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Good Morning Fellow Twitters and stock traders. This is Dan Mirkin coming to you live from SD california. It's Tuesday, June 22, and I'm going to be doing my presentation today and showing a couple of different things than shown previously. We're going to focus a bit on statitics. I've shown different elements of my trading screen, and today I want to delve into some of the more professional elements of what traders look at. More specifically, I want to discuss the elements known as the VWOP and Standard Deviation and why those are important. For those that are just tuning in, you'll probably want to know what you are looking at and I'll give a quick overview. This is a combination layout. It's made up of 3 Trade-Ideas windows and 3 Think or Swim windows. I use these in my trading and I do both; swing trading and proprietary scalp trading, not limiting myself to any one specific thing. What I try to do is just focus on where I can leverage our technology and use it to help me make the most money. So, let's talk about the VWOP, which is the volume weighted average price. This is a metric that professional traders use when they are trying to execute words on behalf of clients. Typically, if someone is buying stocks for a fund or for whoever is requesting the buy order, they try to buy the stock below the VWOP. If someone is selling the stock they would like to sell the stock above the VWOP. Those are the metrics that value how good of an execution is placed on a trade. So, let's take a look at these windows. This window at the bottom right hand side of the screen, we are watching this window, the Applied Statistics. It is tracking anything that is trading above and below the volume weighted average price; anytime something trades two standard deviations up or down. These are statistical trades that are important because this is what professionals look at and when something unusual is happening. These windows link directly to the Think or Swim software. Double click to see what is going on. We have CTRP trading at 2% above the VWOP. Notice on the daily chart that it's trading up with a good amount of trending up volume and today here is the last that you are watching and what triggered the alert. I like to browse through these to see if there are any opportunities to place a trade. This can really show you some interesting set ups that you simply wouldn't have seen before. You can quickly do an analysis on the daily and see a trade that is actually low risk. If you are looking to to buy this up move on the BYNT chart, you can see your downside risk is right around 10 cents. These types of setups are not easy to find unless you have the proper viewing elements so you can really see what is going on in the market. We've discussed on the previous TV shows that if you aren't seeing what others are seeing, you are behind the eight ball. Remember that today in trading, information is the commodity. The faster you can get to the information the better your odds are of winning. Hopefully, you can find a stock moving above the VWOP or something interesting, to get in there and ride a little bit of a longer term trend. A lot of people think that successful trading involves getting in and getting out and moving around positions, but some of the best traders will find a trade and stay in it with out having to get out. Consider Warren Buffet, they find a trade and stay in it without having to get out. Imagine in 1995 you bought Dell computer and held onto it for five years, you would have made a 35 thousand percent return on your investment. Same thing with Qualcom in the very end of the dot com bubble. You didn't have to trade them, in fact, if you had tried, you would probably not been able to hold on to them. That's a very important element of trading to understand; it's not just about picking something and getting in and getting out. You really want to leave yourself open for staying in a trade longer. Let's look at some of the other things like ISPH (Inspired Pharmaceuticals). It's up two standard deviations for the day with a good amount of volume. Look at the long term and daily charts. This is one of the key approaches to my success is the ability to quickly analyze or move on or place a trade. It is the thing that makes a trader successful or not successful. Train yourself; pull the trigger with no fear. Many people over analyze and end up stuck in a situation, similar to golf. Paralysis of Analysis, where you are looking at ten moving averages and trying to figure out what is going on and by the end of the day, the move has been made. The key in trading successfully, aside from having good tools, is to stick with it and move on. For example, look at the swing trade I'm working on. Yesterday, I was looking at CBOE IPO, and it looked good on the chart, so I took a stab at an entry and so far it has proven to be pretty good. I don't have trade in and out of it because if I stay in it to see if I can ride a longer term trend. It's not just about the in and the out. I am trying to improve live TV and show everyone that is following me that there is very good value in having a form of streaming information that helps you see things that are otherwise difficult to spot on your own. Look at this chart on CF; the very fast analysis where it's rising and it's trying to come out of this longer term down trend. If it gets above the 66, there could be a shift of a trend. Amazon has been trading well today. I've tried to change some of these windows by modifying the windows. This window is called the applied statistics window. I've changed them because I am trying to demonstrate, in order to succeed, you need to be open to changing what you are looking at. See if there is something that you are missing. I noticed that I wasn't watching as many support/resistance breaks, so I tried to set it up to catch some of these breaks before the stock ran to all time highs. We have an algorithm that calculates and alert me in real time, and I decide as the trader to pull the trigger or not. I also have a couple of windows here, stocks moving down approaching lows of the day. I don't only watch up