How to become a profitable trader Part 2

In part 1 of this post we looked at how you can become profitable by using some of the structural tendencies of stocks to extract money from the market. Specifically we looked at momentum and volatility cycles to make money. Today we will look at another very powerful structural tendency of stocks.

Surprising news leads to big moves. Any surprise that leads to change in market participants views about the stock leads to big moves.
Let us look at ICHR from yesterday. It made a 28% plus move yesterday. It was possible to identify this stock ahead of time and buy at open.

These kind of news based moves happen daily. You will see FLNT today was up almost 30% plus . again stock had a surprising news last night. Based on that buying at open was easy money.

These kind of surprising news can lead to stocks making very big one day moves. And in most cases you can find these stocks before market open.

After studying thousands of such moves over the years I have figured out which kind of news has potential to make big moves in stocks. Earnings surprises is the most likely culprit. In biotech stocks it is the release of drug studies.

Based on our studies I use a methodology called NTRT and MTRT for finding such explosive moves stocks and enter them with market on open orders. NTRT and MTRT involves just 15 minutes of work after the close and before the open.

If you want to make lots of money trading stocks master these structural tendencies of stocks and you will find it easy to make money.

In part 3 we will look at some more structural tendencies of stocks.

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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