“Money is made by SITTING. Not TRADING”.- Jesse Livermore, Reminiscences of a Stock Operator. One of the biggest reasons 90%+ traders fail is because they overtrade, and think they need to be in everything that moves. Here are 5 things that you can do to prevent overtrading and eliminate boredom trades.

Always Remember: Being Flat Is Better Than Red

Put this message on a sticky note by your trading monitors. Constantly reminding yourself to not take stupid trades that are not “A” quality. Remember trading is a game where it’s about survival, and a big aspect of growing your trading account is not taking unnecessary losses. Check out this video to learn more about patience in trading:

Review The Daily Charts of Your Best Trades Constantly

Knowing the daily charts of your best trades will give you the patience to wait for the best setups. Knowing exactly what to wait for will help you narrow your focus away from subpar setups. Knowing what setups bring you success and seeing the same thing over and over again will eliminate your need to deviate from what makes you profitable.

Walk Away From Your Computer

Overtrading almost always stems from you being too emotional. Stepping away from your trading computer will help you settle down, relax, and focus. 

Set A Daily Max Loss

Daily max losses are essential for day traders. Without them, it is possible to lose a huge portion of your account in a day. Once you lose a certain amount of money per day (ideally no more than 2% of your account), you should get your account locked by your broker. This will prevent you from revenge trading in an attempt to make it all back. Learn more about how to use a daily max loss in this article. 

Write Out Your Trading Plan Before Entering

Writing out your trading plan will help you evaluate the quality of the setup. Write out the type of the setup, why you’re looking to take it, how much you’re risking, your entry price, your stop loss, and your profit targets. Doing this will make you realize when you’re taking a sub-par setup. There will be less of those trades where you’re just trading for the sake of doing something.

The post 5 Tips To Combat Overtrading appeared first on Bulls on Wall Street.

Another day, another stock that doubles or triples on a blockchain catalyst. Crypto’s have been hot lately. But stocks that are releasing news with association to cryptocurrencies and blockchain technology have seen the same, if not bigger gains intraday! This week we traded NETE in our bulls chatroom. They released a news statement announcing a new blockchain-focused subsidiary. After gapping up overnight, we ripped this stock as it soared as high as 300% for a nice intraday trade! Here’s some tips how you can bank on blockchain stocks that gap huge like NETE.

Big Gaps Need to Pullback

Stocks that gap up huge during pre-market will often sell off at the open. People will often take profits as soon as the market opens. Once the sellers are worked out, these stocks will often recover and give a long play. NETE did exactly that. There was an even higher probability of a recovery given the blockchain catalyst, so once the intraday setup started to form, we didn’t hesitate with our entry. Here’s a video about how we traded NETE :

Patience Is Needed For The Right Entry

On a stock that is gapping up this much, the right entry can be difficult. You never know how far it will come in before it pushes. In this type of scenario, it is better to wait for confirmation. If the stock just sells off relantesley right off the open, you don’t want to try to catch a falling knife, and guess if it will hold up or not. Once you get some curling action and a VWAP reclaim, you’ve got a great set up for a long play. You want to pay attention to the range in these plays as well. Once you combine all these factors plus a tight range break to the upside, it brings even more conviction to your trade.  

We teacher our students how to trade these type of plays in our 60 day bootcamp. To claim your seat for our next start date please email Maribeth@bullson.ws.

The post Blockchain Wins Again! Day Trading NETE Stock While It Soars 300% appeared first on Bulls on Wall Street.

Whether you’re trading full time or part time, trading slumps are an inevitable part of trading.  Trading is a game of probabilities, so even if you are trading a proven strategy and are executing to perfection, you still may go through periods of time where you’re making bad trades.

Here are 3 ways you can deal with trading slumps to prevent them from having a significant draw down in your trading account.

Reduce Your Position Sizes

When you’re in a trading slump, there is no reason to be trading full size in every position you take. In order to make a living as a trader, you need to know when to get aggressive with your position sizing, and know when to size down to preserve your account. Slumps are a time when you will want to consider cutting your position sizes in half or more.

There is no reason to be trading size if you’re not making money. This will allow you to focus more on the actual trading setups you’re taking rather than the money you’re trying to extract from the market. Once you hit a few weeks of green, then you can start increasing your size back to normal. For more information about position sizing, check out this article.

Focus on Your Best Setup

When you’re in a slump, you need to stop taking a wide variety of trading setups, especially if you’re new. You need to look in your trading data and find the setup that has made you the most money over your career. To help recover your trading form, you should just sit on your hands until this setup comes along.

By doing this, you will only be allowing yourself to get involved in trading setups where you know you have an edge. It will only be a matter of time until the probabilities play out in your favor, and you will start to get the green days and weeks coming in again.

Take Time Off

Sometimes the best solution for a trading slump is to distance yourself from the markets, and stop trading for a few days or a week. During this time off you should go back and study your trading data. You should get up every day and just watch the markets, taking no trades.

This will allow you to detach from your need to make money from the markets, and focus on your own trading habits to figure out what is working and what is not.

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Click here to apply for our next trading boot camp!

