Is Goed Stocktwits a good stock forum for investors

Goed Stock price has dropped % since its IPO in early 2020. Now, many retail investors who have been holding the bag are turning to Goed Stocktwits for insights. But Is Goed Stocktwits a serious forum disciplined investors should turn to for their due diligence? Goed Stocktwits has 9000 Followers looking for elusive Insights Stocktwits touts itself as a real time trade and investing ideas forum with the largest community of traders and investors. That is a great marketing motto. …

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What does nhod mean in stock trading?

Are you tired of asking questions to your friends or in stocks trading forum about basic lingo? Learn what NHOD and many other terms mean in stocks trading so that you can feel more confident to interact to fellow traders in Discord room. Plus, I will give you my easy free NHOD options trading strategy. NHOD Meaning in Stock Trading NHOD in stocks trading stands for New High of the day. This denotes the most recent highest price a stock …

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What does dd mean in stocks investing

What doesDD mean in stocks investing - 2022 market trend

Many stocks traders often ask me what does dd mean in stocks trading. That is usually a tell sign that such trader is a beginner trader. Should you be in the same situation, this discussion about the meaning of dd in stocks trading will reveal the mystery. Meaning of dd in Stocks investing For years online traders have been using the word DD as a shortcut for Due Diligence. Which is often used in the phrase: “Do your own DD”. …

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How To Beat IV Crush in Options Trading

How to Beat IV Crush

Options markets conditions have never been as volatile as in the last couple of years. Many traders find themselves struggling with Implied Volatility (IV) Crush that eat up options premium faster than you can imagine. In this IV Crush, I will bring you all the insights you need to successfully trade IV crush as well as my secret IV Crush to keep your options trading account from crashing. What does IV Crush mean in stocks Options To first step in …

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How To choose an Option Strike Price

Choosing an option strike price is one of the most important aspects of trading options.

Often traders over think this activity on how to choose the strike price of a position they want to trade.

In this tutorial, you will learn step-by-step what is a strike price, how to easily decide the strike price and get a free strike price calculator so that you can gauge all the nuances of strike price in options trading.

How To Choose a Strike Price in Options Trading | Definition

I have been coaching options traders for several years now.

One of the common confusions is when we start the discussion on strike prices.

Let’s take a look at the meaning of a strike price in options trading.

What is a Strike Price in Options Trading?

A strike price in options trading is a price you as a trader thinks the stock price will get to within your options expiration trading window.

Suppose you are bullish on AAPL stock.

Let’s assume the current price of AAPL is $145 (that is actually AAPL real price as of this writing).

Then after you decide on your Expiration date, you can choose any strike price you want on the AAPL option chain.

Below is an example of Option Chain for AAPL stock for June10 Expiration.

How to Choose a strike Price - June10 2022 Option chain for AAPL calls displaying 147, 148 and 148 strike price
Different strike price for AAPL June10 Calls

Stock Price vs Stock Option Strike Price

The first nuance options traders’ beginners need to gather is that the strike price is not the stock price.

One easy way to remember this concept is to think of the strike price as a fixed value which price varies as the stock price (known as the underlying) is moving.

In our previous example, if you select the 149 strike price for June10 expiration, you will stick with that strike price until you decide to close the position.

What will vary is the price of that strike price from your initial buy price which in our case is set around $1.29.

Strike Price vs Exercise Price

The exercise price of an option is in fact the strike price for that contract assuming the stock price is greater (for call options) or lower (for puts options) at the time of the exercise.

If you are holding the AAPL 149 calls and the stock is trading at 149.5 before or on June 10, you can decide to exercise your option which means you will be buy shares of AAPL at exactly $149.

Most traders will simply close the $149 call by selling the contract and cashing in the profit.

That is how most traders make money trading stock options.

How To Determine the Strike Price

Now that we have a good understanding of what an option strike price is and what it is not, let’s further provide key characteristics of strike price as they will help in deciding how to choose the strike price.

Strike Price in the money

Two categories need to be considered to explain the “In the Money Concept”.

For calls, a strike price in the money is a value that is lower than the current stock price.

Example, the AAPL 140 calls are $5 In the money because 140 is $5 higher than the current $145 AAPL stock price.

Conversely, for Puts, the AAPL 149 Puts are $4 In the Money because 149 is $4 higher than the current price of AAPL stock.

The main takeaway here is that the deeper IN the Money and Option strike price is, the more expensive the corresponding contract will be.

This means that for the same expiration date, the AAPL 140 calls will be more expensive than the AAPL 142 calls.

And this is true with both of them being “In the money” respectively by $5 and $3.

Strike price out of the money

Strike price out of the Money are the symmetrical opposite of the In the money strike price.

Some options trading platforms such as E*TRADE often shade In the Money vs Out of the Money strike prices in different colors.

For Calls, if the strike price is higher than the current stock price, that strike price is considered Out of the Money.

You may have guessed the next insights already.

The further out of the money a strike price is, the cheaper is the cost of that option contract for a given expiration day of course.

What Is a Good Strike Price?

Choosing a good strike price is achieving the perfect balance between the cost of the option contract of that strike price and the probability of making money trading that strike price.

That is exactly what my methodology of choosing an option strike price is all about.

On one hand we do not want to Spend too much Money (this is the Risk side) for that contract.

Whereas on the other hand, we need to be mindful about the probability of that trade being successful.

In need to add a very big myth options traders carry out there.

You do not need to be “In the Money” to make (big) Money.

In fact, the majority of my strategies are “Out of the Money” strategies but with a very high probability of being successfully profitable.

What Happens when the stock hits the Strike Price?

May traders have asked me why not just buy Out of the Money strike price ?

Since they are cheaper than the In the Money ones?

The Answer is quite simple.

When the stock hits the strike price and start getting In the money, the profit you make as a trader become much bigger.

This means that you have a higher probability of getting a winning trader when you trade In the money strike price.

The trade-off is that they are more expensive and may not be affordable for many options traders.

However, I want to caution you about the myth that all In the Money Strike price will be profitable.

That is simply not true because what if you buy deep in the money strike price for calls and the stock starts going down.

Well, you will lose a lot more money that someone who risked a smaller amount buy buying out of the money contracts.

In fact, here is an easy table to illustrate how much a $1 move impact the option contract when it gets in the money.

at the Money$1 In the Money$2 In the Money$3 In the Money
Increase in Option Contract Price55 -60 cents65-70 cents75-80cents85-90 cents
Options Strike Prices Pay More as the Get Deeper In the Money

How The Strike Price is Calculated

With all the insights we have unveiled about options strike price, here is a very practical way you can go about determining the strike price for your options.

How to choose a strike price for Call Options

For both calls and puts, I have this simple methodology to reach a nice trade-ff between cost and probability of success in your options trading.

How to choose a strike price for Put Options

You will apply the instructions described in my simple video below and follow along with the free Excel Strike price Calculator.

My Free Options Strike Price Calculator

In order to help options traders, I have a developed a quick method to calculate the strike price for any stock.

It is an Excel spreadsheet calculator you can download and easily use to improve your strike price selection going forward.

Strike Price Calculator Methodology

My simple strike price calculator uses a basic options trading indicator: the average true range.

How to calculate the average true range article and video below gives you further insights on the accuracy of this technique.

It really works well because you are using a high probability metric to increase your chance of success without overpaying for the options contracts.

FINAL THOUGHTS: How to Choose an Option Strike Price

I shared how you can easily choose a strike price based your Risk level tolerance and available capital to invest.

An Easy free Excel Strike price Calculator is available for download.

You can quickly determine your options strike price for any stock you are trading using a very simple indicator the average true range (ATR).

What is a Stock Split – Easy Guide and Famous Examples

What Is a Stock Split ? - Is Anzon stockSplit a Buy ?

Very high share prices mean that not every investor can afford the stocks. So, many companies engage in stock splits to keep their shares affordable to investors at different levels.

Here at Successfultradings, we’ll consider what a stock split is, how it works, famous examples, and every other thing you need about a stock split.

What is a Stock Split?

Virtually every company would like to attract as many investors as possible.
The more investors you have, the more capital you can invest into the business,
and the more profit you can generate.
That is why the price and value of a company’s stocks matter a lot to them.

What Does a Stock Split Mean?

Simply put, a Stock Split refers to a company’s decision to divide its existing shares into more share units.

With a stock split, you can increase the number of shares your company has without increasing the overall worth of the shares.

The general effect of a stock split is that it increases the number of a company’s shares outstanding and decreases the unit price of shares.

In essence, the total value of a company in shares and the value of each stakeholder’s shares remain the same. 

What is a stock Split - Example of a $100 stock going through a 2:1 split
Example of a 2:1 Stock Split

The only changes after a stock split are the increase in the number of shares outstanding and the reduction in the price of shares.

You can watch this video to learn more about stock splits.

How Does a Stock Split Work?

For a better understanding of what happens after a stock split, let us illustrate with some figures. 

Assume Company Z has a total of 100 shares outstanding at $60 each. That’s a total share value of $6,000. Also, say as an investor, you buy 20 units of shares of stocks from company Z; that’s a total stake of $1,200.

Understanding a Stock Split

Now, let’s assume the company decides to do a “3-for-1” stock split, for instance. It means every share you have is divided into three units. So, while the company now has a total shares outstanding of 300 shares, you have a total of 60; that is 3 times the previous number of shares.

Remember that the total worth of the shares remains the same even after the stock split divides them into greater multiples. So, in this scenario, the 300 shares of the company will still be worth $6,000 and the 60 shares you have will still be worth $1,200.

However, notice that stock split reduces the unit price of shares. In our example, the new share price will then be $6,000 / 300; that is, $20. So, for every share of $60, you get 3 shares of $20 each after the split.

