How to stay out of trouble

Last 3 trading days the market entered correction phase and many momentum leaders faced selling . You should not be surprised by this. That is the nature of market.

Excessively bullish breadth tends to be unsustainable and leads to corrections. The question is how to define excessively bullish breadth?

I track a very simple number for this. The number of stocks up 50% in a month. If you study this number you will find the number remains below 20 most of the time. When it reaches above 20 you will see market corrections in next 3 to 15 days time frame.

Every Time you see the number go above 20 you have to get cautious. You will discover sooner or later in next few days heavy selling occurs.

This is a very simple tool which will allow you to stay out of trouble and be warned in advance. Accordingly you can take profit , tighten stops on existing positions or reduce open risk. If you do that you will not be surprised by market weakness.

On June 30 I posted a video on members site pointing out this number and warning them to be cautious and not get carried away by excess bullishness. Those who acted on it are in happy camp.

The secret to making and keeping your profits in swing trading is to identify good and favorable periods for swing trading and ahead of the time identify likely risky periods and change your strategies accordingly. If you do that you do not suffer draw downs, you do not suffer from psychological problems and you are happy trader.

If you do not do that you will go through up and down cycles where you will make profit and give up profit. If you do not do that you will get aggressive in your trading at exactly the wrong time. If you do not do that you will be making fun of short sellers and bears at exactly the wrong time instead of protecting your profits.

If you are a motivated trader who really wants to make lot of money trading and prosper for many years learn about market breadth and how to use it to find turns in market.

It will help you stay out of trouble.

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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