It’s not just $100; it’s more like “How to make $100 x 2, $100 x 3, $100 x 4, … .” But let’s not get too far ahead. It’s a marathon, not a sprint. Your goal should be consistent profits. If you are looking for a quick $100 bucks, then you’ll be disappointed.
A trader has to make several decisions in the process of buying or selling a stock. Each trade strategy is attempted in the hopes of making profits and averting risk. Profit is the sun that a trader revolves around.
It’s challenging to be always profitable in the stock market. Yet, there are ways to make money in the market. It’s not easy, but it’s doable. It requires a lot of hard work, just like any other financial endeavor. It will require patience and dedication.
1. Create Your Trading Plan
Build a strong foundation – create your personalized trading plan.
Beginners & Intermediate Traders
- Trade with paper account for weeks/months until trade entries and exits becomes second nature.
- Treat paper account as real account otherwise you’ll be unable to replicate the results.
- Keep a daily trade journal. Document trades and keep a copy of charts with entry and exit noted on it.
Experienced Traders
- Go back and check last 3 to 6 months of trade and see what’s working/not working.
- If you need to reset, start paper trading. Otherwise continue trading your current strategy and our stock picks alert system.
- Check your results and refine trading strategy to reach your goals.
2. Trade Entry – When to Buy the Stock
- Wait for a pullback after receiving the stock pick alert to enter the trade (low risk entry).
- If there is no pullback and overall market is strong in the direction of the stock pick, enter the trade (high risk trade).
- Do not chase the trade. Be patient, next stock pick is right around the corner.
3. Trade Exit – When to Sell the Stock
- Place limit order to exit the position in the profit target range. If the price action warrants an early exit, do so.
- Give some room for trade to work. Place the stop loss order within the range specified in the alert.
- Manage your position. Price action is dynamic, so adjust your exits accordingly.
4. Build Rules and Discipline
- Don’t over trade or revenge trade i.e. try to make up for the losses in the day. You will probably lose more.
- Be consistent with entries and exits. Make it a habit to take the trade when it meets your criteria and manage it like a hawk.
- Once you’ve reached your daily goal, stop trading. Otherwise you will lose it all, and, some more.
How to reach $X/day goal?
First, trade small size like 200 shares and look for $0.25 profit resulting in $50/trade. Repeat the process with another trade. This will gross $100/day. Be flexible with the profit target but try to do this with 2 trades with 200 shares each.
Once you’ve mastered this after 100’s of trades, you can consider increasing trading size to 400, 500, etc. shares. The method stays the same. You are now taking advantage of the multiplying factor.
400 * $0.25 = $100/trade. Repeat this on second and third trade to get to $300/day.
Increase trade size (no. of shares) only after you’ve consistently meet your goal. If things are not working out, reduce the trade size.
If only it was this easy to make $100 a day then everyone would be doing it. You make it sound very easy but in reality it is not. No one should just read this and go out there thinking I can make $100 easily.
Trading requires a lot of hard work. It will be the hardest thing you have ever done if you are new to it.
Just wanted to say your system is quite effective. It takes a few weeks to get used to it and thereafter trading it becomes very easy. I also found that alert types has been consistent over the last year or so which is good for me.
Keep up the good work!
Hi, I opened an account with 53k but i hav lost already 9k. I am really scared now I am not sure if I will be able to recover any time soon or I will loose everything. Since, my account is margin account I tried buying mid cap and high cap less volatile stocks and I could easily earn 1 k in each trade when stock just moved 10 to 15 cents up. But, I again ended up loosing bcoz of trying to cover as much as possible in one day itself. Now, my goal is only 1 k per day and i will stop trading for that day if i make 1 single loss. But, I want to carefully play that 1 stock and hence joined estockpicks expecting that I will get some stock alert in which i will atleast get 10 to 15 cents move. Do you guys share mid size or high cap stock alert or most volatile stocks which can go side ways?How to ensure which one I shud pick based on your multiple alerts?
