Want To Make $200k+ A Year?

Here are a couple of textbook quickie trades. I will warn you that they are dull, but there’s a reason I’ve posted boring trades today. First, a little short on HUYA:

Standard fare with a clear setup and a good target, easily hit. There was more after lunch, and even a late rally for anyone who likes that kind of thing. Obviously I was long gone by then, happy with my $480 made in ten minutes in the morning.

Here’s another, ELAN:

Another textbook short, essentially the same trade as HUYA and happening a few minutes earlier. The price dropped relatively more quickly, but the range was reduced so it only made around half the profit, “just” $260.

There’s nothing exciting about these trades, they’re not the massive $1k+ winners that I know some readers love to look at. But the fact is these kind of trades are very much the bread and butter of day trading life.

It’s easy to find three or four trades like these every day. They are simple to trade, low risk, low stress, and cobined they add up to a four figure profit. Do that just four days a week, take four weeks vacation, and you’re looking at making a couple of hundred thousand dollars a year, minimum. Minimum? Yes, because let’s face it, if you trade four mornings a week you’re going to come across some of those big winners as well every now and then, which will boost the bottom line even further.

$200,000 a year is not a bad “salaray” for working only about three hours a day, four days a week, from home (or anywhere else in the world). There might be other jobs that pay as well, but off the top of my head I can’t think of any. Certainly none that offer the kind of freedom day trading can.

I’m not posting these figures or charts to boast or brag. I post it because every week I get questions like “how much can I make day trading?”. There’s no single answer to that kind of question, but I hope this post at least gives an idea of what’s possible.

7 Reasons Why You Don’t Want My Daily Stock Picks

I had another email this week (my inbox has been busy recently, probably because I’ve been posting more trades here since I restarted my blog). The gist of it was this: can I create a mailing list, exclusive to customers of my stock trading book, and send my watch list of stocks to all the subscribers before the market opens each day? My answer to this type of question is always no, and I wanted to explain why.

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Stand And Deliver, Your Money or Your Life

I’m often amused when my non-trading friends tell me that they could never play the markets for a living because they couldn’t cope with the risk. They say things like, “Aren’t you worried you’ll lose it all one day?”, and “What happens if there’s another stock market crash? You could get wiped out!”

These well-meaning but faulty assumptions come about for two reasons. The first is a lack of understanding of exactly what I do as a day trader. The second is a flawed idea of risk.

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Watching Multiple Symbols

Day traders who are new to trading stocks often find that watching a number of different symbols at the same time can take some getting used to. This is especially true for those who may already have experience of the futures market where it is not uncommon to spend the entire session watching only one or two charts. Keeping an eye on multiple charts is not impossible though, it just takes practise and a structured method.

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Breaking The Cycle

I’ve been working with a struggling trader, helping him to discover where his difficulties lie. Sometimes when we are in the thick of things, it can be hard for us to see for ourselves what might be obvious to others. Having someone look in from the outside can be a real benefit. In this particular case, the problem was one that is all too common among many who are relatively new to the business of day trading. The trader was stuck in a variation of the destructive cycle of the grail hunt.

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Trading The Trend

We’ve probably all heard the expression Let the trend be your friend, and sound advice it is too. Jumping into a stock or future while it’s priced low and riding it up an extended trend is a great way to trade. And if it was that easy, then we’d all be doing trend trading and we would all have bigger bank balances than we do now, right? The problem, as any trader knows, is how to know when a trend is starting, and just as importantly, when the trend is about to end.

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