The momentum trade factory

Conceptually I think of swing trading in terms of a conveyor belt. You must set up a conveyor belt for long/ short ideas. So that long/short ideas come on that conveyor belt, you inspect and take them or reject them.

Considerable thought process should go in to setting up your conveyor belt. The logic for it should be solid, so that it brings only the best ideas and only those with high probability to you.

I have around 5-6 long conveyor belts. There are two types of momentum conveyor belts I have set up. One is based on six month momentum the other is based on very long range momentum reversal. There is a conveyor belt for trading earnings and other events. There is a conveyor belt for sector momentum. There is IBD100 and 200 conveyor belt. There is a IPO conveyor belt. Each one has a logic. On a daily basis they bring several ideas to table. The speed with which they bring ideas varies depending on market or depending on nature of the strategy. By using 5-6 conveyor belt, you get strategy diversification, plus you never run out of ideas. Some of these belts are based on momentum, some on earnings, some on value, some on market anomalies.

Once you set up such conveyor belts, opportunities keep popping up. You never run out of opportunities. You utilise your time effectively and can focus on only the best opportunities in market. More than that, you can use extremely tight stops and time stops, as you know, if this idea does not work, I have something else coming up on conveyor belts.

Currently the momentum and sector conveyor belt is bringing so many ideas to table that I cannot take all of them . There were many more trades possible yesterday , I took only 4-5 out of possible 20 good ideas.

AIXG

BONT

CAAS: open position. Partial position closed at profit.

CYD: open position. Partial position closed at profit.

CYTX

DAN

DSW: open position. Partial position closed at profit.

EWBC: watch this for possible b/o

FSYS

GOL

HEAT: open position.

HGSI: watch this for possible b/o

HPJ

IAG

IOC

KFN: watch this for possible b/o

KGN

KNDI

MED: open position.

NABI: watch this for possible b/o

NANO: closed position

NLST: closed position

REV

RINO: open position. Partial position closed at profit.

RVI

SEED

SMTL

SNIC:open position

SVM

THM

TSTC: open position.

UFS

USEG:

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.

2 comments:

patterndaytrader said...: What do you think about SLH. It has consolidated nicely in a tight range after announcing better than expected earnings on Nov 3rd.; Dec 2, 2009, 8:24:00 AM
Pradeep Bonde said...: Not much. Earnings is 14% growth and sales is 5% growth. Relative strength rank by my method is around 90. Not the kind of stock which can make a big move in short period of time in my opinion.; Dec 2, 2009, 8:28:00 AM

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