Pristine - Micro Trading for a Living Micro Trading for a Living

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     Micro Trading for a Living  Micro Trading for a Living 

    WithWith

    Oliver L. Velez Oliver L. Velez 

    Founder of Pristine.com, and Author of the best selling book,Founder of Pristine.com, and Author of the best selling book,

    Tools and Tactics for the Master Day Trader Tools and Tactics for the Master Day Trader 

    Copyright 2002, Pristine Capital Holdings, Inc.Copyright 2002, Pristine Capital Holdings, Inc.

    Pristine.com Presents

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     Introduction

    Basic Intro

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    Types of Trading 

    •Four Trading Styles: Core, Swing, Guerilla, Micro

    •Two Trading Categories: Wealth & Income

    Basic Introduction

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    Wealth Building 

    •Core Trading  – 

    •Covers a holding period of weeks to months.

    •This style of trading is the new form of investing.

    •The Core Trader typically uses weekly charts, andattempts to capture the entire weekly trend.

    •Core Trading is best used on key stock indices (DIA,

     SPY, QQQ, HHH, etc.).

    The Four Trading Styles

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    Core Trading Chart

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    Wealth Building 

    • Swing Trading  – 

    •Covers a holding period of 2 to 5 trading days.

    •This style of trading capitalizes on a very overlooked

    market niche.

    •The Swing Trader typically uses daily charts and

    attempts to buy the dips and side step the declines.

    • Swing Trading can be used on anything that moves.

    The Four Trading Styles

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    Swing Trading Chart

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     Income Producing 

    •Guerilla Trading  – 

    •Covers a holding period of 1 to 2 trading days.

    •This style of “hit and run” trading capitalizes on

    reliable overnight trading patterns.

    •The Guerilla Trader typically uses daily and hourly

    charts and buys/sells late day strength/weakness.

    •Guerilla Trading can be used on all vehicles.

    The Four Trading Styles

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    Guerilla Trading Chart

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     Income Producing 

    • Micro Trading  – 

    •Covers a holding period of seconds to hours.

    •This style of active trading goes after small but

     frequent bite-sized gains.

    •The Micro Trader typically uses 5- & 15-minute

    charts and buys/sells dips/rallies, BO/BD.

    • Micro Trading can be used on all active stocks.

    The Four Trading Styles

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    Micro Trading Charts

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    Tools of the Micro Trade

    •Charting Tools: 15 & 5-min charts, 20 and 200

    simple period moving averages

    • Market Timing Tools: Nasdaq & S&P Futures,

     NYSE and Nasdaq TICKs, NYSE & Nasdaq TRINs

    Micro Trading Tools

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     Micro Micro

    Charting ToolsCharting Tools

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    Pristine Capital Holdings, Inc.

    5-Minute Chart

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    15-Minute Chart

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    Pristine Capital Holdings, Inc.

    The Power of the 20 & 200 MAsThe Power of the 20 & 200 MAs

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     Micro

     Market Timing Tools

    Market Timing Tools

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    S&P and Nasdaq Futures Charts

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    NYSE & Nasdaq TICK 

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    NYSE & Nasdaq TRIN

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    The 3 Micro Trading

     Phases of the Day

    1) Phase 1 - 9:30 to 11:15 (Trade BO/ Reversals)

    2) Phase 2 - 11:15 to 2:15 (Mid-day Doldrums)3) Phase 3 - 2:15 to 4:00 (Trade B/O Reversals)

    3 Micro Trading Phases

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    The 3 Phases of the Trading Day

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    The 3 Phases of the Trading Day

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    The 3 Phases of the Trading Day

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    The 9 Micro Trading

     Reversal Times

     Phase 1 Reversal Times - 9:35 10:00, 10:30, 11:15

     Phase 2 Reversal Times – 12 & 1:30

     Phase 3 Reversal Times - 2:30, 3:00, 3:30

    Reversal Times

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    Major Reversal Times

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    Major Reversal Times

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    Major Reversal Times

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     Phase 1 Trading Tactics

    1) The 9:30 Breakout/Breakdown Play

    2) The 10:00 Reversal Play

    3) Pristine’s 30-Minute Rule

    4) The 11:00 Topping/Bottoming Play

    5) The 200 Moving Average Play

    Micro Trading Phase 1

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    9:35 BD and a 10:00 Bottom

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    9:35 BD, 10:00 Bottom, 11:00 Top

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    9:35 BD, 10:00 Bottom, 11:00 Top

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    9:35 BD, 10:00 Bottom, 11:00 Top

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    9:35 BD, 10:00 Bottom, 11:00 Top

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    9:35 BD, 10:00 Bottom, 11:00 Top

