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Pristine.

com Presents
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.


Basic Intro

Introduction
Basic Introduction

Types of Trading

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

•Two Trading Categories: Wealth & Income


The Four Trading Styles

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.).
Core Trading Chart
The Four Trading Styles

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.
Swing Trading Chart
The Four Trading Styles

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.
Guerilla Trading Chart
The Four Trading Styles

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.
Micro Trading Charts
Micro Trading Tools

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
Charting Tools

Micro
Charting Tools
5-Minute Chart

Pristine Capital Holdings, Inc.


15-Minute Chart
The Power of the 20 & 200 MAs

Pristine Capital Holdings, Inc.


Market Timing Tools

Micro
Market Timing Tools
S&P and Nasdaq Futures Charts
NYSE & Nasdaq TICK
NYSE & Nasdaq TRIN
3 Micro Trading Phases

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)
The 3 Phases of the Trading Day
The 3 Phases of the Trading Day
The 3 Phases of the Trading Day
Reversal Times

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
Major Reversal Times
Major Reversal Times
Major Reversal Times
Micro Trading Phase 1

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
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
Micro Trading Phase 2

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
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
Micro Trading Phase 3

Phase 3 Trading Tactics


1) The 3:00 Topping/Bottoming Play
2) 200 Moving Average Play
3) The Late Day Breakout/down Play
3:00 Topping Play
3:00 Topping Play at 200 MA
The Late Day Breakout (LDB)
The Simple Art Of Trading® Part I

Late Day Breakout PEOPLESOFT INC (PSFT)

Criteria 5 -M i n u t e C h a r t
Note that the Pristine Day Trader buys
P S F T on the break of the most recent
series of equal highs, not on the break
of the high of the day.

1) Stock is up on the day High of the Day

2) Stock is above its 2

opening price 1

3) Stocks is trading at or Our initial protective stop (1) is tight as it


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

near the high of the day


4) Stock breaks out late 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

in the day (anytime after 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


on Above Average Volume.

2:30 EST).
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
The Late Day Breakout (LDB)
The Simple Art Of Trading® Part I

Late Day Breakout BIOMET INC (BMET)

Criteria 5-Minute Chart

The Pristine Day Trader buys new


high.

1) Stock is up on the day


Stop

2) Stock is above its


opening price Note this near perfect Pristine B u y setup.

3) Stocks is trading at or
near the high of the day
4) Stock breaks out late Chart Courtesy of www.Executioner.com

in the day (anytime after


2:30 EST).
Pristine Capital Holdings, Inc. 7-11 South Broadway, Suite 210, White Plains, NY 10601
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
The Late Day Breakout (LDB)
The Simple Art Of Trading® Part I

Late Day Breakout STAPLES INC (SPLS)

Criteria 5-Minute Chart


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
high offers the Pristine Day Trader an excellent
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
overnight trading possibility.

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 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

in the day (anytime after


2:30 EST).
Pristine Capital Holdings, Inc. 7-11 South Broadway, Suite 210, White Plains, NY 10601
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
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