As the timeline has quieted down, I just wanted to post a few thoughts. I was first introduced to EG at a Joe Fahmy NYC presentation back in 2012. Had no clue who this "stockbee' guy was but people were buzzing about him that were in the know(pun intended). I joined the site soon after. It's been very interesting watching EG's progression over the years with the website and especially where we are these last few years. I hope that people on here truly appreciate what he is teaching and giving us for the minimal amount we pay. Its a tough slog but he does it daily! Boot camps are good but these zoom calls of late have been so good it's scary. I'm on as many as I can make even though I have 20 years of market experience. I always find a nugget of wisdom regardless of the topic. There are many out there that charge BIG $$$ for what EG gives us. I would say without a doubt his material surpasses anything that others charge thousands of dollars for via seminars, chat rooms etc! I've dabbled with most of them more out of curiosity, so trust me on this. Anyways, sorry for the long blurb, but just wanted to say a big thanks to Pradeep for doing what he does.....
Thank you Stockbee-
For your generosity - I can bet my paycheck that Stockbee is the only service that truly focus on sharing without any limitations - be it the methods, the scans, or information sharing within the Stockbee community
For your efforts - you truly care for your members to make money. How do I know? It’s from your aggressive and to the point mentorship.
For coming down to beginners level and understanding the difficulty that a beginners go through and providing feedback at our level
For all the hourly webinars - they helped a lot to complete the feedback loop
For the daily newsletters - so many money making ideas on the newsletter ; not only that it gives us ability to understand money generating ideas that we can replicate on our own
For your daily motivational posts - there is ton of great info in those motivational posts
For your constant encouragement to do our own study and do our own work - day in and day out
For busting all the myths about traditional market beliefs and encourage us to think outside the box.
For encouraging us to take profits when available and not sit there and dream about buying an island
For a new trader debating if you should select Stockbee......ask yourself if you want stock picks from a guru or if you want a solid mentor/market wizard who will enable you to stand on your own feet and enable you to generate your own picks ? In other words, do you have the desire to learn how to fish on your own? If so, there is no other place than Stockbee
I've been a member of the Stockbee site for the last five years and will continue to the member forever.
Before understanding Pradeep's methodology, I used to take random trades and moving between one setup to another. I often used to get frustrated with my trading results. Once I started following Pradeep's setups and process, I've been taking trades consistent to predefined setups and have become profitable. I've very high confidence in the trades I take now.
The important things I learnt from Pradeep are Daily Process and Situation Analysis. Following the daily process for each trade setup has reduced my cognitive load required to execute trades. Now, it has become as simple as eating and driving. The situation analysis has helped me to use the setups that fit with different market conditions. Not every setup works well in all market conditions. The Stockbee Market Monitor and going through recent winners/losers every day helps me aware of current market conditions.
Another important benefit of the website is the ability to interact with other members through "timeline" feature. I've learnt a lot from other team members.
The boot camps conducted by Pradeep helped me learnt a lot from him directly and from other members. All in all, it's a number one site for traders who really want to put efforts to become successful.
If you want to improve your trading, I cannot recommend Stockbee enough. Coming from a real estate investing background, I am very sensitive to people trying to upsell me. This is not the case with Stockbee.
You have access to a world class trader who teaches you METHODS to succeed.
Pradeep simply loves trading, teaching, collaborating and watching others succeed. I am amazed at the amount of time that he spends on his students.
I subscribed to IBD and Stockbee at the same time. I ended up cancelling my subscription to IBD because Stockbee was so much more accurate and actionable.
Trading is not easy and you will have to put in a lot of time. With Stockbee there is a process and a feedback loop with a master trader that will drastically shorten your timeline to becoming consistently profitable.
This is the best money I have spent on my investing education by far. Thank you!
I wish that I had found StockBee years ago. What you learn here is a methodology to hunt your own meal. You do not need to subscribe to subscriptions for finding the best stock picks.
Pradeep's methodology fits both my styles - swing and day trading. He is very responsive on emails to all your questions and he also conducts webinar sessions.
The "timeline" feature on his website keeps the chatter with other members clean and organized. I joined Pradeep's service and went to his Bootcamp and have turned profitable.
But the most important thing is that I am learning to hunt for my own fish using the various techniques that Pradeep has taught.
- Sai Srini
It is a good tradition to take a moment, especially, to reflect and give thanks for all that we have received.
In October 2018, I opened a purposed 6-figure trading account. The particular objective was to generate enough consistent income to sustain life without a paycheck. Q4 2018 was not very auspicious. By December, I’d taken a 20% drawdown. My default approach, trading volatility took a beating into December. I stuck with it while exploring other ways to diversify by products, strategies and durations.
