DRMC Results - DRMC

On wednesday I picked two stocks that I was watching. One was MZEI which didn't break the point I wanted it to so it was not a play. The other stock though, DRMC, did break the point I had wanted. .43 was the point I had wanted it to break and would have been my entry point. Unfortunately, I slept in that day and missed my entry. The stock opened higher at .46 then dropped to .38 but once it broke .43 it took off all the way to .52. Note to self, dont sleep in.

Potential Plays for 4/17/14 - DRMC & MZEI

DRMC is my main pick as it had a very strong finish yesterday. Its up pretty high as it is but has plenty of room to go higher. What I will be looking for tomorrow for it to break .43. That will be my entry point. This stock could very easily turn around so I will have my finger on the trigger if I do get in.

MZEI is my second pick. This stock has intraday resistance at .28. If it breaks that point I believe we could get a small spike. Both of these stocks are up pretty high so I will be quick in my profits if they do indeed spike.

Taking the Trading Day off so here's some Q&A

What is the PDT(Pattern Day Trader) rule?
The PDT rule states that if you trade more than 3 day trades in a 5 business day period of time you are considered a day trader. If this happens you must maintain at least $25k in your account at all times. In the U.S. you can use Suretrader to get around PDT or open a cash account(see below)

What is the $2.50 rule?
 When shorting a stock under $2.50 you have to have at least $2.50 in equity per share even if stock price is less. Example: You want to short a .50 stock and you have $10,000. To figure out how many shares you could short you divide $10,000 by 2.50 which is 4000 shares.

Cash account versus Margin account? 
A cash account is an account where you only use your cash, no margin. This allows you to get around the PDT rule but it takes 3 days for any money gained from selling to settle in your account. So if you have $3000 and you use $1500 for a day trade, you have $1500 left to use until the previous trade settles.

What's the best broker? 
This is different for each person and location. Different countries have different brokers. Also, the strategy you are using. If you use shorting in your strategy then I.B.(Interactive Brokers) or Suretrader are good choices. But, you also need a certain amount of $ in order to open an account with I.B. These are all the things you need to consider when picking a broker:

• Opening requirements
• Fees - Especially on shorting or buying pennystocks
• Software - Included or extra charge
• Level II access - Free or extra charge
• OTC shorting / buying allowed?
• Shorting allowed at all price levels?

How much money should I start with?
If you are playing penny stocks or low priced stocks then I would start with a minimum of $2000. It is possible to start with less but commissions make it very difficult to make enough to be positive.

Another Breakout Example - WAVX & SPLI

So today the big stock was WAVX. I did play this stock but I was too late both times. Each entry I was only .05 -.1 up before it tanked and I didnt have time to take profits. But it's another good lesson to learn, don't chase and take early profits. This stock showed up on my alerts this morning but I didn't act on it, like usual. I saw that stock as it broke 1.27.... Anyways, I did learn another window to keep up during trading and thats the volume alerts on EquityFeed. Look at the chart below and see if you can see all the resistance/breakout levels. Post them in the comments.

 

Towards the end of the market day Tim alerted us to SPLI. This stock spiked all the way to.086 so I could've profited more but I took early gains like should.  I got in at .0746 and out at .083. It ended up being +$109 which helped cover some of the losses from WAVX. While I was negative for the day, I am still learning and my losses have been down and gains have been up. Won't be long till I start profiting haha.

Another Breakout - RDNT

So I got an alert from one of my alerts I set the other day about RDNT breaking 4.27. That was the closest resistance point previously. I got the alert at 11:31 and it stayed just above 4.27 for a few minutes. I drew a line where the resistance is. Once it broke it went up about 4.45 and came back down only to test 4.45 again an hour later. Once it broke 4.45 it spiked up again to 4.71. It is currently at 4.57 which is still far above the alert that I got. In all of the DVDs and gurus I've heard they say find your strategy and stick to what your good at. I believe I found my strategy and have gotten pretty good at find them. Now I just need the bank roll to be able to profit on some of the pricier stocks. I will only be playing these types of plays for awhile until I feel confident trading it.

Level II Basic Tutorial

This is tutorial is very basic just to give the viewer a brief understanding of what Level II is and how it applies to price action. Future tutorials will cover how to use Level II in more detail. Watch this DVD for a better tutorial - Level II

New Video - ThinkOrSwim OnDemand & Breakout Example

Equity Feed Filter Builder

A missed play but I'm learning - MNTR

I was watching MNTR today and saw that it was consolidating just under $3.00. I mentioned on TimAlerts chat that it could break $3 and when it did that it was going to rise. It ended up breaking $3 and went all the way up to $3.44. On the chart below I marked all the different breakouts that could've been bought into. I stayed on the sidelines today as I made some profit and didnt want to overtrade but I actually made some good calls so I'm proud of myself haha.