A Doji candle has a small body with a long upper wick and long lower wick. Long means longer than the length of the body of the candle. Below is an example of what a typical Doji candle looks like.
A recent client of Trading Coach Jo, recognized a Doji, but did not understand how to interpret this potential signal. Following is my simplified explanation:
After identifying a Doji, the most significant thing is to note where this Doji occurs on the chart. If a Doji appears at support or resistance, it could mean a reversal. I suggest that you wait for the next candle to confirm a change in direction.
If a Doji appears other than at support or resistance, it simply signifies indecision. You will notice that a stock that is stagnant in a horizontal channel, may have several Dojis with a short time period – all showing that the stock does not know which way it intends to move.
Be sure to watch for Doji candles at support and resistance. Noticing this pattern can give you advance notice of a pending move in the opposite direction.
If you are starting to trade stock options and feel a bit overwhelmed, coaching is perfect for you. Sure – you can take a few years to figure things out all on your own. Sure – you can loose a lot of money while learning by yourself. And sure – you can lessen your learning curve and lessen your risk with coaching!
As a person who has traded for a living for over 7 years, I would have loved to have known a trading coach that would work with me. I knew that I did not need to learn everything the hard way – by trial and error. If only I knew of someone that I could had gone to for help.
I would love to share what I have learned with you. If you are serious about your trading, contact me. My coaching is totally customized to where you are and what you want to learn. If you are not sure what you need to learn, I can give you suggestions and a learning plan.
I have found it works best when we meet once a week. After our on-line coaching session, I will send you customized homework that will give you practice on what we covered or what we will cover next week.
Typical areas include how to set up a paper or virtual account, various broker advantages and disadvantages, how to set up charts on your broker trading platform, how to use the platform for efficient entry/exit and managing your open trades, how and when to buy calls and puts, terminology, etc.
If you are committed to being a profitable trader with a shortened learning curve so that you can grow your trading account, contact me today at Jo@TradingCoachJo.com. Let’s get started!
Hey traders – I don’t know about you, but once my December option spreads expire this Friday, I will take a break from trading until a few days after the New Year. It is very important to me to take a break. I encourage you to do the same. Spend time with friends and family. Acknowledge yourself for all that you have learned and accomplished this year. Thank those that have supported your efforts.
If you find yourself reacting to this idea, stop and think about it. Is trading the goal or is it the means to an ideal life style? Have you turned trading into a JOB? I surely hope not!
I wish you and your family a very happy and restful Holiday Season! See you in the New Year!
Are dual monitors necessary for options trading? I would not say necessary, but definately preferred! I run a second monitor from my laptop. On the left monitor I have my Think or Swim watchlists, the trade tab, the monitor tab, the analyze tab, etc. On the second monitor, I have 8 charts on one page. If I want to have a closer look, I simply click on the chart of interest and expand that one chart to fill the entire screen. This seems to be a very efficient way to trade. As an options trading coach, I recommend that you start looking around for a minimum size monitor of 24 inches.
When I travel for extended time, I take my extra monitor. I have an old hard shell suitcase with foam that keeps my monitor safe for travel – even air line travel! When I don’t have a second monitor, it is frustrating to have to flip back and forth to see the data I need to make good trading decisions.
Yes, you can trade with one monitor. Just know that once you have a second monitor, you will not like going back to using just one monitor!