8/27/2014

Stockbee Member feedback


Member feedback that made my day

"I have been on the Stockbee service for just over a month and I just wanted to say a big thank you for providing such a unique educational service.

As far as I know there is nothing else like it. I have learned so much, and not just new techniques. Probably more than anything I have learned a great deal about myself as a trader.

The site has also helped to keep me motivated and disciplined.

You are an inspiration to me - and I am sure many others. I hope someday to be able to pass on what I have learned."

A billion dollar market insight

"We have tested every system under the sun and amazingly, we have found one that actually works well. It is a very good system, but for obvious reasons, I can't tell you much more about it. The basic premise of the system is that market move sharply, when they move. If there is a sudden range expansion in a market that has been trading narrowly, human nature is to try to fade that price move. When you get a range expansion, the market is sending you a very loud, clear signal that the market is getting ready to move in the direction of that expansion." - Paul Tudor Jones

Paul Tudor Jones is worth about 4.2 billion and he has made that fortune trading and running a hedge fund,  so he knows what he is talking about. 

What does he say, he says look for sudden range expansion from a range contraction zone (RCZ) , when that happens market is likely to move in that range expansion direction.

It immediately gives you two directions to focus on . Find stocks which are currently having range contraction zone (RCZ) and everyday look at stocks that are having range expansion after RCZ.

Think about this. If you want to make money trading he has given you a clear setup idea. And it is worth billions in the hands of smart trader. 

Find range contraction zones


CHE (chemed corp) is the kind of setup I look for anticipating a breakout . The stock has established a Range contraction Zone. From this level "probability" exists for an upward breakout

From such Range Contraction Zone big explosive swing move can happen. finding these kind of stock only takes you 10 minutes daily once you setup the kind of process I detailed few days ago.

Some similar Range contraction Zone setups to watch
-----
CHE
CNQR
MPC
LPNT
RCL
TMH
GEO
TREX
LEAF
LGF

8/26/2014

Some good range expansion setups

As I have been discussing for couple of weeks stocks undergo range contraction and range expansion cycles. that creates opportunities for swing traders. 

Some of the breakouts can be anticipated and you can enter in anticipation. Some can be bought on breakout day.

Today there were many good setups to work with: 

Long 

ISRG
GWPH
VNCE
CMCM
VPRT
MDSO
FB
BABY
RTI

Short

GXP
BBY












If you are a motivated trader serious about making money you should not have a shortage of setups like these in this market currently. 

Try and buy at start of swing move

Once you understand and believe that is the right thing to do find a method to find those swing start points.

You can use scans for it

you can use watchlist

you can use voodoo

those things are not important as long as you get in right at start of the swing move.

Let others buy on second third or fifth day.... More of them buy later better it is for you to exit and palm off your stock bought at right time to the ignorant investors.

Some of the stocks showing up in scans today that are start of their swing move:

ISRG GWPH SEMG VNCE MLM ENTA VPRT ZEN HNT EPAM SPN STRP PDS DATE BABY

As you can see you have a lot of choice. 

Personally I bought VNCE out of that. 


Try and buy near swing start


Try and buy near swing start if you are a swing trader.

However good a stock is always try and buy near swing start point.

That is your lowest risk entry if swing takes off.


Where did this swing on TWTR start?

Which day was the best buy day?

If you buy on 3rd or 5th day of swing ask yourself what were you doing on day one of swing start.


Where did the swing start on this stock EMES. Which was ideal buy day. What will happen if you buy it here. 

Investors buy anywhere based on tips or newsletter or whatever method they use. But swing traders can not do that. 

Swing traders reduce their risk by buying at right swing start zones. 

This is very important thing to learn as swing trader. And equally important for position trader. 

If you buy right you reduce your risk substantially and your stops work.