How to Trade Earnings Announcements

July 15, 2017 by  
Filed under growth stocks, Hot Stocks, Trend Trading

 

 

Its been a great week for both the Tradetobefree and Investtobefree strategies. It was a home run for us using both strategies.

 

 

But that is now in the past. Today I want to talk about getting ready for the huge opportunities that will come up immediately after the dozens of big earnings surprises that are coming up in the days and weeks ahead.

 

But first I want to give you a background so you understand how proven and powerful this strategy is that I am about to teach you.

 

So over the past couple of years I took the time to test shorter-term trading strategies for more volatile markets. 

 

While I was swing trading the strategies taught on the site, I was also learning and testing dozens of day trading strategies just in case we were faced with a sustained down-trending market. 

 

While being very profitable, swing trading also gives you plenty of time to do other things during the day.  In this case, testing dozens of new strategies on shorter time-frames.

 

After two years and several thousand live day trades, I have to say that most day trading strategies are a waste of time.  Unless you run a forum where you can message thousands to, how shall we say, “provide liquidity” for the moderators on less liquid stocks. 

 

Yea, swing trading is much better for the rest of us.  A fact even top day traders admit to.  However, there are a few day trading technical setups I found work well and I plan to share my #1 day trading strategy with you here.

 

So every earnings season there are dozens of companies that report blow out quarters where they beat by a wide margin and raise guidance. Many try to guess the ones that will report a big blowout but you can only realistically forecast a sizable beat maybe 2 out of 3 times.  If you are really good that is.

 

You can get an edge by just playing stocks that have a strong recent history of consistently trouncing estimates and raising guidance but success will vary a lot over time.

 

Most of the time the company will beat by a little bit and the stock will maybe go up a few percent afterwards.  Occasionally they will miss and the stock can take a big hit.  So, after all is said and done, the profits can be disappointing by trying to guess which company will have a big beat and raise.

 

However, if you play a little-known day trade after an earnings beat that meets all of my qualifications, you can make 3% to 15% within a couple hours with a tight 2.5% stop-loss and a much higher rate of success.  And this is WITHOUT risky penny stocks, options or margin involved.

 

Occasionally, these stocks will run 30% to over 100% within a few days.  Similar to the potential gains of our explosive bottoming pattern but 3% to 15% profits are very likely to come within an hour or two versus up to a week and a half with the explosive bottoming pattern – another of my favorite strategies on longer time-frames.

 

Now this “earnings eruption” day trade, as I like to call it, is a trading setup that emerges a few times per month on average.  Its the best pure day trading setup I have tried by far.  And I tried dozens of the top setups taught on-line.

 

This earnings eruption trade is much more reliable than other day trading strategies, much less risky and has big upside.  And I have found the average profits are much larger.

 

Its also much easier to trade and only requires a basic trading platform versus other day trading strategies that generally focus on penny stocks.  Its also very compatible with the free Robinhood broker

 

This strategy is a much better way to play big earnings beats for those who want to invest the time to learn it.

 

Below we have most of the first video free so you can begin to learn this top shorter-term trading setup on a simulator.  View this video before attempting any day trading strategy. 

 

Especially if you want a quick day trading strategy that scales easily to large account sizes yet has a higher win percentage and higher average profit percentage. 

 

If you already day trade, you will find this beating your favorite setups with much more reliability when the setup meets all of our qualifications explained in the complete video course.

 

 

 

Free Presentation: Elite Earnings Eruption Video Course

 

 

Top Reversal Pattern – 1 Year Later

July 12, 2017 by  
Filed under Chart Patterns, Swing Trading

 

 

 

The rounding bottom pattern continues to be one of the best performing long-term swing trading patterns in the market.

 

Last year we published a video on this very bullish pattern on Youtube. NPTN was the example given in the video and the stock had just reached the ideal entry point. After the video was published, the stock soared about 80% within about 2 months.

 

Another example of the bullish rounding bottom pattern, on a stock with rapidly improving fundamentals, was LGIH. We featured this stock in a more choppy rounding bottom on April 17th.

 

As with our other featured trading setups, LGIH has the rapidly improving fundamentals to not only make a large move higher, but also to hold those levels.

 

Earnings growth had averaged over 50% per year over the prior five years. Sales growth was very solid and expected to be around 20% per year over the next couple years. Return on equity was strong at around 25%.

 

LGIH was carving out a large rounding bottom pattern that many traders missed and was carrying a low valuation – especially to its peers.

 

We found the stock after it had made a higher low and then a higher high on the right side of the base. The price had come back to test the ideal entry point and held in a smaller rounding bottom pattern.

 

One bullish chart pattern is nice. A bullish pattern within a larger bullish pattern is even better as it attracts more traders. Here is how it looked when we featured it to subscribers.

 

 

LGIH pulled back briefly but held above our stop-loss point and then soared about 40% from our target entry point in a couple months.

 

 

This strategy makes it very easy to play this setup whether you work full time or not. You would be surprised how often you get a good entry price just by buying the stock at the open the day after it reaches our entry point with a market order placed after hours.

 

But the rounding bottom has been one of the most bullish technical setups on these longer time-frames. We caught CMG in this pattern near an ideal entry point earlier this year before it surged 20% within a month. WDC was featured late last year before it made a beautiful 40% move higher within a couple months.

 

By entering near an ideal technical entry point as we explain on the blog and on our Youtube channel, you can get in early and target big gains with a tight stop and a high probability of success.

 

We have another rounding bottom pattern on a top Chinese growth stock that just reached its technical entry point and was featured Monday. Its one of the top Chinese growth stocks.

 

 

The rounding bottom continues to be a great technical pattern on top stocks. We find lots of these throughout the year for subscribers.

 

Earnings season is about to start so its a great time to learn our earnings eruptions trade. Its our #1 shorter-term trading setup in the current market that normally lasts from 10 minutes to 3 days.

 

 

Stocks with Rapidly Improving Fundamentals Poised to Move This Week

 

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How to Swing Trade Earnings – The Earnings Flag

July 5, 2017 by  
Filed under Chart Patterns, Swing Trading

 

 

 

In the fifth video in our free swing trading course we talk about trading earnings and our top 2 strategies to make money around the time a company delivers an enormous earnings beat.

 

One of the favorite strategies to play big earnings beats by top swing traders is through trading a bullish chart pattern called the earnings flag.

 

After a huge earnings beat, the earnings flag chart pattern often develops. Especially if the earnings beat and raise meets all the criteria in the earnings eruption videos.

 

The earnings flag is one of the best swing trading setups in the market. The earnings eruptions strategy is more of a day trade but an earnings flag is a trade that is normally held for a few days or longer. We find these a lot in our own trading and for customers of the weekly and daily alert.

 

The earnings flag is a sideways or sideways to lower consolidation after a big move right after the earnings release. The move higher after earnings may last a day up to several days or more. Usually, the big move higher is over with within a few days.

 

Then the price generally starts to make lower lows on a daily candlestick chart. And then we look for a consistent downward slope to the pullback develop over a few weeks. Ideally, I want to see the consolidation (flag portion of the pattern) last four weeks or longer.

 

We should be able to draw a line connecting the highs in the downtrend (this is called the “downtrend resistance”) and have several touches or near touches of this line as in the example below on COHR – a great earnings flag we featured to customers earlier this year.

 

 

After this swing trading setup is featured on the site you would just click the chart each day. When you click the chart the latest chart comes up with the downtrend resistance line already drawn for you. You can see when the entry signal is reached with a quick glance each day.

 

The entry signal occurs once the price closes above the short-term downtrend resistance. After the price closes above it, we put a market order to buy for the open the next day.

 

This makes it very easy to play this setup whether you work full time or not. You would be surprised how often you get a good entry price just by buying the stock at the open the next day with a market order placed after hours.

 

Then once the order fills you can put a stop about .5% below the prior low on a daily chart. Or if there is a confirmed uptrend support, as in the case of COHR, you could just cut losses if it closes below the uptrend support if it goes the other way.

 

Once we are up 4% to 10% you can sell some of your shares and put in a stop loss around your entry point. We like to find the nearest support on a 10 minute chart below our entry and place the stop a few cents below that point. As always, its critical to get in near the entry point.

 

As the old saying goes – “You chase, you lose”. I find that to be true in general. The one exception is if the price goes through the technical entry point on massive volume with a very big move that day.

