Diamonds in the Rough Basic
Danielle Shay’s Skillful Tools for Catching Directional Moves
“The expert in anything was once a beginner.”
- Rutherford B. Hayes
Danielle Shay is a self-made trader, market analyst, and expert commentator. She originally got into trading on a quest for financial freedom, with the goal of living wherever she pleased and taking care of her young son. She is now the VP of Options at Simpler Trading where she trades, runs analysis in the trading room, teaches classes and webinars, and writes on a weekly basis. As a former teacher with a passion for trading, it’s her goal is to help traders grasp the basics that make trading simpler — no matter their skill level.
Danielle is a frequent expert guest in the media, on CNBC, Fox News, Nasdaq TradeTalks, Fox Business, Yahoo Finance, Cheddar, StockCharts.com, and more. You can find her story and key focus of analysis, the Five Star Setup, in her contributing chapters in John Carter’s 3rd Edition of Mastering the Trade. As a momentum trader, her primary focus is identifying relative strength trading setups, and trading them using equity options, stocks, and ETFs. Using her step-by-step, top-down approach, it’s her goal as a former teacher, to help traders go from zero to trading — just like she once did. Her motto is, “If I can do it, you can do it!”.
For education and trades, you can find her daily in the options room at Simpler Trading in addition to her weekly Five Star Trader newsletter. She also teaches classes in which she teaches her methods to others. She connects directly with her traders via her free newsletter at www.FiveStarTrader.com, and on her social media channels where she shares tips, tricks and trades!
The Simpler Trading Team is unlike any other. We have 100+ years of combined market experience. While most other services offer ‘hypothetical’ trades and theories, we share our actual trading ideas in real-time.
Want to walk the path to trading success together? Join Danielle’s “Five Star Trader” E-Letter for market insights, tips, tricks, and special bonuses — all for free.
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I’m trading for financial independence. Having a method of building wealth, both by trading and by investing, is a critical life skill. I want the peace of mind of knowing that whatever happens, I know I can invest my own money in the stock market. I don’t want to depend on a job, a partner, or anything else in this life. I know as long as I have an internet connection, I can use my skills to improve my future.
I approach investing on a regular basis. I continually add long term stock picks to my portfolios to grow them over time.
For my options accounts, I look for high probability moments in time where I have an edge. I only trade setups in which I have an edge.
I don’t have specific goals. I can only trade and I can only make what the market can give me. Sometimes the market has a ton of momentum – other times it lingers for weeks or months. Giving yourself monthly or quarterly goals is a poor idea as it becomes a mental game and can really become a blocker.
My goal is to identify high probability setups and trade them with precision. If you focus on being a better trader, the profits will come. If you focus on making money, that’s when you get in trouble.
But, that being said, usually I can 3-5x an account relatively easily when the market conditions are right, so that’s what I aim for. The time frame though, varies.
My objective is to continue growing as a trader and educator. I strive to constantly learn, as well as teach new methods and strategies, while maintaining the foundation I’ve built. I strive to continue to grow my investment and trading accounts overtime.
I trade US equities and commodities. I trade stocks, options, and futures.
I trade a variety of setups. I trade: Finding Phoenix (identifying relative strength buys after a dip), the Run into Earnings (pre-earnings momentum), the Short Squeeze (an explosion at the highs), Earnings trades (trading the actual earnings report), the Squeeze (multi-time frame, combo with any other trades, triple squeeze), and intraday futures setups.
The rules are different for each setup, but overall I prefer to enter on pullbacks to the 34 EMA on the daily chart. I like to see confirmation of a shift in momentum to the upside, such as a high volume move, VZO buy, or moving average cross to confirm the direction.
On trades below a certain risk level, I don’t use stops, especially with butterflies. On more expensive trades, I’ll use either a 50% stop or a stop below the 50 SMA on the daily chart.
I like to scale out on the way up. I like to take profits at resistance levels, then new high, and then at the Fibonacci extension targets. Sometimes I take profits based on percentage gains.
Read the news. See what happened overnight around the world. Check on any earnings reports that happened before the close, the night before, or before the open that day. Check to see what’s moving. Look at the indexes. How are they trading? Is there a gap from the night before? Is the gap up or down? What’s the current market condition? How do my trades look?
My post market activity is to relax. When the market’s closed, it’s time to spend time with my family.
What Tools will I use for my trading business? I use a combination of trading tools that are absolutely necessary: SqueezePro, TurboVZO, Phoenix Finder, Index Grid, TrendStrength Turbo Candles.