Stock Split Ratios

There are different ratios a company can apply to its stock split. The ratio tells you how many units a share will be split into. For instance, if a company does a “4-for-1” split, it means each share is divided into four units. The most common stock split ratios are 2-for-1, 3-for-1, and 3-for-2.

However, there are no limits to the ratio a company can apply. The major thing is that the total worth of the split shares must equal the original worth of the shares before it was split.

Below is a summary of common split ratios and how they work. Assume you have a share of company BG worth $1,000, and the company decides to split the stock. This table demonstrates the effects of the split under different ratios.

SPLIT RATIOPRICE BEFORE SPLITPRICE AFTER SPLIT
2-for-1$1,0001000/2 =  $500 each, total of 2 shares
3-for-1$1,0001000/3 = $333.3 each, total of 3 shares
4-for-1$1,0001000/4 = $250 each, total of 4 shares
5-for-1$1,0001000/5 = $200 each, total of 5 shares
N-for-1$1,0001000/N = $M each, total of N shares
Forward Stock Split Table Illustration

Why Do Companies Split Stock?

Although stock splits do not add any direct economic value to a company, several benefits make companies consider it. Some of the major reasons are:

  • To Make the Shares More Affordable

When the share price of a company becomes very high, it can scare away investors who are low on budget. It implies that only investors with high capital can afford the shares.

But when such a company splits its stock, the share price reduces without affecting its total value. As such, other investors can afford the stocks and the shares also have more potential to grow in value.

  • To Enhance Stock Liquidity

Stock splits increase the number of shares a company has in circulation. This is a plus for stock traders as it becomes easier to buy and sell the stock at moderate prices.

It means that trades with that stock can be executed much more quickly and without needing so much capital too. This gives day traders the ability to maximize sharp and short market movements to make quick profits.

  • To Spike Up Interest in a Company’s Stock

Most investors perceive stock splits as a sign that a company is doing well. So, when a company splits its stock, investors take it that the increase in price that warranted the split is a signal that investing in the company will be a profitable move.

Since investors love investing in companies that have prospects of high ROI, splitting stocks attracts more investors.

Also, the reduction in share price that results from stock splits attracts the attention of potential investors with lower capital. As more people become interested, the demand for the stock increases. The high demand in turn causes an increase in the price of the shares.

  • To Create Room For More Growth

Due to reduced share prices and more available shares outstanding, a company’s stocks become more accessible to investors at different levels. This means they can generate more capital to expand the company or invest in massive projects.

The reduced price also gives the shares more allowance to accommodate future increases in price and value.

Famous Examples of Stock Split

#1. Apple Stock Split 2020

One of the most popular stock splits in recent times is that of the giant tech company, Apple, in 2020. Apple announced its intentions to split its stock, AAPL, on July 31, 2020. The company stated that it was a move to make its shares accessible to a wider range of investors.

The AAPL split came after the company stocks recorded a high price of well above $400 for the very first time. The rise in value was not surprising though after the company reported a profit of over $11 billion and a revenue of close to $60 billion.

This most recent split by Apple was a “4-for-1”, meaning that each shareholder got four shares for every single share they hold. According to the reports, the split applied only to shareholders who held AAPL stocks as of August 24.

Before the August 2020 split, Apple shares sold for $499.23 at market closing on Friday, 28th August, 2020. The 4-to-1 split meant that the shares sold for about $127 after the split.

History of Apple’s Stock Splits

The 2020 stock split was the fifth time Apple split its stocks since its public inception in December 1980.

  • Their first split was on June 16, 1987, when the company split their stocks on a 2-for-1 split ratio.
  • On June 21, 2000, Apple had its second split which was also a 2-for-1 split.
  • This was followed by yet another 2-for-1 split in February 2005 as the company kept waxing stronger.
  • Then, the company had its biggest split in June 2014 which was a 7-for-1 split.

From rough estimations, Apple shares would have been selling for a sky-high $28,000 per share if they have had no slit stock throughout this timeframe.

How the Apple Stock Split Influenced the Stock Market

The Apple stock split of 2020 had its impact on one of the most popular stock indices; the Dow Jones Industrial Average (DJIA). If you’re knowledgeable in the stock market, this should not be a surprise to you given that Apple is a “blue-chip” company.

The Dow Jones Industrial Average is a price-weighted index. What it means is that the companies that constitute the index are ranked by the prices of their shares.

Before the split, Apple topped the rankings on the DJIA with its share price a little below $500. But after the split, the company was somewhere within the middle of the index table. Of course, this meant that the stock became more reachable to investors that follow the DJIA.

#2. Tesla Stock Split 2020

TSLA Stock is about to go another Stock split in 2022 ?

In the same August 2020, popular electric car company, Tesla, also split its stock in a 5-for-1 ratio. According to the press release, the split applied to every stockholder on record as of 21st August, 2020 and took effect from August 31, 2020.

However, there has been strong evidence of growth in the company’s value after the split. On a split-adjusted basis, the share price since the split was announced in August 2020 has risen to above $800.

That’s close to 200% of the price as at the time of the split, and still well above the stock price of many companies.

Because of this increase, many people expect that Tesla might be up for another stock split pretty soon.

Such projections are based on the fact that Tesla’s business is considerably doing well at the moment, and the share price is still relatively high.

However, investors can only keep watching as the company has not made any indications in that regard.

Reverse Stock Split

Sometimes, companies also do stock splits to directly boost the price per share of their stocks.

This type of stock split is known as a reverse stock split. Reverse stock splits works directly opposite the way forward splits work.

In a reverse stock split, multiple shares are combined to make one share.

For instance, in a 1-for-5 reverse split, 5 shares combine to become one share. So, if you had 5 shares of $30 each, they would become one share worth $150 after a reverse stock split. 

Companies mostly do reverse stock splits when their price per share gets too low. Very low prices can affect a company’s stock performance in various ways.

First, it might put the company at the risk of getting delisted from an exchange when their share price gets below the minimum required price. This implies that it becomes harder to trade such stocks.

Again, if the share price of a company stays too low for a long time, it might be an indication of low growth potential. Of course, this is a turn-off for most investors. 

So, boosting the share price via a reverse stock split may help attract more investors. If you want to learn more about reverse stock split, this video might be a helpful resource.

Below is a summary of reverse stock split and the effect of different ratios on a company stock of $1,000 each.

NO OF SHARESWORTH BEFORE REVERSE SPLITREVERSE SPLIT RATIOOUTCOME OF REVERSE SPLIT
10$3001-for-101 share worth $300
50$5001-for-510 shares worth $50 each
10$501-for-52 shares worth $25 each
Example of Reverse stock Split Table

Impact of Fractional Shares on Stock Split

With the recent introduction of Fractional Shares trading on many platforms, it is reasonable to assume less and less companies will resort to stock splits as a way to attract new investors.

Nowadays, you could become an owner of NFLX fractional shares for less than the price of a movie ticket .

Or you could easily acquire fractional shares of AMZN for as little as what you pay for your yearly prime subscription.

This is makes it less likely that the big expensive stocks will risk diluting the value of the current shareholders.

Here is our full article on how to buy Fractional shares on Webull, one of the first brokers to offer this feature on a large scale of stocks.

Summary of Recent Famous Stock Split

As Amazon (Ticker: AMZN) in early June 2022 and later GOOG in July 2022 will be going through stock split, here is a summary of recent famous stock splits.

Why is this relevant you might wonder?

Because the following five companies are major holdings in two key ETFs in the US Equity markets that is SPY and QQQ.

TSLAAAPLNVDAAMZNGOOG
Most Recent Split DateAug 31, 2020Aug 31, 2020July 20 2021June 6 2022July 2022
How Long for 50% Gain3 months
50%
16 months
44%
4 months
77%
UpcomingUpcoming
How long for 100
% Gain
5 months
100%
TBDTBDTBDTBD
TSLA | AAPL | NVDA| AMZN| GOOG Recent Stock Splits

FINAL THOUGTS ON STOCK SPLIT

Both forward and reverse stock splits do not affect the overall worth of a company’s shares outstanding. You can learn the differences between forward and reverse stock split here.

As an investor, you might need to watch out closely for the causes and implications of a stock split for your company of interest. This will help you make good investment decisions and stay on course for better returns on investments.

Is Goed Stocktwits a good stock forum for investors

Goed Stock price has dropped % since its IPO in early 2020. Now, many retail investors who have been holding the bag are turning to Goed Stocktwits for insights. But Is Goed Stocktwits a serious forum disciplined investors should turn to for their due diligence? Goed Stocktwits has 9000 Followers looking for elusive Insights Stocktwits touts itself as a real time trade and investing ideas forum with the largest community of traders and investors. That is a great marketing motto. …

Read More

What does nhod mean in stock trading?

Are you tired of asking questions to your friends or in stocks trading forum about basic lingo? Learn what NHOD and many other terms mean in stocks trading so that you can feel more confident to interact to fellow traders in Discord room. Plus, I will give you my easy free NHOD options trading strategy. NHOD Meaning in Stock Trading NHOD in stocks trading stands for New High of the day. This denotes the most recent highest price a stock …

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Is Lego stock a good investment in 2023

Is Lego stock a Good Investment in 2023

Lego is one of the most powerful brands in the world. Many investors looking to grow their money on this company. So, Is Lego stock a good buy in 2023 and beyond? What is Lego Stock Price 2023? Lego does not have a stock price yet. Since its creation in 1949, the largest toy company in the world (as of 2021) is still privately held. The Danish based Lego group created by Ole Kirk Christiansen continues to flourish across the …

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What doesDD mean in stocks investing - 2022 market trend

What does dd mean in stocks investing

Many stocks traders often ask me what does dd mean in stocks trading. That is usually a tell sign that such trader is a beginner trader. Should you be in the same situation, this discussion about the meaning of dd in stocks trading will reveal the mystery. Meaning of dd in Stocks investing For years online traders have been using the word DD as a shortcut for Due Diligence. Which is often used in the phrase: “Do your own DD”. …

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How to Beat IV Crush

How To Beat IV Crush in Options Trading

Options markets conditions have never been as volatile as in the last couple of years. Many traders find themselves struggling with Implied Volatility (IV) Crush that eat up options premium faster than you can imagine. In this IV Crush, I will bring you all the insights you need to successfully trade IV crush as well as my secret IV Crush to keep your options trading account from crashing. What does IV Crush mean in stocks Options To first step in …

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Can You Buy and Sell Options After Hours?