The volatility crush in January helped and I started a slow recovery. Earning reports trades in January also helped greatly. I found the Stockbee videos and was then drawn to the site and joined. I attended the Bootcamp in the Spring and the Advanced Camp early fall. I’ve been sponging on everything.
Aha moments came here and there. Gradually, with effort, confidence grew as I layered the new approaches Pradeep teaches with what I was already doing and knew, infusing my own flavorings. Seeking a path adapted to my own nature and inclinations.
As of last Friday, that trading account has erased that 20% drawdown from December 2018 and in fact is up about 112% YTD.
But, while that particular outcome is good, that’s not primarily why I’m grateful. I’m primarily grateful because my confidence has grown. Grown because I believe I’ve found a path that is replicable, if I can stay on it.
Pradeep often says that the scans he teaches are nothing special. True. A system is only as good as the operator of the system. In his characteristic humility, he downplays the full impact of what he offers. He offers far more than that. I recognize that and am deeply grateful that our paths have crossed.
I’m also grateful for all the other members who offer their insights through what they share.
The Universe bends towards abundance. I’m grateful even for the painful lessons.
For 2010, I hope to build on this year by internalizing what Pradeep shared on the call yesterday about focal points for doubling your capital in 2020 while adding my own color to it. That color will be in the form of developing ways to trade all the methods taught here using options.
Happy Thanksgiving to all.
Hi Pradeep, I just wanted to than you quickly for offering this service. I’ve been trading a long time and your methods are the clearest and simplest ones I’ve come across.I’ve been trading exclusively simple anticipation setups and 4% breakouts with daily trail stops . I’m up over 25k since I signed up. Parag Thanks for helping us achieve our trading goals. This was the best year I ever had. I am up triple digits for years and very confident I can do it again next year.
Best part is I did not buy any pick from anyone. Thanks to your site I learned how to setup scans and run my own scans and take trades. I am now fully in charge of my process. Thanks for introducing me to trailing stops. That has done wonder for my results.
I have learned so much from the boot camp and looking forward to attending another one next year.
And before I forget , please continue the daily zoom calls, they are extremely helpful in quickly fixing trading issues. I have used the calls to improve my process and look forward to them everyday.
Lee Just wanted to thank you for all the effort you are putting into the calls (daily Zoom meetings for members discussing trading issues and solutions) . It's been enormously helpful for me and I am sure for others as well.
I am up more than 20% in the last month since you started the calls. I am confident I will be able to finish strong into the year and I am feeling very optimistic for next year. I feel more confident than ever before about my trading and at this rate I feel I can doubling my account next year.
Pradeep, today's morning Webinar on Mental Training was really FANTASTIC. Thank you for doing it. It is so refreshing and helps to take away the cobwebs in your head. Tells you what to focus on and more importantly how to focus on important things.
I have mentioned it before, you daily webinar are also very good.
Just wanted to thank you.
Just wanted to drop a quick note and say thank you for taking the time to help us newbies be successful traders, with that said just wanted to let you know I've been practicing your Weak Structure setup and it paid very well yesterday (see attached) and last Thursday too. I hope next week will be just as volatile this past week to practice some more, again thank you.
To make money trading , you need an edge . The edge has to be big and structural in nature so that you don't have to go hunting for edges daily or weekly or monthly.
Big and structural edges are inherent to nature of market behavior and have persisted for years.
Momentum is an example of structural edge in market. If you select stocks based on momentum either way ( with bullish or bearish momentum ) you can build edge by trading in direction of momentum or by trading a pullback in momentum stocks or by trading counter trend strategies on weak momentum stocks in hpe of turn in trend.
Momentum burst or impulse moves is another structural edge in market. When stock suddenly makes a move bigger than its recent days moves , there is a high probability it will move in direction of that momentum burst for 2 to 5 days. This structural edge has been in existence for hundreds of years.
Volatility contraction is big and structural edge. When a stock has low volatility period , that period resolves in a breakout. This allows us to scan for stocks with low volatility and enter in anticipation or enter on breakout out of such volatility contraction.
Mean Reversion is a big short and long term structural edge. Stocks that are up or down extreme amount on short term or long term timeframe revert and this is structural edge.
Earnings Surprise is a very big structural edge. Stocks with positive earnings surprise move in direction of positive or negative surprise.
This is not an exhaustive list , there are many more such structural edges in the market.
In order to make money in the market you need to take a big structural edge like this and marry it with execution edge to create your unique edge. This is where most traders have difficulties. And especially for new traders it can be very difficult to do that as they have low experience of doing trading .
