Market tells you a lot from the way breakouts work.

Market tells you a lot from the way breakouts work.

If breakouts do not have immediate follow through it indicates weak conviction. This is the case currently. Many breakouts fade by end of the day.

Similarly if you see breakouts to new high getting sold , it indicates distribution by larger players. You will see hundreds of examples you can see currently.

If you see only late stage stocks breaking out it indicates tired market unlikely to make big move. This is the case currently where new leadership is lacking.

If you see large stocks breaking out and making moves it indicates funds are seeking safety. Large caps have been leading recently.

If you see beaten down stocks dominating breakout list it indicates lack of conviction and short term commitment by funds.

If you see stocks after stock that made big move in last 2 year getting in to trouble and having hard breakdowns, it indicates distribution.

In an environment like this unless you are a day trader your primary concern should be risk management.

Your total risk exposure to the market should be at level where if things turn sour you should be able to get out with minimum damage.

A real bull market lasts months and offers several opportunities. So if it shows up you will not have trouble finding setups and make big money if you have thought through your setups

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:

rmike said...: I can honestly categorize this blog post as the best insightful pragmatic advice in these times of confused chaos wherein vested interests normally have a field day in putting their own spin to the market moves. Patience and perseverance are probably the hardest core traits for a trader to master once he/ she has graduated to the stage wherein the setups have been honed. Context is always the key, thanks for the reminder!!! As always, a pleasure to tune into your outlook. Wishing U a prosperous and a joyous 2012.

Regards; Jan 5, 2012, 10:12:00 AM
Pradeep Bonde said...: Thanks; Jan 5, 2012, 10:14:00 AM

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