See how I successfully trade stocks by looking back at some past trades.
These are NOT hindsight trades and were posted real real time.
You can see all my setups posted to TraderPlanet here: http://www.traderplanet.com/newsletter-issues/articles/1/Steven+Place/
And you can get more awesome stuff by going to my site at investingwithoptions.com
Would you like to learn secrets of price action trading which is used in every day trading by a 15 years trader? Continue reading on to learn real examples of how price action trading works on Forex, stock futures and gold charts!
The best swing trading strategies are the ones that allow you to trade and profit from your beliefs about the market. I have added some of the most popular swing trading indicators as a guide for you to explore. The swing trading indicators listed here focus on trend trading, volatility, and overbought/oversold conditions.
What are some of the advantages of using a scalping strategy to trade the forex market? - Quick profits Entry and exit is usually done within a couple of minutes. This allows for quick profits but can lead to quick losses as well. - Exit is usually within 20 minutes or less - Lots of trades Strategy uses 3 Indicators The strategy uses 3 indicators: pivot points, Fibonacci retracement and the Stochastic Oscillator. The 3 main pivot points both above and below the pivot are used for this system: S1, S2, S3 and R1, R2, R3. The Fibonacci retracement values used are the 0.618, the 0.382 and the 0.500 levels. The Stochastic Oscillator is set at 5,3,3.
Would you like to learn secrets of price action trading which is used in every day trading by a 15 years trader? Continue reading on to learn real examples of how price action trading works on Forex, stock futures and gold charts!
The best swing trading strategies are the ones that allow you to trade and profit from your beliefs about the market. I have added some of the most popular swing trading indicators as a guide for you to explore. The swing trading indicators listed here focus on trend trading, volatility, and overbought/oversold conditions.
What are some of the advantages of using a scalping strategy to trade the forex market? - Quick profits Entry and exit is usually done within a couple of minutes. This allows for quick profits but can lead to quick losses as well. - Exit is usually within 20 minutes or less - Lots of trades Strategy uses 3 Indicators The strategy uses 3 indicators: pivot points, Fibonacci retracement and the Stochastic Oscillator. The 3 main pivot points both above and below the pivot are used for this system: S1, S2, S3 and R1, R2, R3. The Fibonacci retracement values used are the 0.618, the 0.382 and the 0.500 levels. The Stochastic Oscillator is set at 5,3,3.
“Forex Trading Strategies” is a complete guide of most popular and widely used strategies in Forex trade. You can read about day trading and its main types, understand the strategies based on market analysis, learn about portfolio and algorithmic trading, and many more. The book represents the ins and outs of each strategy - why and how it is used and how to get profit from trade. It is suitable for all traders who are novice in trade or want to improve their skills. All the strategies classified and explained here are for educational purposes and can be applied by each trader in a different way.
http://www.CandlestickForums.com
Trading Strategies
Trading Strategies for Playing the Stock Market
Trading strategies discussed in this article include swing trading and day trading. Both are very similar but the main difference between theses two strategies is the time frame in which stocks are bought and held. In today’s article we will discuss both of these strategies as well as the advantages and disadvantages of each.
Swing trading typically involves a smaller position size than when day trading stock online. Additionally, swing traders will typically hold onto stocks for a few days to several weeks and then trade the stock on the basis of its intra-week or intra-month movements. Stop loss orders are placed wider than when day trading as well. When determining exits when swing trading there are rules that every trader should follow. It is very important that the trading strategies as well as the trading rules are understood before placing trades in this fashion. For instance, if the prior day’s low is taken out on the breakout day, or the high for shorts, then the trader should exit the trade. Also, once a trade is held overnight, a stop loss order should be placed no further away than below the recent consolidation area. A move beneath it would indicate a failure.
Swing trading stocks has its advantages and disadvantages as all trading strategies do. Some advantages include that swing traders can place fewer trades, therefore requiring fewer commissions and less chance of making a mistake. Additionally this type of stock trading provides the ability for successful traders to catch more significant multi-day profitable traders. A disadvantage to swing trading is the fact that the higher profit targets come with higher risk per trade. There is also overnight exposure that cannot be predicted.
