Exits are inherent to setups Part4

This is the essence of Stockbee Trend Intensity swing trading setup. If you don't understand this do not use the method. If you can not buy on "buy day" early in the morning the setup entry is not valid. If you can not sell on "sell day" by end of day at least part of your open position then the setup is not valid.

If you study swing trading in real depth, you will see that traders have developed 100 different variation of this basic idea. Swing traders operate on 3 to 5 day hold periods and profit targets of 8 to 20%. There may be hundred different variations but basic logic is the same. You find a predictable setup which shows up often and trade it again and again and again. You make money by compounding

These kind of setups show up on daily basis, so as long as you do good job of risk management and just follow the rules and not get excited by loss or win in an individual trade, you can trade these kind of methods and grind out profit month after month.

The basic logic behind these setups is momentum bursts. Trends move in momentum bursts of 3 to 5 days. That is the fat part of the trend. Rest of the time the stocks spends going sideways or pulling back. The trick is to quickly identify such burst and get in and out of them. That is what the Stockbee Trend Intensity breakout method does.

The exit logic in this kind of method is inherent to the setup. You cannot separate it from setup logic.

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:

Pete said...: Pradeep, excellent blog as usual, thanks.

Worden Webinar featured pro swing trader Larry Connors a few months ago and he has an interesting take on holding periods that might interest your readers; it was point number 8 during the presentation. The webinar is available in Worden archives:

"On average, statistically 5-8 trading days is usually the sweet spot to locking in gains. Less time usually doesn't allow the move to be maximized. More time and the gains begin to revert to market averages."

Pete; Dec 3, 2010, 8:01:00 AM
Pradeep Bonde said...: Thanks.

My market Monitor database also shows similar thing. 15 to 20% kind of moves are more common on less than month time frame. The move happen in momentum bursts of 3 to 7 days. Rest of the time the stock is in base or pullback mode.

Last night I did a video on Members site showing that with many examples of recent stock moves where moves of 100% plus happened in less than a month, but effectively the 100% plus gain was made only in 3 to 7 days time frame.; Dec 3, 2010, 8:22:00 AM

404

Recent Articles