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Pristine.

com Presents

Micro Trading for a Living


With

Oliver L. Velez

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


Tools and Tactics for the Master Day Trader
Copyright 2002, 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
simple period moving averages
Market Timing Tools: Nasdaq & S&P Futures,
NYSE and Nasdaq TICKs, NYSE & Nasdaq TRINs

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) Pristines 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)


Late Day Breakout
Criteria
1) Stock is up on the day

The Simple Art Of Trading Part I

PEOPLESOFT INC (PSFT)


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.

High of 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).

2
1

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).

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

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.

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)


Late Day Breakout
Criteria

The Simple Art Of Trading Part I

BIOMET INC (BMET)


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
in the day (anytime after
2:30 EST).

Chart Courtesy of www.Executioner.com

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

The Simple Art Of Trading Part I

STAPLES INC (SPLS)


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.

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).

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

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).