 

In the case of COHR, we had a real nice more horizontal consolidation rather than a sharp descent in the flag. And we had a real nice fibonacci retracement of the move from around $140 to $200. Projecting this from the low in the flag, $180, would give you a target of nearly $240.

 

In the most recent chart we can see that COHR easily reached this more aggressive target several weeks later. The advantage of trading stocks with rapidly improving fundamentals is that you can get big moves over a long period of time like this while you do other things and spend a lot less time trading.

 

 

 

By using technical analysis, we can enter at a point where we can enter the trade very near a firm support as its breaking out of a flag in this case – setting up a great risk/reward ratio. This is one of several very bullish technical patterns explained more on the site.

 

Earnings flags are a favorite of top traders and a great swing trading strategy. We actually have another real nice earnings flag breaking out now on our site for valued subscribers.

 

 

My List of Stocks with Rapidly Improving Fundamentals Poised to Move This Week

 

Subscribe to our Youtube channel to be notified when our newest videos are released.

 

Reversal Patterns – Trading Explosive Bottoms this Week

June 23, 2017 by  
Filed under Chart Patterns, Swing Trading

 

 

This past week we saw several explosive bottoming patterns break out strongly. We traded a couple on lower priced stocks that made enormous moves after reaching the ideal entry point out of this chart pattern.

 

Normally we like to swing trade this very bullish reversal pattern on stocks above $20 because they are more reliable yet often make big moves. For instance, RH recently moved about 30% within 2 weeks after breaking out of the explosive bottoming pattern.

 

Stocks under $10 can make a huge move faster out of this candlestick reversal pattern. However, the failure rate is higher.

 

However, one great way to improve accuracy on this trade is to wait for the first strong five minute candle after the breakout. And then jump in only if the next five minute candle breaks the prior candle high

 

This seems to be one of the best ways to play the breakout on riskier stocks under $10. Day traders can use this strategy and play with a 1.5% stop-loss.

 

In this latest video, I talk about the trade on XBIT this week that moved about 25% within an hour or so after breaking out of the explosive bottoming pattern, our #1 candlestick reversal pattern

 

We caught the 2nd wave higher after a consolidation as we were profiting on the same pattern on AMAG.

 

View the video to see a great real life example of how to play this pattern on lower priced stocks.

 

I also discuss an earnings eruption trade from earlier in the week on LZB. The earnings eruption trade continues to be the most reliable short-term trading setup for us in the current market with big upside.

 

 

 

 

 

Quick note: some big swing trades are setting up on top growth stocks after this latest tech pullback.

 

One just featured in the Daily Alert could easily soar 20% or more next week. We are currently offering a special to see this huge opportunity with not triple digit but over 1,000% earnings growth in a recent quarter.

 

Even though its on special, you still get my 10 day, no questions asked guarantee.

 

 

My List of Stocks with Rapidly Improving Fundamentals Poised to Move This Week

 

 

Learn Risk Management for Confidence & Peace of Mind

June 10, 2017 by  
Filed under Hot Stocks, Swing Trading

 

 

In our just released complimentary swing trading course, I talk about one of the critical elements of being a successful trader.

 

In this video I talk about risk management. And once you follow through on it, it leads to two very valuable things as a trader. 

 

Confidence and peace of mind.

 

Critical things covered in this video include separating your trading capital from the rest of your money and having a written set of rules for the max amount you want to risk on each trade.

 

But here is the bottom-line when it comes to risk management. I can’t stress this enough:

 

If you do NOT use good risk management when day trading, you will likely blow up your account at some point in the not-too-distant future. Especially when trading penny stocks. You can probably get away with sloppy risk management when swing trading better quality stocks, but it will at least cost you some of your profitability over time.

 

This video will help keep you in the game so you can stay on the path to becoming a great trader. Ignore risk management or get sloppy and it will cost you dearly.

 

 

 

 

 

 

My List of Stocks with Rapidly Improving Fundamentals Poised to Move This Week

 

Subscribe to our Youtube channel to be notified when our newest videos are released.

 

Swing Trading for Beginners Course Free on Blog

June 3, 2017 by  
Filed under Swing Trading

 

 

We have a new swing trading for beginners course being released in a series of videos on the blog!  This swing trading course is a great way to learn many of our top strategies whether you are a beginner or more advanced swing trader.

 

As many of you know, we focus on finding the best technical setups on the top growth stocks and companies beating estimates with rising future earnings expectations. 

 

A lot of traders focus purely on technical analysis when trading.  Others just focus on trading fundamental factors.

 

Well, I am here to tell you that you do not have to choose.  You can trade just the best technical patterns on only stocks with rapidly improving fundamentals.

 

This strategy has been met with a lot of success again this year.  We have had a lot of big winners in 2017 so far including EDU, CXW, AEIS, MKSI, VEEV, MELI, WB, AMZN, FB, AAOI and many others over the past few months. 

 

These stocks have moved 20% to over 65% within several weeks from an ideal technical entry point identified in our Daily and Weekly Alert.

 

Some of the potential payoff for finding the best technical patterns on stocks with rapidly improving fundamentals. 

 

The more passive, less time-consuming 3 Stocks to Wealth newsletter on Investtobefree.com is on track for a near triple-digit year by focusing on the best stocks with the best technical and fundamental factors.  After being on a tear its first five years.

 

But it all starts with the basics of our swing trading strategies.  These all-new free videos will give you a firm foundation whether you want our service, purchase our favorite strategies or whether you go off on your own.

 

This first video gives you an overview of what it takes to succeed at swing trading using our strategies.  Surprising to some, you do NOT need expensive services to succeed with our strategies. The free stockcharts.com will work just fine to get started.

 

These free videos explain all the key areas you need to focus on when learning to become a highly profitable swing trader using our strategies.

 

 

 

 

My List of Stocks with Rapidly Improving Fundamentals Poised to Move This Week

 

Subscribe to our Youtube channel to be notified when our newest videos are released.

 

How to Trade Earnings Reports. Earnings Eruptions

May 20, 2017 by  
Filed under growth stocks, Hot Stocks

 

 

The Earnings Eruptions Video course is now Live!

 

Get the New Video Course

 

This series of videos shows you the way we profit quickly after a large earnings beat. 

 

A lot of misconceptions and half-truths are floating around online about trading earnings reports that are causing a lot of unnecessary losses and this video course clears them up for you.

 

There are 2 misconceptions in particular that are probably losing you a lot of money.  The first is the idea that you have to buy a stock ahead of the earnings report and hope that they beat earnings expectations by a wide margin (or miss earnings expectations if you play a straddle).

 

But only about 1 in a 100 stocks have the massive earnings beats that will really propel the stock a lot higher after the report.

 

Some just go ahead and buy the stock after the huge earnings beat. However, I can think of a couple of stocks in just over the past couple of weeks where that strategy would have turned out badly. Namely, PLCE and CBM.

 

Both of these stocks beat, gapped higher and then turned over and fell hard after the opening bell after the report.  Now some of these will go on to develop bullish chart patterns, generally weeks later, and the best consolidation patterns will be featured in our alert service.  But for a short-term day trade, they were a dud unless you shorted.

 

Now contrast those beats with SINA, OLED and WB over the past few weeks where they held their gap and then surged another 10% to 20% higher for huge profits within a day or two.  We entered a very high probability day trade on these stocks while avoiding a long day trade on PLCE and CBM.

 

There are 9 critical elements of a big earnings beat that tell us its likely to make a big move from the opening bell that day.

 

These include the quality of the gap, pre-market activity, the float size and volume have to be right along with 6 other factors explained in the videos.

 

We developed the course based on our experience day trading earnings beats over the past 2 years.  The first back-test of this new strategy was just completed covering a recent earnings season and showed a 90% success rate to make 3% to 20% or more while using a tight 2.5% stop. 

 

Pretty impressive and is similar to what we saw while testing dozens of day trading strategies over the past couple years.  Other strategies, including ones on penny stocks did not come close in terms of average percent profits.  And generally, there are dozens of stocks that have big earnings report beats that meet all the criteria in this new day trading strategy.

 

We generally swing trade because day trading is generally a waste of time.  After day trading dozens of the top strategies taught on-line, most just do not work that well and just generate commissions for your broker.  However, this is one of the very few exceptions and is too good to pass up.

