Category: Trading Secrets

When it comes to the stock market and short selling , there’s a fundamental strategy that most traders think of: buy low, sell high.

But that’s not your only option when approaching the markets. You can do just the opposite — buy high and sell low.

Continue reading “The Skinny on Short Selling”

When I talk to students about copycat trading, I’m quick to point out that there are different kinds of ‘copycat’ strategies.

Some people want to actually piggyback on every single trade that somebody else makes. That ‘strategy’ (if you can call it that) is kinda doomed to disappoint, because of lag time and a slew of other factors.

But if you learn to copy someone’s overall style and principles instead … that can have value.

So I teach my Trading Challenge students the downside to a ‘copycat’ scenario: You’re still operating blindly as someone’s follower. You could say you’re trading according to what you see this person doing.

Continue reading “Copycat Trading: The Good, The Bad, and The Ugly”

Do you want to quickly find top trading opportunities each day with just a few mouse clicks? Do you want to shave hours off your pre-market analysis? Do you want to start the market day prepared and focused? 

If your answer is yes to any of those questions … you need to learn how to use a stock scanners in your trading process.

New to trading or scanning? Read on to learn about the different types of scans, smart practices for scanning, how to use scanning in your trading strategy, and more. Here’s how a scanner can help you streamline your trading day.

Continue reading “A Beginner’s Guide to Stock Scanners”

So you want to jump into the stock market and be a day trader.

Problem is a little something called the pattern day trader rule that can restrict the number of trades you can make within a certain time frame. There is an exemption … but you need an account balance of at least $25,000.

This is a rule new traders seem to struggle with the most, and I get a ton of messages about it. (Quick side note … this rule maybe isn’t so bad. More on that shortly.)

Here’s the thing: There are ways to avoid the pattern day trader rule that can allow you to start trading with far less than $25,000 in your brokerage account. I didn’t have anywhere near that amount when I was first getting started. Many of my students in my Trading Challenge start with just $1,500 or $3,000.

In this article, I’ll cover exactly what the pattern day trader rule is and how to start trading without it getting in your way.

Continue reading “Understanding The Pattern Day Trader Rule (and Trading Around It)”

Lyft, Pinterest, Uber, Airbnb … 2019 is shaping up to be a big year for startup tech IPOs.

These big companies can generate a lot of hype by deciding to go public. Traders wanna grab as many shares as possible before prices start to skyrocket. IPO announcements can be big news catalysts.

But buying into the hype isn’t always smart. We see it all the time — after an initial spike, prices start to fall once the hype dies down. That doesn’t mean it’s always a bad idea, but you’re playing with fire with high-risk trades like these.

Continue reading “Using Sympathy Plays in This IPO Frenzy”

If you want to keep track of trading opportunities, you definitely need to stay on top of the news.

Certain news stories have the potential to be catalysts. That means they can cause stock price movements that savvy traders can learn to spot early on … if they’re vigilant.

News catalysts should be a fundamental part of your stock research. They can help you spot rising trends and trend reversals. It’s one more aid to help your trading choices.

Some common catalysts should be on every trader’s radar. Earnings reports, product releases, new contracts, and big-name new investors … that’s just the short list of news worth tracking.

So how do you trade on a catalyst? First, educate yourself.

Here’s your quick primer on news catalysts: what to watch for, critical considerations, and how the news can help you decide if a stock is worth your time — and money.

Continue reading “Catalysts : When News Sparks Stock Moves”

Trading Lessons

When I started trading, I had no idea what I was doing. My “unique” strategy was to buy a stock and sell it a few weeks later — hopefully for a profit. I didn’t have any trading lessons and it was a HUGE problem!

I lost half of my small $500 account in two weeks and had no direction at all.

Fortunately, I quickly realized that strategy wouldn’t work for me. If I wanted to do better, I needed a different approach. I needed to put more structure in place so that I didn’t have to rely on dumb luck to make money.

Continue reading “20 Trading Lessons from Tim Sykes’ Top Student, Tim Grittani”