7/02/2020

Members Feedback

I am so glad to have found you at beginning of the year.
Following your 401k model avoided the drop and got invested in SOXL TQQQ TNA and BRZU at bottom and still holding . Up 112% for the year.
And I have been doing well in my trading account as well. Hit 100k in two out of last 3 months.
Your boot camps really helped to get mind clarity. Now I never let my gains vanish.

Hi Pradeep,

Just wanted to say thank you for your guidance and all valuable information that you share with us. 

IRA account year to day up 29%
401K year to day up 30%

Stock account- I am focused on 9M and 3/300. Good month and thanks for showing the path to recovery. 

Thank you again. 
It's been amazing the last few days. Half way through the year, I am up 60% YTD both in my IRA and brokerage account. This was unthinkable even 3 months back. I know I can do even better than this if I put in more effort.

Thank you for all your support and teachings!

6/30/2020

How to make money anticipating a breakout

CALX is a good example of kind of anticipation setups I look for. It was in my anticipation scan on Friday and I entered early on Monday. Stock went up 7.50% for the day.


On any given day there are opportunities like this if you take the effort to identify stock setting up for possible breakout.

When stocks are in established momentum phase they do not go up everyday. They go up and then pause and then go up in next impulse move. When they pause and if that pause leads to low volatility consolidation with low volume then there is a high probability such consolidation will resolve in a breakout. This is inherent nature of stock moves.

In order to profit from this opportunity, you need to identify such stocks and have a watchlist ready. There are two ways to do this daily:

  • brute force approach 
  • smart force approach
The Brute force approach involves going through every stock that meets certain momentum parameter and then visually identifying such setup. Many trader do this by going through 1000 to 1500 stocks that satisfy their momentum parameter. It is time consuming effort and takes few hours.  

The Smart Force approach involves using a well designed scan to narrow down these setups and then look at anywhere from 30 to 100 stocks that meet the criteria. This significantly reduces your effort and takes 10 minutes to do. I use the Smart Force approach. 

Once you identify opportunities like these you can enter then in anticipation without waiting for confirmation or  put price alerts or put limit buy orders above a certain level for entries. 

These setups are lower risk setups than breakouts as your top is very close compared to breakout.  They also allow you to plan your trade. 

Here are some of the setups on my watchlist for today based on my Smart Force approach:



QCOM
ESTC
QIWI
QRVO
THO
NVTA
IIVI
MGNX
RLGY
CLDX
CREE
CYTK
PPD
EA
SWKS
KRNT
RH
ZI

LLY 

If you learn a setup like this you can find money making opportunities daily. 

6/29/2020

A pullback has started

Markets had couple of big high breadth sale days and as a result breadth has deteriorated.


As you can see we had 2081, 924 and 1073 down days. As a result the breadth has started to go down. T2108 is now at 40 with majority of stocks now below 40 day moving average. 

6/25/2020

How can working people make money

Many working people have busy life and do not get to look at markets during day. However due to zero interest rate environment need to make money and grow their account.

This offers a special challenge but , they can still make lots of money if they understand market structure and develop trading expertise in some select setups.

Quickfire trading or swing trading may not be suitable for these people. They need to focus on stocks that breakout with ultra high volume. For Stockbee members I recommend stocks that breakout first or second time on 9 million plus volume and even better 49 million plus volume. 

These kind of high volume moves indicate big institutional buying and can be good point for working people to get in . Using few additional filters with the scan helps you narrow down the best opportunities. 

6/23/2020

One of the best periods for breakouts


Amazing strength in market means breakout based strategies are working well.

In market like these momentum based breakouts and momentum bursts are making big moves and many are making moves larger than they would make in months.
How long this will last is not known but as of now , it is minting money.

Once the move slows down anticipation and pullbacks would work better. 

6/17/2020

Momentum is structural


Momentum is the speed or velocity of price changes in a stock, security, or tradable instrument.
Momentum shows the rate of change in price movement over a period of time to help investors determine the strength of a trend.
Momentum = Price today - Price n periods ago
Momentum measures the velocity of price changes as opposed to the actual price levels themselves.
Momentum is tendency of stocks to move in direction of established trend.
Momentum is universal phenomenon
Momentum on 3 6 12 month tends to last for next 3 6 12 months.
Momentum on short time frame of less than one month is mean reverting
Momentum on 10 days or less timeframe with magnitude of 205 plus is even more likely to mean revert
Momentum on longer duration of 3 years plus tends to mean revert
Momentum is usually calculated as ratio of price to MA or as ratio of 2 moving averages
Momentum can be absolute (TI65 above 1.05 or MDT above 1.18) or relative when used to rank
Momentum used as absolute momentum tells you when it started and ended
Momentum used as sort only tells you how stock is ranked relative to other stocks
Momentum is used to narrow trading universe by focusing on stocks with high or low momentum
Momentum relative to S&P is used to select stocks in many methods
Momentum typically when used on 6 month timeframe is used with one month lag as one month momentum has strong mean reverting tendency (MDT25 is example of this c25/avgc126.25)
Momentum is used to isolate Top 25 or Top 50 or Top 200 stocks and then that list is used to find anticipation or pullback setups
Momentum is the most persistent tendency of stocks across world market
Momentum on lower priced stock is of higher magnitude
Momentum on higher priced stock tends to be lower
Momentum on low liquidity stocks tend to be higher
Momentum on high liquidity stock is lower
Momentum is foundation of Top 25 method
Momentum is the structural tendency exploited in ROC TI65, MDT , DT and 3/300

6/14/2020

Understand structural tendencies of the market

Build your trading around structural tendencies of the market. They are enduring and will help you become profitable quickly.

Notes from my Trading Bootcamp.

6/11/2020

Recommended Setups based on your style

Specialise


Do not try to be jack of all trades.
Focus on few things and do them well.
If you have medicine background focus on healthcare , biotech stocks.
If you are technology person focus on tech stocks
If you are working person focus on 9 million
If you are growth investor , just focus on that.
FOCUS FOCUS FOCUS

Recommended Setups based on your style


Aggressive Swing Trader looking for triple digit plus returns  : 4%, $, LTB, Ants, Ants plus plus plus, Reversals, Top 25 , 9 mil , 49 mil 3/300 , TI30 , gaps fade, intraday trades on select lists
Beginner Swing Trader: 4% $
Day Trader : 3/300
End of Day swing Trader: 4% $ LTB
Working Person with limited time : 9 million and 49 million breakouts 
Extremely Busy : Top 25

Within this stocks from three sectors healthcare , Technology , and Consumer discretionary are top focus. 

6/10/2020

Learn from Top hedge funds

Why do you think top peforming hedge funds are either Tech or Heathcare focused

Are they stupid or crazy. Only 2 out of top 2 are multi strategy.
Focus on few sector or one sector and do the best job you can , let others do multi strategy .
If you want to improve your performance go Tech or healthcare route.
Do not try to be jack of all trades.

Focus on few things and do them well.
If you have medicine background focus on healthcare , biotech stocks.
If you are technology person focus on tech stocks
If you are working person focus on 9 million
If you are growth investor , just focus on that.
FOCUS FOCUS FOCUS

6/09/2020

One of the most powerful breadth thrust in last 20 years


This is one of the most powerful breadth thrust in last 20 years.

Buyers were relentless and in full control. Stunning moves in some beaten down stocks. 

Remember when market corrects 20 percent plus , the beaten stocks tend to be best performers.