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Anticipation Setups For Feb 24, 2015

Posted on 2/24/2015
Last week I detailed the process to find anticipation setup and there are also previous posts on same topic you will find earlier.

These are some of the stocks on my anticipation watchlist for today. Personally I focus only on high priced and high liquidity stocks out of these because of larger account size.

Bullish Anticipation


Symbols from TC2000
PCLN
ICE
WHR
CHTR
HHC
MLM
HAR
AON
GWR
CMPR
CEB
HRS
TUP
AN
TMH
MMS
SLGN
NUS
ABCO
CCMP
POST
GNC
THOR
POL
HUBG
SWIR
CBM
DHI
AEIS
PNK
CONN
UVE
PHM
NOAH
HWAY
WETF
ENOC
RTEC
EXAR
AMKR
ARRY
CYTK
HLIT
EVC
GLUU
AMD


IPO Anticipation

xhr

Bearish Anticipation


GDOT
CRS
PODD
UIS
RSTI


Every good breakout that happens from a low range period should be on your anticipation list. Setting up the process is easy and once you have it in place you can find candidates like these daily. One or two out of that breakout on most average days.

How to find Anticipation setups

Posted on 2/19/2015

As stock gain momentum they undergo periods of fast moves followed by periods of pullbacks and consolidation. The pullbacks and consolidation periods offer you an opportunity to anticipate a breakout and enter with very close stop or enter with order few cents above the consolidation. 



To anticipate a breakout look at stocks currently not undergoing momentum burst. That means stock should not be going up or down fast. Stock should be in extremely low momentum phase for anticipation . It can be a shallow pullback or consolidation in established momentum phase.
To anticipate look for stock with extremely low volatility. During rallies stock go through high volatility and low volatility periods, the low volatility  (quiet) periods are where anticipation traders can focus. A stock with low volatility in last 5 to 10 days is ideal candidate as part of a continuation setup.



Look for series of low range bars in last 5 to 10 days to find good anticipation setups. You can look for stocks with bollinger band squeeze. I do not use them, I find it easier to just look for series of narrow range consolidation periods. 

Avoid Anticipation setups on extended stocks. First or second anticipation setup in established trend is best. As stock goes further and further from its rally start point the probability of anticipation setup working decreases. Extended trends needs to be avoided for anticipation as failure is high on them

Once you have anticipation candidate ,look for early entry on it. If you wait for breakout to buy then the entire effort is wasted. Ideal entry is where you risk just few cents or less than 2% to get in early. This requires either entering before breakout or entering with a order few cents above yesterday's action.

Anticipating a breakout helps you get an early entry and can improve your per trade profits. It also can lower your risk as your stop is closer. It can help you profit from even smaller moves as you can also capture breakout day gains. For that entry without waiting for breakout is best.
Anticipation requires more pre planning and effort than buying a breakout. You need a process flow to do that. The process should be efficient and done daily after the market close or open. It takes me around 15 minutes to generate my list of candidates daily. I look at around 100 to 300 candidates to boil down to just 1 to 3 good candidates for entry next day.

The suggested process flow is a template you can develop your own process.
Only 3 to 5 quality ideas should be tracked


What to look for in good anticipation setup
  • series of narrow range days in pullback/consolidation
  • orderly pullback with no 4% b/d during the pullback or consolidation
  • low volume pullback
  • low volatility during pullback
  • linear first leg if looking as continuation setup
  • Stock should go up smoothly and not in volatile manner
  • 3 to 10 days consolidation/pullback
  • not up 3 days in a row
You can also find bearish anticipation setups for short selling in similar manner. On bearish setups I prefer a counter trend rally. In bearish phases stock often have counter trend rallies that fail. 


A counter trend move early in downtrend is best as on short side stocks can spend lot of time consolidating near low before breakdown. 


