I wanted to give you a show-and-tell look at the trades I took this week. It should give you a feel for not only how I managed my trades, but also the kinds of setups which have been working well of late. And for those curious about our trading style in the member area, this should give you a good indication of what a typical week looks like.

Be sure to watch for the weekend index review video as well.

(Direct video link is here for those interested in embedding it elsewhere to share).

Be sure to view in HD (720P) and full-screen mode for best quality in the video.

Trade Like a Bandit!

Jeff White
Producer of The Bandit Broadcast

Get our free newsletter to keep up!
Follow @TheStockBandit

I wanted to give you a show-and-tell look at the trades I took this week. It should give you a feel for not only how I managed my trades, but also the kinds of setups which have been working well of late. And for those curious about our trading style in the member area, this should give you a good indication of what a typical week looks like.

Be sure to watch for the weekend index review video as well.

(Direct video link is here for those interested in embedding it elsewhere to share).

Be sure to view in HD (720P) and full-screen mode for best quality in the video.

Trade Like a Bandit!

Jeff White
Producer of The Bandit Broadcast

Get our free newsletter to keep up!
Follow @TheStockBandit

For the week, I took a number of entries as both day trades and swing trades, and it was a really nice week. Both timeframes provided profits, which is a big advantage of having capital at work across multiple timeframes.

As I did last week, I wanted to give you a show-and-tell look at the trades I took this week. It should give you a feel for not only how I managed my trades, but also the kinds of setups which have been working well of late. And for those curious about our trading style in the member area, this should give you a good indication of what a typical week looks like. (Note: I do have 2 open swing positions which are not outlined in the video since I’m still discussing my management of them with members).

Be sure to watch for the weekend index review video as well.

(Direct video link is here for those interested in embedding it elsewhere to share).

Be sure to view in HD (720P) and full-screen mode for best quality in the video.

Trade Like a Bandit!

Jeff White
Producer of The Bandit Broadcast

Get our free newsletter to keep up!
Follow @TheStockBandit

With today’s trading technologies available to us all, there’s no longer an excuse for missing out on moves when away from your screens.  The bracket order is a well-known device for the set-it-and-forget-it type of trade, but there are aspects of it which few utilize.

I’ve realized through helping so many part-time traders who desire to capture some intraday moves that it’s common to simply think inside the box.  Most of them view a bracket order as an entry, a stop, and a limit order (set at the target).  That’s not at all a bad way to do it, and in fact it’s exactly how I use brackets on my swing trades.

Get Creative

For day trades and the bracket order, a little creativity can go a long way.  Mix up the parameters from the usual bracket order you use and throw in a couple of different variables.

One of your stop choices is the trailing stop, which can be excellent for intraday trading.  This order allows you to designate either a percentage or a price amount which the stock would have to retreat from its best level (since the trade was entered) in order to trigger a closing order.  For the trader seeking to grab as much of an intraday trend as possible, this is a great option to have available – particularly in momentum names which have the ability to keep running.

Another choice which can be made is the time stop for managing exits.  This order is based on the clock, so once a given time of day is reached, the next action can be triggered (sell!).  Since the whole idea of a day trade is to capture intraday movement and not hold overnight, consider setting a time-triggered order to exit the position ahead of the closing bell.

Here’s what the basic order structure would look like on the thinkorswim platform with a stop buy entry if ABC clears $50, with a trailing stop of $0.50 and a time stop for a market sell late in the day (click to enlarge image):

The trailing stop is set to cancel 10 seconds before the time stop, just for the safety of not having the orders overlap (even though there should be no issue).  I clicked the little gear icon beside the order on the far right side of the image above, then selected ‘Cancel order at Specified Moment’ and designated an exact time to cancel the trailing stop (click to enlarge):

The time stop is simply a market sell order which will go live at the designated time, in this case 90 seconds before the closing bell.  Again, clicking the gear icon brings up this dialogue box where I simply checked ‘Submit Order at Specified Moment’ and set the time (click image to enlarge):

The bottom-line lesson is this:  even as a part-time trader, you can still participate in some intraday moves.  Use the technology which is at your disposal, and think outside the box a bit.  It can help you manage risk effectively, and if the trade works you can lock in some solid profits - without sitting at your desk!