If you are looking to buy and Sell options after hours, this step-by-step guide is the right one for you.

You will learn what type of options you can buy and sell after hours, how to do it to make money consistently and the pitfalls to avoid so that you can continue to take your trading account to the next level.

Can You Buy Options After Hours?

The simple answer to the question Can you buy Options after hours is that it really depends on your broker.

In theory, you can and sell ETFS options in the 15 minutes after hours window each day.

However, I have heard so many disheartening stories from traders on how some brokers simply do not allow them to take advantage of this opportunity.

Here is a summary table of which brokers gives you this extended window to buy and sell options contracts on the main ETFS : SPY, QQQ, IWM and DIA just to name these leading ones.

Brokers After Hours Options Trading PolicyYes/No
Can you Buy Options after Hours on ETRADE?Yes
Can you Buy Options after Hours on Webull? Maybe
Can you Buy Options after Hours on Robinhood? No
Can you Buy Options after Hours on TD Ameritrade? Yes
Can you Buy Options after Hours on eOption? TBD
Brokers Policy on After-Hours Options Trading

Can You Sell Options After Hours?

Once you are able to buy options after hours in the extended 15 minutes window from 4pm EST to 415EST, you can sell them for profit or carry them if your Expiration date is still in the future.

On Tuesdays and Thursdays, there is no expiration pending at 415pm therefore we can carry our options to the next Day .

You ought to be careful on how to manage your overnight positions because there is no guarantee the stock will continue in the same direction the next day.

Can all stocks Options be traded after hours?

Not all stocks have options that you can trade after hours.

In fact, as of now, only the main ETFS such as SPY, QQQ, IWM and DIA offer you the ability to trade their options during after hours.

Can you Trade SPY Options after hours?

Prior to May 2021, SPY after hours options trading was the only after-hours strategy I was using.

Ever since, I have a new favorite ETF I prefer to buy and sell options with after hours.

There is nothing wrong with buying and selling options after hours with SPY.

It is just that my new best ETF pays more, and I have been focusing on it ever since May 2021.

Care to find out which one it is?

Read below please.

My Best Options to Trade After Hours

When Should you Trade QQQ Options after hours?

You should trade QQQ Options after hours whenever there is a binary event taking place that can impact QQQ price.

Such events are mostly Earnings from the Top 8 companies of QQQ.

Here is a recent table summarizing how the top technology companies Earnings Release impact the after-hours price of QQQ.

After Hours DATEQQQ After Hours MovementReason for after Hours Volatility
April 19 2022QQQ from $346 to $342#NFLXEarnings [-20%]
April 20 2022QQQ from $341 to $343#TSLA Earnings [+5%]
April 26 2022QQQ from $317 to $313#GOOG Earnings [-6%]
April 27 2022QQQ from $317 to $321#FB Earnings [+13%]
April 28 2022QQQ from $328 to $324#MAZN Earnings [-10%]
Recent QQQ After Hours Options Trading Opportunities

Why You should Trade QQQ Options After Hours

The main reason why you should trade QQQ Options after hours during Earnings season or FOMC statement is because very cheap options can quickly make you a lot of money.

A $2 move after hours on QQQ stock price especially on Expiration Day can easily bring you over 100% in a matter of a few minutes.

We have a very cheap Strategy that can yield big returns.

What’s not to love ?

Here is a recent QQQ option chart we captured showing how the puts contracts appreciated after hours from 86 cents to $1.86.

Can you buy and sell options after hours
Over 100% Profit Buying and Selling QQQ Options After Hours

How To Buy and Sell QQQ Options after Hours

I am able to provide these insights on how to trade QQQ options after hours because of the many trades I have been in since 2014.

This has enabled me to gather a great deal of statistics which that many traders in my Discord room are leveraging now.

And so can you.

I teach my traders a very powerful after-hours options trading strategy.

We know that we an buy and trade QQQ Options each all the way to 4:15pm EST.

The concept is to focus on the 3 Expirations for QQQ Options: Mondays, Wednesdays and Fridays.

Why ?

Because on those Days, the closer we get to that time of closing, the cheaper QQQ options are.

CAn you Buy and Sell Options After Hours - QQQ Options paying over 600% after hours
QQQ Options Paying 600% After Hours

This means that you will not have to invest too much money in this strategy.

You will focus on contracts that are less than 15-20 cents.

By my empirical data, 15 minutes before 4PM official market closing, we can buy QQQ options $2 strike away for less than that amount.

We do this for both Calls and Puts.

Then a $2 move on QQQ stock rice up or down from 345pm to 4:15pm will make either the Calls or the Puts contracts explode for multiple baggers like 200%, 300% etc…

Here is a video example of this technique we use on SPY Options after hours but the principle is exactly the same for QQQ options after hours.

QQQ After Hours Options Trading Performance Tracker

One of the best advice I can provide you right now is your trading journey is to treat it as a businesss.

As such, business keep records of the performance of their products or systems.

In our case, our trading strategies is what we must evaluate and assess over time.

This is to make sure we are not blinding throwing money away.

Therefore, I am offering you this free Options Tracking Performance spreadsheet.

You will use it to track the performance of your QQQ after hours Trading Strategy over time.

Every 3 months or so, you should re-evaluate it to either scale back or up on this investment.

FREE DOWNLOAD: Download My FREE Options Performance Tracker

FINAL THOUHGT ON BUYING AND SELLING OPTIONS AFTER HOURS

I showed what, when and how you can buy and sell options after hours.

One stocks options we use to trade after hours during volatility events such as FOMC and Earnings is QQQ.

I invite to join our Discord Room today to further increase your understanding of after hours options trading.

Click Below to Join The 10-Baggers Trading System Today.

Day Trading QQQ Options – Your 2022 Easy Ultimate Guide

Day Trading QQQ Options For Big Profit

It has been a year since QQQ Options have introduced intra week expirations.

Once the sole privilege of SPY options, Trading QQQ Options with Mondays, Wednesdays and Friday’s expiration has provided more opportunities for day and swing traders alike.

My intent is to show you step-by-step how you can leverage Day Trading QQQ Options in 2022 and beyond to take your Trading to the Next Level.

Day Trading QQQ Options | What Is QQQ ?

Invesco Powershares is the official name of the Exchange Traded Fund you know as QQQ or the Q’s.

The name comes from QQQ founder Invesco, Ltd, an American investment management company based in Atlanta Georgia.

It mainly tracks the performance of the NASDAQ-100 securities.

What draws my interest into this fund recently is the introduction of intra week options trading expiration.

Before I get into those details, allow me to set the stage with a few interesting characteristics about the QQQ ETF.

Trust me, it will be worth your time to indulge into this preface.

QQQ Top 10 Holdings

Maybe like me, you have stumbled recently in the Invesco Powershares advertisement campaign.

When a big institution like QQQ’s parent decide to make to world know about their product, you know it want to go mainstream.

As a result, QQQ recently sponsored the Coach Trophy at the 2022 Womens NCAA Chanpionship Game 🙂

Day Trading QQQ Options - Invesco QQQ Sponsored Coach Trophy at Women's NCAA Championship
Invesco’s QQQ Sponsored the 2022 Coach Trophy at Womens NCAA Basketball Championship

All of this is to let you know QQQ is getting a lot of attention these days in the media.

Therefore, the fund is attracting more and more investors each day.

Especially, when you take a look at the Top10 Holdings in the Table below.

SYMBOLWeight%
AAPLEAAPL12.8
MICROSOFTMSFT10.2
AMAZON.COMAMZN6.8
TSLATSLA3.9
ALPHABET INCGOOG3.9
GOOGLE GOOGL3.7
NVIDIANVDA3.6
Meta Platforms (Formerly Facebook)FB3.2
BroadcomAVGO1.9
CISCOCSCO1.9
QQQ top 10 Holdings with Weight%

Why Does QQQ Composition Matter?

In order for us to answer this pivotal question about the composition of QQQ ETF, let’s bring in one extra set of data.

That is the below figure that depicts the sector allocation for QQQ.

Day Trading QQQ Options - QQQ sector allocation is dominated by technology stocks
Technology Stocks dominate QQQ Sector Allocation

From the above view, since almost half of the equities in QQQ ETF comes from the technology sector, the price of QQQ is mostly determined by the movement of its technology stocks.

What are those stocks you may ask?

Look no further than the Top 10 holdings we just shared earlier.

So, NASDAQ-100 has 100 stocks yet its Top 10 accounts for 52% of the weighting.

