Q&A Session – Post Your Questions!

by | Aug 12, 2015

Daytradingqa

Whether you’ve been trading for awhile or have just started, you probably have some questions.

Trading is a constant challenge and asking the right questions can help you on your journey.

We want to take a chance to answer some of the questions that everyone has. This is for both members and non-members!

Post your questions in the comments section below and we will answer them on our YouTube channel in the coming week.

Please try to be specific and avoid posting things that can be answered with a simple Google search.

23 Comments

  1. How do you anticipate a reversal on an oversold stock? for instance when stock ticker SUNE bottomed at 11.78 my instinct would be that it cant break through 13.15 level and one might want to get short to continue what looks like a multi day falling knife trend. then it shoots through and grinds for the most of the day looking toppy again at the 14.50 and 14.60 level only to find it breaks through again and hits over 15. Are these types of plays worth shorting after it fizzles out with its run or just follow the long on the reversal and then stay away after that?
    Thanks

    Reply
  2. Hello Nate! Thanks for this opportunity. I was wondering if you could provide some clarification of market makers and the games they play and how all of that works? How does the execution work through a MM when i got to place an order to buy or sell? Does the market maker buy from you? And they sell from their inventory? The spread? How does the market maker make the spread when “we” the traders are putting in the prices? Don’t we determine the spread? Overall understanding of this has been bothering me. Any help would be great! THANKS NATE in advance 🙂

    Reply
  3. Hi Nate! I would like to know how you anticipate moves at market open. Do you look at the premarket action to help you? Everytime I think a stock would pop at the open, it instead sinks like a steel brick and I am left holding the bag. For example CERE’s action on 8/12/15. I thought it’ll run for at least a few minutes but it instead got slammed right after the first minute.

    Reply
  4. Nate, what am I supposed to me doing when waiting for the market to open? I think im too new to be trading pre-market and I tend to already have my watchlist ready half an hour before open. I find myself just sitting around waiting for open. what can I be doing that could help me? just more due diligence?

    Reply
  5. What indicator that you use on DAS PRO trading program? What are the key benefit, please describe and explain for the newbies.

    Reply
  6. I posted this to reddit but didn’t receive an answer: My biggest issue with trading is not knowing when it’s okay to trade outside of the obvious huge volume and big gainers. It’s really difficult to trade when it’s slow and it seems like stops are hunted because there isn’t any general direction. August of last year and september were good, October-november was slow, started to pick up again and january-may were really good. After June it’s been
    really slow up until August again, is this because it’s summer? Or is it because the DJI
    is down trending? I’ve also heard about EMAs but I can’t seem to figure it out. CNN fear and greed doesn’t really work either for trading, it seems like it’s more for investing. Obviously there are good trades sometimes during the slow periods but it’s few and far in between example: Lake in october

    Reply
  7. Can you give us your version of how to read Level 2 to confirm entry/exit.

    Reply
  8. Why do you scale in and scale out? To me selling at top in parabolics and buying at dips makes more sense, but you are more experience, so I am sure my logic is wrong, please explain,

    Thanks

    Reply
  9. Hello Nate, can you explain what exactly is an Exhaustion Candle ? Would like to see a Chart with such candle. Thank you!

    Reply
  10. Nate, I have been trading for two years and I am just now getting somewhat consistent. I started out trading large size 1k to 2k shares but blew up accounts. Now I just trade small everyday few hundred shares and try to make $100 to $200 bucks a day. I now have days where I will be profitable for like two or three days but then give it all back in one day! This is so frustrating and I am having trouble scaling my account. Some days I feel like I will never be successful as a trader if I cant scale the acct and make consistent money. Do you have any insight or could share knowlege of how you did your second year of trading? And what does it take to get to the next level as far as growing your account instead of going in circles? Thank you.

    Reply
  11. Would you recommend getting a 56 series license to avoid PDT and brokers fee or just use an offshore broker?

    Reply
  12. Hey Nate,

    Just wondering what order routing you think is best and why. I’ve noticed that many traders use different things. Does it depend on the stock?

