DAYTRADERS GET 3 SELECTIONS FOR THE NEXT DAYS TRADING

Simpletrades is a site for daytraders. Each night I select 3 stocks for daytrading the next morning.

To trade successfully, every trader needs to pull the emotion out of the trading process. Jumping from hot stock of the hour to the next or hastily climbing onto an entry because someone with unknown skills in some chatroom announced that XYZ is breaking out any minute etc will usually cost the trader big. My picks stem from my own need to distance myself emotionally from the trade decision once the market opens. By spending hours in the evening after the market is closed and the candles have stopped moving, I am able to apply the laws of Support and Resistance to my charts and take as much time as is needed going from larger to smaller time frames to decide which stocks should be the most worthwhile trades for the next morning and then email them to my subscribers overnight complete with entry point and profit target.

If you like the weekly spreadsheets of my picks posted above and want to subscribe to a 3 trading day free trial of my nightly emailed selections for the next mornings daytrading, I can be reached by email through   nk@simpletrades.net     During the trial period you will be contacted about subscribing upon its conclusion.

And YES, you can daytrade with only a $5,000 opening account balance using 10x private equity leverage to start trading up to $50,000 worth of securitiesbut be sure to use the tight stops like I recommend for all of my stock picks. You do not need a $25,000 minimum balance. See the bottom of the page for more details.

The se are more like daytrade scalps actually–my profit targets generally run from 1% to 3% because my subscribers range from novices to experienced traders. I pick the first reasonable exit target so inexperienced traders need not worry about missing but experienced traders may be able to stay longer if their candles and volume or their indicators suggest doing so.

Stops of 1% to 1.5% are recommended in all cases.  My picks may not always make their entry targets, but they are not often stopped out either if they did make entry. Some entries end up being considered as exiting flat because they may run partway then stall and reverse.  Normally a prudent trader would still exit with a small profit. Sometimes I list it as exiting flat, other times with a small profit–but each is noted on my spreadsheets.

My selections complete with the entry and exit targets and each of the results on a weekly basis are uploaded above for 2009.  My average weekly % return from week ended January 9, 2009 thru May 8 is 7.3% with a cumulative return so far of 131%. The emails serve as documentation that the selections were always made the night before and not with hindsight after trading has begun. 2008 can be found at the bottom of my site beginning with the week ended Friday July 4, 2008. My weekly average return from the week ended July 4 thru Dec.31, 2008 has been 10.4% (Thats 280.7% cumulative for 27 weeks).  Putting my 2008 results another way, If 1,000 shares was traded on every stock pick that made my entry target, the cumulative profit for those weeks would be $54,860. That works out to be a wonderful average weekly profit and with 4.3 weeks per month thats a very nice return on my $99 monthly subscription fee. (Even nicer with my 3 mo or 6 mo packages).  To be a part of that just contact me nk@simpletrades.net

Note: Due to the tremendous drop in share prices, effective with my 11-14 spreadsheet, the last column now presents the profit if each trade was 1,000 shares instead of estimating $25,000 invested per trade which is really no longer that reasonable. (All weeks from 7/4 through 11/7 were recomputed but not rewritten).

Because my daytrade selections are all based  on Support and Resistance as of the prior close, I generally recommend that if the entry has not been met within 2 to 2 1/2 hours (11:30-12 noon EST) to walk away from my picks, but there will be exceptions. Exits may take longer than lunchtime, but usually the position closes within 45 minutes of entry.

Please review my spreadsheets. My demonstrated cumulative average is very strong. Past performance is no guarantee of future success, but these volatile markets give tremendous opportunities.

“My job is to make people money. If I don’t include every factor that moves a stock, market psychology included, then I’m not doing my job.” Thomas Kurlak

Points to Consider:

1.  Lower High

Sometimes the price action on a pick is heading up nicely towards the target, but stalls on the way up and pulls back, then some time later while making another attempt to climb, it fails to make a higher high than the previous turning point. This second failure can be taken as a signal to exit the position as the stock and or the market is showing weakness and the original target should be abandoned. If strength begins to show later, there is always the opportunity for a re-entry.

2. Falling Knife Requires Indicator Confirmation for Reversal Entry

If at the open the price gaps up above the entry target then immediately falls back towards the suggested entry, do not enter as price retreats down through the suggested entry—instead wait for price to turn and move back up through it again. For a short entry, if price gapped under the entry target and moves back up with the market to the short entry, dont short the entry target unless indicators agree. On the screenshot of CLP below, $5.72 was the emailed short entry target and for Agilent, $17.34 was the long entry target.

3.   Entering on a Buystop or Shorting with a Sellstop

When I want to enter a trade—either long or short, but want the stock to first prove itself by moving above resistance for my long or under support for my short, I often will make a cautious entry using a buystop placed at my target somewhere above the current price or a sellstop for a short placed somewhere below the current price. If the price action heads my way, I get filled, if not I have saved some money by being kept out. I believe it is always better to enter a little past the current price if I am unsure and thereby forego some profit piece (opportunity cost only) than to enter before the direction is confirmed and lose my principal (real money). Do not confuse the use of entering trades with buy or sellstops with the need for stoplosses as well to protect yourself in a quick price reversal.

Never trade these picks the first minute of the trading day. Many times you will see the pick go through the entry price in the first minute. HOLD OFF ON ENTERING. Too often the stock that goes through the price in the first minute or gaps above the entry target at the open will come down. Don’t be upset over the one stock that goes up and continues its run. There will be 3 more picks the next day. If the pick goes thru its entry price in that first minute, continue to watch the stock for a quick pullback.

5. Flexibility

When a selection is picked for a long entry only if it proves itself by closing above a certain resistance level, but in reality gaps way down at the open and quickly begins to bounce up off of support—either from a long term base or a pivot level, this negates the entry plan and a trader would need to be flexible and refigure his long entrypoint.

6. Entry Points Are Not Magicwatch the indicators

When a stock hits its entry target, always look at its chart before making the trade. There are times when the market had to rally big (maybe around 4% or more up off of the low or down from the high) to reach the entry target and then exceeds it by a few cents and fails.  If a stock has had to make a big move to reach the entry target or the indicators are not confirming entry, dont make the trade.

See screenshots of ENER 12-9, URBN 12-10 and PNK 11-12.

I recommend stoplosses of 1.0%-1.5%. If a stock has made a move of at least 1/3 to 1/2 of the way to its profit target then reverses, I usually count my 1% or 1.5% from that turning point. I treat it kind of like a trailing stop in my head.