I have a variety of subscription services: Chaikin Analytics, Likefolio, CML Viz.
I also use paid news sources: Wall Street Journal, Barrons, New York Times, LA Times, MarketWatch, and more.
I review trades every Tuesday on my newsletter at www.Fivestartrader.com. I look at the entry and exit, my targets, if I managed the trade correctly, and if I could’ve made improvements.
I do an overview every year in December to look for key themes. I want to know what I did best, what I did worst, and how I can adjust what I’m doing to maximize my potential for the next year.
I read for about 4-5 hours every day, at least. I’m always looking for new ideas, new collaborators, and ways in which to improve my methods.
My biggest challenge, and also one of the most important aspects in trading, is to continue to fit your trading into your life. When I do that, I can be disciplined. When I don’t, my discipline slips. In order to trade, you must be calm and at peace, and that’s something you can’t do when you can’t focus.
Ensuring that I build my life to fit within my trading career is critical for me.
1. I’ll be disciplined every day, and in every trade.
2. I’ll be my own trading “self”, never trading another’s plan.
3. I love taking small losses.
4. I’ll always earn the right to trade bigger.
5. I’m not addicted to trading just to see what happens.
6. I’ll only trade high reward setups that have the probabilities in their favor.
7. I’ll be a bricklayer – making the same types of trades over and over again.
8. Once I find a setup, I don’t hesitate; once in a trade, I don’t overanalyze.
9. I’ll always keep a detailed trading log/journal and will act upon what it tells me.
10. I’ll review my work and shift over time to adjust for what’s working and what isn’t.
Everything I do will be for the success of my trading business.
NEVER FORGET: This is the “You Are Screwed” Trading Mindset
1. You have no trading plan.
2. You have no money management rules.
3. You’re prone to emotional swings.
4. You’re nervous when in a trade.
5. You try to predict rather than react.
6. You revenge trade.
7. You don’t cut your losses fast enough.
8. You watch every tick.
9. You never review your trades.
10. You’re losing MONEY!
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Is it possible for a person of average intelligence and modest means to ascend to the throne of the world class? YES! Not only is it possible - it’s being done everyday.Learn More
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February 13, 2023
Danielle joined Fox Business’s Charles Payne on “Making Money” to review her “Earnings Checklist” for investing during the Earnings season.
January 30, 2023
Danielle joined Fox Business’s, Charles Payne on “Making Money” to discuss her thoughts on this week’s tech earnings on large names such as Google(GOOGL), Amazon(AMZN), and Apple(AAPL).
January 23, 2023
Danielle returned from maternity leave to join Charles Payne on Fox Business, where she discusses Tesla (TSLA) and her thoughts on their earnings.
September 12, 2022
Danielle joined Fox Business to discuss how the market will react to Consumer Price Index (CPI) report. She also discussed how she thinks inflation is embedded in the economy.
August 25, 2022
Danielle joined TraderTV Live to discuss her thoughts on earnings for SalesForce(CRM), her direction on the energy sector (XLE), and key levels on Tesla(TSLA). A special guest also appears to give additional input on his favorite stock!
August 18, 2022
Danielle joined TraderTV Live to discuss the choppy market conditions and her thoughts on Walmart(WLMT) recent news prior to earnings. She also discusses her thoughts on next weeks earnings.
July 28, 2022
Danielle joined TraderTV Live to discuss post-fed and earnings on tech names like Google (GOOGL) and Apple (AAPL).
July 26, 2022
Danielle joined CNBC’s The Exchange to discuss long-term investment plays on Tech names that recently had earnings.
July 14, 2022
Danielle joined CNBC’s The Exchange to discuss three “Diamonds in the rough” like Netflix (NFLX) and United Health (UNH), and one name with a potential short squeeze.
July 14, 2022
Danielle joined TraderTv Live to discuss why she was bearish on bank earnings and her thoughts on JP Morgan (JPM) and Goldman Sachs (GS). She also discusses the Energy Sector (XLE) and important levels in the overall market.
June 28, 2022
Danielle joined CNBC’s The Exchange to discuss Consumer Staples which ones are buys, and which one to stay clear of in this volatile market.
June 23, 2022
Danielle joined TraderTV Live to discuss options ideas on Tesla (TSLA) as well as her thoughts on the recent news from Elon. She also covers potential opportunities in FedEx (FDX) and Snowflake (SNOW).
