Saturday, December 17, 2016

30 Minute Charts: Great for new traders


30 Minute Charts:

I cover 2 basic setups for starter traders. I wish I would have started with the 30 minute time frame when I started trading, would have dramatically cut my learning curve and loses.

30 minute candlesticks give you 30 minutes in between candles to make a decision and find solid setups.

Pick 10-15 stocks to monitor on a daily basis. Below are what I like to follow.

Indexes: SPY DIA QQQ IWM

ETFs: XLV XLU XLE XBI TLT GLD

Stocks: QCOM AAPL FB WYNN AMGN GILD

With experience add scanners for gaping stocks to find more candidates.

You are looking for 2 trade setups over a 90 minute to 2 hour time frame. West Coast traders have the advantage of trading before work. East coast and Central time traders can utilize the longer time frame and trade at work on a lap top or tablet. You will make 0-2 trades a day. Yes you will have days where you make no trades. Must maintain your discipline and look for your setups. trade what you see...not what you think... Plaster this on your desk top monitor.

First Setup: 30 minute Breakout - this setup is based off the first 30 minute candle of the day.

Second Setup: 30 minute inside bar/narrow range bar - This occurs with candlestick 2, 3 or 4.

How you spend your time: The first 30 minutes you find candidates trading with their trend. Examine the daily chart, yesterdays pattern and today. Place the candidates on your monitor The computer screen shot shows an example. I keep up the 4 indexes and 4 to 8 candidates. (top row is 30 minute candlesticks and bottom is 15 minute candles) - Now you look for red and green candles.

The hardest part traders experience is the discipline. Can get a little boring waiting for setups to occur between candles - this can lead to over trading. To combat this you need to write out a routine for each day and stick to it.
- First 30 minutes find your candidates for the day
- Take the first 15-20 minutes there after of each candle and get away from the monitor.You already have your candidates no need to stair at the screen.
- Make a list of items you need to get done or want to get done for each day. This will keep you from getting inpatient waiting for candles to form. Here are some examples, you will be amazed at what you will get done and will also keep you from making dumb trades: Do the dishes, clean, vacuum, laundry, make your lunch, prepare your dinner, exercise, read the news, work emails, pay your bills, make a healthy shake, read, get a hobby...you get the point - don't watch the charts the first 15 minutes unless your monitoring a trade you are in.

Once you gain success and discipline you can then add the 15 minute  candlesticks. Same trade premise.

I will repeat this post often. My trading plan covers more details of the trade dynamics.

Trade plan is only $29.99 now - will be 49.99 January first.




* You don't have to trade everyday. If the conditions don't feel right or if you're unsure of the current days trading environment then PASS on the trade. Missed money is better than lost money.  Day trading and the stock market is not a "war" that you must win at all cost. Trading should be fun, wait for only the good setups. Follow your rules, stick to your stops, and know that everyday the market presents a new chess board.

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Disclaimer

I DO NOT MAKE RECOMMENDATIONS TO BUY OR SELL SECURITIES - I JUST POST TRADES I MAKE OR FIT THE RULES OF MY TRADING PLAN ON A DAILY BASIS. DO YOUR OWN DUE DILIGENCE - YOU ARE RESPONSIBLE FOR YOUR TRADES, INVESTMENTS, AND DECISIONS! ALL CHARTS COURTESY OF TRADESTATION, SCHWAb & TD AMERITRADE