Saturday, August 13, 2022

Queen of France

Daytrading: "The Queen of France Method"

Profit Monday

Profits & Gains

During this tutorial, note the green fonted images.
This is my "Profit-Only" Selling Method.
Profit Days this week:
Monday, Wednesday, Thursday, & Friday
After 20 yrs of trading, even through the dot.com bubble,... I devised this trading system, due to the last few yrs, & recent bear market. My method has gained over $5,000 during a bear market, sadly though, I had to pay all of that away last Friday. So, this weeks set, shows the gains after a near-ruined account, allowing for new profits, the following Monday-Friday. Showing that even with great disruptions in leveraging power, my system still proves to profit.
This design method, is various %'s, with Profits collected 3-5 days per week & never selling at a loss. Tuesday, was at a 0 profit: making it a "waiting day", therefore no "P&L" image is listed.
For reference, my account shown, is small in value, yet, I trade about 20 stocks with it.
wednesday
Profit Wednesday

Account Value:

You can use this method with accounts under 25,000, even better if over that amount.
Try not go below $3000 with settled & ready to trade funds, because the upsets from Margin Calls, interfere with trading. Margin calls can Force loss sells, instead of profit sells. To avoid them: Bank on at least 2-3 days of severe market losses.
On those days, wait out the drop under $3000, and resist buying. I've traded often, when margin calls begin, -100 margin call per day & bringing it back to balance, for weeks at a time, It can be done, but in the end, you do end up feeling like you're feeding a monster.
Plus, it's stressful to keep finding stocks within a battered portfolio, required to sell in order to bring it above 0 at the end of the day.

Margin Requirements

This little choosy problem can upset a decent account, and send it into the hole way too quickly.. You can choose a few stocks that have margin requirements, but be careful. You can watch $500 spent from $5000, become an account of $2500. Losing your ability to trade over $2000 in other stocks. Too many and you will just watch them and go "What happened, they dropped & I can't get out. I'm locked out of trading." Losing precious time, for other stock entries.
They change often also, keep a sort column, on your watchlist, before deciding to go the gamut.
This includes trading less: "hard to borrows"
One or Two stocks with heavy margin requirements are ok, They tend to be either volatile, or simply hardstruck for a long time.

Watch List

Maintain a good watchlist of current stocks & stocks you're willing to add into your portfolio. The sort will help determine market sentiment of the day for the group, plus help you find add stocks from excellent lows.

Positions & Watchlist Columns

5-day % , and daily % are required. They help determine quickly, who's dragging, vs who's over bought. Near to them, keep current price.
Day's High, this little bugger will tell you if the stock is still pushing higher, or has given up for a while & "middled", or sent into a drastic reversal.
Other, items like a Vwap are ok to add for entries & exits, but I don't always demand entries above the vwap, it's like a stabilty indication of short term direction.
Basic costs spent, are excessive info, as most stocks were the same cost per "set". However, Once you notice a group of sets for a stock (set=purchases of a stock at different prices) has added up too heavily, It does help to remind you, to distance away from it for a while. Keep that column over on the far right, & use it to stop over-buying a stock.

Charts

  • Good indicators, 20-day, 50-day, 200-day.
  • I do use Bollinger, but do not adhere to it exactly, more as a "wow, it looks like a perfect entry".
  • Perfect entries are not required, and they don't always profit. They can look amazing, more as helpers, "short term trending that way" But, this trade will experience many bollinger rises and falls, on its way to profit.
  • Vwap on the chart is a great bonus for both entries and exits.
  • Other honorable mentions:
  • Volume, with an Rsi. The Rsi at the bottom, helps decision making for buying-entries and when at the top, it helps indicate sell-offs.

Quantity:

I might repeat this, during the tutorial, because it is one of the most important rule factors. "Never over-buy 1 stock. Even when a great "dip occurs", the risk is still too high." The long wait for its recovery could just go on for years, or even til they bankrupt.

Trading Hours

Sorry, but this method requires, morning, mid-day checks on movements and closing participation sometimes. Buying and selling could occur at anytime, during the day. Heavier morning, or afternoons. The more stocks on your "board", the more you can to remain on watch of the stocks themselves. If you only trade 5 stocks, it's a lot less work obviously, but profit results may not be as high.