Day Trading QQQ Options For Big Profit

Day Trading QQQ Options – Your 2022 Easy Ultimate Guide

It has been a year since QQQ Options have introduced intra week expirations. Once the sole privilege of SPY options, Trading QQQ Options with Mondays, Wednesdays and Friday’s expiration has provided more opportunities for day and swing traders alike. My intent is to show you step-by-step how you can leverage Day Trading QQQ Options in 2022 and beyond to take your Trading to the Next Level. Day Trading QQQ Options | What Is QQQ ? Invesco Powershares is the official …

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2022 SPY Vs QQQ Options trading

2022 SPY vs QQQ – Which Is Best For Options Traders

I have been trading SPY Options for more than 7 years. Then in May of 2021, something happened to QQQ Options that changed my mind from that point forward. Today I will be sharing my experience trading SPY vs QQQ Options so that you can learn from it in order to Take your Options Trading to the Next Level. SPY vs QQQ – The Popularity Contest If you have been trading US stocks or options for awhile, chances are you …

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900% Profit on QQQ Option Trade

How To Trade QQQ Options For Big Profit

QQQ Options recently introduced daily Options just like its SPY counterpart. The prospect of being able to trade cheaper options contract on QQQ ETFs should excite many day traders. In this Day trading Tutorial, we will share our step-by-step strategies on how we can now day trade QQQ Options for big profit. Ticker Tape by TradingView How To Trade QQQ Options | What is QQQ ETF QQQ is an Exchange Traded Fund (ETF) launched by Invesco on March 10 1999. …

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SPY Trading System: Why You Must Have One in 2022

The goal of this discussion on SPY Trading System is to show you winning methods you can use this year to successfully trade SPY. The biggest Exchange Trading Fund in the US markets has enough volume and liquidity to make it an attractive vehicle for both bullish and bearish Day/Swing traders. SPY TRADING SYSTEM: OVERVIEW What is SPY ? SPY is the Exchange Traded Fund (ETF) for the Standard and Poor 500 (S&P500). This weighted index represents the biggest 500 …

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Day Trading SPY for 100% Profit

Day Trading SPY Options For 100% Profit

In this tutorial, we will share numerous examples of how to safely day trade Spy Options for Profit on expiration days. We do this with different techniques. One of which is by using to the Dark Pool Prints for 100% profit in less than 30 minutes. Impressive you may think. But the truth is that Day Trading SPY Options can lead to much bigger payouts. Want to find and learn how you can do it yourself ? Keep reading below. …

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Consequently, it is no surprise then when one of these Top 10 (really the Top 8 are the big boys since they are also the same Top 8 for SPY)

moves, QQQ moves accordingly.

We explained and provided recent great examples in Trading Options After-hours discussion.

In summary, QQQ movement is driven by 8 stocks that every serious trader ought to know about.

What Is QQQ Performance ?

Another consequence of the composition of QQQ is that since the technology companies have witnessed astonishing growth over the last 10 years, that has benefited QQQ investors a great deal.

The likes of TSLA or NVDA have returned over 2000% between 2016 and 2021 alone.

As a result, both have gone through 4:1 split recently just to keep affordable to new investors.

Day Trading QQQ Options | Master Level

I have been day trading QQQ Options since 2014.

Since I start coaching in traders in 2020, I am amazed how often I got the question:

How often do you trade QQQ Options.

I usually smile and nonchalantly answer: As much as I breathe…

It all starts in the pre-market for me.

QQQ Pre-Market Analysis

I host a Live Day Trading QQQ Options show on my YouTube Channel.

During the pre-market technical analysis, I break down the QQQ stock chart.

I provide a full analysis of how traders like you can take advantage of the constant volatility in this ETF.

Here is the most recent Live Day Trading QQQ Options stream.

Trading the QQQ Options Strategy

There are two QQQ options strategies I can teach you master like many traders in my discord Room have done.

The first one revolves around the early part of the trading session.

You can scrutinize this strategy in this free tutorial titled: How to Trade QQQ Options for big profit.

It still works.

The second QQQ Options strategy will be discussed further below.

My below YouTube video provides further details and showcases the study that validates our strategy.

Leave me a comment in the comments section of the video about your experience trading QQQ Options like many traders have done.

How Much Money Do you Need to Day Trade QQQ Options

The Answer to this question is very simple.

$5, $10 are enough to get you started in trading QQQ Options.

The following question you have for me is most likely, how much money can you make trading QQQ options with $5 ?

Answer: On April29 , 2022, you could have invested $5 in QQQ 315 Puts and make over $240 in less than 2.5 hours.

Inside the Mind of QQQ Options Day Trader

Trading QQQ Options vs TQQQ Options

In case you are wondering about TQQQ vs QQQ Options, let me put you at ease.

There is no obvious advantage in trading TQQQ options over QQQ options.

If anything, the higher implied volatility on TQQQ makes its options slightly more expensive.

QQQ ATR

In your quest to master QQQ Options trading, you will need a solid understanding of the Average True Range (ATR) indicator.

Thankfully for you, I have created this free Tutorial on how to calculate ATR in excel.

You will be able to download the spreadsheet I use in the video below to showcase how to use the ATR.

Day Trading QQQ Options using ATR technique
QQQ ATR Between April 2021 and Early 2022

However, you really do not need to calculate it as it is a standard bottom indicator that comes with many stocks charts.

The typical ATR value for QQQ is between $4 and $5 but the recent high volatility has brought it all the way above $8.

QQQ CALLS vs PUTs

For my permabulls (a trader who is ALWAYS bullish) out there, the key to making money trading QQQ Options is not to have any bias towards calls or puts.

I often tell the traders I coach in my Discord room that our opinion about the direction of QQQ stock does not matter one iota.

What is most important is our abilitytoread the chart properly.

As such, if the setup is bullish, we trade calls, if it is bearish we trade puts.

Here is a nice video on how I made 1000% Day Trading QQQ Calls and Puts on the Same Day.

Sometimes, if it is going sideways, well then, we just Patiently wait on the sidelines.

Now, I have to give you what I have observed so far with intra week QQ options trading.

Puts pay more than Calls.

This is true for all stocks, but the phenomenon is further exacerbated on QQQ options.

The reason is because when the market is going down, Implied volatility goes up big time.

QQQ Options Price on the Option Chain

Traders often ask me if I buy QQQ options contracts based on Delta.

The short answer is not really.

On the QQQ Options Chain, my only concern is the Implied volatility.

Usually, when the market is bearish like in the first quarter of 2022, QQQ options price for calls are 2 or 3 ties less expensive than puts.

This clearly correlates our remarks above concerning the Calls vs Puts payout.

QQQ Options Trading Successes

In a recent 1vs 1 Coaching session with one of the traders in my Discord Channel, I revealed how I have been tracking the behavior of QQQ options that has solidified our second trading strategy of QQQ options.

Should you be interested in this information, please ask me when you subscribe to my discord Channel.

There are two ways to get access, one is through my YouTube Premium Membership.

The other is by becoming a member of the 10-bagger trading System with ALL the Advantages it provides.

Here are some of the insights you will come to learn about Day Trading QQQ options.

Best Day to Trade QQQ Options

The best Day trading for QQQ Options are without a doubt the Expiration Days: Monday, Wednesday and Friday.

QQQ is not the only ETFs to enjoy such “feast.

Of course, SPY started it in 2018, then QQQ continued in May 2021 and IWM join them in October 2021.

However, I have published free Tutorial on how QQQ Options are better than SPY options.

I did not have to go that far to find a flagrant example of how lucrative Day Trading QQQ Options on expiration is.

On April 29, 2022, the picture below shows how we turned $5 investment into $240 in less than 3 hours.

Day Trading QQQ Options - 4000% Day Trading QQ Options on Expiration Day
4000% Day Trading QQQ Options on Expiration Day

This explosive return of over 4000% is NOT an isolated occurrence.

You can check the numerous posts in my Discord room where we even created a room named “The QQQThat Pays Us”.

True story.

Best Hours to Trade QQQ Options

Here is the reveal of our second QQQ Options trading strategy.

Each day, the closing hour provides great opportunities to make good money day trading QQQ options.

In those last 60 mins, a $2 move on QQQ stock on Expiration Day is sure to generate 100% profit. on options.

Combined with the fact that QQQ options trade after hours for 15 minutes, you can further increase your profit as illustrated in the above options chart on Apr 22.

On that day, QQQ 326 puts went from 5 cents to 86 cents in the last 30 minutes to close the regular session.

An additional $1 of gains was added on Top during the 15-minute after-hours session !

Thus, making it an overall return of over 3500% !

QQQ Options YouTube Videos

Sometimes, I shy away from making QQQ YouTube videos.

Frankly because the time I invest in doing them does not match the number of viewers.

Most traders do not believe in a video titled: 1000%, 2000% Day Trading QQQ Options.

Because I do not have any other titles but these to state the lucrative opportunities on how QQQ Options Trading.

Notice I did not make one for neither April 22 or April 29 massive gains.

You will have to be content with this third one of the series.

FINAL THOUGHTS ON DAY TRADING QQQ OPTIONS

I provided a step-by-step guide on how today trade QQQ Options by leveraging the intra week Expiration.

QQQ Provides a great deal of opportunities for disciplined traders who want to make a living Trading QQQ Options.

If you are serious about learning about Options Trading today, click below to get started today with an Education that will be Life Changing.

How Much Money Do You Need To Trade Options

Looking to start your options trading career and wondering how much money you need to trade options successfully

This Step-by-step- tutorial will show you that contrary to what so-called experts tell you, you can start day trading options with very little money.

How little? Read further.

How Much Do You Need to Trade Options

There is this misinformation out there from so-called gurus that one can only make money options trading by spending a great deal of money.

I have been trading and teaching beginners options trading since 2014.

I will provide you with the knowledge you need to start trading options without needing thousands of dollars.

How much do you need to invest in stocks vs options?

The great advantage of options trading over stocks trading is the fact that you do not need a lot of money to trade options.

Most US stocks – especially the high growth technologies stocks-have become too expensive for the average investor.