The post 3 Ways To Break Out Of A Trading Slump appeared first on Bulls on Wall Street.

Without a proper plan, trading is a tough game. But when it’s treated as a job, like being a doctor or a lawyer, the finish line to success can look a lot easier. Here are 7 hacks all traders should use to start winning as a trader faster.

1. Focus on Your Key Setups

As a new trader, you will not be able to master every setup. A jack of all trades does not make money in the stock market, especially when he is new and untested. You need to record all of your trades when you’re starting out, and narrow it down to the setups that you make the most money on and have the best winning percentage. Tradervue.com is a good site where you can journal your trades, and will help you figure out what your best setups are, and cut out the rest that aren’t working.

2. Use Moving Averages

Moving averages are a simple but effective way of determining a stocks’ trend. They can be used to give buy and sell signals and can act as support and resistance. Moving averages are especially useful when you’re new, and your eyes are not trained yet to recognize what direction a stock’s trend is. They’re especially useful for determining when a trend is over, and is reversing the other direction.  We use the 9, 20, and 50 MA’s on our charts. The 9 is for the short term trend, the 20 for the intermediate, and 50 for the longer term.

3. Know the Different Time Frames

You cannot just trade stocks on one time frame. You have to analyze stocks on multiple time frames. The 5 minute chart patterns are important, but the daily is a deal breaker, because it tells the bigger picture. A perfect intraday chart pattern is meaningless if there is no context on the daily supporting your bias. For example, if you see a perfect flag break in NVDA on the 5 minute and its right at daily resistance, you might either want to completely avoid that trade or take it with extremely small size. It also helps to look at the intermediate time frame besides the daily and the 5 minute, like a 5 day 30 minute chart, to be able to gauge support and resistance on an intermediate time frame.

4. Proper Risk Management

The best trading strategy in the world cannot be executed without proper risk management. No strategy has 100% win rate, so you have to learn risk management. Proper risk management involves obeying your stop losses, sticking to your targets, and risking a small portion of your account on every trade. Starting out, there is no reason to risk more than 1% of your account on a trade until you have proven that you can consistently pull money out of the market. Remember it only takes one bad trade to end your career in a few hours. With proper risk management rules you can be right half the time and still make money trading.

5. Trading Plan

Lawyers do not show up to court before a case without doing any due diligence. Banks don’t give loans to businesses without a business plan that makes sense. The same is with trading. You need to have a trading plan before you risk any capital in your account. You need to know how much money you’re going to risk, what price your entering at, your stop loss, and your profit targets before you enter ANY trade.  When you’re starting out, it helps to write down these four things, the set up you’re taking, and how many shares you’re buying/shorting.

6. Preserve Your Mental Capital

Your mental capital is just as precious as the capital in your trading account. Losing your focus and emotional control will destroy your account. An easy way to waste your mental capital is revenge trading. The physical and mental capital you spent forcing trades on random stocks to make back what you lost. You have to be disciplined, take your losses, and then move on.

7. Continuous Mentorship and Support

Trading by yourself is extremely challenging and can guarantee that it will increase your learning curve. Finding a trading mentor and a trading community is essential for your trading success. There is no reason to make all of the trading mistakes yourself. You can learn from others experience without suffering yourself. Finding an established and qualified mentor will save you years of suffering and thousands of dollars.

The post 7 Hacks For Newbie Traders To Win Faster appeared first on Bulls on Wall Street.

1. Analyze the daily chart of the stock
2. Be aware of the sector, float and catalyst of the Stock
3. Pay Attention to the Intraday Trend

1. Analyze the Daily Chart of the Stock

The daily chart of a stock will tell you a lot about a stock’s potential to have follow through. You want to see what happened in prior years when the stock gapped up or down with a catalyst. Did the stock have a multi day run after breaking out or breaking down? Did it just sell off after gapping up and then retraced to where it came from? Has the stock been consolidating for weeks/months before a breakout? How has the stock behaved in prior months when it has gapped up or down with a certain catalyst (earnings is usually the one)? What is the overall trend of the daily chart in the past year?

Let’s say we’re looking at NVDA the morning of 5/11 before the market opened after it had an earnings beat with a nice day 1 move. Here is what the daily would look like that morning:

This is a picture perfect daily setup for a day 2 continuation. It has a strong daily uptrend, it has a history of following through after an earnings breakout, it just broke 52 week highs, it has been consolidating for 4 months under the 120 level after a few tests, and it had above average volume the day prior.

2. Be Aware of the Sector, Float, and Catalyst

These three fundamental factors play a big part in the potential of a stock having follow through momentum. Certain sectors are much more likely to have stocks that have day 2 continuation then others. If the stock has a low float and a strong catalyst in a hot sector, the probability increases even more. Low float stocks tend to make bigger moves because they have fewer shares in supply so high demand for shares will push the price higher in a short period of time. You also have to be aware of catalysts and how they affect stocks. Earnings catalysts (positive or negative earnings) are the best catalysts for follow through the next day. No matter what the catalyst is, you should always go back to the daily chart and see how the stock behaved in the past reacting to a similar catalyst. If it’s a different catalyst besides earnings that only happens once in awhile (like successful Phase 3 drug results), you want to look at other stocks in the sector that have had a similar catalyst and see how they reacted to the same news.   

