Frequently Asked Questions
What goals of this chatroom?
We are here to profit. But before you profit, you must learn. You can experience in real time the trade calls of professionals and gain insight over time and follow our reasoning with professional tools such as charting software.
Are there any rules to the chatroom?
With over 1000 members and growing in our professional trading platform, we will have a ZERO off topic conversation tolerance policy. Rules will keep trading information pertaining to the day very organized and much more structured towards usability.
Stay On Topic
This room will be dedicated to only providing information on stocks. Let’s keep our messages relevant to the current trading day on liquid, high momentum stocks. If you’re spotting potential, or occurring momentum, you may announce this in the room. Announcing with other information such as price movements, or indicators (more described below), is of our choice. We have a few rules set for this room of the chat, as it is our main, information providing room.
Not only does this provide zero information or help to other users, it's simply a cry for attention from those around you. If you're truly interested in gaining insight on your loss to better yourself as a trader, you may use the #lossanalysis Channel and give others either a picture of the trade or a detailed explanation of how the trade went down
If you didn't call the opening trade in real time, do not post an exit or gloat about a "270%" win claiming an entry from 2 weeks ago. Let's be transparent with our trades and call them in real-time like an honest, self-aware trader.
Drop your ego at the door when you’re in this chat. Please show respect to all members of the community. Condescending or verbally abusive messages will not be tolerated here!
No Pumping Stocks
Do not pump unwanted stocks here! Our professionals are smart enough to identify a completely illiquid, propped up stock, from one that is liquid and tradeable. No illiquid, high spread stocks, pumpers will be banned instantly!
All tickers may be represented with or without the $ sign in front, but must all be typed in CAPITAL letters.
Send all questions via direct message to the administrator, or the #questions channel. We will not be tolerating any inquiries in a room dedicated presenting information.
Examples of Useful Information
Indicator Movements - High RSI's, Low RSI, Ichimoku Cloud Movements, DMA EMA SMA, etc
"$STOCK has just broke the 50DMA, now riding the 9 SMA."
Crossovers - movement in price that surpasses a certain resistance or support from an indicator.
"$STOCK has just crossed above the VWAP."
Price Action - Certain price movements can indicate a reversal or high momentum. Experienced traders use this in tandem with Level 2 to ensure full detailed knowledge on orders being executed
"$STOCK opened at $10 and dumped to $5.72, now at $6.05, could be a reversal in play!"
"$STOCK just broke $5's keep on watch, volume spiking."
Volume Movements - Sharing a stock’s increase in volume is important for noting momentum or potential momentum.
"$STOCK has just spiked in volume, volume has been trending dead the entire day, might be an interesting look."
Chart Patterns - Chart patterns allow us to identify stocks with low risk, once the trend breaks, we take the loss and continue the trade accordingly, determining if we'd like to go short, long, or re-enter a trade
"$STOCK has just formed a Bullish Harami on the daily chart, swing trade prospect for tomorrow."
What is the trading schedule?
600AM - 9:30AM Premarket
Look for catalysts, high volume gap up and gap down set ups for longs. Also look for low volume gap up set ups for shorts. A lot of these gap ups that don't come on high volume fail at open. Check for dilution and other variables from within the SEC to better form a thesis on where the stock will head. Share structure will effect price movement. This is a great time to gauge where the stock audience is.
9:30AM - 10:30AM Momentum Hour
At the open is when the morning spikes on high volume are happening. Also stocks that have gapped down or gapped up will now collide towards their true direction. Deciding which stock is the best stock to be in during this time is important. It's usually better not to rush into a trade at the open unless you already have a plan during the premarket.
10:30AM - 11:30AM Confirmation Hour
During this time, a lot of the stocks in play at the open will have confirmed which set up they are going to follow, and we should have already established the price points in which we'd like to see these stocks to re-determine our trading plan for them. Stocks that are still searching for a bottom, we'll keep them on watch throughout this hour, as well as stocks topping out, etc etc.
11:30AM - 1:30PM Lunch Hour
During this time is when the entire market loses trading volume, and price action becomes much less volatile. A lot of professionals choose not to waste their time looking at the markets during this time, although once in a while you may find a gem stock that releases a great PR during this time, and you're ahead of the entire crowd because you're on watch. In the long run, it may not be as worth your time to pick and choose for plays during lunch hours. Great time to determine which stocks you'll want to watch for power hour though.
1:30PM - 3:00PM Post Lunch Hour
By now, stocks are starting to regain momentum, and we are starting to get a clearer idea of which picks we'll want to look at for power hour. Volume is starting to see small spikes and we're now watching to see if any intra-day bottoms have formed and whether or not we multi-day action will continue from here into tomorrow.
3:00PM - 3:45PM Power Hour
During this time, a lot of momentum plays are starting to show themselves, look for VWAP crossovers, red to green moves, and also breaks on HOD as momentum continues into the next day as well. A lot of the time, we'll see stocks fading out on momentum that continued throughout the entire morning and lunch.
