How to use IBD 200 to find swing trade candidates

The IBD 200 is published every Thursday. It is a list of top 200 stocks ranked by IBD Composite Rating.

IBD 200

Stocks in 200 under certain circumstances offer a quick 10 to 20% profit potential. That is the reason to focus on these stocks. It is convenient way to quickly narrow a universe of 7000 stocks to 200 stocks. As a vehicle selection strategy, it is convenient, cheap and readily available.

What you need to do is to run a range expansion scan on it, it will give you 5 to 10 stocks that are having range expansion and volume expansion.

For example yesterday 11 stocks had range expansion and volume expansion out of the 200 stocks.

swi
acat
scss
cmn
tal
sxci
halo
ssys
akrx
qcor
holi

Out of that you can find 2 or 3 good swing trade ideas like ACAT for example.

Essentials for setup to work

Stocks in IBD 200 list have price momentum+sector momentum+ earnings momentum
The quality of momentum should be good. Denoted by orderliness and symmetry of moves. Relative linearity and absence of too many 4% breakdowns.
There should be a momentum pause of 10 days plus. Either through pullback or sideways move.
The momentum pause should be orderly denoted by shallowness of pullback, compactness of pullback, absence of heavy selling.
Volatility should compress during the momentum pause. Volatility compression/squeeze can be indicated by Bollinger bands. It is also indicated by series of narrow range bars during the momentum pause.
Stock should breakout from such momentum pause on volume and certain magnitude move (4% plus)
The immediate day before breakout day should be narrow range day or negative day. (ideal but not must)
Stock should not be up 3 days in a row prior to breakout.
Stock should not give up intraday gains. Should close near its day high.
The stop is low of entry day.
The exit is on profit target of 8 to 20% in 3 to 5 days. If stock is breaking out of less than 10 day consolidation operate with smaller profit target. If stock is breaking out of 10 day plus consolidation work with 10% target.
Partial exits in strength are advised.
Anyday after entry stock goes up 10% in a day move the stop immediately to protect open profits or sell part of the position.
Risk between .25% to 1% per position depending on market phase and quality of setup.
Check earnings date before entry. If entering before earnings take a smaller position of less than 5% of portfolio.

Most of these things you can see in good breakouts. If you understand and internalize these things you can select a good IBD 200 breakout in a snap.

If you internalize this you can anticipate some IBD 200 breakouts.

This kind of swing trading method works best in a market undergoing momentum phase. In that kind of market breakouts are aggressively bought and tend to have 3 to 5 days follow through.

Those 3 to 5 days follow through moves tend to be of 8 to 20% magnitude during bull phases.

That is why Market Monitor filter or breadth thrust filter is important to improve your odds of success.

For working people with complicated lifestyle the IBD 200 offers a very convenient way to focus on Top 200 momentum stocks with growth characters. In a traditional bull market growth stocks make big moves so this list will keep you on right side of the stock selection universe.

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You will learn how to set up your own scans, select 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.

The site has hundreds of videos and trading methods and variation of methods. Members help each other in developing the methods and share actively their research and finding. A collaborative spirit allows you to get input from others on your trading ideas or problems.

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Do you have a trial?

If you are just looking for trial you are better off trying thousands of other trading sites that offer free trial or one month trial and offer you promise of riches.

It is for those who are ready beyond the trial phase and ready to put serious months or years of efforts to learn to trade on their own. It is for those who want to learn to find their own fish.

The free blog has all the details about the methods I trade and if you go through the posts highlighted in the sidebar you will learn about them.

How can I become a member?

To sign up go to www.stockbee.biz and follow the sign up process. The site uses Paypal for payment processing.

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.

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