My Short Term trading system/stradegy

Don't be in a rush. There are always opportunities. Take your time to get some education first. Also if someone makes are recommendation always know what you are investing in. Never ever trust anyone with recommendations. Do your own due diligence. Many people wing it. They don't know anything about technical analysis and fundamental analysis.  It is important that you do both. Do a paper trading system first to make sure your system/strategy is correct. Be willing to learn new systems and strategies. You have to make adjustments in the type of market and sector that you are trading stocks in. Sometimes it is a good idea to avoid a sector. See what works. What you're comfortable with. I only use a small amount of money to trade with. I trade in my IRA and my taxable account. My object is short term trading. If I can $400 or $500 or more in profit I cash out.

Some reasons why it is important not to be in a rush.

    1. People who make recommendations don’t always do their due diligence.

    2. Recommendation could be part of a pump and dump scheme.

    3. Shorts in general know their technical analysis and fundamental analysis of a company. They know when to short versus long  a stock. It is best to avoid stocks being heavily shorted. You can check this site for short data everyday  Finra short daily short interest data

    4. Company especially small cap and micro-caps can be subject to dilution. Check out this site for dilution filings. SEC filings. Sec company search.  The companies will call it stock offerings, which is true, but if it is after initial public offering its dilution. The form to look for it S-3 form. Example for  HTGM ( HTG MOLECULAR DIAGNOSTICS INC) Sec S3 Form

    5. Example of what happened when folks recently rushed to buy a stock without doing due dilgence.

Avoid shorting:

I use the 5 day and 20 day moving averages. If I see the 5 day go below the 20 day moving average I will get out. I also try to make sure that the trend is 5 day moving average is above the 20 day moving average.

For longer term trades it would be 50 day above the 200 day moving average.

Try to be very strict on when to buy a  stock. Buy on weakness when it is oversold. Sell when it is overbought. Use the RSI (relative strength indicator) to make the determination.

I use to be very conservative and only put down $500 to $1000 for a trade. Now that I am more comfortable I will put down $2000 to $6000 a trade. I try to get 1000 shares. So if prices goes up .20 that is $200, .50 $500.

Once I build up some cash I will do larger amounts with safer stocks. Right now I trade mostly with small caps, stocks that have prices between $2 to $18 a share. I also try to make sure that the stock has lots of trades and trading volume. I will scan Twitter, Stocktwits, quote.yahoo.com (conversations), and Investorshub to check on  investors sentiment. I also do some due diligence buy going to Securities Exchange Commissions companies filing search and Otc Markets.

This is one of many trading systems. I have decided to use the 5 day and 20 day moving averages. Other people use other metrics. I mainly stick to swing trades where I hold a position at least a day or more up to a few months.

Consistency is the key.

Check the youtube channels Claytrader and "clay trader videos". What what is saying about the charts. Listen to his mistakes and experiences.

So far in May 2017 I have made $3800 in profits with 4 trades. (CLDR held since 4/27 sold 5/24/2017 $400 , HPD (held since 4/27 $900), ARRY (held 5 trading days $1500), WHKS (held 1 day $600)), and $400 MSFT (held since 4/19/2017, sold 5/26/2017)

CLDR I bought on the ipo day. I bought HPD because it was going up because CLD went public. Both are in big data/hadoop. It was a good thing I sold earnings report came out and stock was down 15% on 6/9/2017.

Arry - I have traded this a few time before (1 time last year, 2 times in march). It is a bio-pharmaceutical. They have some drugs in the market and some getting approved. I bought during ugly selloff in May. A few days before earnings I bought and it went up after earnings release and good news of cancer testing drugs in the pipeline.

WHKS - I saw an article about hybrid electric truck early on a Thursday morning. I did some research and bought the stock near the open. Sold the next day after after the open.

MSFT - Bought because stock pays a dividend, widely held in most mutual. Also cloud business has a growth rate 2 times faster than Amazon cloud business.

The day trades I have done were only done when level 2 signals gave a favorable outcome with a bullish signal on the ask. Don't do day trading unless you get some training and know how to read and have access to level 2.

Below are my documented sell trades for Dec 2017, 2 different accounts.

Below are my documented sell trades for Nov 2017, 2 different accounts

Below are my documented sell trades for Oct 2017, 2 different accounts

Below are my documented sell trades for Sept 2017, 2 different accounts.

Below are my documented sell trades for July 2017, 2 different accounts. Made a mistake buying into a pump on 6/15/2017 and selling the wrong lot when I changed sell price for HTGM (very dangerous trading stock).  Violated my rules for trading and show have known better. Never ever trust anyone on a trade recommendation. Always do your own due diligence.

Below are my documented sell trades for June 2017, 2 different accounts.

Below are my documented sell trades for May 2017, 2 different accounts.

Below are my documented sell trades for April 2017

Below are my documented sell trades for March 2017, 2 different accounts.

Below are my documented sell trades for Feb 2017