 

Now the second misconception is that the trend into the release will tell you most of what you need to know.  For instance, many seem to think that if the price trends higher into the release the stock will sell off after a big earnings beat.  The thought being that if the stock was trending higher into the release, then the move forecasting the beat has already been made.

 

This is a half-truth that can be costly.  For instance, we featured MELI and WB ahead of their release in our daily alert newsletter.  Both had strong uptrends into the release.  Yet both gapped much higher after the release, held the gap and then trended much higher right from the opening bell for some of the biggest day trades you could hope for.

 

Using conventional logic, you should have shorted or sold after the earnings beat because the news was in.  And sometimes this is true.  However, if the 9 critical factors are in place, this event will provide an amazing short-term trading opportunity with a 3 up to a 10 to 1 risk/reward ratio with a very high probability of success.

 

The video course explains how to play monster beats and gives you the exact entry and exit strategies to profit 3% to 10% within about an hour usually.  After over 5,000 day trades over a 2 year period, this strategy proved to be the best day trading strategy by far.

 

Here is a great video showing a big earnings report trade that worked and another that we avoided.

 

 

 

My List of Stocks with Rapidly Improving Fundamentals Poised to Move This Week

 

 

Free Presentation: Elite Earnings Eruptions Video Course Unleashed

 

 

Secrets to Swing Trading Success

March 5, 2017 by  
Filed under News, Swing Trading

 

2017 is shaping up to be another great year for those using our techniques. 

 

Many of our top swing trading setups featured in the Daily Alert around the first of the year have already made a 10% to 50% move in our direction.  And the Investtobefree 3 Stocks to Wealth newsletter, a newsletter for those who do not want to use technical analysis, is off to a good start.

 

In a recent live webinar, I explain why our swing trading methodology has done so well over the years.

 

I’m not a professional public speaker by any means and I was getting over a cold when I delivered this presentation.  But it explains why many have commented that we are the best stock picking service online.

 

We combine best-of-breed technical analysis with fundamental characteristics proven to beat the market over the average time horizon of our trades.  The video gives some great examples of how to find explosive trading setups using our strategy.

 

And the price is pretty good for this recorded live webinar.  It’s free 🙂

 

 

Yours Truly,

 

Brian C Neall – Founder

 

 

My List of Stocks with Rapidly Improving Fundamentals Poised to Move This Week

 

 

Explosive Bottoming Patterns Unleashed…

November 27, 2016 by  
Filed under Chart Patterns, Swing Trading

 

 

The explosive bottoming pattern training videos are now live!

 

View the Explosive Bottoming Pattern Course Videos.

 

This is my favorite go to candlestick reversal pattern that is a true workhouse. Its so easy to nail the entry point and you have plenty of opportunities each month. 

 

This reversal pattern, when identified correctly, is my current favorite reversal pattern and usually leads to a move of 4% to 100% higher in 15 minutes to 8 days if it reaches the entry point.

 

Not only can you use it for swing trading, you can also catch a great day trading opportunity near the ideal entry point. The day trading setups are nearly all the rest with its consistency and high probability of success.

 

And I continued to see that last week.  In just over the past month we have seen stocks in our newsletter soar around 15%, 25%, 35% and over 65% out of this one chart pattern.  A couple of these patterns occurred after subscribers made big profits on short patterns on these stocks following the short entry and exit targets given in the newsletter. 

 

Now you can learn to take advantage of these big rebounds as well.  This video explains the huge benefits of this explosive bottoming pattern in more detail….

 

Click here to the learn more about the Explosive Bottoming Pattern.

 

 

 

New Explosive Bottoming Pattern Course

November 20, 2016 by  
Filed under Chart Patterns, Swing Trading

 

 

Our Explosive Bottoming Pattern Course is being unleashed.  The first course in our master trader training series revealing many of our powerful swing trading secrets.

 

As I was putting the finishing touches on the video course, several stocks appearing in our newsletter, including ADPT, soared 20% to 65% within just a few trading days out of this bottoming pattern.  Some of these explosive gains occurred after the stock reached our profit target in a short trade.

 

And this was with using a tight 3.5% stop-loss below the ideal technical entry point I am about to share in this course covering this reversal pattern.  It has an absolutely terrific risk/reward ratio when done right and a very high rate of success while using a tight stop.

 

Of course, not all stocks will make a huge move out of this bottoming pattern, but many will.

 

It takes about 2 to 3 hours for me to teach someone the important details to help them differentiate between a decent setup and a great trading setup using this technique.  From there, they can start using it on a simulator and then later transition to a live account.

 

But this bottoming strategy is much more than identifying a candlestick reversal pattern in a downtrend.  That is all too often just catching a falling knife.

 

With this technique, the chance of success is about 75% when following all the important rules carefully based on our back-testing over approximately 1.5 years including the recent bear market in small caps from mid 2015 to early 2016. 

 

More recently during a market uptrend (the market is in an uptrend more often than not) the success rate was 85% to 90% in December, January and February of 2017 during a recent back-test.

 

Now this assumes you know the important technical rules in the video course.  Ignore these, and the chances of success deteriorate quickly.

 

Today I want to share with you a large portion of the first video in the training course. 

 

If we get a volatile market in the months ahead, these videos could be worth a fortune to you and may be one of the few options to make money in the market.  Even if you have a full-time job and are only swing trading part-time. 

 

I say this because this technique is very successful during a market that is either very suspect or one that is trending higher. 

 

The video explains more and gets you started on learning this powerful bottoming pattern in today’s market.  My favorite reversal pattern I now use all the time in my own trading.

 

 

 

 

Get Ideal Swing Trading Setups with Rapidly Improving Fundamentals Poised to Explode This Week

 

Swing Trading – Top Reversal Patterns Setting Up

November 5, 2016 by  
Filed under Channeling Stocks, Swing Trading

 

 

Since the bearish market signal we reported to customers a few weeks ago, the market has gone down a few percent – most of which occurred last week.

 

The Nasdaq, which has been the leading index this year, has now come back to near the top of a prior consolidation area on this pullback – setting up a potential rebound and some quality swing trading setups.

 

Now this could be a strong rebound off the 200 day or 150 day moving average, or it could be a weak rebound.  Time will tell.  So its best to look for good short-term swing trading setups at this point and keep a portion of your position after reaching a first conservative target.  And then stop the remainder at your entry point.

 

Many top growth stocks are pulling back sharply including AMZN and PAYC.  Here is a strategy to catch these rebounds once we have enough confirmation that a rebound rally is for real.

 

First of all I want to mention that buying a stock in a sharp downtrend is normally a recipe for losses because sharp declines in a stock are normally followed up with a secondary decline taking out the prior lows.

 

That being said, we can use a shorter-term swing trading strategy to profit off of the initial bounce and then keep a portion of our position for a potential huge profit. 

 

One of the favorite strategies used by top traders is a “candle over candle” pattern.  This is where a stock pulls back substantially before a daily candle closes above the high made the prior day.

 

You want to find this pattern on stocks in a longer-term uptrend.  You can pull up a weekly chart over the past year or so and confirm that the stock is making higher lows and higher highs over the long-term and has not made a lower high on a weekly chart.  A lower high would be an uptrend that lasts a few weeks that ends well below the prior high.  Or, you could just focus on stocks trading above their 200 day moving average to keep it simple.

 

But its all about buying great stocks on a pullback.  Just be sure that the pullback is not the start of the inevitable fall that occurs when a growth stock ends its growth phase.

 

Fortunately, a lot of great growth stocks will set up this pattern when the future outlook is still positive for the company.  These are the stocks that should be on our list to watch.

 

To illustrate this pattern, lets take a look at IPHI over the past year and circle the candle over candle patterns that many top traders look for after a substantial pullback of 15% or more.

 

 

IPHI is a good growth stock and was featured in a prior video as an example of a great channeling stock candidate several months ago.

 

 

Now what top traders often do is buy near the close if the price is likely to close above the prior days high when using this strategy.  And put a stop below the low of the prior day.  It could be a mental stop or a hard stop-loss order.  You could also use a 3.5% stop.

 

Then you could take profits after a 3% to 10% gain.  A small portion if it gets off to a strong start and selling a larger portion or whole position if it gets off to a weak start.  Then stop the remainder at your entry point.