Last night I generated following anticipation list  for members for both bullish and bearish setups:


ZIOP
ABMD
ZFGN
MIFI
MRGE
LULU
TASR
INFN
SWKS
RTEC
JBLU
CLDN
MMS
MMSI
ORLY
HLIT
UNH
CUBE
LEA
DLPH
COT
PSA
CST
DAN
TWTR
LAD
CRS
CAT
HSC
SWN
TRN
CLF
CRC
GER
ENVA
DPLO
CDK

It took me 15 minutes to do it. Out of this only 2 or3 I personally focus on for next day entry. Focusing on too many often leads to missing out on some very good low risk entries.

Anyone with an average intelligence can do this daily once they setup a process and develop skill to do it. There is no rocket science involved. More you do it better you become at it. 

If you want to make money swing trading focus your attention on mastering these kind of setup ideas. 

How to become good at trading

Posted on 2/18/2015
Trading a particular setup for discretionary traders is a very specific skill. Skills in trading are setup specific. Just because someone can day trade may not make him instantly a good position trader unless he or she develops skills for that setup.

You develop skills only if you develop unconscious memory for doing it. Psychologist call that kind of memory procedural memory.

For a dancer procedural memory involves unconsciously coordinating hands, legs, and body to create graceful fluid motion.

Similarly for a trader it involves judging right setup, entry, exit, risk , stop and all of that as one fluid motion without fumbling.

Procedural memories are typically acquired through repetition and practice. When you do that your brain undergoes some changes and automatic behavior sequence memory is formed. That memory gets so deeply embedded in our brain that we are no longer aware of them.

Every Tuesday I take Tanya for her ice skating lessons. If you watch some of the very skilled coaches (some who competed at Olympic level), they do it so effortlessly. The key to that is correct techniques and hours and hours of practice.

It is same for swing trading.

For a given setup he or she develop procedural memory which kicks in as soon as that setup shows up. He or she enters and exit the setup effortlessly.

Develop procedural memory for momentum burst if you want to trade it

Develop procedural memory for Episodic Pivots if you want to trade it

Develop procedural memory for pullbacks if you want to trade them

Develop procedural memory for short setup if you want to trade them

Develop procedural memory for value investing if that is what interests you

Develop procedural memory for growth investing if that is what interests you

Each of these involves some serious practice and defining right process....

If you can do that over hundreds of trade you will develop procedural memory and then it will be lifelong skill.


Start with process flow if want to improve your trading


Write down your process flow .

Unless you write it down you do not have a process flow.

The simple act of doing it will clarify things to you.

This exercise has been done by many members here over the year

Create your own :
  • Scanning rules to find stock you want to trade
  • Entry Rules
  • Stops rule
  • Risk rules
  • Exit rules
  • Trade management rules

See if they make sense

Try and explain it to others, see if it makes sense.

Just do it for one method or scan and keep refining it till it becomes part of you...

Stockbee 50: Anticipation Setups for Feb 18, 2015

Posted on 2/17/2015



The Stockbee 50 is a list of stocks with above average momentum. You can use the list for anticipation breakout or for breakout trades.
Anticipation allows you to control risk and get into setups early or as they are breaking out. Anticipating a breakout helps improve your per trade profits. It can also lower your risk as your stop is close. It can help you profit from even smaller moves.
Anticipation requires more pre planning and effort than buying a breakout. You need a process flow to do that. The process should be done daily and followed consistently.

ARRY
MRGE
SCMP
are looking good from the Stockbee 50 list for possible breakout to upside.
If you are serious about making money swing trading the Stockbee 50 offers you a powerful list of momentum stocks to focus on.Anticipating a breakout and entering with very close stop can give you good risk reward setup. If you want more candidates expand your list to Top 200 ranked stocks by momentum.

Stockbee 50: Anticipation Setups for Feb 12, 2015

Posted on 2/12/2015

Stockbee 50: Anticipation Setups for Feb 12, 2015

The Stockbee 50 is a list of stocks with above average momentum. You can use the list for anticipation breakout or for breakout trades.
Anticipation allows you to control risk and get into setups early or as they are breaking out. Anticipating a breakout helps improve your per trade profits. It can also lower your risk as your stop is close. It can help you profit from even smaller moves.
Anticipation requires more pre planning and effort than buying a breakout. You need a process flow to do that. The process should be done daily and followed consistently.