Trade Like a Bandit!

Jeff White
Producer of The Bandit Broadcast

Follow TheStockBandit on Twitter or get our free newsletter to keep up!

Personally, I took a number of entries as both day trades and swing trades, and it was a really nice week.  Both timeframes provided profits, but the day trades did most of the heavy lifting with it being a week where the overall market saw only limited follow through.  Then again, that’s exactly why I trade multiple timeframes and share those plays with the membership at TheStockBandit.com.

As I did last week, I wanted to give you a show-and-tell look at the trades I took this week.  It should give you a feel for not only how I managed my trades, but also the kinds of setups which have been working well of late.  And for those curious about our trading style in the member area, this should give you a good indication of what a typical week looks like. (Note: I do have 2 open swing positions which are not outlined in the video since I’m still discussing my management of them with members).

Be sure to check out the weekend index review video as well.

(Direct video link is here for those interested in embedding it elsewhere to share).

Be sure to view in HD (720P) and full-screen mode for best quality in the video.

Trade Like a Bandit!

Jeff White
Producer of The Bandit Broadcast

Follow TheStockBandit on Twitter or get our free newsletter to keep up!

Personally, I took a number of trades and saw mixed results as well.  Some trades worked great, others failed quickly, and some didn’t go hardly anywhere.  Nonetheless, it was a good week of trading because of how my trades were managed.

As a trader, I need to be able to diversify by way of different timeframes and direction (long/short) in order to keep maneuvering efficiently.  So to help explain this concept and the value of doing it, here’s a video walking through the trades I took last week.  (Note:  I do have 2 open swing positions which are not outlined in the video since I’m still discussing my management of them with members).

(Direct video link is here for those interested in embedding it elsewhere to share).

Be sure to view in HD (720P) and full-screen mode for best quality in the video.

Trade Like a Bandit!

Jeff White
Producer of The Bandit Broadcast

Follow TheStockBandit on Twitter or get our free newsletter to keep up!

Traders expect big gaps during earnings season, and quite a few roll the dice ahead of it in hopes of receiving a market gift.  Fortunately though, a trader need not participate in the gap itself to do well.

The post-earnings gap is a regular occurrence for most stocks, although some make a larger move than others.  The outlier moves are the ones to watch closest, as they can signal either the beginning of a new move, or an overreaction with reversal potential.

Thursday’s move in PLCM was an example of the latter, as a 30% opening gap to the downside proved to be a bit much.  The stock made a huge run higher intraday, although as I’ll show in the video, catching the entire run wasn’t necessary.  Instead, grabbing pieces here and there can prove quite lucrative when there’s heavy volume and high emotion present.

In this video, I’ll share with you how I profited in the stock despite feeling like I missed both the big moves (the gap and most of the upside reversal).  The fact is, when a stock is in play like PLCM was, there’s opportunity for several kinds of plays along the way.  And the exciting part is that this happens nearly every day during earnings season, 4 times per year.

Be sure to watch full-screen on the 720p setting for the HD version of the video.

Trade Like a Bandit!

Jeff White
Producer of The Bandit Broadcast

Follow TheStockBandit on Twitter or get our free newsletter to keep up!

Day traders often forget the value that the daily chart can bring.  The conclusion is that it’s only suitable for swing trading or position trading, but the truth is that the daily chart can offer some good signals for entry and exit as levels are cleared or reached.  Even better, those same levels can often add to your confidence in a day trade and help you stay in it.

Let me offer 3 examples from Tuesday’s session where the daily charts played important roles.  On Monday night in the member area, I listed only 3 plays for Tuesday’s session, with each of them being day trade candidates.  I’ll break them down one at a time with the initial setup, and then a look at Tuesday’s intraday chart where the daily level played a significant role.

