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Tips & Tricks in Trading

Reasons Why I May Close a Stock Trade

January 13th, 2015

What do I look for?

There are a number of reasons I may choose to close out of a trade.  Today I want to share my thought process with you and explain how and why I close my position on certain trades.

Taking Profits

If a stock has run up a huge profit (relative to what would normally have been expected), I may take off the table.  I’ll look at the projected move of my A-B, B-C and C-D patterns. If it’s already hitting its move, the risk-to-reward ratio may not be in your favor for much longer. It’s a good idea to collect your profits while you can.

Stock Acting Choppy

What do I mean by “choppy”? A choppy stock could be moving all over the place, it may be brand new to the market, it may start acting volatile. I like to trade stocks with clean charts; I like stocks that are moving in a clearly defined pattern. If a stock I entered starts acting chopping, even if I just entered it, I’ll probably close it.

Stock Acting Sluggish

What do I mean by “sluggish”? I mean a stock that is going sideways or is only moving very slightly, very slowly.  Whatever your directional play is (butterfly spread, vertical spread, etc.), if the stock isn’t moving then it may be time to get out.  I want to see stocks that are moving.  I want stocks that move the most points in the shortest amount of time – I don’t want sluggish stocks that just sit there and do nothing.

Stock Not Behaving Properly

If the stock is not behaving the way you had projected or anticipated…for example, if it’s not retracing at the volume you expected, then you want to take that trade off. There could be a change or shift in the momentum or in the attitudes toward this stock – if those changes are not in your favor, then exit the trade.

Bottom Line

If you’re trying to trade stocks that aren’t in your favor, then the risk is against you. Instead, I recommend that you focus on finding trades that will be in your favor – stocks that move and behave properly.

We’re looking at the big picture here.  If I enter a stock and 10 minutes later it is acting sluggish or people start selling off their shares, then I’ll get out….even if it means I’ll take a hit. It’s worth taking a small hit to make sure I’m in the kind of stock that will be profitable for me in the longer run.

Why You Should NOT Trade the First 30 Minutes After the Market Opens

January 6th, 2015

Many of us want to get into a trade as soon as possible – right when the opening bell rings. We want to start our day with a healthy trade and make cash from it. However, I always advise beginners to stay away from the first 30 minutes of trading...

Why should you stay away from the first 30 minutes of trading? Won't you miss out on trades?

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Warning Signs a Stock May Be in Trouble

September 30th, 2014

There are warning signs and red flags that a stock may be in trouble.

Heavy Institutional Selling

This means that a huge volume is coming in to the downside.

You can see in the chart below that volume is very heavy (to the downside) and the stock is moving lower. The volume is coming in huge and heavy and bringing the stock lower.

volumetwc

This shows that a stock is in trouble. You need to be mindful of your stops – either get out quickly or be prepared to short the stock...

Be very cautious when you start seeing these large volume spikes and the stock is moving lower.

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100 Stock Trading Tips: FREE VIDEO LESSON

May 1st, 2014

My book 100 Stock Trading Tips focuses on mindsets and concepts to help your trading go to the next level.

In this book, I focus on a lot of taboo topics, a lot of things people don't really want to talk about or mention. But I want to talk about them!

The book is set up to give you one tip at the top and the explanation underneath of it.

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Ep 9: Trading the Gap and Fade in Bullish Markets

October 10th, 2013

Listen to the Podcast

Hey all you traders and investors! This is Sasha Evdakov and this is Tradersfly TV. Today we're going to discuss The Gap & Fade on Very Bullish Days, it’s October 10th 2013.

Let's get started now the market had a very serious update today and it was all due to the DEP ceiling and everything like that

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I'm Sasha, an educational entrepreneur and a stock trader. In addition to running my own online businesses, I also enjoy trading stocks and helping the individual investor understand the stock market. Let me share with you some techniques & concepts that I used over the last 10+ years to give you that edge in the market. Learn More

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