If you want to make millions trading develop an edge. The earlier you can do that is your trading , quicker will be the rewards.
PLUG is a good example of the momentum burst phenomenon in a stock.
Stocks when they move , move in momentum bursts of 3 to 5 days. This is very profitable trade if you can find such good setups daily and enter and exit them with proper risk management. There are more than 1000 opportunities like this in the market.
Many of these momentum bursts can be anticipated. Especially on stocks with high momentum. For that you need to have some way of identifying when a stock enters a momentum phase and also the strength of momentum. There are several ways to do that.
I use Trend Intensity (TI) to do that. Stocks with Trend Intensity above 1.19 are in high momentum phase. On these stocks if you can identify periods of consolidation and then anticipate a breakout you can get low risk entries and profit is high as you get to capture the first day gains.
If you see PLUG above it had that kind of setup. From that setup stock is up almost 30% in 2 days.
If you are serious about your trading and interested in making millions swing trading , perfect a setup like this.
I spend around 15 minutes on them daily in the morning.
I use same techniques used by athletes. Everyday I use visualisation to plan and execute trade. All this work is done early morning from 6:30 to 7:30 while I am in gym. I visualise my targeted trades and work out complete mental scenarios and rehearse those trades multiple time. When the market opens then it is just execution.
It is basically a mental exercise where you go through successful trade in your mind multiple times. I visualise how it will show up on scan. How I will quickly enter and put trailing stop. Then how hunt for next setup.
There are certain set scripts for visualisation I have developed for my own trading to focus the mind for high performance trading.
All this I picked up my sports psychology exercises my daughters coach taught us for her figure skating. Her coach has asked her to mentally rehearse her routine at least 20 times during the day. That has helped her a lot.
Visualisation is extensively used by athletes and every elite athlete is focusing on it with special techniques used for each sports.
Novak Djokovic has detailed in multiple interviews how he uses visualisation to improve his game. Same techniques can be used in trading .
Rafa Nadal has explained in one of his interviews some years back how he prepares mentally and how he visualises between each point : "“Run for every point, fight for every ball, play aggressive.”. If you see his Rafa Tennis Academy program , it has psychology as very important focus and they train young players on visualization.
The Rafa Nadal Academy by Movistar training method was developed by Toni Nadal along with the technical team that has been with Rafa throughout his sports career, thanks to the experience acquired during his time on the professional tennis circuit.
With the use of new technologies, we clearly see how tennis has progressively evolved into a faster game, meaning that points are shorter and start of play (service/return) make a huge difference in the development of the point. This forces players to be better prepared and make faster decisions.
At the Academy, we understand that tennis today and in the future is played first with the “eyes”, secondly with the “mind”, thirdly with the “legs” and lastly with the “hands”. We apply training systems that go in that direction, combining them with the skills that have provided Rafa much success throughout his professional career such as: mobility, a winning attitude, training and game intensity, competitive mentality and concentration.
We decide the percentage of time needed in each training session for each aspect of the game (technical, strategic, physical and mental) that allows players to play more competitively. Each training session follows a clear “objective” with the highest level of concentration, without a difference between training or playing a competitive match.
Our training system is updated regularly due to the constant evolution of the tennis industry, applying constant improvements to the materials that influence the speed of the game (rackets, strings, balls…) and the evolution of different training methods (especially fitness training and working on mental abilities) that have helped in the professional circuit as players have become stronger, faster and more agile.
Swing traders look for 5 to 20% kind of moves in a short period of time. Position traders look for 40% to 100% kind of returns per trade.
For swing traders focusing on 5 to 20% moves, in order for these moves to make a difference to your account you need to understand the maths of returns.
Let us say you hold 20 positions of same size in your 100k account. Then each position becomes 5k. Let us say a stock you buy goes up 10% after entry , how much is it going to contribute to your overall profit.
Only .5%. You will need 200 such trade for a 100% returns.
But wait a minute for most traders the success rate of a trade actually working is going to be around 50% only. Which will mean 200 trades will not get you to doubling.
Supposing you risk 25% on each trade instead of 5% of capital. Then a trade with 10% potential will give you 2.5% overall return. If it is 20% return trade it will give you 5% overall return on your capital. You will need roughly 15 consecutive trades of 5% overall profit to double your money.
And you can keep on doing this math to understand the maths of swing trading better.
The implication of that is in order to make big returns in a year you will need anywhere from 300 to 100 trades depending on how much you risk per trade.
