This is a system to “show me the money” when only trading a $10K account.

Stocks are selected the night before and bought at the market on the next day’s open. They are monitored on a 5-minute chart (see below) with a stop-loss on any close below the day’s open after the first five minutes. If a stock does not stop out right away, it will immediately be in profits. If the ETF or stock or option does not violate its open any time during the day the profits can be taken on the close to end of market day. That is the basic trade.

An alternative trade is to buy after the market open in the direction of the market trends whenever any ETF, stock, option is above its open, and manage it the same as above. The market trends are for the three time frames based on market timing – a Day, a Swing and a Rally trend for the longer term.

Profits can be taken at any time when the ETF, stock, option is overbought, or when it breaks down through a fast falling moving average. And as a day trade the trade ends on the close no matter what.

MARKET TREND:

DAY: Positive.

SWING: Positive.

RALLY: Positive.

Let’s take a look at TNA as an example from today, the 3x-leveraged ETF for the Russell index. It was a buy on the open based on criteria at its previous day’s close. That criteria was that all market trends were positive and the ETF itself closed the previous day above its open and above the rising fast moving average.

Show me the money:

The net gain for the $10k trade in TNA today was $337 exclusive of slippage and commissions.

(click on the chart for a larger view)

Remember this blog is a journal of my own stock market thinking and is presented here for entertainment and educational purposes and for absolutely nothing else. It should not be construed in any way as market trading or investment advice.

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