Exit in to strength

When trading a momentum burst kind of setup exit in to strength is one of the better options I have found. These momentum bursts moves by very nature are short term moves. They last only 3 to 5 days and in that short period make 8 to 20% moves.

FDML is an example of a recent momentum burst trade I did. In this case it had a high volume breakout on 7th January. That was the entry day.

Next day stock went up at one stage almost around 14%. 14% gain for one day of holding a stock for swing trade is very good gains. So I sold 3/4th position at 23.50 and moved stop to 23 which was subsequently hit during the day. Giving overall profit of 12.93% for holding for essentially less than 24 hours.

Next day stock was downgraded and open lower. If the position was open , it would have been a loss or wiping out open profit.

This kind of short term swing trades where you try and capture slice of a explosive move are not for everyone. There are lot of people who believe you should let profit run. Which is right philosophy for a position trade or a trend following method. It is not the right approach for swing traders.

If I select stock based on some catalyst and position trading it, then I am willing to give it lot of room and let profit run. For example I am still holding FB bought in July 2013 on earnings day and letting profit run.

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.

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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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