If we look at ZGNX this week, we see that it had a big day 1 move with successful drug trial results as the catalyst combined with a daily breakout. Although it had a huge gap (of around 100%), it still followed through. In pretty much any other sector besides Biotech, there is very low probability of follow through after such a huge gap up (even with an earnings catalyst). However biotech stocks this year have had a history of following through after breaking out with the same catalyst. If we look at INSM and CLVS from this summer, they had huge gap ups on successful drug trial results. Both of these stocks sold off at the open, and then they rebounded and followed through for days afterwards. This is almost exactly what ZGNX did on the first day, and this is why we played this to the longside the day after for continuation for some nice profits.

Here is a video describing the trade in ZGNX:

3. Pay Attention to the Intraday Trend

After examining a momentum stocks’ daily chart and fundamentals, it is time to look at the more micro picture. Even if everything else is lined up, if the stock does not give a safe intraday buy signal you don’t want to take that trade. You want to pay attention to how the stock closed yesterday and where it is opening today. If you’re looking for continuation to the long side, you don’t want to see the stock gapping up another 20% the next day (ideally the stock gaps down a bit if you’re looking for a continuation long). You also want to see the stock close strong on the previous day. If it closes weak, it decreases the probability of continuation to the long side (vice versa for continuation to the short side).

ZGNX had a nice daily breakout, a strong catalyst, and was in a hot sector with a recent history of stocks in the same sector following through for days on the same catalyst. It closed very strong on day 1, had a small gap up, and gave a nice flag to safely enter on after the market opened.

If you’re not sure of the setups and price patterns that we’re talking about you can learn them all in our Bulls Bootcamp. It’s an intensive 60 day course to teach you exactly how I trade and why. To learn more or signup, email me at kunal@bullsonwallstreet.com today!

The post Quick Guide To Trading Momentum Stocks appeared first on Bulls on Wall Street.

It is essential to have a daily max loss set for your trading account to become a successful day trader. A daily max loss is the maximum amount of money you permit yourself to lose in a given trading day. Once you hit this number, you stop trading for the day.

Having a max loss is especially important when you’re new trader, when you’re more susceptible to revenge trading and overtrading. Here’s how to use it:

“I’m going to make it back just one more trade”

Ever have those days where you lose on every trade but you keep on trading? You kept telling yourself, ”I’m going to make it back.”  Next thing you know you have given back a whole month’s worth of gains in 4 hours. Every trader has been there.

You need to know when to call it quits to prevent this snowball effect. This is why you need a max loss. Looking at the past trading data of your losing days will tell you what that number should be. The number should prevent you from losing no more than 1-3% of your account on a given day (% will depend on the size of your account and how aggressive of a trader you are).

Don’t Risk it All on One Trade 

It is important to understand how you should use a max loss in addition to having a defined amount. If you typically take 2 or more trades per day, you cannot risk your whole max loss on one trade. Risking it all on your first trade of the day might cost you to miss an A+ opportunity where you could have made back the money you lost from your first trade and then some.

You have to leave yourself multiple bullets throughout the trading day. Every trade has the possibility of not working, so don’t blow your max loss just on one trade. 

Communicate With Your Broker

With most brokers you can create a daily max loss on your account. Once you define your max loss, you can tell your broker to lock your account once you are down that much unrealized on a given trading day.

This will prevent you from getting in the destructive “I’m going to make it back just one more trade” mindset. Protective measures like a daily max loss are just as important as the big wins on the path to becoming a successful and consistent trader.

The post How To Use A Daily Max Loss As A Day Trader appeared first on Bulls on Wall Street.

Hey guys! Here is an important day trading lesson on a trade we took last week in $labu. Pre-Market on our BullsVision I was walking our traders through what I thought was a stock that should get absolutely crushed for the day.  When we have a big picture idea like that its important to really time your entry as a good idea is just that its a good idea. When your day trading you still need to time your entry or the heat you take on the trade will take you out of it before you can profit.  So after walking our traders through the setup what did I do at the open?  I shorted it first candle and the stock started to squeeze to the upside! Now in the past I would have gotten stubborn and taken a big loss and it would have knocked me out of the day.  I see this with many new traders just taking that small loss and realizing there is a bigger play coming is so hard! But thats what I did here I took a small loss and re-entered at a much more explosive spot.

This is very important as many of you know I’m day trading a 2000 dollar account in front of our students for our small accounts program.  Im trading with the same parameters that our trading bootcamp students who trade for me in our Fund trade.  2000 dollar account.  2 position limit with 400 shares max size.  All our bootcamp students who complete class are eligible to trade with us and use our capital and tools to trade this type of account. As they are profitable I allocate more capital to them.  For those of you guys that have completed requirements or need info always email me with any questions  kunal@bullson.ws

Guys we are starting our new trading bootcamp in January! We do live classes 4 days a week.  Our students have lifetime access to class and can retake as many times as needed.  Here is the info fill it out for a free trader Assessment

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