June 22, 2022
Danielle joined CNBC’s The Exchange to discuss potential opportunities to short Kb Home (KBH) and Darden Restaurants (DRI) during their earnings.
June 16, 2022
Danielle joined CNBC’s The Exchange to discuss why I think the NASDAQ will hit previous 2020 levels and which names she is looking to short/trade during this sell-off.
June 16, 2022
Danielle joined TraderTV Live to discuss the Fed rally, her thoughts on Teladoc (TDOC), and Post Fed Options Wrap-up.
May 19, 2022
Danielle joined TraderTV Live to discuss retail earnings on Target (TGT), Apple (AAPL), and AMD(AMD). She also talked about what to look forward to in the upcoming earnings season.
May 18, 2022
Danielle joined CNBC to discuss the market plunge and her thoughts on Microsoft(MSFT) and Apple (AAPL).
May 6, 2022
Danielle joined TraderTV Live to discuss her take on potential setups on the “Covid Darlings” such as Teladoc(TDOC) and Roku(ROKU). Also what she is looking for in this upcoming Earnings Season, Scalping Options, and the FED Rally.
March 11, 2022
Danielle joined TraderTV Live to talk about which stocks she is looking at for the upcoming quarter’s earnings season and also discuss important technical levels the overall market needs to hold.
January 28, 2022
Danielle joined CNBC to discuss her favorite strong companies that are supported not just by technicals, but also fundamentals and the macro story as well on CNBC The Exchange.
January 28, 2022
Danielle joined TraderTV Live to discuss trade ideas on MSFT, TSLA, and AAPL during the Q4 earnings season, and go over technical levels on the overall market.
January 26, 2022
Danielle joined CNBC’s The Exchange to go over the three stocks to buy at a discount right now, including MSFT and COST.
January 21, 2022
Danielle joined TraderTV Live to discuss what she is looking forward to in the upcoming earnings season such as NFLX earnings, Airlines, and more.
January 12, 2022
Danielle joined CNBC’s The Exchange to talk about the cruise stocks, like CCL, RCL, and NCLH, as spending slows down. She also discusses PYPL and CROX.
January 7, 2022
Danielle joins TraderTV to discuss her approach to trading in 2022 and what she’s looking forward to in the upcoming earnings season among other topics.
January 5, 2022
Danielle joins CNBC’s The Exchange to discuss some potential trade setups. “INTC is interesting if it can get above $56. Avoid T as there are too many bag holders. If BYND can break prior highs, I’m interested in a short squeeze.”
December 14, 2021
Danielle joined CNBC’s “The Exchange” to discuss Harley-Davidson (HOG) spinning out its EV unit via SPAC, the Nasdaq (NDX) 100 rebalancing, and Peleton (PTON) firing back with its own ad.
April 6, 2021
FOX Business’ Charles Payne, TJM Institutional Services Director Jim Luorio, Belpointe Chief Strategist David Nelson, and Simpler Trading Director of Options Danielle Shay discuss momentum trading and today’s markets.
March 8, 2021
BMO Capital Markets chief strategist Brian Belski, Simpler Trading Director of options Danielle Shay and Peapack Private Wealth Management managing principal David Dietze provide insight into market movements, the Federal Reserve, inflation and promising stocks.
March 1, 2021
Simpler Trading director of options Danielle Shay provides insights into recent market moves, earnings and which stocks are ‘hot’ right now.
February 23, 2021
FOX Business’ Charles Payne discusses special purpose acquisition companies (SPACs) and investing with Simpler Trading director of options Danielle Shay.
March 11, 2022
I joined TraderTVLive to talk about which stocks I’m looking at for the upcoming quarter’s earnings season and also discuss important technical levels the overall market needs to hold.
Danielle Shay’s Skillful Tools for Catching Directional Moves
Enjoy ‘rinse and repeat’ quarterly gains. Exploit earnings season with this reliable formula
Make consistent, profitable picks in less time. Learn how Danielle finds hot picks for explosive moves
A Simple Strategy for Consistent Weekly
How Danielle Shay targets 50% to 1200%+ returns within days using her “hybrid” stacked Butterfly strategy
Reveals the strongest stocks in a sector so that you’re always trading the best horse in the race
The tool that helps Danielle expose strengths and weaknesses of market-moving stocks
The Hot Zone is a fantastic visual that allows traders to see within seconds ideal trading time frames.
The TurboVZO is a combination of two indicators and is Danielle's favorite momentum indicator.
Collaboration between several tools. Available for TOS and TS