Pristine.com Presents This tutorial was originally titled Micro Trading for a Living and was recorded at the New York Online Trading Expo Micro Trading Tactics With Oliver L. Velez Founder of Pristine.com, and Author of the best selling book, Tools and Tactics for the Master Day Trader Copyright 2000, Pristine Capital Holdings, Inc.
Basic Intro Introduction
Basic Introduction Types of Trading Four Trading Styles: Core, Swing, Guerilla, Micro Two Trading Categories: Wealth & Income
The Four Trading Styles 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.).
Core Trading Chart
The Four Trading Styles 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.
Swing Trading Chart
The Four Trading Styles 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.
Guerilla Trading Chart
The Four Trading Styles 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.
Micro Trading Charts
Micro Trading Tools Tools of the Micro Trade Charting Tools: 15 & 5-min charts, 20 and 200 period moving averages Market Timing Tools: Nasdaq & S&P Futures, NYSE and Nasdaq TICKs, NYSE & Nasdaq TRINs
Charting Tools Micro Charting Tools
5-Minute Chart Pristine Capital Holdings, Inc.
15-Minute Chart
The Power of the 20 & 200 MAs Pristine Capital Holdings, Inc.
Market Timing Tools Micro Market Timing Tools
S&P and Nasdaq Futures Charts
NYSE & Nasdaq TICK
NYSE & Nasdaq TRIN
3 Micro Trading Phases 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)
The 3 Phases of the Trading Day
The 3 Phases of the Trading Day
The 3 Phases of the Trading Day
Reversal Times The 9 Micro Trading Reversal Times Phase 1 Reversal Times - 9:35 10:00, 10:30, 11:15 Phase 2 Reversal Times 12 & 1:30 Phase 3 Reversal Times - 2:30, 3:00, 3:30
Major Reversal Times
Major Reversal Times
Major Reversal Times
Micro Trading Phase 1 Phase 1 Trading Tactics 1) 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
9:35 BD and a 10:00 Bottom
9:35 BD, 10:00 Bottom, 11:00 Top
9:35 BD, 10:00 Bottom, 11:00 Top
9:35 BD, 10:00 Bottom, 11:00 Top
9:35 BD, 10:00 Bottom, 11:00 Top
9:35 BD, 10:00 Bottom, 11:00 Top
30-Min Buy, 11:00 Top
30-Min Buy, 11:00 Top
10:00 Top, 10:30 Reversal
200 MA Play at 10:30 Reversal
Micro Trading Phase 2 Phase 2 Trading Tactics 1) 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
11:00 11:15 Topping Play
11:00 11:15 Topping Play
The 1:30 Reversal Play
The 15-Minute Trading Dip
1:30 Rev & 15-Minute Dip
11:00 Top and 1:30 Dip
Micro Trading Phase 3 Phase 3 Trading Tactics 1) The 3:00 Topping/Bottoming Play 2) 200 Moving Average Play 3) The Late Day Breakout/down Play
3:00 Topping Play
3:00 Topping Play at 200 MA
The Late Day Breakout (LDB) Late Day Breakout The Simple Art Of Trading Part I PEOPLESOFT INC (PSFT) Criteria 1) Stock is up on the day 2) Stock is above its opening price 5 -Minute Chart High of the Day Note that the Pristine Day Trader buys PSFT on the break of the most recent series of equal highs, not on the break of the high of the day. 1 2 3) Stocks is trading at or near the high of the day 4) Stock breaks out late in the day (anytime after 2:30 EST). Our initial protective stop (1) is tight as it is, but the astute Pristine Day Trader knows how and when to quickly raise it to make it even tighter (2). Chart Courtesy of www.executioner.com Note how PSFT s breakout occurred on Above Average Volume. Pristine Capital Holdings, Inc. 7-11 South Broadway, Suite 210, White Plains, NY 10601 Tel: (914) 682-7613 Fax: (914) 682-7640 Web: www.pristine.com E-mail: editors@pristine.com
The Late Day Breakout (LDB) Late Day Breakout The Simple Art Of Trading Part I BIOMET INC (BMET) 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 late in the day (anytime after 2:30 EST). 5 -Minute Chart The Pristine Day Trader buys new high. Note this near perfect Pristine Buy setup. Chart Courtesy of www.executioner.com Stop Pristine Capital Holdings, Inc. 7-11 South Broadway, Suite 210, White Plains, NY 10601 Tel: (914) 682-7613 Fax: (914) 682-7640 Web: www.pristine.com E-mail: editors@pristine.com
The Late Day Breakout (LDB) Late Day Breakout The Simple Art Of Trading Part I STAPLES INC (SPLS) 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 late in the day (anytime after 2:30 EST). 5 -Minute Chart The Late Day Breako ut (LDB) to a new daily high offers the Pristine Day Trader an excellent micro-trading opportunity, as well as a strong overnight trading possibility. Chart Courtesy of www.executioner.com Pristine Capital Holdings, Inc. 7-11 South Broadway, Suite 210, White Plains, NY 10601 Tel: (914) 682-7613 Fax: (914) 682-7640 Web: www.pristine.com E-mail: editors@pristine.com
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 late in the day (anytime after 2:30 EST).
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 late in the day (anytime after 2:30 EST).
Tools & Tactics A Must Read A Japanese proverb says, If you wish to know the road, inquire of those who have traveled it. The authors of Tools and Tactics for the Master Trader clearly know the road. Their unique insights, trading tactics and powerful tools, so enjoyably presented, make this a book that belongs on every trader s shelf. Steve Nison, CMT - Author of Japanese Candlestick Charting Techniques