3/03/2015

Breakout and Anticipation Setups from Stockbee50 for March 3, 2015


Anticipation Setups for Mar 03, 2015

Anticipating a breakout helps you get an early entry and can improve your per trade profits. It can also lower your risk as your stop is close. It can help you profit from even smaller moves.
Anticipation requires more pre planning and effort than buying a breakout. You need a process flow to do that. The process should be done daily and followed consistently.
CAPN
ANTH
CRIS
are the three anticipation candidates from the Stockbee 50 list. They are not the best of the setups and are low priced but could work.

If you are serious about making money swing trading go through all the posts highlighted on the sidebar. For motivated traders they provide complete details about actual actionable setups that have made me millions over 14 years.
Breakout Setups from Mar 02, 2015
The Stockbee 50 is a list of stocks with above average momentum. You can use the list for anticipation breakout or for breakout trades. Taking breakout trades is one way of making money while keeping drawdowns and per trade risk low.

EGRX was highlighted as anticipation candidate yesterday before the market open. It had a breakout yesterday. It went up 10.82% in one day. People watching this stock got in the first 5 minutes of the market open. Anticipation gives you an early entry. For that you need to create alerts on these stock. Interactive Broker allows you to create alerts and can also trigger buy order or sell order on alerts. I had an alert set of EGRX at 34.39. It triggered in first few minutes.
If you are really serious about trading and making money then you want to find stocks like EGRX daily. They make explosive moves. All you need to setup a process to find and trade them.
Focusing on Stockbee 50 list can offer you hundreds of profit making opportunities in a year once you learn how to use the list daily.


3/02/2015

Stockbee 50: Anticipation Setups for March 02, 2015


The Stockbee 50 is a list of stocks with above average momentum. You can use the list for anticipation breakout or for breakout trades.
Anticipation allows you to control risk and get into setups early or as they are breaking out. Anticipating a breakout helps improve your per trade profits. It can also lower your risk as your stop is close. It can help you profit from even smaller moves.
Anticipation requires more pre planning and effort than buying a breakout. You need a process flow to do that. The process should be done daily and followed consistently.
What to look for in good anticipation setup
  • series of narrow range days in pullback/consolidation
  • orderly pullback with no 4% b/d during the pullback or consolidation
  • low volume pullback
  • low volatility during pullback
  • linear first leg if looking as continuation setup
  • Stock should go up smoothly and not in volatile manner
  • 3 to 10 days consolidation/pullback
  • not up 3 days in a row

EGRX is looking good from the Stockbee 50 list for possible breakout to upside. It has series of narrow range days on low volume.
If you are serious about making money swing trading the Stockbee 50 offers you a powerful list of momentum stocks to focus on.Anticipating a breakout and entering with very close stop can give you good risk reward setup. If you want more candidates expand your list to Top 200 ranked stocks by momentum.

2/24/2015

Anticipation Setups For Feb 24, 2015

Last week I detailed the process to find anticipation setup and there are also previous posts on same topic you will find earlier.

These are some of the stocks on my anticipation watchlist for today. Personally I focus only on high priced and high liquidity stocks out of these because of larger account size.

Bullish Anticipation


Symbols from TC2000
PCLN
ICE
WHR
CHTR
HHC
MLM
HAR
AON
GWR
CMPR
CEB
HRS
TUP
AN
TMH
MMS
SLGN
NUS
ABCO
CCMP
POST
GNC
THOR
POL
HUBG
SWIR
CBM
DHI
AEIS
PNK
CONN
UVE
PHM
NOAH
HWAY
WETF
ENOC
RTEC
EXAR
AMKR
ARRY
CYTK
HLIT
EVC
GLUU
AMD


IPO Anticipation

xhr

Bearish Anticipation


GDOT
CRS
PODD
UIS
RSTI


Every good breakout that happens from a low range period should be on your anticipation list. Setting up the process is easy and once you have it in place you can find candidates like these daily. One or two out of that breakout on most average days.

2/19/2015

How to find Anticipation setups


As stock gain momentum they undergo periods of fast moves followed by periods of pullbacks and consolidation. The pullbacks and consolidation periods offer you an opportunity to anticipate a breakout and enter with very close stop or enter with order few cents above the consolidation. 



To anticipate a breakout look at stocks currently not undergoing momentum burst. That means stock should not be going up or down fast. Stock should be in extremely low momentum phase for anticipation . It can be a shallow pullback or consolidation in established momentum phase.
To anticipate look for stock with extremely low volatility. During rallies stock go through high volatility and low volatility periods, the low volatility  (quiet) periods are where anticipation traders can focus. A stock with low volatility in last 5 to 10 days is ideal candidate as part of a continuation setup.



Look for series of low range bars in last 5 to 10 days to find good anticipation setups. You can look for stocks with bollinger band squeeze. I do not use them, I find it easier to just look for series of narrow range consolidation periods. 

Avoid Anticipation setups on extended stocks. First or second anticipation setup in established trend is best. As stock goes further and further from its rally start point the probability of anticipation setup working decreases. Extended trends needs to be avoided for anticipation as failure is high on them

Once you have anticipation candidate ,look for early entry on it. If you wait for breakout to buy then the entire effort is wasted. Ideal entry is where you risk just few cents or less than 2% to get in early. This requires either entering before breakout or entering with a order few cents above yesterday's action.

