How to trade anticipation setup | stockbee

10/19/2015

How to trade anticipation setup

A anticipation setup is a setup just on verge of a breakout which has been pre identified as a good setup which you want to enter if there are signs of breakout.

It is a setup where you want to enter as soon as possible because it will allow you to have very tight stop almost close to your entry.
Because it is a pre identified setup where we have put in some effort to identify and research it.In the morning it is a higher priority setup over a breakout setup.
In order to enter it we can predefine a entry price and enter if order is triggered, that is one way to do it, the other way to do is by putting price alert (in this case there still can be some slippage as you then decide to enter it.)
The third way to do it is to intently watch 2 or 3 pre identified A quality anticipation setup, and then pre create orders and enter as soon as they show signs of breakout and put very tight stop. That is an approach which requires creating buy orders and keeping them ready and pressing trigger if you see breakout happening. That is the approach I am using. As the entry is very close to stop it is very easy to find 2R to 5R trade using that approach . 
A close entry with tight stop on pre identified breakout helps you improve your hit rate and % returns as even a small move can make your trade profitable. If you can enter a breakout with say 25 cent stop and after that stock goes up 1 dollar it is a 4R trade.
Marrying anticipation with  breakout  gives you potentially larger set of opportunities to work with.
In order to find anticipation setup I focus on stocks with established momentum.
Obviously there can be many ways to find anticipation setup and you can use the basic idea on any kind of list like stock with high short interest or stock near bottom, or stock with low float and so on.

Stocks on my anticipation watchlist

ALGT
ROP
MMM
AAP
ADS
RL
ZG
BAP
KN
COP
GBT
TSE
AIZ
MTDR
VRSN
GM
JNPR
MMI
NEWM
BRSS
GFF
CFMS
CENT
CXO
SFUN
TEGP
HW
CHMT
CM
AGYS
SFL
XIN
EXTR
FTAI
ENR
FRO
F
APIC
LPI
IOSP
MESG
APLE
DLPH
SNX
CORE
AVX
CTB
CAMP
RSPP
HD
JKHY
NVCR
IRM
PAYX
LB
CCP
NDRM
SGRY
LEA

If you are working person anticipation setups can allow you to enter on predetermined  buy orders. 

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