Recently, several of such stocks such as Apple(Ticker:AAPL) , Tesla (Ticker:TSLA) , Nvidia (Ticker:NVDA), Amazon(Ticker:AMZN) or Google have had to resort to stock split to make their shares more affordable.

That is very telling in this age of time where fractional shares buying is available to the general public.

How much money do you need to trade options - QQQ Top 8 stocks are expensive
QQQ Top 8 Stocks in 2022

How many shares of QQQ stocks Can you Buy with $100

A quick look at the above table reveals that the cheapest stocks in the tech ETF QQQ is Paypal (Ticker:PYPL) at $114 after losing almost 45% in 2022.

The second cheapest stock is AAPL with a price of $170 following a recent 4:1 split.

Consequently, it is very difficult to start investing in stocks without big money unless you are willing to try your luck with penny stocks.

On the other hand, you have multiple investment opportunities with options with a very small capital.

Cost of Options

Some traders often get confused with the options chain quotation.

American options by default are set such that one contract control 100 shares of the underlying stock.

Therefore, the option price you read on the option chain needs to be multiplied by 100 to get real money option cost.

Let me illustrate in the table below how to translate Option chain quotation into real money.

Option Chain Quotation ($)Real Money option price ($)
0.01$1
0.05$5
0.5$50
How To Translate Option Chain Price Quotation to real dollars amount

In case you may be wondering if $1 is a realistic amount to invest in options trading, let me answer with an Emphatic yes !

Here is the video of a recent trade I made on Target (Ticker:TGT) to prove it.

How much do you need to trade Options full time

In the above video, I showcased how I traded TGT options from $1 to $50.

That was not random at all.

I and other traders in my Discord room are doing this regularly.

So Can you when I teach you these very powerful strategies.

The table below showcases how I traded SPY options from 2 cents (quotation or $2 real money) to 20 cents in less than one hour.

How much money do you need to trade options - examples of $1 options investment in successful tradings Discord room
Successfully Trading Options from $1 (real money) in Discord Room

Ultimately, you can easily answer the question: How much to do you need to trade options full time.

A few hundred dollars can go a long way to get you started trading options successfully.

The key is to gather the necessary knowledge so that you can take your trading to the next level in 2022 and beyond.

How Much Do You Need To Trade Options On E*TRADE

The platform you choose the trade options with should never be a hinderance to your success.

Every so often I hear stories from traders about Robinhood or Webull not allowing them to take advantage of options trading opportunities such as on expiration day when options price get really cheap.

My simple recommendation is to consider an option trading platform such as E*TRADE where such restrictions do not exist.

How to Get Approval for Options Trading

As a beginner, you can create an options trading account on E*TRADE in just a few minutes.

You will be asked about your years of experience trading options.

Obviously, you may not have that many, but should you have me as your coach, you can leverage my many years of experience so that you account can be approved immediately.

The primary reason I like teaching beginners’ traders options trading from E*TRADE trading platform is the immediate availability of Paper Trading Account.

Another benefit is that you will be able to leverage the many E*TRADE video tutorials I created on my YouTube channel so that your learning can be even faster.

Below is an Example of one neat options Feature from E*TRADE:

Best Stock Options for Investors with Little Money

Over my multiple years trading options, I have acquired an in-depth understanding of option chains.

As such, I will be able to teach you proven strategies that do not require a lot of money to get you started.

Below is a proven for some of them.

Best options Strategies for Beginners with little money

The easiest options strategies for beginners with little money has a name very dear to me.

I call it “Friday No Wahala“.

This option trading strategy is very affordable for beginners and the beauty of it is that it is a simple overnight swing trade.

How much money do you need to trade options -trade turned $400 into $3700 on NFL weekly options
Discord Trader Turns $400 into $3700 on NFLX Options

Can You make a living day trading QQQ?

Hands down, Trading ETFS on Expiration days (Mondays, Wednesdays and Fridays) are the best options for investors with little money.

Why you may ask ?

Options are cheaper on expiration days.

I have mastered the art of trading QQQ for big profit on such days.

So will you.

Here is how I do it and will be teaching you ALL the nuances of this successful and powerful options strategy.

FINAL Thoughts on How Much You Need To Trade Options

I provided numerous examples of how much money you need to start trading options today.

Furthermore, the very strategies traders like yourself have been leveraging in my Discord Channel will be available to you immediately.

Let’s get your started with Options Trading Today.

How To Trade FOMC Meetings

How to trade FOMC Meetings

FOMC Meetings provide opportunities for day traders to make moeny.

You can leverage this full study of market volatility around FOMC Minutes.

My aim is to help day traders, swing traders alike to maximize their profits by properly learning how to trade FOMC Meetings.

My goal is to update you here with our FOMC Trades in our Discord Room going forward.

Here are the most upcoming dates. You can click on a date to go directly to that section.

FOR 2022: MARCH 15-16 || MAY 3-4 || JUNE 14-15 || JULY 26-27 || SEPTEMBER 20-21 || NOVEMBER1-2 || DECEMBER 15

How To Trade FOMC Meetings | What Is FOMC ?

I have been trading since 2014 and FOMC meetings by far provide the single one day highest volatility in the markets.

For options day traders, this is a great opportunity to make great profit in a very short time.

What Is FOMC Role?

FOMC stands for Federal Open Market Committee.

It was created in 1933 by the Federal reserve. The members determine the economic policies to ensure an efficient market.

The main role of the FOMC is to determine the interest rates and set the gauge for a measured inflation.

In recent years, these decisions have made the markets very volatile.

How Often Does the FOMC Meet

The FOMC set a yearly calendar for 7 to 8 meetings.

Here is the schedule for 2022 for example.

How To Trade the FOMC Meetings
FOMC Meetings Calendar for 2022

Some of the meetings (with an asterix next to the date) indicates that there will be economic projections data provided.

When Is The FOMC Meeting

The FOMC Meeting is a 2-day event starting on Tuesday that is concluded on Wednesday with the interest rate decision announcment.

Interest rates have been flat from 2018 until March 2022 when Fed Chair reveal the 25-basis point increase.

FOMC MEETING TRADING

At 2PM Eastern time on the second day of the FOMC Meeting (this is always on a wednesday), traders receive the FED decision on interest rate and others economic statistics.

The only thing that matters is the market reaction to that interest rate decsion.

But that is not all.

30 Minutes later, starting at 230PM EST, the Fed Chairman holds a Press Conference with a statement followed by questions.

Here is a chart of our favorite ETF QQQ on how it reacted exactly at that interest rate announcement at 2PM EST.

How To Trade FOMC Meetings -QQQ reactions to FOMC on March 16, 2022
QQQ Reaction To Interest Rate Decision on March 16, 2022

Should You Trade During the FOMC Press Conference

From the 15minute chart above, we can see that volatility jumps off at 2PM EST.

By my experience, the initial direction of the market is very often not the right one.

This is called a head-fake in day trading.

That is exactly what transpired on March 16 2022 with the big red candle and price posting a low of the day below the Bollinger Bands.

Beware of FOMC Head-Fake

Therefore, if you are a beginner trader and have not witness market reaction to FOMC before, you may be in for a big surprise.

Otherwise, you should absolutely take advantage of the violent reaction of the stock market to FOMC during the Press Conference.

Every single word the Fed Chairman pronounces is interpreted by the Algortithms with a buy or sell signal.

More Interest Rate Hikes to Come in 2022 and Beyond

HOW TO TRADE FOMC NEWS

With the FOMC decision on interest rates, certain stocks should fare better than others.

At least on paper, one would understand that if the cost of borrowing money goes higher, companies with good financial records ought to be benefit.

Banks And Financial Stocks

Who better to benefit from higher interest rates than the banks that actually provide loans to businesses ?

Here are the banks we like to trade when interest rate are higher:

  • Wells Fargo (Ticker : WFC) is a $50 stock that provides a great opportunities for options traders
  • Bank Of America (Ticker: BAC) is another cheap stock with a nice Option chain traders can benefit from
  • My third pre-feered bank to trade is JP Morgan -Chase (Ticker: JPM) even with its higher price in the $150’s.

Are Higher Interest Rates For Tech Stocks

Common knowledge has it that tech stocks should be at a disadvantage with higher interest rate.

However, given the growth and amount of capital these companies already have, there is no clear evidence to me that you cannot trade these.

Au contraire, with options trading, should tech companies become bearish, we can easily benefit with puts options.

My recommended Top Tech Companies to trade during FOMC Meetings:

  • NVIDIA (Ticker: NVDA) is by far the standard technology company with massive recent growth
  • Block previously known as Square (Ticker SQ) has fallen below $100 briefly before a recent melt up

BEST ETF TO TRADE AROUND FOMC MEETINGS IS QQQ

I have stated previously that the FOMC Announcements are always on wednesdays at 2PM EST.

This means that there is 2 hours left for same day expiration for ETFs such as VXX, IWM, SPY and more importantly QQQ.

QQQ Study After FOMC Meetings Since 2021

I studied the reaction of QQQ for each FOMC Meeting since in 2021.

The chart is included on the Table below with my commentaries.

January 17 2021 | QQQ FOMC Reaction starting at 2PM EST
March 172021 | QQQ FOMC Reaction starting at 2PM EST
April 28 2021 | QQQ Reaction to FOMC Statement Starting at 2PM EST
JUNE 16 2021 | QQQ Reaction to FOMC Statement Starting at 2PM EST
SEPTEMBER 22 2021 | QQQ Reaction to FOMC Statement Starting at 2PM EST
NOVEMBER 3 2021 | QQQ Reaction to FOMC Statement Starting at 2PM EST
How to Trade FOMCMeetings - December 3 2021 QQQ reactionDECEMBER 15 2021 | QQQ Reaction to FOMC Statement Starting at 2PM EST
JANUARY 26 2022 | QQQ Reaction to FOMC Statement Starting at 2PM EST

QQQ head faked to the upside by up to $3 from 353 to 356.88.
Then it reversed during the Press conference by posting three consecutive 15′ red candles for a low of the Day at 341.

