Category Archives for "Day Trading Blog"

2 Seasonal Spreads - A Great Way To Trade

Estimated Reading Time: 6 min. Have you heard about "Seasonal Spreads?" Seasonal Spreads are a great way to trade, because .... You can trade seasonal spreads on a small account, You need only a few minutes per week, You can trade them in addition to your current strategies. Does Seasonality Really Exist? You bet it does! As an example, right now it's the end of May. Next week is Memorial Day, which is the "official" kick-off of BBQ season. And what's America's favorite grill item? - Hot dogs and sausage! Also, in just a few weeks summer break starts. During summer, vacationing families prefer the convenience of processed meats. Bacon-lettuce-tomato

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Trade Like Van Halen

Estimated Reading Time: 4 min. A few weeks ago I was in Colorado Springs to visit my friends at Trade Navigator. I asked the founder and president Glen Larson to do a special webinar for Rockwell Club Members only, and he talked about what he learned from from programming and working with some of the most famous traders over the last 30 years. One of the stories that Glen mentioned in this special presentation was how to "Trade Like Van Halen". Here's what Glen said: Trade the “Van Halen Way” by Glen Larson (Founder and President of Genesis Financial Technologies) Many traders, including myself have had periods of great trading

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11 Three Steps To Improve Your Trading

Estimated Reading Time: 5 min. Many traders struggle to make consistent profits. And so they keep looking for another strategy, another course, another trading robot, .... just ANYTHING that might improve their trading. And that's why many traders spent more time and money on strategies, eBooks, indicators and courses, until they have no funds left to trade. But as you know, it doesn't fix the problem! In the following article I want to show you three steps to improve your trading. In fact, I believe that by following these steps and you can dramatically improve your trading in the next 24 hours! Step 1: Record Your Trades Whether you are

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12 Swing Trading Options - Part 3

Estimated Reading Time: 5 Minutes. In the previous two blog posts we talked about some simple strategies for BUYING AND SELLING OPTIONS. In this blog post we will discuss more advanced options trading strategies: Vertical Spreads and Straddles and Strangles. Don't worry! I'll keep it simple 🙂 Strategy 1: "Vertical Spreads" When trading a vertical spread, you are buying and selling options of the same underlying stock (e.g. AAPL), same expiration date, but at different strike prices. There are two main reasons for using vertical spreads: Limit your risk when SELLING options Reduce your cost when BUYING options Here are examples for both scenarios: Reason 1: Limit your risk In

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1 Swing Trading Options - Part 2

Estimated Reading Time: 5 Minutes. In my previous blog post we talked about BUYING OPTIONS. In this blog post we will discuss why some traders prefer to sell options, and review two basic strategies for SELLING OPTIONS. As discussed in the previous blog post, the buyer of an option has to PAY the price of the option. When selling options, the trader is collecting the price of the option as a premium. He then hopes, that the option expires worthless so that he can keep the premium. Here's an example: As I am writing this blog post, AAPL is trading at $440. Let's assume you are bullish on AAPL and expect

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8 Swing Trading Options - Part 1

Estimated Reading Time: 4 Minutes. Lately I have been getting a lot of questions around swing trading options. When swing trading options, there are two basic approaches: You can BUY options or You can SELL options. Both approaches have pros and cons, and in this blog post we will focus on BUYING OPTIONS. Buying Options There are two main reasons why a trader considers buying options: Reason 1 For Buying Options: "Home Run Trades" You are trying to buy a so-called "out-of-the-money" call or put option cheap - often only a few cents - and hope for an explosive move in your direction. If this happens and the option gets

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8 How To Trade With Confidence - Part 2

Estimated Reading Time: 5 Minutes In my previous blog post we talked about using "I will" statements to boost your confidence as a trader. Reading your "I will statements" aloud will help you to start the trading sessions with lots of energy. But as you start trading, your energy might decrease. And even though you were pumped up before you started, now the energy gets sucked out of you. This could happen for one of the following two reasons: The markets are slow and you have to wait forever the right opportunity. You placed a few trades, but they didn't work out and you're down for the day. You might

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18 How To Trade With Confidence - Developing A Winning Mindset

Estimated Reading Time: 4 Minutes Self-Confidence is an essential element in any business venture. This is especially true if your business is day trading, since psychology plays such a major role. In this blog post, I want to share a few things that helped me change and improve my mindset as a day trader, develop a winning mindset and trade with more confidence. About 10 years ago, I received a copy of the book "Think and Grow Rich!" by Napoleon Hill. Today, I credit much of my success in business (including day trading) to this book and the core values it teaches. At first, some of the principles and techniques

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20 Trading Tools And Resources

Below is a list of trading tools and resources that I personally use. Thought this might be helps. I'll update this page frequently, so make sure to bookmark this page and check it out from time to time. Cool Tools http://clocx.net - The famous clock that you see on our screens. It's a "floating clock" so you can move them anywhere you want on your screen. I always like to keep an eye on the time when trading. http://evernote.com - Great for taking notes and synching them across your computer, phone and tablet. I use this to keep my trading journal and write down trading ideas. Economic Calendar & News

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5 Trader Tax Status Other Tax Benefits For Active Traders

Trader Tax Expert Robert Green

Have you heard of the "Trader Tax Status?" Do you know that as as trader, there are many tax breaks and benefits available to you? Unfortunately most traders don't take advantage of all available tax breaks. This could cost you thousands! It doesn't matter if you are new to trading or have been trading for a while. And it doesn't matter whether you are making money with trading or you lost money. If you qualify for "Trader Tax Status", then you are entitled to several tax breaks that investors are not. As an  example, if you qualify for trader tax status, you can deduct "investment expenses" such as home-office deductions

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51 My Favorite Trading Books

Estimated Reading Time: 3 minutes I often receive emails asking me to recommend some trading books. Over the years, I have bought dozens of trading books, and here are my 5 favorite books: Reminiscences of a Stock Operator One of my favorite trading books. This is the story of Jesse Livermore, a remarkable character who first started speculating in New England bucket shops at the turn of the century. Easy to read, yet full of priceless tips for traders, e.g. Learn how to lose Learn to take a small loss early Don't try to play the market all the time. It can't be done, too tough on the emotions ...