EDAP
PSUN
CEMP

are looking good from the Stockbee 50 list for possible breakout to upside.


cemp.png






If you are serious about making money swing trading the Stockbee 50 offers you a powerful list of momentum stocks to focus on.Anticipating a breakout and entering with very close stop can give you good risk reward setup. If you want more candidates expand your list to Top 200 ranked stocks by momentum.

Stockbee 50: Anticipation Setups for Feb 10, 2015

Posted on 2/10/2015


The Stockbee 50 is a list of stocks with above average momentum. You can use the list for anticipation breakout or for breakout trades.
Anticipation allows you to control risk and get into setups early or as they are breaking out. Anticipating a breakout helps improve your per trade profits. It can also lower your risk as your stop is close. It can help you profit from even smaller moves.
Anticipation requires more pre planning and effort than buying a breakout. You need a process flow to do that. The process should be done daily and followed consistently.
ZIOP
ASPX
CRMD
EBIX
are looking good from the Stockbee 50 list for possible breakout to upside.

ebix.png
If you are serious about making money swing trading the Stockbee 50 offers you a powerful list of momentum stocks to focus on.
Besides the Stockbee50 list everyday I look at larger universe of around 1000 momentum stocks and develop anticipation list. The following candidates are highlighted on Stockbee Member site last night . They include both long and short setups.
ASPX CRMD ZFGN EBIX ANW UVE NSP ALGT AFFX STZ GGAL AMED MHK MDCO BMS RLGY NFLX DOOR VAR SLXP DK CREE SEAS AXP KBR CKEC QIHU XOOM JOY HAL CCLP PTEN BONT TRCO PLAY ENVA HYH
Once you setup scans for this it takes around 15 to 20 minutes to generate these list of candidates. In the morning I further refine this list to just 1 to 5 setups to watch closely or to put buy or sell orders in anticipation. 

Stockbee 50 : New entrants in the week starting on Feb 9, 2015

Posted on 2/09/2015

Stockbee 50 : New entrants in the week starting on Jan 26, 2015

When a stock makes it to Stockbee50 , it indicates something major is driving the stock higher. If you study the catalyst behind these moves then you will find some stocks that have a big catalyst and the move in them is not just flash in the pan, they are likely to go up a lot in next 6 to one year.
There 34 new entries in the Stockbee 50 list this week. The new entries at some point will setup again. Once they are ready, they can be entered as an anticipation trade or as a breakout trade.
List of new entrants this week
LPI
CRC
GURE
APDN
PZG
MCP
BBEP
GIMO
RAVE
ODP
REXX
SD
HSP
SSN
PSUN
REE
OPK
EPE
EOPN
GLUU
UIHC
PSTR
SN
MRGE
WPRT
MILL
FWM
GENE
PWE
MTSN
REN
VTG
CBM

XLS

The Stockbee 50 is a list of fastest moving stocks in the market. These are stocks with above average momentum.
Stocks with good momentum keep going up. If you are serious about making money, it is a good idea to keep an eye on the stocks in the Stockbee 50 list.
Momentum ranking is relative and so stocks that gain momentum move up the rank and those that lose momentum drop off.

Stockbee 50: Anticipation Setups for Feb 09, 2015


The Stockbee 50 is a list of stocks with above average momentum. You can use the list for anticipation breakout or for breakout trades.
Anticipation allows you to control risk and get into setups early or as they are breaking out. Anticipating a breakout helps improve your per trade profits. It can also lower your risk as your stop is close. It can help you profit from even smaller moves.
Anticipation requires more pre planning and effort than buying a breakout. You need a process flow to do that. The process should be done daily and followed consistently.
EBIX, HALO and ZIOP are looking good from the Stockbee 50 list for possible breakout to upside.





If you are serious about making money swing trading the Stockbee 50 offers you a powerful list of momentum stocks to focus on.

