Maximum % of Profitable Trades
                       Day traders in an effort to keep  losses  small  willget stopped out often and this makes it hard to maintain a  high  percentageof profitable trades. Our trading plan  is  to  select  the  most  promisingopportunities; that is the stocks which are  most  likely  to  move  in  thedirection of the trend with maximum range.                       In order to accomplish this you will select from  thestrongest of the institutional stocks  that  have  pulled  back  from  theirswing point highs or are coming out of consolidation  in  the  direction  ofthe trend (sells reversed).                       You will be even more  profitable  if  you  learn  torecognize the dynamics of supply and demand and not just  some  shape  of  apattern or a formation. Buyers and sellers are constantly  making  decisionsand we, as traders want to be on the same team  that  is  currently  winningthe war. We will cover these dynamics later in the  course.  Meanwhile,  forpractice when you are watching your stock(s), focus on:
                          1.Where  the  volume  is  trading,  on  the   bid,midpoint or the ask.                         2.What are the bid &  ask  doing  –  moving  up  ordown?                         3.Is the stock  showing  strong  relative  strengthversus the day’s trend?                         4.How does the stock react to programs?                         5.Does the volume increase on up days  and  declineon down days (sells reversed)?                         6.Where are  the  blocks  trading,  on  upticks  ordownticks?                         7.Is stock closing better or worse  than  its  VWAP(volume weighted average price).
                       It  is  not  a  pattern  or  system  that  makes  youprofitable but rather the dynamics that bring life to the  stock’s  pattern.I will cover all these topics in the upcoming weeks.
Maximum Profit Per Trade
                       The stocks we look for must have room  to  run  whichmeans an average daily range of two points  or  more.  When  you  enter  thetrade a good portion of the range should be available for  profit.  This  isnot a factor if your entry is above the previous close, but  it  can  be  ifyou are entering  from  a  5-minute  chart  pattern.  Most  traders  have  atendency to take profits prematurely as they get nervous when a stock  makesits normal pull back. You haven’t traded if you haven’t  experienced  takinga quick ˝ point profit and then watched the stock run another 1-1/2  points.You probably sat there frozen, unable to  pull  the  trigger  again  as  thestock made new highs. Managing your trade  to  higher  profit  levels  afternormal pullbacks is harder than it  seems.  You  start  thinking  about  themoney and your emotions get in the way.                       Part of your learning process is  to  understand  thenormal characteristics of the stocks you trade. Is it a 1/2 up 1/4 back,  or1 pt up 5/8 back? Once you understand the normal pattern of the  stock  thenyou must decide by watching the dynamics  of  the  stock  as  it  trades  todetermine if the intra-day trend has changed, is  supply  definitely  largerthen demand, or is it just backing off on light volume and  small  programs.Your decision will determine whether you hold or exit the trade.                       The better you get at understanding  and  recognizingthe dynamics, the more proficient you will get at selecting stocks about  toaccelerate which will help in maximizing the profit per trade.