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    30-Min Buy, 11:00 Top

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    30-Min Buy, 11:00 Top

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    10:00 Top, 10:30 Reversal

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    200 MA Play at 10:30 Reversal

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     Phase 2 Trading Tactics

    1) The 11:00 – 11:15 Topping/Bottoming Play

    2) The Good Lunch Play

    3) The 15-minute Trading Dip Play

    4) The 1:30 Reversal Play

    Micro Trading Phase 2

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    11:00 – 11:15 Topping Play

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    11:00 – 11:15 Topping Play

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    The 1:30 Reversal Play

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    The 15-Minute Trading Dip

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    1:30 Rev & 15-Minute Dip

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    11:00 Top and 1:30 Dip

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     Phase 3 Trading Tactics

    1) The 3:00 Topping/Bottoming Play

    2) 200 Moving Average Play

    3) The Late Day Breakout/down Play

    Micro Trading Phase 3

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    3:00 Topping Play

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    3:00 Topping Play at 200 MA

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    The Late Day Breakout (LDB)

    Pristine Capital Holdings, Inc. 7-11 South Broadway, Suite 210, Whit e Plains, NY 10601Tel: (914) 682-7613  Fax: (914) 682-7640 Web: www.pristine.com   E-mail: [email protected]

    PEOPLES OFT INC (PSFT )

    The Simple Art Of Trading® Part I

    Chart Courtesy of www.Execut ioner .com

    5- Mi n u t e C h ar t  No te th at th e Pristine Day Trader  buys

    P S F T   on the break of the most recentseries of equal highs, not on the breakof the high of the day. 

     No te ho w P S F T’s breakout occurredon Above Average Volume.

    High of the Day

    Our initial protective stop (1 )  is tight as it

    is, but the astute Pristine Day Trader  knows how and when to quickly raise it tomake it even tighter  ( 2) .

    1

    2

    Late Day Breakout

    Criteria

    1) Stock is up on the day

    2) Stock is above itsopening price

    3) Stocks is trading at or

    near the high of the day

    4) Stock breaks out late

    in the day (anytime after

    2:30 EST).

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    The Late Day Breakout (LDB)

    Pris t ine Capi ta l Ho ld ings , Inc . 7 -11 South Broadway , Su i te 210 , Whi te P la ins , NY 10601Tel: (914) 682-7613   F a x : (914) 682-7640 W e b : www.pr is t ine .com E-mail: ed i tors@pris t ine .com

    B I O M E T I N C ( B M E T )

    The S imple Ar t Of Trad ing® Par t I

    Chart Courtesy of www.Execut ioner .com

    5- Mi n u t e C h ar t  

    T he P r i s t ine D ay T rader buys new

    high.

     No te th is ne ar pe rf ec t Pr is ti ne B u y  setup.

    Stop

    Late Day Breakout

    Criteria

    1) Stock is up on the day

    2) Stock is above itsopening price

    3) Stocks is trading at or

    near the high of the day

    4) Stock breaks out late

    in the day (anytime after

    2:30 EST).

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    The Late Day Breakout (LDB)

    Pris t ine Capi ta l Ho ld ings , Inc . 7 -11 South Broadway , Su i te 210 , Whi te P la ins , NY 10601Tel: (914) 682-7613   F a x : (914) 682-7640 W e b : www.pr is t ine .com E-mail: ed i tors@pris t ine .com

    S T A P L E S I N C ( S P L S )

    The S imple Ar t Of Trad ing® Par t I

    C h ar t C ou r t e sy o f w w w . Exe c u t i on e r. c om

    5- Mi n u t e C h ar t  Th e L a t e D a y B r e a k o u t ( L D B )  to a new dai lyh igh o f fers the Pr is t ine Day Trader an excel len t

    micro-trading opportunity, as well as a strongovernight trading possibility.

    Late Day Breakout

    Criteria

    1) Stock is up on the day

    2) Stock is above itsopening price

    3) Stocks is trading at or

    near the high of the day

    4) Stock breaks out late

    in the day (anytime after

    2:30 EST).

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    The Late Day Breakout (LDB)

    Late Day Breakout

    Criteria

    1) Stock is up on the day

    2) Stock is above itsopening price

    3) Stocks is trading at or

    near the high of the day

    4) Stock breaks out late

    in the day (anytime after

    2:30 EST).

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    The Late Day Breakout (LDB)

    Late Day Breakout

    Criteria

    1) Stock is up on the day

    2) Stock is above itsopening price

    3) Stocks is trading at or

    near the high of the day

    4) Stock breaks out late

    in the day (anytime after

    2:30 EST).