 

The success rate on this setup is good to achieve a 4% profit before hitting a 3.5% stop-loss.

 

However, the success rate was significantly better when you look for other key characteristics covered in our new video training series covering our favorite short-term reversal pattern. 

 

In our study, using key parameters yielded a success rate of around 75% over about a year and a half period that included the recent bear market in small caps late last year and early this year.  Terrific results for a long-only strategy that included a period where small caps were in a bear market for about half the time.

 

Stay tuned for the release of this very valuable training series.  This new pattern is great for swing trading on a shorter time-frame of less than a week and a half. Its also an excellent setup for day traders as well because its beating every other successful pattern I have looked at that is used by top day traders online when the entry signal is reached before 10:30am. 

 

In my next post I will be sharing the first video in the new training series on the blog.  Stay tuned.

 

Get Ideal Swing Trading Setups with Rapidly Improving Fundamentals Poised to Explode This Week

 

44% in 3 Days. How to Swing Trade Stocks

October 29, 2016 by  
Filed under Swing Trading

 

 

We had an important market signal discussed in the Weekly and Daily Alert a few weeks ago that will affect your swing trading. 

 

This series of technical events often leads to very profitable swing trading setups in stocks. And we featured a few of them to customers over the past couple weeks.

 

This latest video shows how to swing trade stocks and how our customers made 17% to 44% within just a few days using the swing trading setups in our newsletter – without any risky options or leverage. Those trading the options must have made a small fortune – all within a week.

 

Just click the subscribe button off to the right and watch the video to discover this swing trading setup that is working extraordinarily well over the past few weeks.  The video also covers a couple great day trading setups that continue to work as well.

 

 

Get Ideal Swing Trading Setups with Rapidly Improving Fundamentals Poised to Explode This Week

 

Catch a Bottom – Not a Falling Knife on Top Stocks

September 17, 2016 by  
Filed under Chart Patterns, Swing Trading

 

 

Although we have seen many big moves this year out of large continuation patterns on the best stocks, bottoming patterns continue to work well on the top small cap and even larger cap stocks. 

 

Today I am going to share with you a great trade on a top bottoming pattern setting up now and also go over a couple other trades so you know what to look for.

 

Several weeks ago we talked about the large rounding bottom pattern on NPTN on our blog.  We were able to nail a great entry point with a small downside risk and huge upside potential for customers of our Weekly and Daily Alert.

 

Our Youtube video on the rounding bottom pattern gives you a great primer for this very bullish price pattern. 

 

In real-time we showed the explosiveness of the rounding bottom pattern, giving you the next ideal technical entry point before it soared more than 60% within a couple months after the video was published on Youtube.  Nearly 80% from where it was featured to customers in our newsletter who received the trading setup a few days earlier.

 

Another example of a great bottoming pattern in 2016 was NTES which was featured to customers before it exploded more than 70% within 4 months. 

 

NTES was in our classic swing trading pattern (talked about on our home page) and it gives a great example of a quality bottoming pattern.  Today I plan to take you through my thought process on why this was such a good trading setup and also talk about another setup that is very near a good technical entry point as I write this. 

 

Its likely too late for NPTN and NTES for now, but other great opportunities will inevitably come up in the future on quality stocks.

 

Now the first thing we noticed before finding NTES is that the market had a bullish signal in late January and then again on the first day of March.  This signal generally occurs during the early stages of a new market uptrend.  This tells us to become more aggressive on long swing trades and to close out short positions.

 

Another key to this successful trade was identifying all the strongest sectors and industries in the market.  Money was starting to move back into emerging markets because fund managers perceived that those markets hold the best profitable growth opportunities. 

 

Large institutional money managers set the trajectory of the market and industries with their enormous buying power.  When swing trading and day trading, you need to know where they are putting the most new money to work by checking the RSI of various industries.

 

We noticed the strong trend of putting more money into Chinese stocks such as XRS which we had already featured earlier in the year.

 

But one thing we noticed about NTES was the strong long-term uptrend over the past several years with the wide swings.  Earnings growth had averaged over 22% per year over the prior five years.  Sales growth had nearly doubled in 2015 and was expected to grow strongly based on projections and their income statements. 

 

Return on equity was nearly 32%.  They also have a large cash position relative to their debt.  They also had a strong track record of blowing away earnings expectations when they reported.

 

 

Here is the chart featured to customers back on March 21rst.  Lets review what we liked about the all-important technicals.

 

ntes1562

 

 

You can see on the chart that the stock is developing a large symmetrical triangle pattern with both higher lows and lower highs.  At the same time, there is a very consistent, long-term uptrend support that actually goes back several years to the left of the chart.

 

The company was getting close to its earnings release.  We generally get out of a trade ahead of earnings except when the company crushes expectations consistently which was the case with NTES.

 

So all the factors that we look for were in place – strong sales and earnings growth along with other important growth stock characteristics, a strong long-term uptrend for years, a large bullish pattern while the stock was bottoming near the uptrend support, and a strong tendency to beat estimates with rising future expectations.  They even paid a 1.73% dividend yield.

 

After featuring NTES it broke out of the bullish symmetrical triangle pattern and went from about $140 to over $240 last week.  And this is with a lot less risk than a penny stock.

 

A couple weeks ago we featured a trading setup with a lot of similar qualities – LGND.  Earnings growth has averaged over 50% per year over the past five years.  Sales growth has been strong over the past few years and is expected to be over 60% this year and nearly 40% next year.  Return on equity is over 100% and the PEG ratio is .73.

 

Now this stock had another very interesting bottoming pattern just before we featured it to customers.  A pattern that along with an oversold RSI usually leads to very nice gains over the next week or so on quality small caps and top growth stocks.  We also recently called this pattern on AMBA and CBM.

 

LGND jumped more than 10% within a few days after featuring it to customers which is typical with this pattern that I will be going over in detail in future videos.  But for now, I would put LGND on your radar and look for ideal technical entry points in the weeks ahead.

 

The pattern we played on this for the short-term trade has very specific rules and takes advantage of a truly oversold condition on a quality small cap and even mid to large caps.

 

We are developing a new training series for this and other bottoming patterns because when found on top stocks this pattern has a very high rate of success while using a tight stop-loss.  4% to 10%, often within a couple days, is the norm with this pattern as long as the market is not too volatile and trending sideways or higher.

 

But when you find this pattern also within strong, consistent long-term uptrends on top stocks, you can hold a large portion for much longer while putting a stop-loss at an ideal technical entry point.  For a terrific high reward – low risk swing trade similar to NPTN and NTES. 

 

Very large bullish continuation patterns have worked great this year, but these oversold bounces should be your bread-and-butter trades. 

 

Done right, they are very profitable over time and will inflate your trading account.  Done wrong, its just catching a falling knife.  The video training series being released soon will explain exactly how to catch a bottom with a higher percentage trade and a great risk/reward ratio.

 

Get Ideal Swing Trading Setups with Rapidly Improving Fundamentals Poised to Explode This Week

 

Trend Trading Strategies & Multiple Time-Frame Alignment

September 10, 2016 by  
Filed under Chart Patterns, Swing Trading, Trend Trading

 

 

Multiple time-frame alignment is a concept used by top traders where you find ideal technical entries on more than 1 time-frame.  Usually this means finding a breakout in a good day trading chart pattern near the breakout point in a longer-term swing trading pattern.

 

For example, you can find a good flag pattern breakout formed over the past several weeks and then look for a good day trading pattern near that breakout point.  This is a must-know strategy for any day trader.

 

It also helps to better pinpoint swing trading entry points to improve your percentage of success while trading off a small portion of the gains.

 

To use multiple time-frame alignment, the first step is finding a list of great stocks near an ideal swing trading entry point.  Then you find the great day trading pattern and entry point.  This video gives you a great example of how we do it. 

 

Just click the subscribe button off to the right and play the video below. 

 

Like I said, its a very powerful concept that can make a big difference in your own trading.  In the video I also go over the flat base pattern and give you a great setup if the market starts a strong rebound next week!

 

 

 

Get Ideal Swing Trading Setups with Rapidly Improving Fundamentals Poised to Move This Week

 

Large Chart Patterns Yielding Big Profits

September 5, 2016 by  
Filed under Chart Patterns, Swing Trading

 

 

In our last blog post we talked about ELMD breaking out of a very large symmetrical triangle pattern.  In the Youtube video covering this trade we explained how you can come up with a more aggressive target and said that it was between $6 and $6.25.

