I made over £900 on the stock market over the last few days, and I wanted to share with you my entry and exit points so that you can learn from me, how to trade stocks. I’ve been using my usual MACD strategy, which you can find on my Patreon page, but I am also ‘averaging up’ my trades and this is leading me to make significantly more profits in the markets than I had been, previously… Let’s take a look at how I did it…
How to trade stocks – NASDAQ daily timeframe
As you can see, the NASDAQ has been in a long term steady uptrend but it had been pulling back per the daily timeframe, since around November! Once I saw that the price bounced near the long term upwards diagonal trendline on the daily timeframe, I found an entry on the 30 minute timeframe. I noted that the price started bouncing on another lower level diagonal trend line per the 30 minute chart, and got into the market near a horizontal support level. It’s best if you can get into the market where it is supported both diagonally and horizontally, but just one type of support can be ok too:
I tend to get into the market when the MACD is crossing again, to the upside, at a good support level. I do this now, repeatedly adding more and more to my position as the price increases. At each scoop down, I add another portion. I do this in a very controlled way, keeping an eye on my margin and the potential losses. Averaging up in this way is an important consideration and tool you can use when learning how to trade stocks.
In the above chart screen shot, you can see the first entry I made which ended up in over £500 of profit, and then the second one which took over £200 and the third (over £80). In total I increased my position size, about four times. I don’t have screen shots from the whole time the trade was open to show you, i’m afraid, but I hope you can see the step ups in the market I have made, here.
After the market was starting to cut through the support level on the chart, I took profit from the market, on all my open positions. You can see where I closed them with the little red arrows, here:
I also made another £300 or so this week since I closed these ones, and you can see my subsequent entry, but I’m aware that there will be an FOMC meeting soon and I don’t want to leave open positions on the table while this meeting is starting. I published another blog article yesterday about these meetings and how they can affect your trading, here:
If you are interested in learning to trade stocks and you don’t know where to start, or you are already applying a strategy and you feel you are struggling to get it to work, I can offer you some assistance. I offer one to one, educational consultations, during which I aim to provide some feedback and helpful guidance on how you could improve your strategy and make it successful. Please see the contact section of the blog and reach out if you think this would be of assistance to you.
I hope you found this article on how to trade stocks, helpful!
Disclaimer!
Nothing on this blog should be taken as financial advice or encouragement for you to enter a trade. You are expected to speak to a financial adviser or carry out your own due diligence before entering any positions. Everything on this blog is made for educational purposes and to equip you with the knowledge you need to be able to make your own financial decisions.
For more great tips and advice on trading the stock market, please visit:
https://www.sophiatrades.co.uk
To watch me trade live please visit my patreon page here:
https://www.patreon.com/sophiatrades
Finally, if you would like to receive a discount on the Trading View charting software I use, please click on the relevant link here:
https://www.tradingview.com/?aff_id=117138
Please note any subscriptions taken via my affiliate link with Trading View may result in me earning a small commission. However, I provide complete transparency on me using Trading View personally – I publish my success on the financial markets via my broker reports and any profits earned were done so by using my own Trading View subscription, so I genuinely do recommend them and have been using the Trading View charts for many years.