Today the online stock trader was busy trading LVS, Las Vegas Sands Corp. This stock gave a nice short selling signal on the daily chart as seen below. This is one of the online trader’s favorite technical stock patterns and will be designated as a BS1 setup, or Bear short 1 for future reference. This pattern in Las Vegas Sands Corp is nice because yesterday the stock closed near it’s high. Bulls were in charge and a reversal was thought to be in the making. Today, the stock gapped down below the prior day’s low. Those bulls got caught long and are wanting out of the stock causing selling pressure.
So how was this stock entered? You’ve got your first technical stock pattern on the daily chart. Next, the online stock trader evaluated intraday charts for his trading entry point.
The reality of online stock trading wasn’t realized until the early 1990’s. The advent of the internet opened up a whole new world of stock trading for Joe-sixpack traders across the globe. The stock trader didn’t have to dial his broker anymore. He was now armed with a trading platform that would allow him to buy and sell stock as he pleased. Just like the Big boys. Well almost.
If you think online stock trading is tough, imagine trading using a dialup connection, and computers that whizzed at the blazing speed of 100 mhz. The online stock trader remembers that October day in 1998 when he watched his trading account value fall precipitously. Frantically, he tried reaching his broker by phone, only to receive endless busy signals. The screen on his 17″ monitor slowed to a crawl. He couldn’t sell any of his stocks. Quotes were coming through 15 minutes after the fact. Thankfully. If he’d sold, he definitely wouldn’t have been able to get back in on that day which marked the bottom before the stock market boom of 1999. The point is, online stock trading has evolved and is continuing to evolve.
Today, the services and technology offered to the online stock trader are almost overwhelming. Still, the online stock trader thinks it all comes down to a few key things; stock charts, money management, stock pattern recognition or technical analysis, patience, and discipline. That’s it. Stock tips, news, and gurus on shows like CNBS are nothing more than noise and security blankets to the stock trader. The online stock trader plans to show you that trading stocks online can be accomplished succesfully with those key elements.