moves, I'm also watching down moves. Everyone needs to be aware that there is just as much profitability on the downside as on the upside. You just have to be open to it. There are stocks making very nice moves down as well as up. So, you have to have an arsenal of tools at your disposal. If you are limited to one type of trading you are limiting your success. Many people get stuck in only going long. The key is you have to be able to do all of it. Golf is a great metaphor. You have the short game, putting, driving, Trading has uploads, downloads, etc. SLT for example, it doesn't mean that it's a sell, it could be a buying opportunity. Seize the moment and place the trade. When I first moved from Texas to San Diego, i wanted to show people that they could make a living trading. I was so surprised watching people's fear in front of a trading screen and it was so difficult for them to make a trade. I want to say, make sure you are in a situation that you don't have to rely on trading to make a living. It's very difficult to trade scared money. In other words, if you have pull money out of your account to pay bills, that's a very tough way to get going and is setting yourself up for failure. You should have some discretionary capital, between $50k to $100k, that's just the truth of the matter. Anything less, you don't have the freedom to engage. I've seen it happen so many time that I just want to tell my followers to learn from mistakes that I have personally made. You need to have the proper tools, a descent account size, brokerage with a commission structure that works for your trading. If you plan on doing 100 or 200 share lots, and getting out quickly, Etrade or TD Ameritrade is probably not the answer for you. You should look at a more proprietary brokerage where you are paying per share. Let's continue to look at some stocks, COF is making highs all morning. In fact, a stock Jeffries, was making this move. I was noticing that the financials were pretty good. Mastercard, and Visa is not far behind, then American Express is sure to follow. As a good trader, you get better and better of anticipating the move. If you aren't ready, keep the process of analysis going. Watch the windows. See if something stirs you into action. Notice the volume spike for the day. Each one of these is a 15 minute daily chart. The theme of what I do should start to become pretty clear. I am placing myself in a situation to have visibility in the market. I can spot these trends priceline. When you see these first start to get into this window, you need to keep an eye on it because you can lean on these positions when the market turns positive. Let's check back on my CBOE trade. Nothing exciting, and it's consolidating. Yesterday, it made a strong move up and I was buying it all up here. You don't always need to try to trade a stock perfectly. You have to know you probably won't be able to do that. That's probably the high light of my TV show today which is saying that you have to put yourself in the position to be there. Wayne Gretsky said, if you don't take the shots, you're not going to make the shots. This is one of the best pieces of advice for trading. If you don't take it, you not going to make it. The nice thing today, for whatever type of trader you are, there is so many great alternatives. There are traditional online brokerages, like TD Ameritrade, Etrades, Scottrades. Then there is is Zecco and Trade-Ideas, we will be partnering with soon. Then on the farther in, you have the per share brokerages. Trading is not something you can easily do. If you don't have time to engage the market, then you need to be able to swing in and out. You won't have the ability to trade the micro time frames, 5, 10, 15 minutes, because the are too noisy. Set yourself up, and have an out that gives you more wiggle room. Success is not just in and out. It's being able to ride the trend. Let's review what we are looking at. Look at all different time frames. Our algorithms try to find things not just on a static time frame, it looks at where it's looking volatility and the range of the stock. Sometimes, when you think that a stock is breaking out of support resistance, that's not always the case. It's good to have computers looking out saying this a statistical support resistance break. That's what I'm looking at KMB. This move is above this line right here, good break out of resistance. It's all a matter of which time frames you look at. We have the VALE trading above the 200 day moving average which is important to know. Netflix has been tearing and is trading 2% above the VWOP. This is the beauty about today's market. People complain about the difficulty of trading, but when you have this type of volatility, it's an incredible opportunity to catch some of these moves. Look at Amazon. It looks like it wants to break out of this longer term trend. Above 130, you can see the market take off. The crux of what I'm trying to show is that you have to keep it simple. This is why I don't delve into too much. I let our software feed the ideas to me and I, as the trader, make the evaluation process. Do I or do I not get in. There is opportunity everyday. That's what I am going to leave you with today. Put yourself in a situation to make money, open your eyes. Obviously, as a founder of Trade-Ideas, we would love for you to use our software but there is other things out there that you can use. Stocktwits is a great place for human network feed. Find something that works for you and then take advantage of it. Don't be afraid. The market is an amazing tool for building wealth if you let it come to you. That's my TV show today. I hope you have enjoyed it. There will be more coming mixing things up with different windows. Right now, I'm trying to show it's pretty simple. Even though we have high end and complicated tools, once you set it up, you just analyze and decide. You can succeed in trading. If you want to follow me in Twitter, I'm Trade-Ideas1. If you have any questions, please send an email to info@trade-ideas.com. If you are a Scottrade or Etrade customer, you can get our software for free. I hope you enjoyed the show. Until next time, we will see you next week.