Stockbee 50: Anticipation Setups for Feb 06, 2015

Posted on 2/06/2015


The Stockbee 50 is a list of stocks with above average momentum. You can use the list for anticipation breakout or for breakout trades.
Anticipation allows you to control risk and get into setups early or as they are breaking out. Anticipating a breakout helps improve your per trade profits. It can also lower your risk as your stop is close. It can help you profit from even smaller moves.
Anticipation requires more pre planning and effort than buying a breakout. You need a process flow to do that. The process should be done daily and followed consistently.
HALO, MIFI, KITE, OVAS and RDUS are looking good from the Stockbee 50 list for possible breakout to upside.


If you are serious about making money swing trading the Stockbee 50 offers you a powerful list of momentum stocks to focus on.

Stockbee 50: Biggest Bullish and Bearish winners from Feb 05, 2015

Posted on 2/05/2015


Markets are looking good. All indices on US stock market closed green. Let us see if it breaks the range.

Earnings breakouts are flying and stock with high short interest are being targeted for squeeze.

Stockbee50 list can provide candidates on the long side as well as on the short side. The stocks that have gone up a lot or are extended can offer short opportunity if they breakdown. This list is updated daily.

Today’s top 5 Biggest Winners from Stockbee50 list were SD(19.57%), NLST(13.38%), SSN(13.04%), MILL(12%), LPI(9.60%)

Today’s top 5 Biggest Losers from Stockbee50 list were EDAP(-3.57%), MEA(-3.57%), BGMD(-3.33%), CVTI(-2.62%), CODE(-2.11%),

Stockbee 50: Anticipation Setups for Feb 05, 2015

Stockbee 50: Anticipation Setups for Feb 05, 2015

The Stockbee 50 is a list of stocks with above average momentum. You can use the list for anticipation breakout or for breakout trades.
Anticipation allows you to control risk and get into setups early or as they are breaking out. Anticipating a breakout helps improve your per trade profits. It can also lower your risk as your stop is close. It can help you profit from even smaller moves.
Anticipation requires more pre planning and effort than buying a breakout. You need a process flow to do that. The process should be done daily and followed consistently.
EBIX is looking great from the Stockbee 50 list for possible breakout to upside. It has a series of narrow range days on low volume.
ARRY, MIFI and OVAS are other three stocks on the Stockbee 50 list which are in the process of forming a base.

If you are serious about making money swing trading the Stockbee 50 offers you a powerful list of momentum stocks to focus on.

Stockbee 50: Biggest Bullish and Bearish winners from Feb 04, 2015

Posted on 2/04/2015



It is a volatile market. It was looking very good till 15 minutes before market close.. News from ECB about Greece debt changed the market direction suddenly.


Stockbee50 list can provide candidates on the long side as well as on the short side. The stocks that have gone up a lot or are extended can offer short opportunity if they breakdown. This list is updated daily.


Today’s top 5 Biggest Winners from Stockbee50 list were GENE(14.24%), IMRS(9.91%), ESPR(6.24%), NGVC(4.82%), PZG(4.62%)

Today’s top 5 Biggest Losers from Stockbee50 list were ADXS(-11.56%), MCP(-11.25%), BBEP(-9.89%), REXX(-8.80%), MEA(-6.67%)

Things you must think about everyday...



What style I want to trade day trade, swing , position

How can I arrive at one predominant style and not flirt from style to style

What setup within that style I want to trade

How can I arrive at one predominant setup and not flirt from setups to setups

What risk management strategy I want to adopt

How can I arrive at one predominant risk management strategy that will not lead to big losses

How can I build an enduring edge for my chosen style, setup, and risk strategy

How can I enhance my self efficacy beliefs and develop confidence in my own ability to find trades and not depend on others for ideas

How can I improve my procedural memory so that I do not waste time and energy during trading day.

How can I improve my market understanding to trade profitably

How can I improve my market structure understanding to trade profitably

How can I improve my  understanding of most well known setups to trade profitably

How can I improve my Situational awareness (SA) to be in tune with current market conditions

How can I develop and run an efficient process flow

How can I master tools/softwares/ scans I use to trade profitably

The most important determinant of your long term trading success will be your self efficacy beliefs, procedural memory, trading habits, structural understanding of markets

If you want to make millions trading focus on the key things.