If you do not want to do that then position trade. You can if you have skills look for position trading method which will you that kind of return in 4 to 5 trades. Very few people in the trading world will have that skill.
The easier path is to swing trade and expect to make 300 to 400 trade if you are looking for triple digit kind of gains.
But at the same time, everyday look for opportunity where you can put in 25% or more of your capital in one idea. In a year if you get few of those big wins of 4 to 5% or 10% returns on your capital, it then drives your returns higher.
If you understand this maths you will also understand why good day traders make big returns. It is simple maths, there per position risk is higher. A day trader often puts in significantly large part of his capital in one single trade. So even a small 3 to 4% profit contributes more to his or her returns. Add to that leverage and you are looking at magnified returns.
Now let us suppose you understand this maths , how can you use it in real life trading.
1. Look for opportunities to put bigger amount of capital per trade while managing risk
2. Strive to keep per trade loss as low as possible. It does not matter if you have lot of scratch trades you close immediately if they do not work
3. Focus on Stockbee Dollar breakouts, they offer you opportunity to risk bigger per trade.
4. Stop dreaming about doubling money in few trades (if that happens that is bonus, but you do not base your method on that if you are swing trader)
5. If you are holding 40 to 50 small positions, realistically look at the probability of you making big returns. It will be low. Mutual funds do that and that is why their returns suck.
Most importantly understand the maths of swing trading means having realistic assumptions about number of trades. Most active traders who make big returns yearly , do several trades and accumulate profits. Once in a while they find high probability idea and they bet more.
At the other spectrum you have some who take big positions and do few trades, both approach work. For this kind of approach to work you should have higher order stock selection skills, your timing has to be right, and willingness to seat through volatility.
Earnings season is best time to find big explosive moves. Big earnings surprise start big moves.
Big earnings surprise leads to start of big moves lasting one to 2 quarters.
Everyday hundreds of stocks release news before and after hours. These news releases can lead to stock making big move for just a day or weeks or months. If you develop a skill to understand which stock to focus on from those earnings breakout, you can figure out which is likely to go up for few months or quarters. What you have to look for is extreme surprise or growth.
When the earnings news is released either it is already discounted by the market or the market is surprised by it. If it is a big surprise then the stock discounts that news over next few months. A earnings surprise also tells you a lot about underlying trends in the business. If the underlying force contributing to earnings are sustainable then longer duration rally happens and stock continues to surprise for few quarters.
Earnings surprises on heavily shorted stocks can often lead to big short squeeze and offers very good opportunity.
Announcement related to earnings in either as guidance or actual earnings have potential for starting or ending multi month moves.This phenomenon is called PEAD or Post Earnings Announcement drift. It is considered a market anomaly.
If you want to make big money focus on big earnings surprises.
Once you understand swing trading on daily timeframe, you can use the same on lower time frames to make money.
Nature of stock moves remain same on lower time frames also. One of my setups is anticipation using very narrow range bars. I tarde it as swing trade on all timeframes.
When a stock with established momentum consolidates near high and especially in that consolidation when it has extremely narrow range bar of less than 11 cents or so , it can offer very high profit trade.
COLL is an example of trade I did like that in last 15 minutes before close and effortlessly made 524 dollars in few minutes.
COLL is a stock up a lot today (has momentum) . It was near its high for most of the day while most stocks were fading . That was why I had it on my last 15 minutes possible trade or fade list.
So I started watching it. It formed a very narrow 1 cent bar and that is when I decided if it breaks out of this I will buy it for trade. With that kind of narrow bar your risk is very low as you can put very tight stop.
It immediately broke and had a quick follow through before a little bit of fading that is when I sold it. Few minutes of trade for 524 dollars profit.
That can buy me half a bottle of very good quality 30 year whiskey.
This setup works on all timeframes and you can find thousands of setups like this in a year. So if you perfect this setup you will never settle for that cheap whiskey.
There are 5 ways to do that in order of importance
mastery experience :
The first and foremost source of self-efficacy is through mastery experiences. To gain mastery experience you need to complete hard task that challenges you successfully . Finding right anticipation setups after running a scan and see them work will build mastery experience. Or going through Top 25 stocks and anticipating a b/o or b/d and entering it ahead of time will build it. Or identifying right 3lynch candidate or weak structure short will build it.
vicarious experience :
watching others do it successfully. The second source of self-efficacy comes from our observation of people around us, especially people we consider as role models or good traders. Seeing people similar to ourselves succeed by their sustained effort raises our beliefs that we too possess the capabilities to master the activities needed for success in trading . That is why seating in a cave is unlikely to make you successful but actively participating, watching , and interacting with other traders will.
verbal persuasion is third source of self efficacy beliefs.
