Soes commissions and scalpers

Scalping is a day trading tactic used to capture small discrepancies in price, as little as 1 16. Scalping for small fractions has become an increasingly hazardous path toward successful day trading. Popularized through the SOES day trading tactics of the late 1980s and early 1990s, scalping for fractions was less complicated then than it is today. At first, all a SOES day trader had to do was pick off a market maker and offer the stock back out to the street at a better price. This tactic was...

Candlestick charts

Candlestick charts were developed in Japan in the eighteenth century. Munehisa Homma developed these charting principles to amass a huge fortune trading rice coupons. Homma used candlestick techniques to trade unconventionally as a warrior he had a ruthless ability to seize opportunity and take action, due in part to candlestick conviction. Eventually Homma won the honorary title of Samurai because of his demonstrated mastery.* Many credit Steve Nison, author of the groundbreaking book,...

Oscillators And Reversal Indicators

Oscillators and trend-following indicators are valuable tools that help traders to locate trading ideas and to find additional confirmation of what they're seeing in the charts. Technical indicators are broken down into two areas trend-following tools and oscillators. Both will help you to identify trending markets, overbought and oversold conditions, pullbacks, and turning points. You'll find that certain indicators resonate with you, while others don't. The object of using them is to help you...

Candlestick reversal patterns

Candlestick charts produce effective reversal signals on a daily and intraday basis. Reversal patterns provide two-sided clues what to do and what not to do or selection and negative selection. The reversal patterns imply that a trend has run its course. Trends can and do turn around quickly. However, the goal of astute day traders should be to seize the middle of the move, not the top or bottom. Always wait for prices to confirm that the reversal pattern was authentic. The short-term risk of...

Macd histogram

Subtracting the slow line signal line from the fast line MACD line creates the MACD histogram. Plot the difference in the form of histogram bars. When the fast line is above the slow line, the histogram bar is plotted above the zero line. When the fast line is beneath the slow line, the bar is beneath the zero line. The slope of the histogram depends on the difference between the fast line and the slow line. Stronger bull action will cause the fast line to be farther above the slow line thus...

The net price rule

The net price rule states that you should trade only on the side of the net price. If you want to go long a stock, the net price should be positive. If you want to go short a stock, the net price should be negative. If the net price is positive, you should not be short if it is negative, you should not be long. The net price rule should be used for a stock, the stock's underlying sector, and the broader market. If you are contemplating trading an Internet stock, the first thing to look at is...