 

 

After the video was published, the stock continued to rally and hit $6.26 before pulling back.

 

A pretty text book symmetrical triangle trade.  But our other top trading setup for the week was also a tremendous trading setup.  And is off to a good start towards our target.

 

This stock is in one of the hottest chart patterns this year – the bullish inverted J pattern.  As with other successful chart pattern breakouts we called this year, this one was a very large pattern – meaning the price change from the start of the pattern to the top of it was more than 40% as was the case with HA, GRAM, X, SBGL, ELMD and many others appearing in our newsletter this year before making a big move.

 

This year its been all about being in the best trading setups, with the best near-term fundamental characteristics, but in very large and well-formed chart patterns.  You don’t find them every week but they have been yielding huge profits when they come along while being much safer than penny stocks.

 

ACTG was the featured trading setup – our top pick for the week.  This stock had some of the best earnings estimate revisions in the market with a 30% increase in future estimates over the past month. 

 

We only feature stocks to customers that have the short-term fundamental factors to support a big move higher out of the technical pattern with real results to justify a higher valuation.

 

actg swing trade

 

The chart above shows the pattern as it was developing when we featured it to customers.  The ideal entry point is a move above the high or when the stock makes a higher low on the right-side of the base and then a higher high.  Stocks with a smaller pullback on the right-side of the base are actually better as long as the fundamentals are rapidly improving.

 

The price exploded through the entry point a few days after appearing in our Weekly Alert. 

 

For those day traders among us, the price had a very nice horizontal consolidation on a 5 minute chart after reaching the swing trading entry point.  The horizontal consolidation being a little above the ideal swing trading entry point which is perfect.  Once the price breaks out of that consolidation, it often makes a big move – in this case about 10% within a couple days.

 

This is a great example of the power of multiple time-frame alignment.  The great entry point on a daily chart and then a tight horizontal consolidation near that entry point (ideally just above it) on an intra-day chart followed by the breakout.

 

The stock quickly gained 12% within a couple days from the swing trading entry point.  ELMD quickly gained 25% from the ideal entry point but ACTG may beat that in the days ahead as it just broke out a couple trading days ago with upside potential.

 

actg swing trade breakout

 

 

So look for the larger chart patterns on a daily chart, rapidly improving fundamental factors that can support the price move and nail the entry point with a tight stop-loss.  Its been a recipe for success again in this latest market uptrend.

 

 

Get Ideal Trading Setups with Rapidly Improving Fundamentals Poised to Move This Week

 

Enormous Symmetrical Triangle Breakout – ELMD

August 25, 2016 by  
Filed under Chart Patterns, Swing Trading, Trend Trading

 

 

So what’s better than a very bullish chart pattern on a great stock? How about 2 bullish chart patterns!

 

Last year we released a video sharing with our audience how we found ANAC before it soared more than 120% within a couple months.  One of the keys to this trade was the multiple bullish chart patterns.  A cup with handle pattern with another cup with handle on a shorter time-frame within the handle of the larger pattern.

 

Some traders and investors are looking primarily at daily charts covering the past few months to years. Some traders are focusing just on the past few weeks or few days.  So if you have bullish chart patterns on multiple time-frames, you have more traders and investors that may jump in to help to push the stock higher.

 

And sometimes you have more than 1 pattern on the same time-frame as well.  A good example is ELMD which was one of the two top trading setups this week in the Weeky Alert.

 

This is a great example of a large, bullish chart pattern that I mention in our newsletters but have not brought up on the blog or main site up until now.  Its the symmetrical triangle pattern.

 

So lets take a look at it because its one of the most bullish continuation patterns.

 

Great Swing Trading - bull flag and symmetrical triangle

 

So lets define this pattern.  A symmetrical triangle is when you have both lower highs and higher lows being made as time goes on.  Over time, the highs get closer to the lows until the price has to break out in either direction. 

 

To be a valid pattern, you need at least 2 lower highs and 2 higher lows.  The highs and lows need to about line up in a straight line connecting them.

 

Now what happens is that short sellers short near the highs as the price starts to turn and then often put a stop just above the prior high and above the top trendline.  Those trading to the long side buy the stock and then often put a stop beneath the prior low and bottom trendline. 

 

So this adds buying pressure if the price breaks out of the top of the pattern and adds sellers if the price breaks below the lows of the pattern.

 

In both cases, notice the direction of a trend is not confirmed by taking out the prior high or by taking out a prior low as the symmetrical triangle develops.  Taking out the prior low would confirm a trend change to the downside.  Taking out the prior high would confirm the trend change to the upside. 

 

This is a continuation pattern meaning the price tends to break out in the same direction it was heading before the pattern started.

 

The one we found this week was a very large pattern on a small cap stock with strong growth in sales and earnings with a reasonable valuation.  A stock that has also beaten estimates 3 of the past 4 quarters with steady future estimates.  We prefer rising estimates but the fact that they beat 3 of the past 4 quarters is a good sign.

 

We only feature strong growth stocks and/or stocks beating estimates with rising future expectations.  This gives us an edge over pure technical strategies.

 

The entry point is a close above the upper trend line if you are playing a long trade.  And below the lower trend line if you are shorting or buying put options.  Again, you want to play a breakout in the same direction of the trade.

 

Now this stock happened to gap higher after we featured it and reached our target sell price for about a 10% profit within 15 minutes earlier this week.

 

Swing Trading Results Symmetrical triangle breakout

 

 

When a trade like this gets off to a such a good start we often keep a portion of our shares until the next uptrend is broken or another bearish technical event.  It could make a much larger move since its only trading for about 20 times earnings with good growth and about 15 times next years expected earnings which they tend to beat. 

 

At this point the risk/reward ratio does not justify entering a new trade.  However, those subscribed to our newsletter can just let a portion of your profits ride while stopping the remaining shares at your entry point.

 

You see symmetrical triangle patterns not only when swing trading on daily charts but also when day trading.  And they are often successful on stocks in strong trends that day in the morning before 11am and sometimes later when the market and stock are moving strongly that day.

 

 

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Red Hot Trend Trading Chart Pattern

 

 

One of the most bullish, yet underutilized, chart patterns continues to be the bullish inverted J.  Sometimes this is referred to as a bullish inverted ascending scallop as well.

 

We are seeing this bullish chart pattern A LOT this year and it continues to perform well in most cases.  HA and X are two monster inverted J trades for us this year on stocks with rapidly improving fundamentals. 

 

Both made moves of greater than 50% out of this pattern.  And these are not penny stocks where you question if the business is for real.

 

But we have been mentioning an even larger pattern recently in our newsletter that is one of the best setups this year.  So far its made a move of about 20% higher from where we featured it 3 weeks ago with a lot of upside potential left after this latest pullback.

 

I am about to share with you this tremendous opportunity in the gold market but first lets talk about the bullish inverted J pattern and why its so powerful.

 

You can think of the bullish inverted J pattern as an inverted J Hook or rounding top pattern gone bad for the shorts.

 

So as a rounding top pattern starts to turn over it generally starts to attract short sellers as it makes lower highs and lower lows on the right side of the base.  But what fools some short sellers is that the strong initial move higher is often just the first wave up.

 

As the price rounds to the downside it sometimes suddenly makes a higher low.  And this is the key event in the pattern.  Because if the price makes a higher high from there you have a confirmed trend change to the upside.  (One day with a lower low is not that significant but 2 consecutive lower lows defines a new short-term downtrend for us.)

 

This is probably the single most important concept to understand in technical analysis – aside from horizontal and moving average support and resistance.  This highly important tenant is that a higher low is the first trend change signal to the upside.  And a lower high is the key trend change signal to the downside.

 

The higher low is often cited as the ideal entry point in the bullish inverted J pattern.  Although we like to wait for the higher high on the right-side of the base as this often acts as strong support which can set up a terrific risk/reward ratio if you want to play with a tight stop-loss.

 

Lets go over the chart and I will explain why this was such a good trading setup and what we can learn from it.  And how we can continue to make money off this stock.

