbarger on how to improve your trading performance.












Enjoy this video.
If you want to read more articles from Dr. Brett, have a look at his website.

http://www.brettsteenbarger.com/


Sanjoy
DreamTai Stock Trading Software
http://www.dreamtai.com

Stock Pick Analysis: SNTS

Hi Traders,

Today, we will analyze the chart of SNTS.

I had purchased the stock at 23.89.

Here are the reasons I had purchased the stock.

1. The stock was in an uptrend. Notice that the stock is moving up in a smooth uptrend. What does that mean?
That means that the Big Boys ( Hedge funds, Investment Banks, Financial Institutions ) are acccumulating the stock.

2. The DreamTai Power Ranking was above three. That means that the Big Boys were buying the stock in LARGE VOLUME. The fact that they were buying in large volume means that they were dead serious about this stock.

3. The stock formed a  triangular wedge. This gives us a good opportunity to buy as soon as the stock goes above the wedge.
I got the stock at 23.89 right when it jumped above the wedge.

The stock reached upto 28 and then retraced back to 22.

I have already put a stop loss so I am not worried if it goes lower.


SanJOY

Price Bar Reversal Patterns Video Series

Here is a video series of Price Bar Reversal Patterns by Lance Beggs, who specializes in short time frame discretionary trading through price action methodologies.

He has done an amazing job in explaining all the Reversal trading patterns.

You can enjoy his articles at http://www.YourTradingCoach.com and his blog posts at http://www.YourTradingCoach.blogspot.com

Trade Analysis: APFC

Hi traders,

In this post, I wanted to share some of my trades along with a commentary on why I had traded these stocks.

I will focus on one of the trades I made: APFC.

Reasons for entering the trade:

Here are the reasons that I had entered the stock.

1. If you look at the chart, the stock is in a steady uptrend.
This is a very good sign. It means that the stock is being accumulated by the big boys- hedge funds, banks, financial institutions.

Note that it retraced for some days, a few times, but went back up immediately. This shows that it is a strong stock.

2. At the time of purchase, DreamTai trading software was showing that this stock had power ranking greater than 3, which implies that there was strong buying volume.

 3. The stock broke out of a triangular wedge formation.

4. The stock broke out of 30, which is a round number. Usually round number offer resistance and stocks bounce down from the round numbers.
You notice that there was a confluence of two factors: A triangular wedge and the round number, both of which could push the stock down.
But the stock was so powerful that it pushed through both these and bounced up.

I bought 60 shares at $29.60 for this stock account.

Trade Management:

I  have put a stop loss sell order for half of the position at $44.
And moving the stop order for the other half to breakeven..that is $29.60.

Why did I take $44? Because that is around 32.8% Fibonacci retracement from the bottom to peak.

What's next?

Who knows?.But  as traders, we have to be prepared for anything.

Don't be in a hurry to sell and take profits. Let the stock take its own time to go up.

Hope this posting is helpful.

Sanjoy

Prior Peak Trading Strategy

When a stock reaches a prior high, it faces resistance. If it can not overcome that resistance, it will go down.

Some traders use this opportunity to short the stock. However, it is a short term trade and you must be careful, because you are trading AGAINST the trend.

The stop loss is placed at the top of the top of the peak.
To short the stock, wait till the stock reaches the previous high and wait for it to have a down day, that is, the stock closes lower.

The target is two times the initial risk. Sell half when the stock reaches two times the initial risk and have a trailing stop for the remaining half.


See the following examples.