micro trading for a living
TRANSCRIPT
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Micro Trading for a LivingMicro Trading for a Living
With With
Oliver L. VelezOliver L. Velez
Founder of Pristine.com, and Author of the best selling book, Founder of Pristine.com, and Author of the best selling book, Tools and Tactics for the Master Day TraderTools and Tactics for the Master Day Trader
Copyright 2002, Pristine Capital Holdings, Inc.Copyright 2002, Pristine Capital Holdings, Inc.
Pristine.com Presents
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Introduction
Basic Intro
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Types of Trading
•Four Trading Styles: Core, Swing, Guerilla, Micro
•Two Trading Categories: Wealth & Income
Basic Introduction
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Wealth Building•Core Trading –•Covers a holding period of weeks to months.
•This style of trading is the new form of investing.
•The Core Trader typically uses weekly charts, and attempts to capture the entire weekly trend.
•Core Trading is best used on key stock indices (DIA, SPY, QQQ, HHH, etc.).
The Four Trading Styles
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Core Trading Chart
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Wealth Building•Swing Trading –•Covers a holding period of 2 to 5 trading days.
•This style of trading capitalizes on a very overlooked market niche.
•The Swing Trader typically uses daily charts and attempts to buy the dips and side step the declines.
•Swing Trading can be used on anything that moves.
The Four Trading Styles
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Swing Trading Chart
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Income Producing•Guerilla Trading –•Covers a holding period of 1 to 2 trading days.
•This style of “hit and run” trading capitalizes on reliable overnight trading patterns.
•The Guerilla Trader typically uses daily and hourly charts and buys/sells late day strength/weakness.
•Guerilla Trading can be used on all vehicles.
The Four Trading Styles
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Guerilla Trading Chart
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Income Producing•Micro Trading –•Covers a holding period of seconds to hours.
•This style of active trading goes after small but frequent bite-sized gains.
•The Micro Trader typically uses 5- & 15-minute charts and buys/sells dips/rallies, BO/BD.
•Micro Trading can be used on all active stocks.
The Four Trading Styles
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Micro Trading Charts
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Tools of the Micro Trade
•Charting Tools: 15 & 5-min charts, 20 and 200 simple period moving averages
•Market Timing Tools: Nasdaq & S&P Futures, NYSE and Nasdaq TICKs, NYSE & Nasdaq TRINs
Micro Trading Tools
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MicroMicro
Charting ToolsCharting Tools
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Pristine Capital Holdings, Inc.
5-Minute Chart
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15-Minute Chart
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Pristine Capital Holdings, Inc.
The Power of the 20 & 200 MAsThe Power of the 20 & 200 MAs
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Micro
Market Timing Tools
Market Timing Tools
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S&P and Nasdaq Futures Charts
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NYSE & Nasdaq TICK
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NYSE & Nasdaq TRIN
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The 3 Micro Trading Phases of the Day
1) Phase 1 - 9:30 to 11:15 (Trade BO/ Reversals)
2) Phase 2 - 11:15 to 2:15 (Mid-day Doldrums)
3) Phase 3 - 2:15 to 4:00 (Trade B/O Reversals)
3 Micro Trading Phases
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The 3 Phases of the Trading Day
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The 3 Phases of the Trading Day
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The 3 Phases of the Trading Day
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The 9 Micro Trading Reversal Times
Phase 1 Reversal Times - 9:35 10:00, 10:30, 11:15Phase 2 Reversal Times – 12 & 1:30
Phase 3 Reversal Times - 2:30, 3:00, 3:30
Reversal Times
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Major Reversal Times
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Major Reversal Times
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Major Reversal Times
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Phase 1 Trading Tactics1) The 9:30 Breakout/Breakdown Play
2) The 10:00 Reversal Play
3) Pristine’s 30-Minute Rule
4) The 11:00 Topping/Bottoming Play
5) The 200 Moving Average Play
Micro Trading Phase 1
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9:35 BD and a 10:00 Bottom
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9:35 BD, 10:00 Bottom, 11:00 Top
