Trade Technical.ly embraces the dicipline of Technical Analysis; the study of past price action and volume through charts in an attempt to predict future stock or an overall market movement. By analyzing past data through charts, technical traders can identify patterns which may indicate future price movement in a certain financial instrument.
Many people I know have expressed the desire to learn how to trade based on technical analysis but don’t really know where to start or where to obtain the basic information to get them going. I am frequently approached by family and friends who have asked me to explain the basics, how they could get started and where to find the material to do so.
The fact is that trading is not a get rich quick scheme and requires dedication, discipline and a strong desire to learn. A trader must find a style that they are comfortable with, develop a trading plan, learn to deal with emotions and eventually strive to obtain a trading edge. A trading edge is something a trader acquires that gives him or her an advantage in trading the stock market which in turn, allows them to become profitable. My trading edge is mostly composed of Technical Analysis combined with knowledge of options.
The known statistic is that 90% of traders fail!
Who am I?
James is the name and known in stock twitter-verse for a while by the handle @boricuatrader. I currently work a full time job in IT Security for an up and coming Security company, I’m a full time father and part time stock and options trader. I have been trading for about 5 years of my life now and on the mission of constant self improvement. I trade mainly Small and Mid Cap stocks and Large Cap stock options as they provide more leverage, thus greater profits than trading they underlying itself.
My trading style
I trade mostly intraday, meaning, I will probably be in a position in the morning and and be out of that position anywhere between 2 minutes to 6 hours. The time I am in a position depends on what the stock has been doing (price action, volume), what the markets are doing, etc. I’ll occasionally engage in swing trades If I feel a stock has potential to break out of a consolidation pattern in the next 2 to 3 days. Keep in mind that options lose value the closer they get to their expiration date and if a stock moves against you and away from the strike price, its harder to break even which is why I do not tend to hold options very long (especially weekly options).
My goal with this site is to create a centralized location to provide people who are new to the stock market with information on stocks, options and the overall market, links to other sites where they may obtain further information, my personal opinions, watchlists, etc., and a feel for may trading style. I plan to write a few educational posts, mainly on tools, indicators, and derivatives I use, which I have a more vast knowledge on (so don’t expect too many posts going over the black-scholes formula or Iron-Condors and Bald-headed eagles).
One of the objectives I would like to start now 2012 is to trade a $2,000 account and track its performance here on the site. Using mainly options, I want to demonstrate the potential they have to double your account and how it is possible to turn those 2k into 10k eventually… either that or lose it all!… Ha
As I keep tweaking the site and adding more features, I’ll keep this section updated as well as some additional posts.