This means that you could have traded Puts from $356 to $341 in just an hour.
The Payout on those options was huge. Clearly over 10-Baggers.
MARCH 16 2022 | QQQ Reaction to FOMC Statement Starting at 2PM EST

QQQ head faked to the downside by up to $3 from 335 to 328.4
Then it reversed during the Press conference by posting four consecutive 15′ green candles for a high of the Day at 340.4.

This means that you could have traded Calls from $329 to $340 in just under 90 minutes.
The Payout on those Calls options was huge going from 3 cents to$1.27. Clearly over 10-Baggers.

New Trader Makes 600% Trading First FOMC In Our Discord Room

Here is how a brand new trader leverage our FOMC Study on QQQ to make 600% profit on his first trade.

How to Trade FOMC Meetings - 600% Profit on QQQ Options following MArch 16 2022 FOMCannouncment
Trader Makes 600% on QQQ Options Following FOMC Meeting Statement on March 16, 2022

FINAL THOUGHTS ON HOW TO TRADE FOMC MEETINGS

I summarized how to trade options around FOMC Minutes with QQQ ETF.

Every serious trader should consider taking advantage of this strategy to increase their account profits.

||Source: Federal Reserve Committee

How To Use E*TRADE Stock Screeners and Scanners

Many ETRADE traders may not be familiar with its stock scanners and screeners.

I know this because of a recent comments I received on a video I posted on my YouTube channel.

In this step-by-step tutorial, I will show you how to use E*TRADE stocks and options scanners for your trading.

Furthermore, I will introduce the New Live Action Scanners from Power E*TRADE.

E*TRADE STOCK AND OPTIONS SCANNERS

E*Trade is one of the big five US Stock trading platforms.

Its recent merger with Morgan-Stanley will only help solidify this position.

I have been trading with ETRADE since 2016 following the buyout of OptionsHouse which was my original trading platform.

E*TRADE FEES Per Trade

Even though other trading platforms have been able to eat into E*Trade marketshare in the last 2 years with the $0 Commissions, E*Trade still maintains a certain appeal.

The starting fee is $0.65 per contract you buy or sell.

This means that if you are trading 10 contracts per day, these fees amount to $6.50 daily about $130 per month assuming a 20-day trading month.

However, after your first quarter, you will have more than 50 trades and thus the on-going fees come down to 50 cents.

How To Use E*TRADE Stock Screeners and Scanners - E*Trade fees are35cents for me
I Pay 35 cents per contract on E*TRADE

I pay 35 cents per contract as shown my order above because I was able to negotiate this after a couple of years on consistent trading.

You can do so as well later by just calling customer service and requesting a lower fee.

Let’s be honest: if you are a good trader who is making money consistently, paying a small fee on each trade should not take too much of your profit.

Is E*TRADE Good for Beginners?

If you are a newbie to trading, E*TRADE is a good platform to start with because yo uwill be able to have immediate access to an options paper trading account.

The features such as the options chart and options watchlist are very intuitive to get you started rapidly.

New E*TRADE Live Action Scanners

E*Trade provide six categories of scanners and screeners in their Power E*Trade Graphical user interface.

Hence you get to check which ones fit you trading style.

Then you can click on the star next to them so as to save them in your Facvorites.

Scanners Categories

Here is a summary table of all six scanners categories and the numbers of individual screeners for each category.

Scanner Categories#Screeners per Category
UNUSUAL ACTIVITY24
VOLATILITY43
CLASSICAL28
SHOR-TERM22
INDICATOR6
OSCILALTOR26

Classical Scanners

Short-Term Scanners

Engulfing lines

Hammer

Hanging Man

Indicator Scanners

TBD

Oscillator Scanners

Relative Strength Index(RSI) helps traders determine whether a stock is overbought or oversold.

Typically, a stock is considered overbought when the RSI is above 70.

The range of the RSI is from 01 to100.

A value below 30 is interpreted by traders as oversold and thus it is expected to start going up at some point.

But beware: a stock can stay oversold for a long time.

How To Use E*TRADE GAP SCANNERS

These Gap scanners are part of the unusual activity category

Why yare the gap scanners important?

Because they indicate to traders that stocks are already moving in pre-market.

There is a high probability that a stock that is attracting traders (bears or bulls) in pre-market is bound to move during the regular session.

This is where day traders make their money.

How To Use E*TRADE Stock Scanners and Screeners - Gap Up and Gap down Scanners
Gap Up and Down Scanners From E*TRADE

Gap Up on High Volume Scanner

The criteria for this scanner is for stock that are priced at least $5that have gaped up at least 1% on double the normal volume.

After you run this scanner in pre-market, you can sort the resulting list from highest price to lowest price in order to focus on the most expensive stocks and avoid the penny stocks.

Unless I am familiar with the stock, I like to set this criteria to at least 2% gap.

I have a special strategy called Gang$ta strategy that I use to trade these gappers.

My bias on stocks that are gaping up by a great deal is usually on the puts side.

Gap Down on High Volume

The Algos in this US market are very keen on buying the dip.

Hence, you should always be patient before shorting a stock that is already gaping down.

How to use E*TRADE Scanners and Screeners - Chart of a stock with many gap down
PDD stock chart showing multiple Gap Down

E*TRADE OTPIONS SCANNERS

Scanners for options trading will help you focus and trade options that are attracting other traders mostly through volume.

Here is a list of 6 that you should know about.

UNUSUAL CALL VOLUMEUNUSUAL PUT VOLUMEUNUSUAL OPEN INTEREST
UNUSUAL Option VolumeHighest Call to Put RatioHighest Put to Call Ratio

Unusual Open Interest

This option scanner on Power E*TRADE will show you stocks when open interest is at least 300% higher than the regular average.

This means that a great deal of traders are interested in trading contracts fort his stock and so should you.

How to use E*TRADE stock Screrrners and Scanners - Unusual Activity options Scanners
Popular Unusual Activity Options Scanners

Volatility Scanners

TBD

How I use E*TRADE SCANNERS

Here is the detailed video on how I use E*TRADE Scanners.

Can You Trade Crypto On E*TRADE

At the time of this writing, E*TRADE does not yet offer crypto trading.

You can trade stocks, options and futures on E*TRADE.

Check out my tutorials on how to trade crypto on webull.

As crypto gains more and more acceptance, I am sure E*TRADE will offer its traders the ability to trade crypto.

I will be bringing you those details at the specific time.

E*TRADE COMPETITORS

One of the most recent competitors to E*TRADE is none other than Webull.

We have several tutorials on how to trade on Webull on our blog.

Here is a video on how to use Webull Scanners.

FINAL THOUGHTS ON E*TRADE SCREENERS AND SCANNERS

I shared some of the most useful E*TRADE Scanners and Screeners to help you increase your winning trades in this new year 2022 and beyond.

If you are serious about options trading, check out my 10-Baggers Trading system today to take your Trading to the next level.

2022 Best Swing Trading Books – Easy Guide to Success

Swing trading refers to the means of capturing short-to-medium-term gains in a stock (or any financial instrument) over the span of a few days to several weeks.

It needs technical analysis of past and present data which is highlighted in the following 2022 Best Swing Trading Books.

Don’t rush your money into it without any prior knowledge.

Best Swing Trading Books | 2022 Insights

Swing trading is a unique style of many veteran investors in the stock market.

Many novice investors are trying to master this art because of high gain on short-term goals.

Why Is Swing Trading So Appealing?

According to swing traders, capital opportunity costs are the driving force behind their strategy.

In other words, swing traders are essentially momentum traders, attracted to stocks experiencing rapid price rises, and trying to avoid having investment in stocks that don’t have the potential to rise suddenly. 

Trading is a skill and not one that’s fit to master.

How To Get Your Edge in Swing Trading

Evolving into a profitable trader requires a serious commitment to learning the necessary skills and becoming proficient in using them.

Day-to-day trading is not everyone’s cup of tea, but still, it attracts every investor locking their money in stocks.

It would be best if you had trained and calming nerves for it.

Best Swing Trading Books - Swing Trade ALerts is one of Successful Tradings Strategies
Overnight Swing Trading is one of Successfultradings.com Best Options strategies

Because where there is a risk, there is profit.

Here is a sneak peek into some best swing trading books to help master this art.

How to swing trade: A beginner guide to trading tools, money management, Rules, Routines, and strategies of swing traders

Authors: Brian Pezim and Andrew Aziz

Brian Pezim and Andrew Aziz co-author the best-selling book on every store and first pick.

It’s an ideal book for beginners.

The book covers stock trading basics and provides pro-level strategies for dealing with day-to-day trading.

The authors have also beautifully penned down short-term gains and many more principles.

If you are a veteran in trading, you won’t enjoy the first few chapters of this book because of its foundation knowledge.

Despite this, the upcoming chapters will provide you with valuable insights.

Handling risks and holdings are some of the best strategies explained in simple words.

Every chapter contains its key points and summary. It’s an excellent guide to remember all the principles of swing trading.

Swing Trading for Dummies: Author Omar Bassal

Every book teaches swing trading in a good way, but this book authored by Omar Bassal is an absolute banger.

This book covers all the essential knowledge one has to use in swing trading, from basic to advanced skills. 

The author previously headed the assessment division of one of the largest banks in the Middle East, and now he runs his business firms.

The book mainly covers the technical analysis of stocks, followed by a fundamental analysis of stock prices, and finally covers how to build a portfolio and manage it.