3:45PM - 4:00PM Overnight Picks
From my experience, looking for an overnight pick is best done during the last 15 minutes of trading. Why is that? Because during this time, we're able to determine whether or not a stock is closing strong. Typically a stock that is closing strong on high volume, with the chart in line to see multi-day action, we're able to determine a good overnight pick that will have momentum continue into the next day.
4:00PM - 6:00AM Futures, Forex, and Crytocurrency
Futures are open 23/5, Forex, 24/5, and Cryptocurrency 24/7 so even after the US equity market closes, there are trades to be made. Most overnight sessions and liquidity are tame but sometimes there are scheduled events such as the US Presidential election to which there are many opportunities to trade and profit.
How do I set my desktop and mobile notification settings?
Should I go all in on a stock?
Going all in on a stock is extremely risky. If you lose 50% of on one trade, you will need to 100% in gains to regain that amount. The key to long term success in trading is to take lock in short term profits. Small profits add up. Often times on momentum stocks, the upwards movement in price dies down quickly. When that happens, we leave the stock to dry up to look for more stocks. I call it the "hit and run technique."
What is the fastest way to learn how to trade here?
Trading is a skill that develops over time through practice. You can proactively trade with a live account using small position size, or trade with a paper account. Follow successful traders but always make your own decision. Win or lose, analyze your trades afterwards. This allows you to gain insight into their decision-making, which you can use in future scenarios. Practice, practice, practice. After all, long term success is achieved with one good decision at a time.
What is behind the success of Enhanced Investor's Alerts?
Our strategy and technical algorithms gives us the advantage over most trading rooms out there. Our algorithm is able to find pumps, and runners early on. The fact that we have professionals around that are able to filter false break outs from real ones makes it easier for our users to profit over time. Kevin, our guru, is constantly developing/tweaking his algorithm to ensure it is matched for the current market environment.
I lost money on a trade, what do I do? Who do I blame?
For those who are asking me how they can become a better trader. Focus on your losses. Don't just sit in the chat and complain to everyone else about your recent loss. I am sure people feel bad for you, but they are not going to learn for you! Whenever you close a position at a loss you should be analyzing each and every variable that has brought you to this loss and make every attempt possible to keep this from happening again. The only person you can blame for a loss is yourself. Not the stock, not the market, not the shorts, not the bid/ask spread, not the StockTwits pumpers, not the call that you followed. YOURSELF. If you're only following calls and not putting in the effort to better yourself and adapt to the market, you can expect losses on a more regular basis. Let's try to recover from our losses by learning and providing a learning lesson to others, not cry and complain like people actually care.
How can you determine real momentum from a fake pump?
- The daily chart.
- The spread.
- The volume relative to previous days, we want real volume and real momentum, not a stock that jumps 50% then comes right back down on buyers.
- How long the % move has been going for. Quick drastic jumps are a sign of a pump and not real momentum.
Do you have any other advice before I start trading?
A lot of new traders believe trading is as easy as following someone's word with 30-50% of their account in one trade, and hoping to earn a large profit. You may get lucky once or twice and even end up making $1000 or $2000 in a few trades. But this is a losing strategy in the long run. The losses will be much greater than the temporary gains you see now. Not only are you going into a trade blind, you have no idea what price levels to take profit, cut the loss, or hold. I don't think anyone in this room will be here to hold your hand forever. Please make sure you only go into trades you are fully confident in. If you don't have access to charts, and data, and other information vital to making a successful trade decision, you are essentially taking on the most difficult game in the world, at a handicap. It is highly suggested to all new traders to paper trade, risk low, and make sure you are confident in the trade. Never only take my word for it, I may be right a lot, but in the end, when faced with a losing situation, you may end up wiping out all your gains and then some, in one single trade. You have been warned guys. Preserve your account capital, DO NOT look to get rich quick. If you are aiming to make $1000 a day with no knowledge on trading, I can promise you, that you have a negative return with your current strategy. Please do not disregard the importance of education and self-sufficiency.
Do you recommend “investing” in penny stock XYZ?
No, simply because they are too volatile and are not stable companies. We recommend intra-day trading or swing trading over a few days at best for penny stocks. These companies are penny stocks for a reason, they are not stable companies, no matter how “hyped” their potential is. Penny stocks are known to frequently dilute/reverse split throughout the years at the shareholders expense.
If you are interested in “investing” please check out the #longterm-investing channel.
I am holding XYZ for x amount of time. Should I cut my losses or do you recommend holding.
Generally speaking you should take the loss and take it as a learning experience. You are better off using that capitol to trade with and make back the losses using good trading strategies and habits. Just remember to always cut losses early and you shouldn’t ever be a bag holder.
Should I hold through earnings report?
No, we do not recommend holding a position in a penny stock through an earnings report. These companies are just too volatile to risk it. It is a gamble holding through earnings. A better strategy is to wait for the earnings report to come out and let the market decide which direction it wants to go and play from there.
Never be greedy in these situations. If you get FOMO on a good earnings and buy before just know the unnecessary risks you are putting yourself through. As a trader you will never buy the bottom and sell the top. Do not get upset about selling too early, or “ohh I could have bought earlier”. Those are bad habits that are based on luck and you’re luck will eventually run out. A successful trader learns to enter on confirmation even if that’s a higher price. Take your profits and remember you can always re-enter. Aim for singles and not homeruns.
