This tutorial was originally titled “Micro Trading for a Living” and was recorded

at the New York Online Trading Expo

Micro Trading Tactics

With

Oliver L. Velez

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

Tools and Tactics for the Master Day Trader

Copyright 2000, Pristine Capital Holdings, Inc.

Pristine.com Presents

Introduction

Basic Intro

Types of Trading

•Four Trading Styles

: Core, Swing, Guerilla, Micro

•Two Trading Categories

: Wealth & Income

Basic Introduction

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, and
attempts to capture the entire weekly trend.

•Core Trading is best used on key stock indices (DIA,
SPY, QQQ, HHH, etc.).

The Four Trading Styles

Core Trading Chart

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

Swing Trading Chart

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

Guerilla Trading Chart

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

Micro Trading Charts

Tools of the Micro Trade

•Charting Tools

: 15 & 5-min charts, 20 and 200

period moving averages

•Market Timing Tools

: Nasdaq & S&P Futures,

NYSE and Nasdaq TICKs, NYSE & Nasdaq TRINs

Micro Trading Tools

Micro

Charting Tools

Charting Tools

Pristine Capital Holdings, Inc.

5-Minute Chart

15-Minute Chart

Pristine Capital Holdings, Inc.

The Power of the 20 & 200 MAs

Micro

Market Timing Tools

Market Timing Tools

S&P and Nasdaq Futures Charts

NYSE & Nasdaq TICK

NYSE & Nasdaq TRIN

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

The 3 Phases of the Trading Day

The 3 Phases of the Trading Day

The 3 Phases of the Trading Day

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

Major Reversal Times

Major Reversal Times

Major Reversal Times

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

9:35 BD and a 10:00 Bottom

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

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

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

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

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

30-Min Buy, 11:00 Top

30-Min Buy, 11:00 Top

10:00 Top, 10:30 Reversal

200 MA Play at 10:30 Reversal

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

11:00 – 11:15 Topping Play

11:00 – 11:15 Topping Play

The 1:30 Reversal Play

The 15-Minute Trading Dip

1:30 Rev & 15-Minute Dip

11:00 Top and 1:30 Dip

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

3:00 Topping Play

3:00 Topping Play at 200 MA

The Late Day Breakout (LDB)

P r i s t i n e C a p i t a l H o l d i n g s, I n c . 7 - 1 1 S o u t h B r o a d w a y , S u i t e 2 1 0 , W h i t e P l a i n s , N Y 1 0 6 0 1

T e l :

( 9 1 4 ) 6 8 2 -7 6 1 3

F a x :

( 9 1 4 ) 6 8 2-7 6 4 0

W e b :

w w w . p r i s t i n e . c o m

E - mail:

e d i t o r s @ p r i s t i n e . c o m

P E O P L E S O F T I N C ( P S F T )

T h e S i m p l e A r t O f T r a d i n g ® P a r t I

C h a r t C o u r t e s y o f w w w . E x e c u t i o n e r .c om

5 -M i n u t e C h a r t

N o t e t h a t t h e

P r i s t i n e D a y T r a d e r

b u y s

P S F T

o n t h e b r e a k o f t h e m o s t r e c e n t

s e r i e s o f e q u a l h i g h s , n o t o n t h e b r e a k
o f t h e h i g h o f t h e d a y .

N o t e h o w

P S F T

’ s b r e a k o u t o c c u r r e d

o n A b o v e A v e r a g e V o l u m e .

H i g h o f t h e D a y

Our initial protective stop

(1)

is tight as it

is, but the astute

P r i s t i n e D a y T r a d e r

k n o w s h o w a n d w h e n t o q u i c k l y r a i s e i t t o
make it even tighter

(2)

.

1

2

Late Day Breakout

Criteria

1)

Stock is

up

on the day

2)

Stock is

above

its

opening 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).

The Late Day Breakout (LDB)

P r i s t i n e C a p i t a l H o l d i n g s , I n c . 7 - 1 1 S o u t h B r o a d w a y , S u i t e 2 1 0 , W h i t e P l a i n s , N Y 1 0 6 0 1

T e l :

( 9 1 4 ) 6 8 2 - 7 6 1 3

F a x :

( 9 1 4 ) 6 8 2-7 6 4 0

W e b :

w w w . p r i s t i n e . c o m

E -m a i l :

e d i t o r s @ p r i s t i n e . c o m

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

T h e S i m p l e A r t O f T r a d i n g ® P a r t I

C h a r t C o u r t e s y o f w w w . E x e c u t i o n e r . c o m

5 - M i n u t e C h a r t

T h e P r i s t i n e D a y T r a d e r b u y s n e w
h i g h .

N o t e t h i s n e a r p e r f e c t P r i s t i n e

B u y

s e t u p .

S t o p

Late Day Breakout

Criteria

1)

Stock is

up

on the day

2)

Stock is

above

its

opening 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).

The Late Day Breakout (LDB)

P r i s t i n e C a p i t a l H o l d i n g s , I n c . 7 - 1 1 S o u t h B r o a d w a y , S u i t e 2 1 0 , W h i t e P l a i n s , N Y 1 0 6 0 1

T e l :

( 9 1 4 ) 6 8 2 - 7 6 1 3

F a x :

( 9 1 4 ) 6 8 2-7 6 4 0

W e b :

w w w . p r i s t i n e . c o m

E -m a i l :

e d i t o r s @ p r i s t i n e . c o m

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

T h e S i m p l e A r t O f T r a d i n g ® P a r t I

C h a r t C o u r t e s y o f w w w . E x e c u t i o n e r . c om

5 - M i n u t e C h a r t

T h e

L a t e D a y B r e a ko u t ( L D B )

t o a n e w d a i l y

h i g h o f f e r s t h e P r i s t i n e D a y T r a d e r a n e x c e l l e n t
m i c r o -t r a d i n g o p p o r t u n i t y , a s w e l l a s a s t r o n g
o v e r n i g h t t r a d i n g p o s s i b i l i t y .

Late Day Breakout

Criteria

1)

Stock is

up

on the day

2)

Stock is

above

its

opening 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).

The Late Day Breakout (LDB)

Late Day Breakout

Criteria

1)

Stock is

up

on the day

2)

Stock is

above

its

opening 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).

The Late Day Breakout (LDB)

Late Day Breakout

Criteria

1)

Stock is

up

on the day

2)

Stock is

above

its

opening 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).

Tools & Tactics – A Must Read

A Japanese proverb says, “If you
wish to know the road, inquire of
those who have traveled it.” The
authors of Tools and Tactics for
the Master Trader clearly know
the road. Their unique insights,
trading tactics and powerful tools,
so enjoyably presented, make
this a book that belongs on every
trader’s shelf.

Steve Nison, CMT - Author of
Japanese Candlestick Charting
Techniques