Throughout this book, it is thoroughly explained and demonstrated how to avoid extreme risk-taking while still gaining profits.

Mastering the Trade: proven techniques for profiting from intraday and swing trading

Author: Alan Farley

Everyone in the game of trading knows about Alan Farley.

It discusses charting, identifying support and resistance, price action patterns, Fibonacci retracements, and how to identify and profit from short-term trading opportunities.

Farley spends half of the book describing his “7-Bells” – basically, seven swing trading setups that he believes to be most reliable.

Each trade setup is illustrated.

Clearly, the relative risk/reward ratio is described, and the trades are executed and managed accurately.

The book is not only for beginner investors but are also for expert who can take valuable insights from it.

Tools and Tactics for the Master Day Trader: Battle-Tested Techniques for Day, Swing, and Position Traders 1st Edition

Author: Velez and Capra

Velez and Capra have written their experience of the past four years.

They have written the complete strategies that work on swing trading.

They are also the masterminds behind the best website Presitine.com, with over thousands of visitors per month.

The book is written in plain language so everyone new to the market must easily understand.

The authors have explained the powerful strategies and psychology behind short trading in detail.

After reading the book, any trader can access the tools to capture more winning trades and procure original profits, regardless of their experience, market knowledge, or technical skills.

Come Into My Trading Room, A Complete Guide to Trading by Alexander Elder

Author: Alexander Elder

Trading stocks, commodities, and forex are just a few of the markets in which Alexander Elder is a legend among professional traders. 

Furthermore, he has also written Trading for a living, keeping the rating of best seller book for more than 20 years.

There is a lot of discussion about the trading mindset in this book.

He has penned down how swing trading exactly works and what approach one must use to put money into these short-term investments. 

Elder also delivers eye-opening advice on the sheer importance of money management and market time dealings, along with pointing out how attention to detail can make an enormous difference in your trading profitability.

Swing Trading Strategies: 3 Simple and Profitable Strategies for Beginners by Charles Reis

Author: Charles Reis

Swing trading, for Charles Reis, offers the ideal mix of opportunity and risk – significantly higher potential profits than long-term investing and substantially lower risk than day trading.

Only 66 pages long, this book explains three simple swing trading strategies.

One relies on trading breakouts, another uses options swing trading, and the third uses candlestick signals to generate trading signals.

Don’t go on the shortness of its length. It’s the book full of wisdom.

5 Secrets To Highly Profitable Swing Trading by Ivan Hoff

Author: Ivan Hoff

If you are new to the stock market and don’t understand the graphs and technical language, you must pick this excellent book on swing trading by Ivan Hoff.

You can know charts, technical values, and all the indicators. 

User-friendliness is the keyword for this book.

Not only does this provide you with simple parts of information, but it does this in a way that does not leave the reader confused.

It’s a user-friendly book for beginners.

It’s a short book, and every word plays its own role.

Every moment spent while reading can benefit you when you are investing in swing trading in the long term.

It consists of different articles explaining the short plans and short investing.

This book can bring some quick wins for you.

Is Swing Trading Profitable?

Swing trading allows and gives your profit in short-term goals.

You can take it as a part-time job

or even a full time should you decide to make a living swing trading.

Examples of Swing Trading Success

You can stop-loss orders by avoiding huge losses.

It can bring massive profit if you niche it down and focus it on.

It can be a great resource to learn about long-term trading.

You can get used to the technical language of the stock market.

How To Swing Trade Options for Big Profit?

As you may know by now, I coach traders how to Day and swing trade in my Discord room.

Here is a detailed video on how I use Swing trading to take advantage of momentum that last several days.

You can leverage the knowledge I provide in there to manage your overnight swing trades.

FINAL THOUGHTS ON BEST SWING TRADING BOOKS

If performed strategically, Swing Trading can be an enriching venture.

Whatever knowledge you gather from these books will need to be translated into money.

You can invest practically and learn from real experiences.

If you are serious about swing trading, I suggest you check out my 10-Baggers Trading System today.

7 best day trading books for new traders

Stock investing is not something that is thoroughly taught in formal educational systems.

That also goes for the different types of stock investments like day trading.

That is why people seek reliable resources to teach them such as stock trading online courses and webinars, best day trading books, and even interviews with professional traders.

The fastest way to learn about day trading or stock trading, in general, is by reading books.

Best Day Trading Books in 2022

Books have been a fast and reliable source of information and have helped billions of people in learning what they want to know.

Thus, if you wish to learn the concepts of day trading, you will need to look for a great book.

However, several day trading books are circulating on the Internet and even at bookstores near you.

To help you choose the right book, here is our recommendation for the best day trading books for new traders.

How to Day Trade by Ross Cameron

How to Day Trade is a well-featured book on many stock trading sites.

That is because it is the perfect book to read if you are just entering the world of day trading.

The author, Ross Cameron, is the founder of Warrior Trading and has been in the industry for over six years.

With his extensive experience in the field, he was able to make day trading easy to understand which is very much appreciated by newbies in the stock market and forex trading.

What You will Learn in this Book

In Cameron’s book, he was able to explain the day trading terms that are found to be a great hurdle for several people when starting their trader journey.

Furthermore, readers treasure the two most important themes the book presents.

They are risk management and finding predictable volatility using stock scanners.

According to the author, being able to master these two themes is essential in generating profit despite the high volatility of day trading.

If you think this is the book for you, Cameroon’s How to Day Trade is available on Amazon.

The New Trading for a Living by Alexander Elder

Alexander Elder is a very well-known day trading author.

Since he recognizes that certain effective strategies may not be profitable in the future, he updated one of his best day trading books and called it “The New Trading for a Living”.

This book teaches a systematic approach to modern-day trading through easy-to-understand text.

7 best day trading books for new traders - TheNew Trading for a Living by Dr. Alexander Elder
The New Trading for a Living Book Cover

It also tackles different strategies in money management, record-keeping, identifying market zones, and the development of the trading discipline.

In addition, this book also features multiple-choice questions and chart patterns for content review.

Do you want a copy of Elder’s updated best-selling book? Search for “The New Trading for Living book by Alexander Elder” on Amazon.

Below is a video review of this Day Trading book.

#3 Best Day Trading Book for Beginners: A Beginner’s Guide to Day Trading Online

The title of this book has said it all on why this book is perfect for new day traders.

Written by a well-regarded teacher in finance, A Beginner’s Guide to Day Trading Online provides clear instruction on how to day trade.

As a book meant for newbies, it not only tackles the confusing jargon in the trading industry but also explains how to execute trading strategies.

Turner’s book also discusses risk management, technical analyses, psychology of day trading, and trading plan creation.

Furthermore, she also incorporated her own experiences in day trading from when she was just starting.

Just like other best day trading books, this one also has quizzes and checklists that beginners can work with.

If you are interested in getting one, check out Toni Turner’s book on Google Books and Amazon.

The Simple Strategy by Markus Heitkotter

Learning day trading through books can honestly be a bit boring.

That is why some people tend to drop reading about it even though they are reading the best day trading books.

However, that is not the case if you read Markus Heitkotter’s book.

In his book, The Simple Strategy, he used an upbeat tone so you can learn with enjoyment.

Heitkotter shared his journey as he shifted to day trading leaving not only his corporate career but also his country.

He expressed this shift in a positive light despite the challenges he had to overcome to bring about inspiration to first-time day traders.

Moreover, his book provides clear instructions on when to enter a trade and when to exit.

It also gives insight into small intraday trend capitalization and trading software reviews.

This book is also a go-to information source for forex and option trading. If you want to learn more about the book, you can check out its product description on Google Books and Amazon.

How To Day Trade For A Living by Andrew Aziz

Another well-featured book across sites that provide recommendations on best day trading books is Andrew Aziz’s work.

What readers love about this book is Aziz’s personal tale when he started day trading for the first time and how he lost all he earned because of lack of knowledge.

He expressed why and how day trading is something more of a job rather than a hobby like gambling.

7 best day trading books for new traders - How To Day Trade For a Living by Andrew Aziz
How To Day Trade for a Living Book Cover

What Set this Day Trading Book Apart from others?

In his book, Aziz summarizes day trading from start to end, from opening trade to closing it.

He also shared some techniques in strategy development and what should every trader expect in day trading.

Furthermore, he gave a clear and detailed explanation for each strategy mentioned in his book.

His concise writing style enables readers to improve in day trading.

That is why even intermediate-level and advanced traders find his book very valuable.

Having almost 2,000 five-star global reviews on Amazon, it is no surprise why this is a must-have book for new traders.

Many readers and trade experts attest that How To Day Trade For A Living by Andrew Aziz will become an essential day trading reference in the years to come.

Apart from Amazon, you can also get a copy of this best-selling day trade book on Google Books.

Technical Analysis of Financial Markets by John J. Murphy

If you want a book written by the most reliable person to teach you day trading, Technical Analysis of Financial Markets is the one you should get. This is written by John J. Murphy, an institutional investor at Wall Street with over four decades of experience.

He used to be the head of Merrill Lynch’s Technical Analysis Futures Division as well as CNBC’s technical analyst.

As a former top management member in a reputable investment bank, he is the most credible individual to teach you what you need to learn.

Top 7 Best Day Trading Books for new Traders - Technical Analysis of the Financial Markets by John J. Murphy
Technical analysis of the Financial Market book Cover

In his book, Murphy explained various day trading strategies backed by comprehensive examples and case studies.

He also tackled Intermarket relations, stock trend analysis, stock rotation, and profit opportunity exploitation.

He also talked in-depth about trade reversals, stock trading patterns, market cycles, and contrarian indicators.

His clear explanations in discussing complex trading data are the reason why not only experienced traders but also beginners can perceive it.

If you want a copy of Murphy’s work, you can find his book on Amazon.