Number of Stocks & Keeping Track of Them:

10-20 is fine. More stocks held is too difficult to keep track of via charts, and sorting. A 5-stock trader, will have less profit potential, because drop wait times wil be longer. However, things like alarms or limit-sell & limit-buy orders can be preset and it's less intensive work. Use an external board, or notepad for stocks that are major movers per market morning. I started using a magnet board with stock labels on the magnets, to set which stock is moving higher & number of shares noted via colorful pins, or paperclips. Because, in a hurry, "Seeing" 20 shares for this stock, is the only sell for it, as you might be holding 60 shares of the stock, and selling 30 would put you in a loss & a wash for those last 10. A Magnet board covered with a grid plastic, for the magnets to slide on the grid. (like tron). Elevate them when they are above their price entry. Don't add any colorful* metal bead(not all metal works on magnets) or paperclip until the stock is in-trade, The board helps to note right away, which stock is out-of-trade. *colorful, where pink paperclips could = 50 shares.

Charts: Setting up: Entries & Exits:

  1. Set-up a dedicated chart for each stock. Most platforms allow for at least 6-9 per page.
  2. I use 1 larger chart surrounded by the smaller ones, to view when its time to buy or sell a moving stock.
  3. Keep track of the days trend, on the platform, and use your positions page to sort find max movers for sells & dips for buys.
  4. You have to be fast and concentrate, reversals happen too quickly sometimes.
  5. Try not to price-chase an exit in reversal selling, unless you're committed that it's a bad buy. Price chasing an exit can lose 20-50 cents in a short time.
  6. Upon entries, be prepared to bite 1 or 2 pennies in ask price, in order to place the trade, else watch it climb over 10-50 cents quickly and lose your entry, altogether.
Place entries based on recent 3-5 day highs, and setup a horizontal line for it's pull back of at least 3-8%.
Setting up a horizontal line for the entry waiting time, helps immensely.
A 2nd line or the same one, can be used to set the top selling price goal, and exit. Bear in mind the targets are not often reached exactly, sometimes they are much higher-priced sells or lower-priced sells.
If 3% is your goal for all stocks, use a calculator to ascertain that price value. So, if current price is $60, the entry horizontal bar is at $58.20
It's up to you to decide on a comfortable % goal, I can't state that for you.

Number of Shares to Stock Value

Go with Similar $dollar spends, regardless the current stock price. However, sometimes, I gut a little lower on cheaper stocks under $10 vs $100+ stocks.
    .i.e. for $300- on all stocks;
  1. 1 share) $300 msft
  2. 4 shares) $320 sbux
  3. 20 shares) $200 stock cheaper
  4. etc.

Stop Losses:

My trading method is in preference to avoid them, due to wash creation and jumped-out losses. Choose decent long-standing or viable companies. More money does have to be on the table, though, to accommodate for downtrends, while waiting for their upswing again. You may end up with 5 or more "sets" of share purchase levels: per stock, during a bear esp. However, in bull runs, i.e. the 5 sets tend to be picked up for profits within a month, with worse stocks held down up to a yr.
thursday
Profit Thursday

Cost Basis Set-up

Cost Basis: *Use Lower price Cost Basis method, Lowest cost (purchased) is the first sold, In this way, if you're holding other shares of the same stock & they were priced higher, you do not sell the older expensive shares, and lose.
**FIFO is wrong for most day-traders, esp. if you don't use stop losses, & keep some shares. **First purchased means it is also: the first sold, which could have been from a purchase over a year ago at twice the current price, bringing a huge loss. Sadly most brokerage's setup FIFO as the automatic norm.

Profits & Gains

I usually never sell at a loss. I only collect profits per day. Which is nicer for the ego.
3-5 days of profit collection per week. Off days are; wait it out, predict direction trends, and seek low buys.
Reasons for selling at a loss? Only if needed to pay bills or credit payments. & hopefully it's only 1 stock, gaining that wash. Otherwise, you will have to find another.

Married to a Stock?

No problem with that, it's often stated to never be married to a stock. It's the opposite, if you have a diverse group of stocks, several in each sector, and it's a reliable stock, there's no reason to dump it and never return.
Obviously, be wary of major reversals, and look into the "why", if it's a small setback, and you already carry much of the stock, then buy less of it after it's been "hit", so to speak. It will normally carry itself out of a bad news event, just don't overweight your portfolio with it, even at its lower prices. Because the wait for a rebound could be way too long, reducing monetary movement goals for other stocks. If it performs very badly, and becomes a problem stock, you can:
1) Find another stock in the same sector.
2) Journal it to your 2nd account, and peek at it on occasion.

