My name is Marek Hawk and I am a professional trader of Trading Academy. In this article, I would like to describe you more closely why I perceive the stock markets as very interesting market to trade and why a day trader should not overlook this market! Many traders put their focus only on one type of market, but the key element for steady trading income is a diversification. Therefore, I want to share different perception of day trading stocks, its benefits from my experience. And even more, I would like to share with you the technique I use for searching hot stocks so you can start training on your own based on this article!
The beginnings of stock trading can be very difficult and that’s why we are scheduling the webinar for 9th July, Tuesday at 20:00 CET. I will be there, happy to answer your questions about our trading strategy!
1. Regular hours
What I love about day trading stocks is that you need to focus on the stock market at precise time and only specific period. Sometimes I was caught into the leap that I had to focus on all forex and crypto markets, and it can be very exhausting if you do not build specific schedule. In case of stock markets, I know that the best opportunities for me are about 2 hours after the exchange opening. If I find my playbook situation, I push the trigger. Every week there many opportunities to trade. As a stock day trader, you close your trades that day, review your trades and you can focus on something else. Similarly, I trade also futures on CME meanwhile.
2. Centralized exchanges
A centralized market is a financial market structure that consists of having all orders routed to one central exchange with no other competing market. The quoted prices of the various securities listed on the exchange represent the only price that is available to investors seeking to buy or sell the specific asset. In more generic terms, a centralized market refers to a specialized financial market which is structured in such a way that all orders, whether they be buy or sell orders, are routed through a central exchange that has no other competing market for those particular financial instruments. Security prices that are available through and quoted by the exchange represent the only prices which are available to investors wishing to buy or sell the specific assets quoted on the exchange.
The New York Stock Exchange or NASDAQ is considered as a centralized exchange because orders are routed to the exchange and are then matched with an offsetting order. Because of that traders can work also with precise price and volume on the exchange. It is nice bonus which gives a slight competitive edge in comparison with other markets. At webinar I will describe you how to use it!
3. Volatility and Trend
Stocks are considered as more volatile market and from experience I can tell it is more trending market. You can also find an interesting statistical data on this matter. For making money as a trader you need a price change. In general, stocks markets are more volatile and because of that, it is more likely that you will have better results there.
It is said to every beginner: “Trend is your friend”. In long-term perspective it is better to find your trades in-line with the main trend. I found that the stock markets are ideal for that. We do not need a complicated trading system. All what we need is to find the stocks which are likely to move in a trend of our trading day. Then we need to find the timings of entry and exit. We have about 7000 shares to consider to trade. And in this article, we will show you how we can filter the stocks we are interested in!
Stock Index NASDAQ-100: Trend is your friend. Since financial crisis 2008 stocks are in long-term uptrend. For forex trading we use more counter-trend techniques.
4. Diversification for Long-Term Perspective.
Trader is not an investor as Mike Bellafiore mentioned in his book One Good Trade. However, I believe that after some experience, a day trader gets more familiar with companies and their stocks, he can make a middle-term, even long-term decisions similarly like an investor. As a trader you are constantly analyzing economic cycles and central bank activities, you can use this information also for stocks from long-term perspective. It is really a nice opportunity for diversification. For example, you will be much more money wise in case of pension funds strategies. You can use your insight for your personal money saving decision making.
5. Fast Scan of Potential Stocks to Trade
As we already described in our previous article, finding „stocks to trade“ is very easy. With our method you can filter 7000 stocks and you can aim for the ones with the biggest potential. We use our completive advantage of finding stock interesting for big players and we are trading with them. More information about what is behind the logic – I will share it with you at our webinar.
Why does a big player buy or sell shares? Most of the time the reasons are behind company`s financial reports. With an aim to better understand where big players will be, let us imagine a situation if we open a restaurant. What question will be most important to us? Probably how profitable it is. The same applies to big traders, the most crucial thing that would be is a financial report of a company or a publication of estimated value over a certain period. This is exactly why the probability of locating a big player is higher within companies that publish their financial reports comparing to other shares.
How can we find shares that are being publicly published?
In this article, we will teach you how to find these stocks in shortest time, before it is officially published, and market still did not have enough time to trade it. Therefore, we would have to register on Briefing.com Straight after this we have to go to Calendars ---- Earnings
We are mainly interested in stocks that published their financial report yesterday after market was closed.
Also, stocks that publish their report today before market is open
After this we should filter the retrieved stocks in case if they are not of our interest. By this we mean that big players cannot enter a stock that is not liquid. Simply because he will not be able to provide a counteragent to the price. Therefore, we are only interested in stocks that have a daily average volume of more than 1 million shares being traded. For this purpose, we can use a special stock screener Finviz.com and type in a company`s name and search.
Value of Average Volatility must be more than 1.00
After we select the stocks, we must wait until trading session opens and confirm that there are big players in the market, after what we enter the market and trade in the same direction with big players.
6. Trading Two Hours
Last part, for me the funniest one, is the trading itself: timing of the entries with exact patterns spotting big players. And I will share with you one of patterns at our webinar!
Just one example for you how we are making money and what you will learn at our webinar. The pattern gives you the precise timing of the entry with strict rules with higher probability and positive risk reward ratio. On the screen below you can see how we are catching the big movements and take advantage of spotting big players:
Opening long position on the stock „MOS“ based on our pattern. Positive risk reward ratio and high probability gives you competitive advantage on the marketplace.
In this article I describe the reasons why I do prefer trade stocks: regular ours, time wise, effective, easy to analyze, possibility of diversification for short-term trading and long-term investment.
It is possible to make money consistent. Just look at our weekly results! If you can perform all the steps correctly based on information presented at our webinar, your deposit will be raising. In case of interests how you can make a living day trading stocks, register to our webinar. I will be happy to answer your questions there and we will go through our pattern in detail.
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