O'Reilly logo

Trading Tools and Tactics: Reading the Mind of the Market by Greg Capra

Stay ahead with the world's most comprehensive technology and business learning platform.

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, tutorials, and more.

Start Free Trial

No credit card required

Appendix B

Trade Types

The following is a list of the most common trade types, complete with a brief description of each style of trade. These trade types should not be confused with the many specific, proprietary trading strategies and tactics taught in Pristine's trading seminars.

Scalp trade: A style of trading that is designed to capitalize on small moves, using price setups that present exceptionally low-risk opportunities. The typical objective for a scalp trade can be a few cents or more. Scalping demands a familiarity with Level II (see Glossary, “Commonly Used Technical Terms”) as well as the use of a direct access system such as Mastertrader (www.mastertrader.com) for instant order execution. The best scalping opportunities are found in liquid stocks (trading 500,000 or more shares a day) with quality market maker representation. Pristine's scalp setups are typically found using charts in smaller intraday time frames such as 1, 2, 5, and 15 minutes.

Day trade: Conventionally speaking, a day trade is a position initiated and closed out in the same trading session. In Pristine's real-time trading rooms, a day trade is an opportunity with the potential to become an overnight (O/N) and/or develop into a swing trade but, because it occurs early in the day, it is typically treated more aggressively in terms of locking in partial or complete profits. Day trades also typically employ tighter stops than the average swing trade does. We have found that the best day trades usually ...

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, interactive tutorials, and more.

Start Free Trial

No credit card required