#7 Best Day Trading Books: The 1 Hour Trade by Brian Anderson

If you don’t want to begin indulging with the complex side of day trading but want to get started, Brian Anderson’s The 1 Hour Trade is a great fit for you.

His book is well-received for its simplicity in approaching day trading strategies.

This approach provided clear and concise information to help traders get into focus and not be bombarded with complicated trading data.

Anderson also shared his mishaps when he first got into day trading and provided advice on how his readers can avoid making the same mistakes.

His simple book has almost 300 five-star ratings globally on Amazon.

Summary of Best Day Trading Books in 2022

Book CoverBookAuthor’s background#PagesTopicsWhere To Buy It
Best Day Trading Books - How to Day Trade How To Day Trade128Day Trading DictionaryAmazon
Best Day Trading Books - The New Trading For a LivingThe New Trading for a Living304Trading discipline, Risk ManagementAmazon
Best Day Trading Books - A Beginner's Guide to Day Trading OnlineA Beginneer’s Guide to Day Trading Online288Technical Analysis, Trading StrategiesAmazon
Best Day Trading Books - The Simple StrategyThe Simple Strategy86Stocks, Futures, ForexAmazon, Google Books
Best Day Trading Books - How To Day Trade for a LivingHow To Day Trade for a Living382Risk Management, Trading PsychologyGoogle Books
Technical Analysi of the Financial MArkets by John MurphyTechnical Analysis of Financial Markets576Futures MarketsAmazon
The 1 Hour Trade by Brian P. andersonThe 1 Hour Trade100Trading StrategyAmazon
Summary of 7 Best Day Trading Books in 2022

FINAL THOUGHTS ON BEST DAY TRADING BOOKS

Anyone can succeed in anything as long as they know their hands and that applies to day trading.

Getting a copy of one of these best day trading books can get you started on your journey into becoming a day trader.

Also, getting started is just the beginning of what day trading can do for you.

Becoming an expert in investing and analyzing the stock market takes a lot of good books to read coupled with hands-on experience.

If you are looking for more stock trading book recommendations, subscribe to our newsletter to get timely blog updates.

Options Trading for Beginners: Psychology 101

Option trading success stories - Briggs Meyers Personality Test

Psychology plays a great part in how you view and trade the stock market. Let’s explore today one of the most important aspects of Options Trading for Beginners. I am talking about the Psychology behind the profession of Trading that is often underestimated. The idea of venturing into new areas has a unique effect on each one of us. We are either cautious in our first steps or completely oblivious to any potential risk. Options Trading for Beginners: Are you …

Read More

How To Calculate ATR in Excel

Average True Range or ATR in a Trading Indicator most day traders are very familiar with.

It is often displayed as a sub chart in many charting tools.

In this Tutorial, I will show you how to calculate ATR in Excel spreadsheet.

Also, you will learn to leverage the ATR indicator to improve your trading in 2022 and beyond.

How To Calculate ATR in Excel | What Is ATR?

I have been using the ATR indicator since 2016.

Traders are always surprised when I introduce the average True range in our Day Trading techniques.

There is a great deal of misconception about this statistical indicator.

My hope is that you will gain a better understanding after going through this step-by-step tutorial today.

What Is ATR (Average True Range)

In stock trading, the average True range (ATR) designates the average move of a stock over a period of time.

The move is measured as the difference between the Highest price and the lowest price on the defined timeframe.

The most used timeframe is daily.

If I tell you (a trader) that QQQ average is 4.44, this means that in average, each day, QQQ moves by $4.44 in average.

How To calculate ATRin Excel - QQQ ATR14 as of January7 is at 7.11
QQQ ATR 14 as of January7 2021 is at 7.13

The unit of ATR is dollars or whatever currency the stock trade with.

Additionally, because it is an average, I will need to tell you over how many days this average is measured.

Typically, ATR is measured over 7days, 14 days, 21 days or 50 days.

Therefore, on the above chart, QQQ shows a reading a reading of 7.13 on ATR 14.

Which means that over the last 14 days, the average daily move f QQQ stock has been $7.13.

How To Use the ATR for Stocks Selection?

Stocks traders and options traders can use ATR to select stocks to trade.

Imagine that you have two stocks you would like to day trade.

One has an ATR of 2.5 and the other one has an ATR of 3.5.

It is by far better to trade the stock with the higher ATR because you have higher probabilitytomake money.

Why Is the ATR important for Day Traders?

The ATR helps day traders and swing traders set the expected move for the trade.

For instance, if a stock has an ATR of 4 and you plan on holding a trade for 5 days, the maximum expected move over thee 5 days is $4 multiplied by 5 or $20.

I am assuming over the course of those 5 days, the stock is moving in the same direction each day.

What Does the ATR Tell Traders?

The ATR never tells traders about the direction of the stock.

This is often a big misunderstanding by newbie traders.

Stocks can move up or down.

The ATR simply measures the amplitude of those moves and summarize them into one single number.

Next, let’s consider why this number does not always tell the full story.

Let’s Calculate the ATR in Excel

Before we go into the calculation of ATR in Excel, allow me to bring a very important point that traders tend to forget.

Limitations of ATR

As stated earlier that the ATR is an average of a timeline, you need to be mindful that one outlier data point can skew the statistical indicator.

How is this possible ?

Let’s suppose that a stock typical ATR is 3 and then a news come along and the stop jumps up or down.

The new calculated ATR will include this big data point and severely change the ATR measure.

This is even more pronounced when this average is taken over a short duration.

ATR 14 vs ATR 50

The most common questions traders have for ATR is which timeline to use to calculate the Average True range.

7 days can easily be skewed by a big outlier especially during earnings seasons when the implied volatility jumps a lot.

In the summary table below, I have selected different ATRS over 4 timelines and provided the Pros and cons in using each one.

ATR TypeProsCONS
ATR 7Provide the most recent informationIt can easily be skewed by one outlier
ATR 14Recent information is capturedEnough data points to smooth out outlier
ATR 21Enough days to smooth out one outlierold data does not focus on most data
ATR 50Can smooth out a lot of outlierstoo old data does not focus on recent data
ATR 7 vs ATR 14 vs ATR 21 Pros and Cons

As an illustration of the above table, below is the plot of the ATR 7 vs ATR14 for QQQ for the entire year 2020.

How To Calculate ATR in Excel - ATR 7 vs ATR 14 for QQQ in 2014
Difference between ATR 7 vs ATR 14 for QQQ

We can clearly see that the ATR 7 is more volatile than the ATR 14 which is much smoother.

I chose 2020 0to showcase the impact of high volatility between late February 2020 and March 23, 2020.

You can check it out on the stock chart for QQQ and other stocks: the ATR tends to go much higher when the stock is going down.

This is one of the reasons why options traders should prefer to trade puts vs calls if they have the choice.

Because the ATR goes higher when the stock is trending down, there is more money make trading puts.

What You Need to Calculate ATR in Excel

The first step in order to calculate the ATR in excel is to have the daily price for the stock you want to calculate the ATR for.

The two stock prices that you need are the high and the Low for each day.

Where to Get the Data for ATR Calculation in Excel

You can download the daily stock price online.

I typically use yahoo finance to get this data before I process it on Excel.

Step-by-Step How to Calculate ATR in Excel

  1. Get stock price daily price in excel
  2. Add a column to you Dataset – Call it Daily Range
  3. Daily Range = High – Low
  4. Add another column – Call it ATR14
  5. Fill out the Formula for ATR 14 starting at row 15: average of Daily Range over previous 14 days
  6. Drag your Formula from Row 16 all the way to the end of your Excel table
  7. Plot on a graph the ATR 14

Step-by-Step Video on How to Calculate ATR in excel

Download my free Excel Spreadsheet Template on how to Calculate ATR in excel.

How To Use the ATR To Improve Your Options Trading

There are several applications for the Average True Range.

Below are some of the most popular ones you can learn about to improve your Day trading.

How To Use ATR For choosing an Option Strike Price

Options traders need to select a strike price in order to trade options.

One easy and quick method to do this is to use the ATRtechnique.

Since we know that the ATR provides a potential move for each day, it is very convenient for swing trading in options.

The video below provides a full description on how you can do that.

How To Use ATR For Trailing Stop Loss

You can also use the ATR information to set your Trailing stop loss.

Let’s suppose you bought a stock that is trending higher.

You are making good profit on it already and want to protect your gains while hoping for more profit.

You can then select to use the ATR as a Trailing stop.

Which means that if your stock retreats by amount equal to ATR or a fraction of it, you will exit the trade.

How Average True Range ATR will Improve your Trading

For Long Tern Investor

Trailing Stop loss is the application of the ATR for long term investors.

This is a great technique that will help you protect your gains while hoping for future profit profits.

For a Stock Day Trader or Swing Trader

You should use ATR in your stock day trading strategy because you will be able to select stocks with higher ATRs thus increasing your potential profits.

Secondly, you will be able to determine based on the ATR statistic whether you can hold on for a little longer or close it for the day because the expected ATR has already been reached.

For an Option Day Trader or Swing Trader

If you are an option trader, you can use the Average True Range ATR indicator to select the optimum strike price.

This will help you find a nice compromise between cost of the options and the probability of making money.

ATR has multiple applications

Average True Range can be used in stocks trading, Forex Trading, Crypto trading and options trading.

Therefore, it has multiple ecosystems in which traders can leverage this very important statistical indicator.

FINAL THOUGHTS ON HOW To Calculate ATR In Excel

I showcased how to calculate ATR in excel using a very easy and quick step-by-step process.

You can go this for any stock in less than 5 minutes.

Should you decide to learn more, you can download my free Excel spreadsheet template for ATR Calculation.