3/21/2018

Study different variations of same setups


Any setup idea has many variations.
A setup like anticipation can be 6 to 8 type of different setup with its own unique characteristics and risk reward and holding periods.
Beginner traders tend to think in simplistic terms and are constantly looking for "one right way" or "set of fixed rules". And get frustrated when they can not find it
But in reality there are many variation of any setup pattern.
Anticipation after a big gap up on news catalyst is one kind of a setup. It has different risk reward potential and in most cases is longer term swing trade. SFLY on 2/13/2018 will be example of that . and if you study hundreds of big earnings gaps you would find several of them. If you find that kind of anticipation setup it is not a few days hold , it could be multiple day or months hold. DDS VCEL today is example of that kind of setup.
IPO anticipation setups have different characteristics. They tend to form near recent lows post IPO. They tend to be more volatile setups compared to normal stocks with 6 month or year plus trade history. Look at PAGS on 2/14/2018. HMI on 3/1/18. Those can be very profitable if entered in anticipation. Many of them have lower than 100k liquidity on ants days.
High priced anticipation setups have very different risk reward profile. High priced to me is in two categories 39 to 100 dollars is one and 100 dollars plus is another. In this you can get best risk reward setups if it has less than 25 cents net change on ants day. Look at WEX on 12/14/17
like this there are many variations of ants....
If you are serious about making money trading ants study and document them.

ALL THAT I WILL TELL YOU IS THERE IS FREE MONEY OPPORTUNITY FOR SMART TRADERS IN ANTS.

Do not want to give out too many secrets...

6 comments:

Unknown said...

How many trades do you open per day on average? Thanks

Unknown said...

How many ant. trades do you typically open per day? Thanks

Pradeep Bonde said...

3 to 5

Unknown said...

Hi Pradeep,
Thank you some much for sharing this information, I'm learning so much!
I saw a post a few days asking you about exits for anticipation setups, but I can't find it again. Could you post the exits rules again, or point me in the right direction please?

Unknown said...

sorry, what does ants stand for again?

Pradeep Bonde said...

Ants is anticipation setup