Every trader needs to ask themselves if they are willing to commit a few years of their life to their trading development while knowing that the results during this period could be minimal. Progress takes time, and that is especially true when it comes to day trading.

Relative volume (also known as RVOL) is perhaps the most important day trading filter in a trader’s toolkit. Relative volume tells traders how current trading volume is compared to past trading volume over a given period - More simply put, relative volume tells us how many shares have traded in relation to how many shares usually trade.

The entire purpose of a daily trade review is to collect behavioral-performance data around specific actions that you complete on a daily basis - These actions may or may not be directly related to trading. This write up should help to provide guidance on how to structure the daily journaling and data collection.

9 Cognitive biases that every trader needs to be aware of.

“gamma is one of the larger sources of non-fundamental economic activity in global markets. Market makers who delta-hedge their option positions are economically driven to trade substantial amounts of underlying shares or futures, strictly as a result of the price of the underlying itself changing, not as a result of fundamental news and without regard to the liquidity available. As a result, gamma can cause markets to overreact to fundamental news (short gamma) or too under-react to fundamental news (long gamma).”

Where do we begin? First of all, Robinhood was not the singular brokerage restricting buying in Gamestock (ticker symbol $GME) and the variety of other stocks that had restrictions placed on them. I personally use a direct access broker, and noted within the Trader’s Thinktank® that on Monday (1/25/21) they had rejected all options orders in GME. Much of what is discussed in this article will apply to most brokers. That being said, I’ll be using Robinhood in this article because they are the notable broker involved in this fiasco.

You can’t control the market but you can control how you react to it. Studying and understanding trading psychology allows you to analyze your own behavioral patterns and make the necessary improvements. A focus on trading psychology, your behavior, and emotion is the ultimate compliment to market research, technical analysis, and tape reading.

By utilizing the recent negative catalyst paired with technical analysis, we were able to profit on this setup while the stock moved lower.

When bid size is radically different from the ask size, it can represent a supply and demand imbalance. Bid size and ask size can help traders gauge where to place orders and in turn, get quicker fills.

High probability options trade alerts, proven results, and a preference for textbook setups- These are just a few of the listed benefits of our Live Stream Trade Alert service!

Volume is an incredibly important tool for active traders. Please enjoy our FREE Volume Data custom script (ThinkScript) for the ThinkOrSwim trading platform.

It can be a challenge to scan for a proper trade, especially when trading options. This article will show you how to find the hottest stocks to trade daily!

The effects of this small habit compounds over time. If you can end up with just 1% gain each day, you will end up with results that are nearly 37 times better after a year!