Day trading stocks requires a larger positions size since you are looking for a smaller move within a short time frame. Unlike swing traders, a day trader may trade a few times per day or more! There are also rules with day trading that every investor should follow. For instance, they should always keep their profit objective at least 3 times greater than what they are willing to risk. Also, day traders should allow no more than 1% move against them from the entry point. There are many more trading strategies and rules when day trading that investors should learn in addition to these two rules.
Reverse gamma scalping is the opposite of long gamma scalping, and it is usually implemented by traders who want to sell options as they believe implied volatility levels will decline.
Pull Back Swing Trading Strategy I The Only Way To Trade Stocks and E-Mini Re...Marketgeekschannel
Visit Us at http://MarketGeeks.com for professional trading education.
The 4 by 4 Retracement or pullback strategy works equally well with stocks and index futures contracts. Both end of day and intra-day time frame work well.
Click here for more information on range trading
http://www.netpicks.com/simple-range-trading-strategy/
Here is some information on range trading:
It’s been said that a market only trends 30% of the time.
I can’t quantify that figure but having a range trading strategy to take advantage of the other 70% is good business.
Range trading is not difficult however it does require discipline and a method of determining when a trading range is in play.
For more information on range trading click here:
http://www.netpicks.com/simple-range-trading-strategy/
Forex Trading - How to Create a Trading StrategyBlueMax Capital
Forex trading how to create a trading strategy. The Forex Fundamental Analysis, Technical Analysis, Risk Management, Rules Successful Forex Traders Follow and Reasons Why Forex Traders Fail.
Japanese candlesticks are one of the most popular methods of the technical analysis. In this presentation, JustForex will teach you how to read Japanese candlesticks and trade according to it.
This short course introduces traders to trading strategies and methods used in the Master in Trading Course at Online Finance Academy. Learn how we integrate probability analysis, order flow, market profile, volume analysis, chart patterns and macro-fundamentals into a comprehensive trading strategy.
60 Second Binary Options Strategy: the complete guideTrade Opus
Complete strategy guide to trading binary options. Use 60 second binary options trading for maximum profit in minimum time. No experience needed. Includes binary options guide and 60 second trading and successful option trading strategies.Avoid common trading mistakes and learn to trade forex, stocks and commodities successfully today.
Looking for best intraday trading rules? Platinum Trading Systems presents simple, easy & golden rules for Intraday trading. Get This 7 Rules and Earn More Money in Intraday.
Stop Trading Support And Resistance The Wrong WayNetpicksTrading
Stop Trading Support And Resistance The Wrong Way
- See more at: http://www.netpicks.com/support-resistance/
Support and resistance trading is a popular technical analysis method of trading. The bad part is that many traders enter trades blindly at these levels without a firm understanding of what they mean.
Learn about trading support and resistance and see if your trading results improve.
- See more at: http://www.netpicks.com/support-resistance/
- Visit our website: http://www.netpicks.com/
- Download the free indicator blueprint: http://www.netpicks.com/blueprint/
- Options Hot List PLUS Training: http://www.netpicks.com/oftbrightbreakthroughs
support, resistance, support and resistance trading, reversals, trend
I prepared NFLX in great detail but it was not easy to form a bias. There was an earnings miss with a positive reaction. But there were some elements in the catalyst that were positive. The technicals were also strong so a reversal wasn't obvious at all. In the end the price action fitted the catalyst and setup: indecisive and choppy. Nevertheless, there was a solid trend PB trade that occured EOD. SPY was trending all afternoon and this was an important factor.
“Forex Trading Strategies” is a complete guide of most popular and widely used strategies in Forex trade. You can read about day trading and its main types, understand the strategies based on market analysis, learn about portfolio and algorithmic trading, and many more. The book represents the ins and outs of each strategy - why and how it is used and how to get profit from trade. It is suitable for all traders who are novice in trade or want to improve their skills. All the strategies classified and explained here are for educational purposes and can be applied by each trader in a different way.
http://www.CandlestickForums.com
Trading Strategies
Trading Strategies for Playing the Stock Market
Trading strategies discussed in this article include swing trading and day trading. Both are very similar but the main difference between theses two strategies is the time frame in which stocks are bought and held. In today’s article we will discuss both of these strategies as well as the advantages and disadvantages of each.