Pennies

I don't day-trade penny stocks due to costs. Those are long and hold, for hopeful surprises.
Trade with market sentiment, don't buy too much when the market appears too bullish.

When to Buy & Sell

Buy & Sell (for profit) nearly everyday.
Try not to buy & sell the same stock in one day. It's rare to pickup 5-10% in a day bull run. Chances are way too high you missed the bottom, entered at the middle and it had a strong resistance. Holding overnight or waiting a few days to a week allows for a decent % gain. It helps to create market volume & stock strength & reduces chop.

What Stocks ?

The stocks can vary, but some have an edge of volatile. Making them "Big Movers" vs others. "Big Movers" in both directions though. Buying a bank stock, i.e. can still supply profits, but the wait may be a little longer from 1 day to a week. However, I believe in a well-rounded portfolio, and the slower jumping stocks are necessary for a stable portfolio.
Try not to buy & sell the same stock in one day. It's rare to pickup 5-10% in a day bull run. Chances are way too high you missed the bottom, entered at the middle and it had a strong resistance. Holding overnight or a few days to a week allows for a decent % gain. It helps to create market volume & stock strength & reduces chop.
friday
Profit Friday

Holding Over The Weekends:

This is preferred. However, if a stock is at minimal profit it's often better to sell it, & begin again on Monday after reassessing its potential. If it's in a reversal, and at a negative, well, it's simply sent into the "kitty" of the lost profits, until the stock recovers.

Margin

If your margin is expensive (large daily interest), in some cases it's better to take a small profit % from some stocks, and reduce those interest fees over the 2-3 days.
On the last day of the trading week, a few high interest stock sells (at a small profit), also goes towards additional funding, which can be allocated to pay-off nominal bill payments.
However, there is not a rush to reduce all profitable shares, if you're financially ok with it, because it's only 2-3 days of interest. i.e. $3-$10 in interest charges, in relation to shares held, with close to $25,000 worth in negative margin. Some traders won't blink an eye, while others would demand to sell each Friday.
It really is about the stock itself, if it was purchased at a great "buy" price, you could lose out on that "dip", & its decent % gains and collection the following week.

Media Upsets

Rather, be safe than sorry? and sell? Well, it's only one day to the next, in market terms.
However, during those 2 weekend days, it's like 2 days of straight gossip or media news allowed to sink in. Which could create Monday havoc. So, it's slightly riskier, to weekend hold. Where, Wars can be announced on Sunday, just to rub it in, making you feel that you should've sold it, at a stupid low, gain of $1.50 on a $1000 worth of a stock.
That's normally unusual though, "big market upsets". "Wars and Pandemic announcements",
I still find that it's better to keep a good dip buy, and just pay the interest, for its potential.
Gossip aside, go with the chance of a stocks potential & probable market direction in the next week, and if you feel "iffy" then go ahead and drop it.

New Market Direction

As a Trader, you have to estimate in your head, probable chances for the market to continue bullish or bearish. This factor has to weigh in, as an extremely important sentiment shift to every stock in your portfolio. This judgement call has to be included, when deciding to keep a stock (even at its greatest dip price ever) or selling it for minimal profit. Even a line up of a 5-day bull run, can bring in a bullish day on Monday as well. However, the chance is higher for a bearish "correction" day.

Trends & Educated Guesses

These guesses, aren't really that educated, rather simply thought out and deemed as mixed, bearish or bullish. The more bullish you feel, then keep more stocks, the more bearish then sell more, if mixed, then go with the stock itself as being weak or powerful in its trend.

Percentages: Goal 3-10%

Not to worry over early sells, if under that % though. Esp. if the stocks general trend direction changes.

Timing for Trend directional Hold:

Day, a few days, week, weekly, monthly. Usually, a 1-5 day stock hold is the norm for my method. However, the drama with a Bear Market, it takes a normal move and sends into a much longer wait.

Options:

Options are not used in conjunction, which is less confusing for most people, it's simply my powerful and rewarding, "Stocks-Only" method.
Most retirees can accomplish good trading using my method, during normal market conditions. Even during a crash hype, your account should still stay above margin call territory, and be able to produce profits.

Traders:

if you trade better using my "Queen of France" Technique; please don't forget to donate, for using my free tutorial & advice: the PayPal button is listed above on the banner.