Questions and Answers

Here are some of the most common questions that I get here at

How do you scan for stocks?

I use to scan for specific trade setups. You can find the exact scans that I use on this page. I also use Finviz to scan for chart patterns.

What are your favorite candlestick patterns?

My favorite candlestick patterns are bullish engulfing, hammers, and piercing. See the candlestick pattern page for more information.

What online broker do you use?

I have an Ally trading account.

What does TAZ stand for?

TAZ stands for Traders Action Zone. This is the area in between the 10 period simple moving average (SMA) and the 30 period exponential moving average (EMA). Stocks tend to reverse in this area which makes it great system for swing trading.

What is the best technical analysis book for a new trader?

I get this question all the time. It's an easy answer.

The best overall technical analysis book for any new trader (1-2 years) is Technical Analysis Explained by Martin Pring.

It's got all the basics covered plus some. Every stock trader should have this reference book in their library.

Bonus: Every new trader should also have Japanese Candlestick Charting Techniques by Steve Nison. Seriously this is one of the best books on price action that you can own.

Do you trade for a living?

No, I trade part-time. See this page.

What type of trader are you?

I'm a discretionary swing trader. I have certain rules that I follow, but a lot of what I do is based on my own judgement. This makes trying to explain how I trade very difficult because every trade is different. Give MarketClub a try if you are looking for a trading system with buy and sell signals.

Also, sometimes (not very often) I day trade.

Do you trade ETFs?

Nope. ETFs don't make significant moves like stocks do. A stock can move 10% or more in one day. ETFs don't. Granted, there are more overnight risks with stocks (like earnings releases) but I think they are worth that risk. Also, I don't trade futures, forex, or commodities - just stocks.

Do you trade penny stocks?

No way! They often don't have enough liquidity and are subject to scams and manipulation. I mostly trade stocks that are between $10 and $30. That seems to be a sweet spot for me.

Do you have an eBook version of your website?

Sorry I don't. But you can download a summary of my methods on this page.

Is swing trading easy?

It's simple, but it's not easy. It is simple to understand and learn how to do, but it is not easy to actually implement. This is because your emotions get involved and that screws things up. Ironically, it is the emotions from other traders that enable you to make a profit.

What is the biggest secret to trading stocks?

New traders think that there must be some kind of secret that no one is willing to tell them. There isn't. If I could sum up successful trading in one word it would be: management. You need to learn how to manage your trades, your money, and your emotions correctly to make money consistently.

Beginners: Learn the Basics

Intermediate: Trading Strategy

Advanced: Swing Trading Tactics