Anticipating a breakout helps you get an early entry and can improve your per trade profits. It also can lower your risk as your stop is closer. It can help you profit from even smaller moves as you can also capture breakout day gains. For that entry without waiting for breakout is best.
Anticipation requires more pre planning and effort than buying a breakout. You need a process flow to do that. The process should be efficient and done daily after the market close or open. It takes me around 15 minutes to generate my list of candidates daily. I look at around 100 to 300 candidates to boil down to just 1 to 3 good candidates for entry next day.

The suggested process flow is a template you can develop your own process.
Only 3 to 5 quality ideas should be tracked


What to look for in good anticipation setup
  • series of narrow range days in pullback/consolidation
  • orderly pullback with no 4% b/d during the pullback or consolidation
  • low volume pullback
  • low volatility during pullback
  • linear first leg if looking as continuation setup
  • Stock should go up smoothly and not in volatile manner
  • 3 to 10 days consolidation/pullback
  • not up 3 days in a row
You can also find bearish anticipation setups for short selling in similar manner. On bearish setups I prefer a counter trend rally. In bearish phases stock often have counter trend rallies that fail. 


A counter trend move early in downtrend is best as on short side stocks can spend lot of time consolidating near low before breakdown. 


Last night I generated following anticipation list  for members for both bullish and bearish setups:


ZIOP
ABMD
ZFGN
MIFI
MRGE
LULU
TASR
INFN
SWKS
RTEC
JBLU
CLDN
MMS
MMSI
ORLY
HLIT
UNH
CUBE
LEA
DLPH
COT
PSA
CST
DAN
TWTR
LAD
CRS
CAT
HSC
SWN
TRN
CLF
CRC
GER
ENVA
DPLO
CDK

It took me 15 minutes to do it. Out of this only 2 or3 I personally focus on for next day entry. Focusing on too many often leads to missing out on some very good low risk entries.

Anyone with an average intelligence can do this daily once they setup a process and develop skill to do it. There is no rocket science involved. More you do it better you become at it. 

If you want to make money swing trading focus your attention on mastering these kind of setup ideas. 

2/18/2015

How to become good at trading

Trading a particular setup for discretionary traders is a very specific skill. Skills in trading are setup specific. Just because someone can day trade may not make him instantly a good position trader unless he or she develops skills for that setup.

You develop skills only if you develop unconscious memory for doing it. Psychologist call that kind of memory procedural memory.

For a dancer procedural memory involves unconsciously coordinating hands, legs, and body to create graceful fluid motion.

Similarly for a trader it involves judging right setup, entry, exit, risk , stop and all of that as one fluid motion without fumbling.

Procedural memories are typically acquired through repetition and practice. When you do that your brain undergoes some changes and automatic behavior sequence memory is formed. That memory gets so deeply embedded in our brain that we are no longer aware of them.

Every Tuesday I take Tanya for her ice skating lessons. If you watch some of the very skilled coaches (some who competed at Olympic level), they do it so effortlessly. The key to that is correct techniques and hours and hours of practice.

It is same for swing trading.

For a given setup he or she develop procedural memory which kicks in as soon as that setup shows up. He or she enters and exit the setup effortlessly.

Develop procedural memory for momentum burst if you want to trade it

Develop procedural memory for Episodic Pivots if you want to trade it

Develop procedural memory for pullbacks if you want to trade them

Develop procedural memory for short setup if you want to trade them

Develop procedural memory for value investing if that is what interests you

Develop procedural memory for growth investing if that is what interests you

Each of these involves some serious practice and defining right process....

If you can do that over hundreds of trade you will develop procedural memory and then it will be lifelong skill.


Start with process flow if want to improve your trading


Write down your process flow .

Unless you write it down you do not have a process flow.

The simple act of doing it will clarify things to you.

This exercise has been done by many members here over the year

Create your own :
  • Scanning rules to find stock you want to trade
  • Entry Rules
  • Stops rule
  • Risk rules
  • Exit rules
  • Trade management rules

See if they make sense

Try and explain it to others, see if it makes sense.

Just do it for one method or scan and keep refining it till it becomes part of you...

2/17/2015

Stockbee 50: Anticipation Setups for Feb 18, 2015



The Stockbee 50 is a list of stocks with above average momentum. You can use the list for anticipation breakout or for breakout trades.
Anticipation allows you to control risk and get into setups early or as they are breaking out. Anticipating a breakout helps improve your per trade profits. It can also lower your risk as your stop is close. It can help you profit from even smaller moves.
Anticipation requires more pre planning and effort than buying a breakout. You need a process flow to do that. The process should be done daily and followed consistently.

ARRY
MRGE
SCMP
are looking good from the Stockbee 50 list for possible breakout to upside.
If you are serious about making money swing trading the Stockbee 50 offers you a powerful list of momentum stocks to focus on.Anticipating a breakout and entering with very close stop can give you good risk reward setup. If you want more candidates expand your list to Top 200 ranked stocks by momentum.