I know a lot of you are thinking “nope I can’t re-enter, I’m on my last day trade!” Well, you should still aim for singles. Just remember small profits add up. $20 a day over a year (252 trading days) equals $5,040 in profits. So take the profits no matter how small if the trade is starting to go against you. A home run will come every now and then, but you will appreciate the hard work you put into all those singles. This isn’t like baseball were you can always come back to bat after a strikeout, there are only so many times you can strike out big in the market before you lose it all. Be smart and you will be successful!
What’s the best use of my time when the markets are closed?
I hear a lot of people say they want to do DD on a stock and find out about a company’s balance sheet and etc. This in my opinion is a waste of time unless you are investing in a non-penny stock company. These penny stocks tend to be manipulated a lot and should not be trusted. We have seen plenty of times stocks get pumped before a bankruptcy. As a trader a better use of your time is to study charts and patterns. Go back and look at as many charts as you can and identify what indicators work well and what don’t. Also, study every trade you did for the day. Go back and look at what you did right and what you did wrong. Always room for improvement.
Also remember to study new strategies to help diversify your trading knowledge. Look into all the areas, day-trading, swing trading, long term, shorting, futures, options, etc. You want to have as many tools in your tool box as you can. So, when the market turns you are prepared and not left scrambling. With that said you always want to have one tool the sharpest of them all, something you master really well.
What’s your plan for XYZ?
My plan stays unchanged unless mentioned so in the #entry-exit-alerts channel.
I keep running into trouble with day trades since I’m under PDT. What should I do?
Check out http://enhancedinvestor.com/brokers for a few strategies in earning more day trades.
I’ve noticed a lot of the time at open stocks tend to fake out traders on the direction it plans on going. How do I deal with his?
First hour into the day if you're unsure which direction a stock will go, size in small for the volatility or wait for confirmation. Generally there are only a few ways a stock can fake out a trader, study these methods.
I find that a lot of the time I let my losses run and cut my profits short. Is there anyway to solve this problem? Why are my losses bigger than my wins?
It means you’re not setting a stop loss, and you’re not taking set ups with higher reward. From now on, never enter a trade that's not at least 1-3 in risk-reward ratio.
I have the ability to day trade, how can I use this to my advantage?
Sell a stock when you know it’s overbought in the short term. If you know the bullish trend will continue - reenter on the dip at a lower price, this will maximize your profit.
I’ve hit my profit target for the day, what do I do?
Generally, it’s smarter to just walk away and wait for more plays tomorrow. If you’re a more seasoned trader, play smarter and less aggressive. Only take set ups that are better or just as good as the ones you just profited on. Don’t think of your winnings as a reason to lose.
What is my first step as a trader?
Develop criteria around set ups that you feel comfortable trading. These will be your bread and butter set-ups. They may not come around often, but when they do, it’s money in your pocket. It’s hard to be a jack of all trades and a master of none in this game.
How do I trade a stock I think is going to reverse?
Generally it’s not a good idea to try and time a reversal, especially a falling a knife or a stock that continues to squeeze shorts. The optimal method may be to size in 1/3 or 1/4 of your position at a time and average in/out.
I wake up and arrived to the market late a lot of times - how can I adapt to this?
Shift your strategy around shorts. Arriving to the market during or after lunch puts you into a better spot to find trades that are losing their price rather than gaining.
When is it okay to use a market order?
Generally, when you’re looking to exit a trade on high momentum so you don’t get yourself in trouble missing fills on limit orders. Placing a looser limit order is similar to using a market order, and it ensures you don’t end up chasing in the case the stock spikes before your order gets routed. For example, if the stock price is $1.01 on the bid and $1.03 on the ask, placing a loose limit order for $1.08 will generally get filled if you’re buying, but if the stock price somehow jumps to $1.20 before your order goes through, you won’t end up with a terrible fill @ $1.20 like a market order would.
Where should I route my trade to?
Generally you’d leave our route on auto. If you’re looking to trade premarket, the route will be different, and should
My broker does not offer premarket trading, how do I trade premarket?
You’ll have to switch to one that does, or activate benefits such as “RH Gold” which will
My broker offers premarket trading, how do I make premarket orders?
Set your broker to route to ARCA, NSDQ or what the required route is. Some brokers will do so automatically. The time in which premarket trading and after hours trading is offered varies between broker.
What are the types of limit orders available? Can I place a stop and a profit sell at the same time in the case I am away from my trade?
There are multiple types of orders available depending on your broker. Most discount brokers will leave you the option to use stop market, or stop limit orders along with their market and limit orders, but not advanced multi-orders. However, some premium brokers will allow multi-orders such as OCO (one cancels other) where you can essentially have multiple order triggers set.
Will my stop loss always fill at the price I set it to?
No, unless you use a stop limit. A stop limit runs the risk of not getting filled at your desired price while a stop market guarantees a fill but at a possible undesired price. It’s a tradeoff, so use both wisely.