Today we will look at the break down of $SQ and TT Blackbox day trade alert that James Mason took and shared with the entire TT Blackbox Team on Live-Stream. We will look at the Time the day trade alerted and the entry/exit strategy.
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Transparent Traders created the first-ever solution that specifically alerts for swing trades. It will also alert for bullish & bearish day trades. Our Blackbox runs off of multiple algorithms and uses predictive A.I. to locate the most accurate day or swing trades that it calculates to give the best chance for success. Couple this with proper Due Diligence and our users are given the edge needed to be more successful in the trading world.
Based on the pictures below you can see the TT Blackbox started alerting $SQ as a Bearish 5-minute Mover on 3/26/2020 at 1000. $SQ continued to alert as a Bearish 5-minute mover, with a couple of alerts for Bullish 5-minute mover thrown into the mix. I kept my emotions out of my trading strategy and continued on with my Bearish Game Plan. The initial TT Blackbox alert is circled in PINK on the chart below. The RED arrows represent where I entered and where I scaled in six more times today per my scale in strategy. The BLUE arrow represents where I closed (EXITED) my position today. The Bearish 5-minute Mover alert from the TT Blackbox allowed me to capitalize on a $7,000 profit after my 7 entries based on the Scale in Strategy.
For all of you wanting to know how I decide to enter and exit my trades, I have listed those key points below:
- I have created a watchlist of the tickers I like to trade the most. Download my watchlist right “HERE”
- I review that watchlist against the alerts from the TT Blackbox each 5-minute interval.
- I focus on the $VIX. This measures volatility in the market. If volatility is moving up, the market is moving down, and vise versa. This simply means I start here and does not mean I will not trade against the market. However, I do not recommend that for the novice trader.
- Once I know the direction of the market, I start to focus on my tickers that are moving in that direction.
- Once these tickers alert on the TT Blackbox, I typically wait till the closure of the next 5-minute candle and i enter.
- I then immediately set a limit sell order for 5%. Keep in mind I am trading shares in the price range of $30-$400 tickers so 5% is big money.
- I exit my trades based on two points. One, being the TT Blackbox stops alerting or alerts in the opposite direction, and two being my 5% target has been met.
Here is a screenshot of the tickers I watch daily:
What is day trading?
Day trading is the practice of buying and selling stocks in a short timeframe, typically a day. The goal is to earn a tiny profit on each trade and then compound those gains over time.
With the rise of online stock brokers and cheap trades, day trading became a viable (albeit very risky) way for retail investors to turn a few days’ worth of quick wins into a substantial bankroll.
Successful day traders treat it like a full-time job, not merely hasty trading done between business meetings or at lunch.
In practice, however, retail investors have a hard time making money through day trading. A 2010 study by Brad Barber at the University of California, Davis, suggests that just 1% of day traders consistently earn money. The study examined trades over a 14-year period, from 1992 to 2006.
The very small number who do make money consistently devote their days to the practice, and it becomes a full-time job, not merely hasty trading is done between business meetings or at lunch.
How day trading works
Volatility is the name of the day-trading game. Day traders rely heavily on a stock’s or market’s fluctuations to earn their profits. They like stocks that bounce around a lot throughout the day, whatever the cause: a good or bad earnings report, positive or negative news, or just general market sentiment. They also like highly liquid stocks, ones that allow them to move in and out of a position without much affecting the stock’s price.
Day traders might buy a stock if it’s moving higher or short-sell it if it’s moving lower, trying to profit on a stock’s fall. They might trade the same stock many times in a day, buying it one time and then short-selling it the next, taking advantage of changing sentiment. Whichever strategy they use, they’re looking for a stock to move.