 

Here’s the daily chart from when it was featured in our Weekly Alert:

 

Great Swing Trading setup on a Weekly Chart

 

 

Notice the well-formed rounding shape of the pattern.  As the price starts to round over, short sellers start to place stops just above the preceding highs – playing the rounding top pattern.  This sets up a strong move back through those highs at a later date on small catalysts because the shorts need to buy to cover their short positions.

 

Now we did not feature the pattern until after the first entry point was reached.  The initial entry point was the higher low being made on the right-side of the base.  However, as is often the case, this would have required a wider stop-loss as the price was still regaining its footing in a new short-term uptrend.

 

The best entry point in our opinion is a move above the prior high after the higher low.  With this entry you can play with a tight stop-loss just a few percent below the prior high – around $13.80 in this case.  This would have worked out well.  A wider stop would be below the prior low.

 

Here are the factors that make this a great trading setup. 

 

First of all, we have a strong uptrend in the stock and the gold market in general.  Secondly, the stock had some of the highest estimate revisions according to Zacks.

 

Third of all, it was a very large and well-formed chart pattern.  Money talks and technical analysis will tell you more than talking heads on TV.  You can listen to opinion but where is the big money going?  Technical analysis will answer this question more than anything else.

 

That being said, we prefer very bullish technical patterns with some real results and improvement to back it up.  The large estimate increases and a strong trend in gold prices, lowering bond yields world-wide, are some of the fundamental factors that support this trading setup.  Its not just a pump and dump penny stock in other words.

 

This pattern is enormous.  In fact, some technicians would place a target close to $30 or more on this.

 

Here is the most recent chart:

 

Great Swing Trading setup on a gold stock

 

 

So far, the stock has moved nicely higher.  Its a good idea to take some off after a 5% to 10% move higher.  But we would leave the majority of our position on and stop it just below the ideal entry point – just below $16.63 in this case.  Or just below a prior low in the trend.

 

If you are a day trader you could look for a pullback to the 9 EMA, center of the bollinger band, or 20 day moving average.  And then find a bullish candlestick pattern near there.  Enter a trade with about a 3% stop-loss and then have a very good shot at a move of 10% or more within a few days.

 

One of the big secrets to day trading is finding a great swing trading setup.  And then look for good day trading patterns after the price reaches the ideal entry point in the day trading setup.  Or just before then as it nears the breakout point of the longer-term swing trading pattern.

 

 

This video has another great example of this chart pattern and some valuable tips to make money off of it.

 

 

 

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Small Cap Tech in a Very Bullish Rounding Bottom

July 23, 2016 by  
Filed under Chart Patterns, Swing Trading, Trend Trading

 

 

Subscribe to our Youtube channel to get notified when our latest video is released.

The bullish rounding bottom pattern is another very bullish chart pattern that offers many great trading opportunities during a market uptrend.

 

Top traders generally have strong knowledge in a few key areas including analyzing the overall market trend, trend analysis on individual stocks, the behavior of stocks around key moving averages, and chart patterns. Reading the description of the top chart patterns on this site is a good place to start.

 

The rounding bottom is a close cousin to the well-known cup with handle pattern. In fact, all swing trading cup and handle patterns have to form a rounding bottom and reach their entry point before forming a quality cup and handle pattern.

 

In this blog post I will review the rounding bottom pattern and show you a great setup on NPTN. We published a video talking about this classic rounding bottom setup just before it surged 70% higher within several weeks.

 

As the name suggests, the rounding bottom is where a stock pulls back but the downtrend gradually becomes less steep, forming a rounding shape on the chart. For swing traders, you want to find these on a weekly chart where the rounding shape can be seen much more clearly in most cases.

 

Here is the great example of this with NPTN. Notice the difference between the weekly and daily chart.

 

Here’s the weekly chart:

 

Swing Trading setup on a Weekly Chart

Swing Trading Setup – Rounding Bottom Pattern

 

 

On the weekly chart you can see the rounded shape clearly. Any charting package including the free version of stockcharts.com will have the weekly chart option. As you can see on the chart, this is the second rounding bottom for this stock this year.

 

Now the entry point is once the stock starts to make higher lows and higher highs on the right side of the base. To find a great entry point you can then look at a daily chart. You need to see a couple lower lows on the daily candles to occur before you can have a higher low.

 

Here’s the daily chart:

 

nptndaily

 

For us, the target entry was a move above $10 around July 12th. If you miss this entry, another good entry is a close above the next short-term downtrend resistance line created by connecting the highs in the most recent downtrend. Or a bullish candlestick pattern off around the 9 EMA or 20 day moving average. You want to see the former breakout area acting as strong support and a key moving average starting to act as strong support as well.

 

In fact, if you have day trading skills you could wait for a bullish entry point on a 5 minute or 10 minute chart off one of these support levels.

 

Now you could enter once the price makes a higher low – in late June in this case. However, you would likely need a wider stop-loss and it will have a higher failure rate because the trend change has not been confirmed by making the higher high.

 

There are a few ways to execute a stop-loss strategy. A good tight stop-loss would be about 2 to 5 percent below where the price cleared the higher high. In this case, $9.75. A more conventional stop-loss would be below the prior low or below $8.94 in this case. Or below the bottom of the pattern. If this is too much risk, you would just lower your position size accordingly.

 

This stock has a lot of upside potential. At the point of entry, the prior high was nearly 50% above that price and offers a good aggressive target. Take some off at the next level of resistance which was about $11.30 in this case. Then you can stop the rest just below the ideal entry point.

 

One reason this setup made it into our newsletter is that it had the strong long-term uptrend on a multi-year chart. And strong growth in sales and earnings.

 

Also, the company consistently beats earnings expectations with rising future consensus estimates. The stock has to be either a strong growth stock or be beating estimates with steady to rising estimates to be presented to our customers. This stock has both qualities.

 

Now because they have the strong results to back up the move in the stock price, this stock could break through the 52-week highs. But you just have to wait and see how this plays out. If it does not look strong near $13 to $14, then you could take the rest off and wait for another good technical setup.

 

 

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A Great Swing Trading Pattern for the Coming Week

July 17, 2016 by  
Filed under Chart Patterns, Hot Stocks, Swing Trading

 

 

This year, we have seen several swing trades make huge moves out of a classic chart pattern in our newsletter.

 

The first stock to soar out of this pattern for customers and in our own trading was HA. It hit our entry point after another big earnings beat in January and then soared nearly 50% within a few weeks.

 

Several weeks later we featured US Steel, (ticker X), in the same chart pattern breaking out. X quickly moved about 20% higher within a few days after being featured in our newsletter, later moved nearly 40% and is still surging after recently hitting another entry point in this chart pattern last week.

 

And another great swing trading setup just came up on our radar in this same chart pattern that I am about to share with you.

 

But first you need to know the chart pattern because there is not a lot of good information on this one online. Yet it often precedes some of the biggest moves on quality small and mid cap stocks.

 

This chart pattern is called the bullish inverted J pattern. Sometimes called the inverted ascending scallop.

 

Its one of the most bullish swing trading setups top traders look for so its good to know the entry/exit points that other traders are using.

 

You often see it early within a new uptrend for a stock or ETF. Look for them in leading stocks in strong industries.

 

This week we found one for the 3 Stocks to Wealth newsletter and Daily Alert. A monster pattern in a red hot industry. But today I want to share with you another one, in the tech space, that is looking excellent for several reasons I am about to explain.

 

This gives you a great example of how we get an edge in our trading.

 

The stock is AMBA. The same stock that made a 60% move for us within a month out of an ascending base pattern last year. After exiting the trade, the stock corrected with the rest of the market.

 

The first reason I like this trade so much is that its been a top growth stock in the past and has a history of crushing earnings expectations. AMBA has seen revenue growth in the mid double digits over the past few years. Net income, year-over-year, has been growing about as fast. Top growth stocks normally have sustained growth in sales and earnings of at least 15% per year for a number of years. The higher the better.

 

According to Yahoo Finance, they have beaten consensus earnings estimates by 6 to 22 cents each of the past four quarters. This is another key differentiator. A stock has to be a top growth stock or have a track record of beating estimates with rising future expectations for our own swing trading and our newsletter. Expectations have gone down slightly for next year recently, but its a top growth stock that has the consistent track record of clobbering earnings estimates.

