In my previous articles, I have defined my Grade A (the best tradable) and Grade B (good tradable) patterns. If you haven’t read them, please click here for article Part A and here for Part B. In this article, I am going to define a few stock patterns that we should try to avoid. These patterns look like they have a real good trend and are usually very tempting to novice traders. However, they fail more often than succeed. These patterns are like teasers from the fisherman (often the big …

I have summarized the three best trading patterns in my Part A article, and have named them the Grade A patterns. If you haven’t read the Part A article, I highly recommend you to click here and read it before going further.
My Grade B stock patterns are still tradable patterns, but have a relatively lower success rate than Grade A patterns both in terms of stock failing to move in the expected direction, and the distance the stock can go in the expected direction (in other words, the profit potential …

Today, I have seriously taken a look at my successful and unsuccessful trades over the past couple of weeks and found that stock patterns actually have different degrees of success rate. Certain patterns or setups show a greater success rate than others. Therefore, I have graded these patterns as A and B according to their success rate.
Grade A patterns have the best success rate. I have so far summarized 3 unique patterns as GRADE A Patterns.  Here they are:
1. Early Morning 45 Degree Breakthrough Intra-day Pattern:
This pattern usually forms …

First of all, what exactly is day trading? According to Wikipedia’s definition, Day Trading refers to the practice of buying and selling financial instruments (such as stocks, futures, options, etc.) in order to generate a profit within the same trading day. Traders that participate in day trading are called active traders or day traders.
Day trading, like any other business professions, needs profound training, decent planning, and lots of practice. Thousands of beginners enter the day trading business every day in hope of making quick money. Yet only a few of …