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Notes:
2. Basic Charting
a. Candle Sticks
b. Trend Lines
c. Support and Resistance
3. MOVING AVERAGES
MA20 (20days) – when crosses above MA50 = Buying Signal
MA50 (50days) – when MA20 crosses below = Selling Signal
4. RISK/REWARD RATIO: (ratio must less than 1.0% better .5 or below for profit potential)
EX: If a trader buys a stock at $25.60, places a stop loss at $25.50 and a profit target at $25.85,
then the risk on the trade is $0.10 ($25.60 - $25.50) and the profit potential is $0.25 ($25.85 -
$25.60).
The risk is then compared to the profit to create the ratio: risk/reward = $0.10 / $0.25 = 0.4
If the ratio is great than 1.0, that means the risk is greater than the profit potential on the trade.
If the ratio is less than 1.0, then the profit potential is greater than the risk.
Day traders must strike a balance between win rate and risk-reward. A high win rate means
nothing if the risk-reward is very high, and great risk-reward ratio may mean nothing if the win
rate is very low.
Consider these guidelines when you start coming up with a day trading strategy or are looking to
improve your day trading results:
A higher win rate means your risk-reward can be higher. You can still be profitable with a 60%
win rate and a risk reward of 1.0. You'll be more profitable with a 60% rate and a risk-reward
below 1.0.
A low win rate, 50% or below, requires winners to be larger than losers in order for you to be
profitable. You can still be profitable with a 40% win rate if risk/reward is below 0.6 (excluding
commissions). Ideally, if your win rate is below 50% strive for a risk/reward below 0.65, with the
risk-reward decreasing the more the win rate drops. The more you lose, the bigger your winners
must be when you do win.
Confirmation:
RSI at Stochastic: Halos pareho ang indication Pa gang signal nag overboard (pwede
nang bumili). RSI= Price Signal at Stochastic = Price direction.
3. Note:
Pag day trader, mas maganda mag monitor sa unang oras (opening)
Pag day trader, dapat mabilisan. Ready na ang flatform bago mag 9:30. Sa
investagrams kahit MACD lang pwede na tingnan sa most active stocks kung saan
may malapit na magcross ang MACD at dapat prepare ang password sa flatform
para copy /paste lang (like COL). Save chart set-up
Note-
Pag lumagpas ng 70, doon nagkakaroon ng matinding pag taas (wag muna
magbenta pag umabot ka sa 70, wait mo kung lalagpas ba o sya o bababa na)
30% Below = oversold/undervalued > Corrective price reversal to the upsied (for
UPTREND)
(Buying signal) > buy at above 30 like 31
Important – Follow and study preferred stock at kung ano ang gumagana na
indicator yun ang gamitin.
Sa umaga Palang(using 1min,15,30 or 1hr), titingnan ang 4HRS charting system para
malaman ang movement ng stock.
1. Trend ……. MA
2. Volatility ……..Bollinger Bands
3. Momentum
4. Volume
1. Horizontal - eto yung ginagamitan ng horizontal lines kasama din ditto ang fibo
3. Dyanmic - eto yung mga non-linear like moving averages, bolinger bonds, etc