Never mind the market!The Advantages of Trades at Anytime

Disclaimer: All investments are considered high risk. Therefore, you should consult a professional before investing in anything. This website Moatere and its content are for general information purposes only and do not constitute financial or investment advice in any way.

Before making a deal, there are numerous factors to think about, which may be fairly intimidating, especially for inexperienced traders.After successfully trading the markets for over 12 years and instructing hundreds of traders, I have seen traders make terrible decisions far too frequently. Usually, this is because they neglected or skipped a crucial stage.

The phase they frequently omit is “market timing.”

Over 70% of stocks move along with the market, so if your bias or perception of the market is off, you could have a challenging time trading.As a result, Live Traders developed what we like to refer to as “Anytime Trades.”As the name implies, these trades can be executed regardless of the time of day or the state of the market.

Because they are so successful in operating regardless of market conditions and because there is one less problem to be concerned about when initiating a trade, Anytime Trades have become a favorite for many of our traders.Parabolics and Relative Strength and Relative Weakness plays are the two most well-liked Anytime Trades that Live Traders teaches.This article will discuss the parabolic play, which has five key parts and is very successful regardless of the time of day or the state of the market.

  • Must have dropped three bars or more, AT LEAST two of which must have been “ultra” wide range bars.
  • Double or treble the size of a typical bar is a super wide range.
  • They ought to be the biggest bars you’ve ever seen on that stock visually.
  • The size of the bars is far more significant than their number.
  • It must have been VERY loud during the lower move.
  • 5 times the average volume, at least.
  • It should be traveling really slowly and accelerating rapidly.
  • The bottom should ideally have a bottoming tail or a green bar.
  • You should be shocked when you first see it.
  • OMG, what just happened.

            Once one of the prior bars HIGH has been broken, you will enter this play.

Your stop loss will be set beneath the low of the previous bar.NOTE: Because these types of plays tend to be quite whippy and spready, be sure to leave some “wiggle” space underneath the prior bars low.A 50% retracement back into the vacuum above, OR anytime the price reaches the moving average, is typically your aim.However, these transactions have the potential to be quite lucrative.They will frequently offer a 2:1 or 3:1 reward to risk ratio.As a result, if you were risking $500 every transaction, you would probably make $1000 to $1500 on a Parabolic play, which is a respectable profit for a quick scalp deal.

It’s also crucial to keep in mind that these trades are likely to be very volatile because they are based on some sort of unexpected news occurrence.Your protective stop loss needs to be somewhat substantial in order to allow the stock to move a little bit because you expect the stock to have a wider than typical bid/ask spread.

NOTE: Due to the nature of these plays, timing can occasionally require two entries.

Don’t be afraid to enter the play again if you feel rattled out the first time or that it still has the same qualities as when you initially entered it.If you look at the chart above, you can see that the price was already quite weak on the daily period, which suggests that before the significant selloff that put an end to the march lower, people had been selling this stock.

When we go from the daily to the 5′ timeframe, we can see that the stock fell from $16 to less than $10 in just 25 minutes after the market opened, and this was already after the daily had been falling for several weeks.

The probability of a bounce rises as we begin to piece everything together.

In this instance, there is a significant daily and 5-day selloff, as well as multiple bars with extremely wide ranges, significantly higher volume, a significant distance from the declining 21 ema, and a green bar at the bottom indicating that buyers are starting to step in and take advantage of this significant selloff.The entry point is $10.80 (above the green bar), and a protective stop loss is placed below the low of the green bar ($9.75), giving us a stop loss of just over $1 and a potential upward movement of $2.

The descending 21 ema, in this example approximately $13.50, will typically be the first objective, and a pivot trail stop will typically be the second target.As was already indicated, these trades often have a reward to risk ratio of 2:1 and a very high level of accuracy.

These patterns tend to be quite volatile, therefore they are not recommended for the “faint of heart,” but if you can handle their rapid-fire speed, they can be profitable.A parabolic play often waits for any sort of unexpected news that will propel the stock sharply higher or lower.

In fact, the move is stretched to the point when it “needs to” pull back.The stock in the case below was battered up so severely that a bounce was inevitable.This article’s goal is to clarify when that bounce will take place.

The price plunged from $12.75 to less than $9 in less than 10 minutes, as shown in the chart above.That is a very strong move, and it was sure to bounce eventually due to how extreme it was.Identifying the most likely time for the bounce is our responsibility as traders.You may tell when the bounce is coming by the factors listed below:could be quite profitable and entertaining to trade.

They are a common “go-to” pattern for many of our clients here at Live Traders because they can be used on ANY time frame (including daily, weekly, and monthly charts), they have very little to do with the state of the markets, and they simply take one less worry off of trades, making your life simpler and more profitable!It takes a lot of time and effort to become a successful day trader, so it’s a good idea to complete your research before settling down.

To obtain a better sense of where you would probably feel most comfortable, it is advisable to ask seasoned traders about their experiences and, of course, to conduct your own research.

Even after 12 years of doing this, I continue to learn something new every day.The most successful people are typically those who put the knowledge and experience they get to use. Therefore, never get ahead of yourself and never let your ego make decisions for you. The market is all-knowing and has an uncanny way of teaching us lessons, especially when we least expect it.

The truest form of meritocracy is seen in trading.The market is ‘usually’ fair for all participants, regardless of account size, degree of experience, education, IQ, or anything else (yeah, I realize HFTs and major banks don’t play by the same standards).Because there are no office politics or other obstacles to your advancement but your own merit, the sole deciding factor in this industry is how much you want to achieve.Additionally, it offers as much independence as or even more than virtually every other job out there.Trading is a fantastic industry.

Wishing you success on your trading path! If you are ready to put in the time and effort to learn it, it is undoubtedly one of the most rewarding and adaptable professions out there.

It won’t be simple, but it will be worthwhile.