    Thanks

    Reply
  13. 1) What is a stuff?
    2) How do you focus on multiple charts and not miss an entry or exit?
    3) Are you making a 3rd dvd?
    4) What books on technical analysis trading helped you most?
    5) Are there additional fees or taxes when withdrawing from an off shore broker and wiring to the US?
    6) When do you know its time for the “next level” with a persons trading? How does one know what that next level is?
    7) In your experience, do SSR stocks have a higher chance of a squeeze?
    8) How do you trade stocks ($CERE) that are so illiquid and each candle seems almost random and far apart as opposed to $ONTX

    9) Thank you and have a great day!.

    Reply
    • This has already been completed the video is live: https://www.youtube.com/watch?v=8JU0eoXcDqQ enjoy

      1) Discuss this regularly in webinars and Tandem Trader (also this Q&A mailbag)
      2) If you don’t think I miss entries/exits at times – you have the wrong assumption but more screens is always better
      3) nothing in works will be hard to top Tandem Trader but at some point maybe in the future we’d have some action packed one
      4) @steenbab books
      5) I think you can find out that answer yourself by taking a few minutes on whatever brokers you’re interested in’s webpage
      6) Discussed and if you have to ask – then it’s not time yet – you’ll know.
      7) Not necessarily – crowded names do
      8) CERE was not illiquid so not really sure what you’re referring to.

      Reply
  14. HI Nathan,

    1) Do you use the VWAP or RSI indicators for your intraday trading?
    2) If yes, in what capacity do you use these indicators?
    3) If no, what are the reasons why you don’t use these indicators?

    Thanks

    Reply
  15. I would like to follow other traders in my Twitter account to enhance my trading. Are there names that you recommend?

    Reply
  16. Id like to know how are you going to manage the US dollar crash that is about to happen in a month, i mean, is it going to be great for shorting? Do the markets stop trading when something like this happens?

    Reply
    • Let’s worry about it when it happens vs. predict it – right?

      I wouldn’t worry about how the market may react

      Reply
  17. Do you or any other IU members have advice about time management for those just starting out trading but who have a full time job? I work for myself and at the end of the day my brain is too tired to absorb a lot of trading information. At the weekends I spend much of my time either catching up on what I didn’t do during the week or family commitments. How have others juggled learning to trade along with a full time job?

    Reply
  18. how do people scan for setups to trade?

    Reply
  19. When it comes to tax reporting, is there any special accounting / tax filing software you use considering 1000s of trades you make during the year? You mentioned Speedtrader ( or Speedtrader Pro) is your preferred broker, do they provide accurate TXT files to do your taxes?

    Reply

Submit a Comment

Your email address will not be published. Required fields are marked *

Related Content

15 Trade Management Tips to Improve Your Trading

15 Trade Management Tips to Improve Your Trading

Trade management is an important part of the trading process. It's not enough to have an effective strategy - you also need to execute that strategy properly. Think of this distinction as the difference between creating a well-rounded business plan and actually...

Adapting to the Market – 8 Practical Tips for Traders

Adapting to the Market – 8 Practical Tips for Traders

The stock market is constantly changing. If you are fortunate enough to find success as a trader, you shouldn't get too comfortable. A strategy that works for days, weeks, or months is not guaranteed to work forever. Career traders who achieve long-term success...

14 Tips to Improve Your Trading Mindset

14 Tips to Improve Your Trading Mindset

Your mindset is an important part of your trading. How you think will impact how you trade. Your mindset will ultimately determine what you focus on, how well you learn, how you react to trades, and so on. Today, we are going to discuss some quick tips to help you...

The Process Behind Trading Success – Nate Michaud on SimCast

The Process Behind Trading Success – Nate Michaud on SimCast

https://www.youtube.com/watch?v=yaHEIFvHh5g Topics Discussed Long Trading vs. Short Trading (and Where Nate Makes More Money) Using a "Macro Mentality" in Trading Scaling in and Out Around a Core Being Early vs. Being Right Why Day Trade vs. Invest? Finding The Best...

13 Tips to Minimize and Prevent Trading Losses

13 Tips to Minimize and Prevent Trading Losses

How much higher would your trading profits be if your losses were cut in half? How much higher would they be if you only lost half as frequently? Most traders focus on chasing profits and forget that minimizing losses can have the same net impact on your bottom line....

Day Trading Course