 

Lets take a look at the chart:

 

Swing Trading setup

Swing Trading Setup – Bullish Inverted J Pattern

 

From a technical standpoint, this trading setup is also superior for a few reasons. First of all, the stock is in the strong inverted J pattern and is above its 20 day, 50 day and 200 day moving averages. Its also making higher highs and higher lows in a new uptrend.

 

The first move in the inverted J pattern was on strong volume. And the pullback retraced a smaller portion of the first move higher than most of these setups. The pullback was on lower volume and the Brexit mini-crash took out a lot of weak hands.

 

Notice how the pullback stopped at about the 20 day moving average which is acting as support. The price then broke out of the top of the pattern and has now pulled back while respecting the 9 EMA (exponential moving average). Its a good sign when a stock is trading above the 20 day and 200 day averages and suddenly finding strong support at the 9 exponential moving average.

 

I also like that the price closed strongly on Friday after another test of the top of the prior consolidation as the market digests recent gains. Another good sign.

 

Another positive is the overall market and Nasdaq being in an uptrend and the S&P 500 breaking out of a 2 year trading range. So the overall market trend is in our favor as well.

 

This one is set up to break strongly into new 2016 highs off the 9 EMA if the overall market continues to trend higher. If the market pulls back, then we will probably see it rebound off the 20 day moving average before making another move.

 

We will likely put a buy stop a little above $56 and it should quickly move to $60 or beyond if it gets to that point. $67 seems a likely final target over the next several weeks. This is a 1 to 1 projection of the first move higher and corresponds with the top of a consolidation last March.

 

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The New Investtobefree Ultimate Strategy

June 25, 2016 by  
Filed under Hot Stocks, Trend Trading

 

Thanks to the hundreds of traders and investors who completed our recent survey for the latest add-ons to the Investtobefree.com 3 Stocks to Wealth newsletter. 

 

You voted on the most valuable upgrades and add-ons in our recent online survey and now the finishing touches are complete!

 

Investtobefree.com and the 3 Stocks to Wealth newsletter was launched in April of 2012 and has clobbered nearly all long-only newsletters since inception.  By combining my more than 10 years of technical analysis expertise with sophisticated stock screening technologies to find the top 3 stocks to hold for the coming week.

 

This strategy destroys the biggest obstacle that keep most traders and investors from the big gains in the aggressive portion of their overall portfolio.

 

This obstacle is the time needed to stay on top of the market and execute a proven strategy. With this strategy and our newsletter you spend just 15 minutes per week adjusting your aggressive portfolio. Always on Friday.

 

With work, family responsibilities, social time, and hobbies, most people just do not have the time to stay on top of the market and execute a proven strategy consistently through ups and downs. But this is absolutely required to make the big gains over time when trading.

 

The Tradetobefree strategy certainly goes a long way to reduce the time needed, but some people just do not find time to apply it each day.

 

So for those short on time and who do not care for technical analysis, I developed a new strategy where you just hold the top 3 stocks each week.  A strategy producing results rivalring top swing trading strategies.

 

A strategy that requires just 15 minutes of your precious time each week on Friday with the newsletter.

 

Trend trading hot stocks is very easy with this strategy where you leverage the skills of a successful trader and expert technical analyst.

 

This free presentation goes over all the latest add-ons included in the new Ultimate Subscription and why its critical to your financial future.

 

 

View the Free Presentation that Explains this Powerful Strategy

 

 

 

Swing Trading Put Options and Shorts

May 19, 2016 by  
Filed under Channeling Stocks, Swing Trading

 

 

I just published a new video going over our short strategy for swing trading and channeling stocks.

 

CONN was in a terrific downward sloping channel breaking an uptrend back to the top of the channel when we featured it.  One of the better channeling stock setups you will find.

 

Some of the put options doubled, tripled and more within a week on this one.

 

Of course not all of these will move like this but we had a strong feeling that many retail earnings reports would come in below expectations.  So it was a perfect storm really.

 

This video has some great tips for swing trading shorts in a market trending lower.

 

 

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Investtobefree Webinar Covering the New Upgrades

May 15, 2016 by  
Filed under News, Swing Trading, Trend Trading

 

 

 

 

Several years ago, I noticed that some of my subscribers were just buying the stocks in the newsletter and holding them for a week.  This is not recommended as many of the stocks are in a short-term downtrend. 

 

The Tradetobefree strategy calls for waiting until the short-term downtrend has been broken before entering a trade as pointed out on the site and with each trading setup featured on the subscription site and newsletter unless that resistance has already been broken.

 

The reason we do this is because the odds of success increase if the stock can break the short-term downtrend while not going below the long-term uptrend support beforehand. 

 

So if the stock stays above the long-term uptrend support and breaks the short-term downtrend, we are interested in the trading setup.

 

But some were simply just buying the stock beforehand with mixed results.  At the same time many were asking for an even simpler way without having to use technical analysis.

 

Many people just don’t have the half hour to hour a day to use the Tradetobefree newsletter and execute the strategy.  And many just can not do it consistently with their schedule.

 

A lot of people will cancel the subscription and say they do not have the time for trading.  And later come back when they have more time.  Unfortunately, sometimes after missing some big gains.

 

So for those short on time and who do not care for technical analysis, I developed a new strategy where you just hold the top 3 stocks each week.  After many months of research, back-testing and testing in a live account, I brought the Investtobefree.com site and 3 Stocks to Wealth newsletter to the public in April of 2012.

 

A strategy that requires just 15 minutes of your time each week with the newsletter.

 

Back then I made the bold statement that this could be a 5 to 10 bagger in five years before commissions and fees.  And its still on track to do that.  In the free webinar yesterday I revealed the latest performance chart after the first four years and discussed the new add-ons to reduce volatility I have been working on for more than a year.

 

This free webinar also discusses the results from the hundreds who completed our recent survey and the exciting new add-ons being planned for the next release to reduce volatility and ensure you are getting good results closely matching the performance chart before commissions and fees.

 

 

 

 

Subscribe to our Youtube channel to learn more about swing trading and our proven methodologies.

Our Latest Trading Setups with Rapidly Improving Fundamentals in Strong trends and Bullish Chart Patterns

 

Trend Trading the Incredible Run in Gold Stocks

May 1, 2016 by  
Filed under Hot Stocks, Swing Trading, Trend Trading

 

 

I just published a new video talking about how to trend trade the incredible run in gold stocks.

 

The GLD just broke out of a flag pattern on Friday.  And many mining stocks are making incredible moves right now.  Despite weakness in the overall market.

 

This video also goes over one of the key concepts all great traders have mastered to some degree.

 

Trend analysis.

 

We all know you have to play the trend. But how do you know when the trend has changed?

 

Its more than just following a couple moving averages as this video points out.

 

Our latest video covering trend analysis will explain key concepts you simply must know.  All great traders I know of have a strong understanding of trend analysis. 

 

Its key to successfully utilize our trading methodology and to profit from our top trading setups.

 

 

 

 

Subscribe to our Youtube channel to learn more about swing trading and our proven methodologies.

Get Our Latest Trading Setups with Rapidly Improving Fundamentals in Strong trends and Bullish Chart Patterns

 

Vote for Your Favorite Add-ons to Investtobefree.com

April 24, 2016 by  
Filed under Trend Trading

 

Several years ago I noticed that, despite delivering a great swing trading strategy and a lot of very profitable trend trading setups, a lot of my audience was not using and profiting from the strategy.

 

I mean, I did get a lot of positive feedback, people who had literally changed their quality of life for the better.  However, others were just quiet and not continuing with the program.

 

Often they would come to me and say something that basically meant “I don’t have time or really understand technical analysis and the technical entries/exits, just tell me what to buy, when to buy it and when to sell”.

 

I hear this often enough that it finally got me thinking, is there really a way to make it that simple for people?  Maybe most people just want to harness the skill and 10+ years experience that I have to beat the market by a wide margin.

 

So I went to work to find a great, more passive trading system for people who just do not have the time for chart patterns, candlestick patterns, moving averages and the myriad of other technical analysis tools.

 

I was really trying to figure out whether you can use the principles underlying my trend trading strategy to make a great return with no follow-up technical analysis. 

 

After a lot of trial and error with proprietary screeners and testing on a live account, I found an excellent strategy that my audience could really benefit from and actually change their quality of life.  A strategy that took literally just 15 minutes per week to make the returns of a professional trader once I gave them the top 3 stocks to hold the following week.