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9:35 BD, 10:00 Bottom, 11:00 Top
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9:35 BD, 10:00 Bottom, 11:00 Top
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9:35 BD, 10:00 Bottom, 11:00 Top
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9:35 BD, 10:00 Bottom, 11:00 Top
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30-Min Buy, 11:00 Top
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30-Min Buy, 11:00 Top
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10:00 Top, 10:30 Reversal
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200 MA Play at 10:30 Reversal
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Phase 2 Trading Tactics1) The 11:00 – 11:15 Topping/Bottoming Play
2) The Good Lunch Play
3) The 15-minute Trading Dip Play
4) The 1:30 Reversal Play
Micro Trading Phase 2
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11:00 – 11:15 Topping Play
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11:00 – 11:15 Topping Play
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The 1:30 Reversal Play
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The 15-Minute Trading Dip
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1:30 Rev & 15-Minute Dip
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11:00 Top and 1:30 Dip
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Phase 3 Trading Tactics1) The 3:00 Topping/Bottoming Play
2) 200 Moving Average Play
3) The Late Day Breakout/down Play
Micro Trading Phase 3
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3:00 Topping Play
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3:00 Topping Play at 200 MA
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The Late Day Breakout (LDB)
Prist ine Capital Hold ings, Inc. 7-11 South Broadway, Sui te 210 , Whi te P la ins , NY 10601 Tel: (914) 682 -7613 Fax: (914) 682-7 6 4 0 Web: www.pr is t ine .com E-mail: edi tors@prist ine.com
P E O P L E S O F T I N C ( P S F T ) The Simple Art Of Trading® Part I
Chart Courtesy o f www.Execut ioner .com
5 -M i n u t e C h a r t Note that the Pr is t ine Day Trader b u y s P S F T on the break of the most recent ser ies of equal highs, not on the break of the h igh of the day.
Note how P S F T’s breakout occurred on Above Average Volume.
High of the Day
Our initial protective stop (1) is tight as it is, but the astute Pris t ine Day Trader knows how and when to quickly raise i t to make it even tighter (2).
1
2
Late Day Breakout
Criteria
1) Stock is up on the day
2) Stock is above its opening price
3) Stocks is trading at or near the high of the day
4) Stock breaks out latein the day (anytime after 2:30 EST).
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The Late Day Breakout (LDB)
Prist ine Capi ta l Holdings, Inc. 7-11 South Broadway , Su i te 210 , Whi te P la ins , NY 10601 Tel: (914) 682 -7613 F a x : (914 ) 682-7 6 4 0 W e b : www.pr is t ine .com E -mail : ed i tors@pr is t ine .com
B I O M E T I N C ( B M E T ) The S imple Ar t Of Trad ing® Par t I
Chart Courte sy o f www.Execut ioner . com
5 - M i n u t e C h a r t
T h e P r i s t i n e D a y T r a d e r b u y s n e w high .
Note th is near perfect Pr is t ine B u y se tup .
S top
Late Day Breakout
Criteria
1) Stock is up on the day
2) Stock is above its opening price
3) Stocks is trading at or near the high of the day
4) Stock breaks out latein the day (anytime after 2:30 EST).
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The Late Day Breakout (LDB)
Prist ine Capita l Hold ings , Inc. 7-11 South Broadway , Su i te 210 , Whi te P la ins , NY 10601 Tel: (914) 682 -7613 F a x : (914 ) 682-7 6 4 0 W e b : www.pr is t ine .com E -mail : ed i tors@pr is t ine .com
S T A P L E S I N C ( S P L S ) The S imple Ar t Of Trad ing® Par t I
C h a r t C o u r t e s y o f w w w . E x e c u t i o n e r . com
5 - M i n u t e C h a r t T h e L a t e D a y B r e a ko u t ( L D B ) t o a n e w d a i l y h igh of fe rs the Pr i s t ine Day Trader an exce l len t m ic ro -t rading opportuni ty , as wel l a s a s t rong overnight t rading poss ib i l i ty .
Late Day Breakout
Criteria
1) Stock is up on the day
2) Stock is above its opening price
3) Stocks is trading at or near the high of the day
4) Stock breaks out latein the day (anytime after 2:30 EST).
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The Late Day Breakout (LDB)
Late Day Breakout
Criteria
1) Stock is up on the day
2) Stock is above its opening price
3) Stocks is trading at or near the high of the day
4) Stock breaks out latein the day (anytime after 2:30 EST).
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The Late Day Breakout (LDB)
Late Day Breakout
Criteria
1) Stock is up on the day
2) Stock is above its opening price
3) Stocks is trading at or near the high of the day
4) Stock breaks out latein the day (anytime after 2:30 EST).