Hi Abhijeet,
Our stock picks range from $8 to $20 generally. It might fluctuate $1 to $2 from time to time. Our algorithms select momentum stocks on any given day with the potential to go up (long) or down (short). We send up to 7 alerts a day and not everyone of them will pan out a big winner.
We recommend the alerts to be charted in different time-frame (2 minutes, 5 minutes, 15 minutes, hourly and daily) and select stock that best meets your trading plan.
Best Wishes,
eStockPicks Team
This is great ! Just wondering how do you determine momentum?
Hi – lot of factors are considered in determining momentum i.e. volume traded, rate of change of volume and price, overall market condition, time of the day, etc. Easiest way to find momentum stocks would be to look for stocks making new 52 week highs/lows.
Thank you!
I also have another question. Since estockpicks helps out with day trading, isn’t day pattern day traders identified? I’m just curious if I have to maintain $25k in a cash account? Which is really difficult for me to do, so does that mean I can only swing trade?
Hi – your broker would automatically identify pattern day trading based on the trades. There is a certain minimum requirement ($25,000) for PDT. You could place a certain numbers of day trades as long as you stay under the number of trades within certain days. Please check PDT rules for more information.
Nice article and very encouraging.
Quick question— when you say “pullback”, I don’t understand how to determine it after your alert pick come through? Just wait it it out a few minutes for the price fall further to current suggested range, before it picks up again?
If I am not using limit position to exit the suggested range, I literally have to continuously monitor the price. Isn’t? Also there’s a chance that the stock doesn’t hit the limit or falls down to the stop loss price range. In such a case, my position is either avg. or avg+. Not sure if I can read the upward trend on a stock momentum.
Yes, wait and watch the price action after the alert comes out and build the position as is starts to move again. Sometimes the stock will not present any pullback opportunity to buy/sell due to high momentum. Over a period of time you’ll learn to read the price action and realize pullbacks and momentum opportunities.
It’s always recommended to have target exit and stop orders in place once the order is filled. Otherwise, like you mentioned the position has to be constantly monitored.
Is this still working with the recent market volatility? Do you see more bullish or bearish stock market ahead?
Hi Jake – this method will work in any type of market – bull, bear or flat. They key to long term success is consistency and discipline. You might have to tweak the targets depending on how the overall market is doing on a particular day, but the general principles remain the same. We trade the market as it plays out daily – no one knows for sure what’s next; bullish or bearish market.
I like the charts example…. nice to see different types of trade entries and even those that fail sometimes. It’s inevitable. Are these being updated with new charts? Thanks.
Hi Frank,
Yes, new examples of chart with actual stock pick alerts are frequently updated. Please visit the site every few weeks to check the new charts.
I like the trading plan. Thanks for making it available.
Nice system. Quick question – from the charts it looks like the stock alerts only when at the high or low of the day. Do you have any other type of alerts i.e. reversals?
Hi,
Our algorithms are based on momentum stock setups that offer best opportunities for trading. There are several other setups but we concentrate on stock patterns that are moving higher or lower and have potential to continue that trend.
Hi, nice charts.
Is this mainly for day traders or can swing traders also use the same strategy?
It applies to both day and swing trading. Remember to manage your swing trades as well. You need to watch it and make adjustments to your targets/stops.
This looks very interesting. I’m signing up …. quick question though. Are your stock picks for day trading only or can it be used for swing trading as well?
Thank you.
Stock Picks are primarily for day trading. However, look at the charts for the last 5 days and determine if the stock is a good candidate for swing trade. Consider the following when holding overnight:
Support and Resistance for the last 5 days
Entry price
Target
Overall market condition
Very interesting. So, is pull-back entry the best strategy for someone new to the market and trading? Can you suggest any online paper trading sites? Thank you!
Jacob
For paper trading check out wallstreetsurvivor dot com
Jacob, yes, pullbacks are best way to get in on a trade. Pullbacks offer safe entry with low risk of getting stopped out. They are brief pullback before continuation of the trend.
Wallstreetsurvivor is good online paper trading platform. You can also try paper trading on Google Finance site by creating a portfolio.