First up was QIHU, which looked poised for a push higher after establishing both a higher low and a higher high in recent weeks.  The pullback over the previous several sessions provided a clean descending trend line which I used as a pivot for getting long at $23.60. Here was the original setup:

Chart courtesy of TeleChart

QIHU pushed past that trend line and never dealt with it again, running initially almost 3% higher before pulling back but still holding above that same trend line:

Chart courtesy of TeleChart

Next up was GLNG, which had corrected and then settled into a multi-week narrowing consolidation pattern in the form of a symmetrical triangle.  These patterns can break either way, and with a strong market and the upper trend line being challenged, I was looking long on a trend line break through $32.15:

Chart courtesy of TeleChart

GLNG triggered an entry as it cleared the $32.15 level, showing a nice initial pop followed by a pullback to test the breakout zone.  To heighten the validity of the $32.15 level, the low of the pullback was $32.18, just 3 cents above it.  From there, it ran again in the afternoon to clear the morning highs and get 4% beyond the morning trigger.  Not bad for a few hours and no pain:

Chart courtesy of TeleChart

Last but not least was FSL, a little stock which had huge potential.  It had just pulled back to test and hold the early-August closing low, and in recent days had stabilized just above that level.  On Monday it saw expanding volume but only minimal progress as it edged past a descending trend line.  I set a trigger for $11.25, which would be a multi-day high, to get long.  Here’s a look at the pre-trade setup:

Chart courtesy of TeleChart

FSL triggered late in the day with a massive thrust higher once it cleared the $11.25 level, vaulting straight up to $12 to offer a very fast 6.6%.  The move was fast and furious, but a quick payoff once the level was cleared:

Chart courtesy of TeleChart

A couple lessons from these trades…

A level is a level. Doesn’t matter if you found it on the daily chart or some other timeframe, the odds are it’s going to be evident across multiple timeframes.  Recognize and respect that, because it could pay quite well.  All 3 of these trades were winners, and each of them respected the level originally found on the daily chart.

Keep an open mind.  Perhaps your preference for day trades is a 15-minute chart or a 30 or a 5-minute chart.  That’s great.  But keep an open mind about how trades might originate.  Don’t resign the daily charts to something only multi-day traders consider.  You’re missing out on several great opportunities per day by ignoring the daily charts.

Hopefully you found this walk-through helpful.  If you want to know what I’m trading tomorrow, stop by the site and begin your trial to our stock pick service.

Trade Like a Bandit!

Jeff White
Producer of The Bandit Broadcast

Follow TheStockBandit on Twitter or Facebook to keep up!

“Excellent video, please keep sending more.  But how do you determine ‘risk reward ratio?’  Your day trading strategy points to a starting point for a stop loss at 1%, so how do you determine that it has 2-4% of upside potential?”

Great questions!  Here’s how I responded…

For most stocks, a 2-4% intraday move is not out of the norm on any given day (especially lately).  That’s well within the wheelhouse for most stocks I trade, whereas those without the propensity to move I simply ignore and don’t earmark as trade candidates.

When I do run across a stock that’s more volatile, I’ll cut my size in half and give it 2% from entry, and then expect a multiple of that on the top side (so I’m looking for 4-8% on the profit side to offset the risk).

As for knowing if a stock has that ability to move, for me it’s mostly a feel thing since I’ve traded so many stocks over the years and I watch the market every day, so I’m familiar with their movement to that extent.  For anyone who isn’t, even applying a basic indicator such as the ATR (average true range) to a chart will give you an idea of how much that stock moves on a given day.  It doesn’t have to get complicated, but that will allow you to structure your trade (or skip it entirely) based upon typical movement.

How do you determine your risk/reward?

Trade Like a Bandit!

Jeff White
Producer of The Bandit Broadcast

Follow TheStockBandit on Twitter or Facebook to keep up!

Perhaps that’s out of impatience or anxiety, but we’ve all done it and either suffered diminished returns from lowering our standards or we’ve implemented some poor habits which came back to bite us later.

When it comes to daytrading, our greatest odds for success come when we combine multiple favorable conditions before placing trades.  That might be locating setups which point to the same outcome on multiple timeframes, or it might be considering the overall market environment and trading in such a way that we’re not fighting that.

Go check out this post from the archives which has both a written explanation & a video showing you what I mean, because the key is to Stack the Odds for Daytrading Success.

Trade Like a Bandit!

Jeff White
Producer of The Bandit Broadcast

Follow TheStockBandit on Twitter or Facebook to keep up!