How to become good at trading Episodic Pivots

The way market operates you never know on which day a big Episodic Pivots (EP)stock will show up which can make your year. The essence of Episodic Pivots is surprise and by definition you cannot anticipate a surprise.

One of my biggest EP trade was on a stock which had a EP on a day where only 20-30 or so stocks were up and everything was crashing post the Sept 11 market swoon. It was a company making bomb detection equipment for airports. It went up over 70 times in next 6-9 month and was finally bought by GE.

So the idea should be to develop a very well thought out daily plan for trading EP. To do so you must divide the day in to parts and have plan/checklist for each:

After market close earnings: This is when companies announce earnings or guide higher. You must have a plan to track both. When doing this find just 1 or 2 good source of information and track it. Do not make it a complex process. I track Briefings earnings page and IBD earnings summary for this. Briefing.com: Earnings Calendar http://bit.ly/g8fu7 (Free resource)
After Market Earnings Guidance: Earnings Whisper email ( free resource)
After market close price gainers: This you can find on WSJ page. http://bit.ly/90SxOz (Free resource)
Before open earnings: Again I look at the Briefings calendar for this.
Before Market Price gainers: I use IB scanner for this. This scanner I open from 7 AM onwards

These are the only things you need.

Besides that you need conceptual clarity on following things:

EPS: What is is and how it is calculated and manipulated. What drives EPS growth.

Sales: What is sales . What drives sales growth.

Float:What is float. Why is it important.

Growth: What is a growth stock

Turnaround: What is a turnaround stock

Funds ownership: What drives fund buying

Neglect: what is neglect and why it is important

Value: what is a value stock

New Growth: what is a new to market growth

Old growth: What is old (known) growth story

Margin: what is margin and what drives margin

Cyclical growth: what are cyclical industries and what is cyclical growth

Earnings cycle: what is earnings cycle

Earnings momentum: what is earnings momentum

If you can explain these things to 10 year kid then you have conceptual clarity.

Get the training to be a profitable trader

Best site to learn to trade

If you are serious about your trading and want to build an enduring edge, the Stockbee Member site might help you.

Members tell me they have tried a lot of things before coming to my site, and it has offered them the most extensive and detailed methods to swing and position trade. Members range from very experienced traders to novices.

No advertising, no hard marketing, no promotions, no free offers, no affiliate marketing, no incentive to other bloggers to promote the site, no constant tweets self-promoting the site, and no tall claims. Every member comes through word-of-mouth recommendations from existing members.

As a member, you will learn the basics of swing trading, momentum investing, growth investing, and risk management. You will learn about Stockbee Momentum Burst breakouts, Stockbee Trend Intensity Breakouts, Stockbee Episodic Pivots Breakouts, Stockbee Lemonade Strategy for 401k, and many other member-shared methods.

You will learn how to set up your own scans, how to select the right kind of stocks, how to set up stops, when to enter, when to exit, how much to risk, how to track your trades, and all other details about trading.

You will learn about developing your own methods and not relying on others for trade ideas. Develop your own edge. Once you develop your own method, you will have a lifelong profitable method.

The site gives you an opportunity to interact with some of the most successful traders and learn from them about their trading methods. It is a vibrant community with members from different backgrounds and experiences willing to help each other. Members have shared their methods, scans, software, backtests, and market insights.

Every day, the emphasis is on continuous learning and upgrading of market knowledge and setup knowledge. The members range from hedge fund employees, financial advisers, active swing traders, investors, and new traders.

You will see that many trading bloggers have been using my market timing methods, scans, and chart templates. They have developed their own methods based on my methods.

Almost every member comes through a recommendation of some of the leading trading bloggers and trading sites. 80% or more members continue to be members for more than 3 years. Most tell me that they stay on because every day they learn so much from the members' site.

If you are looking to develop your own trading strategy, the membership site might be for you. You have to be willing to put in the effort to build your own method. There are no silver bullets offered on the members' site. Every method, every scan, every nuance is detailed, and all possible help is offered to design your own method.

404

Recent Articles