Being told you too can be successful in trading and make tons of money, itself can change your beliefs. Being persuaded that we possess the capabilities to master certain activities means that we are more likely to put in the effort and sustain it when problems arise.
visualising yourself behaving effectively or successfully in a trading situation.
Imaginary experience is as good as real experience in building self efficacy . If you understand that and use visualisation techniques , your self efficacy will improve.
positive emotional and psychological state . positive emotions can boost our confidence in our skills. Getting yourself in right mood at start of trading day is essential for that.
If you understand and work on these things you can make millions in the stock market.
And the best part of this is that all these things are under your own control.
Was being disciplined or focused in trading one of your new year trading resolution?
How well is your resolution going by the 2nd Month of this year in of trading?
Most struggling traders believe that their core problem is discipline or focus. Discipline, persistence, passion, patience, and things like that do not build edge. If that was the key to building edge there would have been many successful traders.
Key to success in trading is to have high self efficacy beliefs about your setup and that happens if you have a mastery experience in that setup.
Traders fail not because of lack of effort. In fact most traders make extraordinary effort to be successful and they still fail.They fail because they do not have successful setup and developed procedural memory to trade it.
They spend long hours, try hundreds of things, spend thousands of man hours and spend money and they still fail.
So let us be clear things like discipline and focus and stuff is not key.
Trading psychology alone is also not the key. Contrary to claims by many traders and also many things recommended as trading psychology is not based on scientific psychology but just lot of ra ra self help stuff.
If you want to improve trading psychology study the work of Albert Bandura , he is ranked 4th in all time greatest psychologist.
Discipline is highly overrated.
You can do perfectly wrong or useless thing with great discipline. With great discipline you can take your 1 million account and make it 300000 also.
Discipline only will get you so far. Most people who believe focus or discipline is their trading problem are chasing their own tail. It is not the solution to any of your problem.
If you have enduring edge and you are successful in trading you will be motivated to be disciplined. If your methods have edge and they are working you do not need to make extra efforts to be disciplined or focused. The returns which you get itself will motivate you to be disciplined.
Solution to your discipline problem or focus problem is to build an enduring edge.
To build an enduring edge you need deep understanding of market structure.
Most traders fail because they do not have structural understanding of the market and they chase methods, scans, indicators, patterns and alerts.
Most traders do not survive long enough to reach a stage where they can understand market structure.
Most traders do not start out by an objective of understanding market structure.
They start by looking for way to make money.
Some are lucky to find a method based on market structure early in their career.
Some survive long enough and figure out market structure.
If you want to build enduring edge first and foremost understand market structure.
You must know how market operates and why it operates in that manner.
If you can understand that then you can build many ways to benefit from that understanding. This is an example of understanding market structure and making money from it
This was my recommendation for yesterday in newsletter
Daily Money makers for tomorrow : TSLA TTD SOXL
From the newsletter SOXL was pre identified day trade opportunity.
3 gap ups in a row. Stocks like these in short term mean revert. High probability market behaviour. Was expecting it to fade. Planned the trade early morning.
TSLA is a stock in play currently. yesterday just trading this stock intraday I made enough money to buy Tesla truck.
Short term big moves in stocks often have a news catalyst. If you are looking for short term swings or day trade then systematic analysis of daily news offers you daily candidates roaster.
Stocks release news after hours and before market open. This kind of news can move the stock immediately and in some cases start a multi month or multi year rally.
News that tends to move stocks big often is of following kinds:
earnings surprise to either side
CEO/ CFO change
new product/service launch
new drug approval
govt policy change
IBD front page story
IBD New America highlight
Seeking Alpha stories
If you want to catch good day trade moves focus on these everyday. Become an expert in reading and analyzing news. Everyday at end of the day look at stock that went up big for the day and look at what kind of news precipitated that move. If you do it for 6 month plus you will understand what news moves the market and what news to ignore.
There are many paid sources of news like Bloomberg, Briefings, Fly on the Wall and several others that give you news as it happens. Many free sources like Marketwatch, Seeking Alpha , Benzinga and many others are free.
A good news paired with good setup can often lead to explosive moves. If a stock already is setting up well and news comes in it is best setup.
Spend early morning hours pre open looking at price moving news. Compile a watch list and then focus on those stocks during the day.
Analyst upgrades , downgrades, price target changes are one of the easiest short term plays. I look everyday for these and everyday produce a list of stocks with 3 plus analyst upgrade or downgrade or target changes. Most of those stocks make a big up or down move for that day based on that.
If you are interested in making money trading learn these techniques.