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18 10 Steps To Become A Trader

Estimated Reading Time: 6 minutes These days there are many people who want to become a trader. But as you know, it's not that easy! Every day I am getting emails from traders who tell me that they have invested a lot of money on systems, strategies and courses, spent countless hours in front of their screen staring at charts.... and yet they still struggle to make a living with trading. How can that be, if these days there are so many "experts" and "gurus" willing to share their "trading secrets" for only a few dollars? I don't know about you, but I am getting emails EVERY DAY about the

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2 The Difference Between A Trading Strategy And A Trading Plan

Estimated Reading Time: 4 minutes A solid trading plan is the cornerstone of your trading business. Unfortunately many traders think that all they need is a trading strategy. This is NOT the case! Let me explain the difference between a trading strategy and a trading plan. A (Day)trading strategy tells you when to enter and when to exit trades. A trading plan is more comprehensive than a trading strategy. A trading plan covers at least seven elements: The market(s) you want to trade. The timeframes you want to trade, e.g. 5 min, 10 min, tick or range bars. A brief description of the strategies you want to trade and when

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8 10 Answers To The Biggest Market Questions

I found THIS today on the Internet and wanted to share it with you. I think it's pretty funny. As part of my continuing commitment to public service, here are the answers to the biggest questions about the markets. You can finally stop asking them. Why did the market do X? There are so many participants in the market, someone probably bought or sold today because their favorite popsicle was out of stock at the grocery store. Whatever reason you can invent, someone somewhere probably acted on it. The result of all that foolishness is the market price. Thus, the real answer to “Why?” is always the same: All of the

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6 Day Trading In August (Rant Enclosed)

3 important things you need to know about the markets this week - Rockwell Trading

Ok, I have to share THIS video with you. Here's what happened: Yesterday morning I was in our Live Trading Room. As always, Rollie started with his famous pre-market analysis, and then he handed it over to me to trade the markets. As usual, before handing the mic and the screen off to me, he asked "So Markus, what do you expect from the markets today?" And I went on a rant! We received really good feedback on my "opinion on the markets", so I wanted to make the recording of this segment available to you. Click on the video below to hear and see what I think of trading

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31 The Risks Of Day Trading

Nobody wants to hear about the risks of day trading. As traders, our goal is to make money. Lots of money - hopefully. We day trade to win, right? No serious trader is trading to lose. People who tell me that they don't care if they win or lose are not serious traders. They are gamblers. A trader trades to win. But unfortunately, losses are part of our business. Those are the risks of day trading. However, as long as they are within your risk parameters, you shouldn't worry about them too much. Let me give you an example: As you know, we are running a Live Day Trading Room.

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7 Trading Tax - Why You Should Be Trading Futures

Last night we did a webinar with Robert Green, the leading authority on trading tax. In this webinar Robert talked about "Tax Benefits From Trading Futures & Other Section 1256 Contracts:" Section 1256 includes many instruments: Not just futures contracts, but also non-equity options including options on indexes, options on futures, most ETF options, broad-based indexes, many foreign futures and electing forex traders in forwards and sometimes spot. Lower tax rates apply to Section 1256 contracts: Section 1256 contracts have lower "60/40 tax rates." This can be up to 12% less than ordinary tax rates on short-term capital gains. That's up to a third off! Loss carryback election: At tax-filing

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104 Trade The Trend!

You might have heard the saying "The Trend Is Your Friend" and that you should "Trade The Trend." But sometimes this is easier said than done. In this article I will show you an easy easy to identify and trade the trend. How To Identify A Trend Way back in the 90s I used fundamental analysis to try and predict the market. Long story short, it didn't work for me. Since the mid 90s I have been using technical analysis in my trading. When using technical analysis, there are two different approaches: Chart Patterns and Indicators Examples of chart patterns are flags, pennants, triangles, double bottoms and tops, etc. Candlestick

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36 How To Be A Trader - Part 2

In the first article of the series "How To Be A Trader" we talked about the mindset of a trader and the importance of having realistic goals. You have learned that consistency is more important than windfall profits every now and then, and that a weekly target of only $100 - $200 can compound to very nice yearly returns. If you haven't had a chance to read the first article of this series, click here to read "How To Be A Trader - Part 1" Today we will talk about the most important skill of a trader. And it doesn't matter whether you are day trading or swing trading. It

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142 How Much Money Can You Make Day Trading?

Estimated Reading Time: 5 minutes. I receive many emails asking "How much Money Can You Make Day Trading?" In this article we will talk about realistic expectations of how much money you can make when day trading. The Mindset of a Trader Many people are intrigued by the idea of "making millions in minutes" while working from home or any place they want. No commute to work, no boss yelling at you, no deadlines, no annoying coworkers, no cubicles, no demanding customers.... and the list goes on. Often people dream of living in an exotic location, trading for a few hours in the morning and then enjoying life. And although

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