If you plan on day trading for a living you need to know the rules that apply to traders categorized as Pattern Day Traders (PDTs). PDTs are defined as traders who make 4 or more day trades within a 5 day period, unless his/her day-trading activities do not exceed 6% of his/her total trading activity for that time period. Thus, if you have only 4 daytrades in a 5 day period but have done more than 67 trades during that time, then less than 6% or the trades were day trades and hence do not categorize a trader as a PDT. Day Trading Rules continued
Archive for October, 2010
Day Trading Rules
October 26th, 2010Stock Pick: BANR 1.75
October 19th, 2010We are issuing a buy alert for BANR off of 1.75, this closed at 1.79 on Friday and has a recent low of 1.73.
This recent low matches a long terms support point for BANR. We are finding positive divergence in both short and long term charts as well as some insider buying.
BANR has recently traded as high as 8.00 but back in 2008 was trading in the 20′s and 30′s. We believe this give us huge upside potential with limited downside risk.
As you watch this stock to trade, you’ll notice it has been trading slowly and in a tight range, the lack of volatility allows you to put in a tight stop a dime or 2 below your entry and still feel safe.
The 2.00 zone is resistance, that doesn’t give us a lot of room. Through charting we think that if the 2.00 resistance breaks, we’ll make a strong move to 3.00 that move will give us a 50% gainer at least and that is why we issued the pick.
Our recent picks have ALL been successful and if you trade them you have consistent 50% gainers. That being said, we don’t issue many picks and chose the ones that can make us a big score while keeping our capital relatively safe.
Our 2 most recent 50% gainers are here: SD at 4.00 Stock Pick BP
Good Luck, we hope you can have a successful trade!
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5 Penny Stock Tips: Spend Small Profit Large
October 15th, 2010
Penny Stocks.
Even the name of them hints at the promise of something for nothing!
Spend a Penny - get back one, two, ten dollars!!
Penny Stocks investing is one place and time where you MUST leave your emotions at the door and become utterly ‘Spock’ like. Read here for the 5 penny stock tips
Penny Stocks Pros and Cons
October 13th, 2010Typically when you think of trading stocks, the major stock exchanges may come to mind like the New York Stock Exchange (NYSE), the National Association of Securities Dealers Automated Quotations (NASDAQ), and the American Stock Exchange (AMEX). A Penny stock is a low priced security for a very small company with a market capitalization of under $500 million and usually trade in very low volumes. Penny stocks also trade on other “other the counter” exchanges like the OTCBB and Pink Sheets. More Penny Stocks Pros and Cons
6 Financial Penny Stocks to Buy
October 8th, 2010By Louis Navellier
Contributor to TheStreet
09/08/10 10:56 AM EDT
By Louis Navellier of InvestorPlace
Penny stocks can be difficult investments for many retail investors, with shares trading for only a few cents always listed on the pink sheets and frequently involving high fees and high risk. But the next best thing is to go for low-priced investments that barely qualify for the major exchanges, skirting the $1 share price limit.
Right now, a number of decent small-cap financial companies are right on the line with shares at around a buck apiece. My Portfolio Grader analysis tool tells me that several of these financial stocks are seeing strong quantitative buying pressure, what I call “quant.” That means buyers are dramatically outpacing sellers even in this volatile market — a great sign for these stocks.
To help you get into these penny stock picks before they take off, here’s my list of six cheap financial investments to buy now. Here are the 6 Penny Stocks
Finding the Bottom on Penny Stocks
October 7th, 2010
Trading low priced Micro cap and penny stocks is a “High Risk High Reward” style of trading. I have found that one of the most profitable ways to trade these stocks is by finding the bottoms. If you are correct and find the bottom, the stock has nowhere to go but up. If you are wrong and miss the bottom, no one wants to “catch a falling knife” Read the rest of Penny Stocks Bottoms
Get Rich With Penny Stocks
October 6th, 2010Yes. It is very possible to get rich with penny stocks. Buy low sell high doesn’t go lower than stocks that you can buy for a few pennies and sell for dollars within days or even hours. Because of the low starting price of micro cap stocks, their potential for growth is incredible More Get Rich with Penny Stocks
Trading with Candlesticks
October 5th, 2010
Since Steve Nison came up with his first book “Japanese Candlestick Charting Techniques” in 1991, forex traders stock traders, commodity futures traders all over the world have been awed and mystified by this centuries old charting tool! The ensuing interest for, and the widespread popularity of this trading tool was simply magical. Every Tom, Dick, and Harry dealing with any form of trading was scrambling for whatever available Candlestick tutorials, books, and lessons there are! Practically everyone in the investment industry was mesmerized by the simplicity and the seemingly promising trading results Candlestick will bring to its users More on Charting Penny Stocks
Swing Trading Strategies
October 4th, 2010
Many people that are interested in trading the stock market hope to replace some, if not all of their income. If your intention is to swing trade as your primary source of income, it’s most likely going to take a good amount of time before you can do it consistently. Do not go into swing trading thinking that a few weeks of practice is going to be enough to get you there. Be prepared to spend months or years learning and getting experience by trading before you can even think about quitting your job to trade full time.
Full time swing traders spend many hours a day, during trading hours and after to research their upcoming trades. People that do it full time also handle pressure very well, so if you don’t, then you may want to reconsider your intentions. Many people come to find out that they cannot handle the stress involved with trading as a full time job. When swing trading becomes your sole source of income, it can cause enormous pressure to consistently bring in money. You may also let your emotions get the best of you after a string of losses and gamble your money on trades that are not well thought out. This cuts short a lot of new traders futures. When you have a string of losses, the best thing to do is stop and evaluate what went wrong, not immediately trade more to try and right the situation.
To be good at swing trading, you do not have to be a genius or have a crazy high IQ; you just have to have self control. You have to have practice constraint, discipline and self calm. You must remain unemotional during all times, especially during loss. When a trade doesn’t go your way, do not try to make the situation right, just look for your next trading opportunity and move on. This is what separates the successful and the unsuccessful traders.
Once you get started swing trading on a full time basis, if you have good profit over a few months, don’t take that as a sign that you can quit your day job. There are ups and downs and you need to make sure you are trading with enough that you can support yourself. If you have monthly expenses of $6000, you cannot expect to make that much trading with $30,000. That would be a nearly 15% gain each month, which is not going to be consistently hit. Some of the best traders in the world only averaged 20%-25% a year over 25 years.
Most swing traders are in the market to add supplemental income or to improve the worth of their investments. This is far less stressful as you are not relying on the profits to live and pay expenses. If you make a mistake or have a string of losses, it won’t put you in a really bad position and you can just move on and learn from the mistakes. Part time swing traders usually do their analysis after they are off work and after market hours. They do their research and plan their trades for the next day.
It takes a lot of time and experience before you can be at a place where swing trading can replace a significant amount of your income, or all of it. You have to have a lot of capital and be able to control your emotions when it comes to trading. If this is your goal, get started slowly learning the stock market and practicing trades and one day you will be ready to take the plunge.
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