 

After proving it in a live account, I decided to offer it to everyone.  And Investtobefree.com and the 3 Stocks to Wealth newsletter was born in April of 2012.

 

Back then I made a pretty bold claim.  Based on back-testing results and our experience in a live account, I said that we could help people generate a 5 to 10-bagger in about five years in your aggressive portfolio.

 

Well its been four years now, and those who faithfully use the approach each week, with full positions each week, are still on track to pull this off.  Before commissions and expenses.  And for many, after commissions and expenses.

 

But, with all aggressive market strategies, you have more volatility.  And you have to be disciplined week in and week out.  And many people have not followed through and stuck with it.

 

And I think a lot of that has to do with understanding and expecting volatility.  Any great strategy will have periods of draw-down.  Even mutual funds have draw-down.  Anyone who held money in a mutual fund in 2008 can tell you all about draw-down.

 

So I have found ways to reduce volatility significantly, protect yourself from sudden market corrections and still keep most if not all of the great results we have seen in the first four years of Investtobefree.com and the 3 Stocks to Wealth newsletter.

 

But, before I complete these optional add-ons, I wanted to ask you what you most wanted to see added to the 3 Stocks to Wealth system.

 

As an incentive for filling out the following survey, I am giving a free subscription to 2 people chosen at random.

 

Vote now on your favorite new 3 Stocks to Wealth add-ons and win a free subscription!

 

Subscribe to our Youtube channel.

Get Our Latest Trading Setups with Rapidly Improving Fundamentals in Bullish Chart Patterns

 

Trend Trading – Here’s a Great Example to Learn How

April 17, 2016 by  
Filed under Hot Stocks, Trend Trading

 

 

 

Over the past few months we released free videos on the most bullish chart pattern – the bull flag.

 

The bull flag is one powerful trend trading continuation pattern as you are about to see.

 

A couple months ago, we could see conditions were setting up to produce these patterns.

 

We witnessed a strong bullish market signal in late January and another on the first trading day in March.  Signs that the overall market trend was switching towards the upside for a while.

 

And many sectors, including the beaten down materials group, were due for a strong relief rally.

 

So I wanted to publish these videos so you could prepare. 

 

Now one of our top trading setups in this pattern just hit its second target last week. And has nearly doubled from our target entry point within a month.

 

There are different ways to trade this pattern and the GRAM trade provides a great example to go over our different strategies for entering and exiting this powerful chart pattern.

 

Fund managers can not hit these ideal entry points because they have to buy millions of dollars worth of stock. Which pushes the price up too far, too quickly.

 

In fact, the video above shows how larger investors push the stock higher after our customers got in. And how they inflated the trading accounts of those who followed our buy/sell points closely when we featured this setup at the end of February.

 

Click the video above to see how we traded this stock with both the right technical AND fundamental factors to support an enormous move.

 

Subscribe to our Youtube channel and see how we trade this pattern.

Get Our Latest Trading Setups with Rapidly Improving Fundamentals in Bullish Chart Patterns

 

Channeling Stocks and Nervous Fund Managers

April 9, 2016 by  
Filed under Channeling Stocks, Trend Trading

 

 

Whenever you have a period of higher volatility, fund managers look for places to hide.

 

Capital preservation suddenly becomes king when the market waters become turbulent.

 

But they need to buy stocks because they have a lot of clients money to invest in the market.  So they put more money into safer stocks whose earnings and stock price are not going to be affected as much by the volatility.

 

So how does this affect the market?  And how do we profit from frightened fund managers?

 

Well, suddenly stocks like Tyson and Campbells Soup become real attractive because they know in the worst case scenario, people will still buy chicken and soup.  So they buy these stocks like crazy and suddenly they can even act like growth stocks. 

 

This is why consumer staple stocks were the first sector to make new highs coming out of the most recent correction.  And many broke out of bullish chart patterns. 

 

A couple weeks ago we published a free web page as the definitive free guide to the channeling stock pattern.

 

And in our latest video lesson we show you how we make big profits in the flight to consumer staple stocks.  By channeling the right stocks for the current market in superior, upward sloping channels.

 

Click above to see our latest free instructional video.

 

Subscribe to our Youtube channel and get our free expert instructional videos when released!

List of Stocks with Rapidly Improving Fundamentals in Bullish Chart Patterns

 

Channeling Stocks and Bull Flags in Today’s Market

March 20, 2016 by  
Filed under Channeling Stocks

 

Now that many material and industrial stocks have been take to the woodshed over the past couple years, we are seeing a lot more very bullish chart patterns.  A couple in particular that I want to share with you.

 

Probably the most exciting of these is the bull flag pattern.  Simply because this pattern often leads to gains of 20%, 50% or 100% or more within a few days to a few months.

 

Over a year ago we sent a message to our audience with the headline – “$1.50 at the pump?”.  A lot of people scoffed at this at the time – not realizing the ability of many companies to quickly reduce costs and keep drilling for oil despite having to use fracking technology.

 

But we were looking at both the technicals and fundamentals and seeing that oil could go into the $20s.  In fact, this was nearly a perfect 1 to 1 projection of the first move down from the highs the prior summer.

 

In early January of 2016 when the writing was on the wall for most traders and investors, oil plummeted to the high $20s.  Putting many oil companies in jeopardy.

 

When oil hit $26 and change we said that was likely the bottom for now in our newsletter and the long-term trend would change to the upside.

 

Now the small oil companies that survive could be looking at a windfall as demand continues to grow and starts to overcome daily supply generated.  This caused the best positioned small oil companies to jump into some of the strongest bull flag patterns.  Along with steel companies, miners, and early cycle stocks.

 

While more risky, these stocks quickly jumped 100% to 200% or more and formed bull flag patterns in many cases.  And took off after breaking out. 

 

But another type of trading setup is coming up more and more.  Channeling stocks.  So watch for these patterns to develop as they are a less risky yet very profitable in many cases.  This pattern often develops after stocks sell off and bottom.

 

Very few stocks would be considered good channeling stocks.  But we find many throughout the year – but only the ones with the fundamental momentum to truly support the higher prices.

 

Subscribe to our Youtube channel and get our free expert instructional videos when released!

List of Stocks with Rapidly Improving Fundamentals in Bullish Chart Patterns

 

Swing Trading vs Day Trading – Hardware & Software

January 31, 2016 by  
Filed under Swing Trading

 

Before jumping into a trading strategy its important to know the hardware and software required to do well. In this final video in a 3 part series I discuss the equipment and software you will need for both in detail.

 

I also discuss the potential profitability of both. Both in the short-term and over the long-term. 

 

 

Swing Trading vs Day Trading – Video 1

 

Stocks Poised to Surge This Week

 

 

Swing Trading vs Day Trading

January 27, 2016 by  
Filed under Swing Trading

 

Stock trading can be categorized into 2 basic types of trading:  Swing trading and Day Trading.  The term “swing trading” can have different meanings to different traders.  So this term really needs to be clarified and the different meanings understood.

 

Questions you need to ask yourself include:  which type of trading is best for me – Swing Trading or Day Trading? 

 

How much reasonable profit potential exists for both swing trading and day trading in the era of high frequency and algorithmic trading?

 

And how much time is required to swing trade and day trade and how long will it take to master each and be consistently profitable?

 

After 13 years of successfully trading stocks and using both techniques, I can give you a good answer to these questions.

 

 

 

Stocks We are Trading Poised to Explode This Week

 

 

Open Season for the Bull Flag Pattern

October 23, 2015 by  
Filed under Chart Patterns, Hot Stocks, Trend Trading

 

Fall and Winter is open season on bull flag patterns.  Its like a sport fisherman seeing a 500 pound tuna on their fish finder.  It gets you excited once you see how powerful the moves can be out of this very bullish chart pattern.

 

This is a chart pattern where the price of a stock soars 90% or more within a couple months and then consolidates for a few days to a few weeks before another explosive move higher.  The strong initial move forms the flag pole on the chart.  And the sideways move generates the flag or, in some cases, a triangular pennant.

 

You want to have this chart pattern on your radar and this just released video explains how to identify the bull flag pattern and how to trade it!

 

 

List of Stocks with Rapidly Improving Fundamentals in Bullish Chart Patterns

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