Swing trading typically involves a smaller position size than when day trading stock online. Additionally, swing traders will typically hold onto stocks for a few days to several weeks and then trade the stock on the basis of its intra-week or intra-month movements. Stop loss orders are placed wider than when day trading as well. When determining exits when swing trading there are rules that every trader should follow. It is very important that the trading strategies as well as the trading rules are understood before placing trades in this fashion. For instance, if the prior day’s low is taken out on the breakout day, or the high for shorts, then the trader should exit the trade. Also, once a trade is held overnight, a stop loss order should be placed no further away than below the recent consolidation area. A move beneath it would indicate a failure.
Swing trading stocks has its advantages and disadvantages as all trading strategies do. Some advantages include that swing traders can place fewer trades, therefore requiring fewer commissions and less chance of making a mistake. Additionally this type of stock trading provides the ability for successful traders to catch more significant multi-day profitable traders. A disadvantage to swing trading is the fact that the higher profit targets come with higher risk per trade. There is also overnight exposure that cannot be predicted.
Day trading stocks requires a larger positions size since you are looking for a smaller move within a short time frame. Unlike swing traders, a day trader may trade a few times per day or more! There are also rules with day trading that every investor should follow. For instance, they should always keep their profit objective at least 3 times greater than what they are willing to risk. Also, day traders should allow no more than 1% move against them from the entry point. There are many more trading strategies and rules when day trading that investors should learn in addition to these two rules.
Reverse gamma scalping is the opposite of long gamma scalping, and it is usually implemented by traders who want to sell options as they believe implied volatility levels will decline.
Pull Back Swing Trading Strategy I The Only Way To Trade Stocks and E-Mini Re...Marketgeekschannel
Visit Us at http://MarketGeeks.com for professional trading education.
The 4 by 4 Retracement or pullback strategy works equally well with stocks and index futures contracts. Both end of day and intra-day time frame work well.
Click here for more information on range trading
http://www.netpicks.com/simple-range-trading-strategy/
Here is some information on range trading:
It’s been said that a market only trends 30% of the time.
I can’t quantify that figure but having a range trading strategy to take advantage of the other 70% is good business.
Range trading is not difficult however it does require discipline and a method of determining when a trading range is in play.
For more information on range trading click here:
http://www.netpicks.com/simple-range-trading-strategy/
Forex Trading - How to Create a Trading StrategyBlueMax Capital
Forex trading how to create a trading strategy. The Forex Fundamental Analysis, Technical Analysis, Risk Management, Rules Successful Forex Traders Follow and Reasons Why Forex Traders Fail.
Japanese candlesticks are one of the most popular methods of the technical analysis. In this presentation, JustForex will teach you how to read Japanese candlesticks and trade according to it.
This short course introduces traders to trading strategies and methods used in the Master in Trading Course at Online Finance Academy. Learn how we integrate probability analysis, order flow, market profile, volume analysis, chart patterns and macro-fundamentals into a comprehensive trading strategy.
60 Second Binary Options Strategy: the complete guideTrade Opus
Complete strategy guide to trading binary options. Use 60 second binary options trading for maximum profit in minimum time. No experience needed. Includes binary options guide and 60 second trading and successful option trading strategies.Avoid common trading mistakes and learn to trade forex, stocks and commodities successfully today.
Looking for best intraday trading rules? Platinum Trading Systems presents simple, easy & golden rules for Intraday trading. Get This 7 Rules and Earn More Money in Intraday.
Stop Trading Support And Resistance The Wrong WayNetpicksTrading
Stop Trading Support And Resistance The Wrong Way
- See more at: http://www.netpicks.com/support-resistance/
Support and resistance trading is a popular technical analysis method of trading. The bad part is that many traders enter trades blindly at these levels without a firm understanding of what they mean.
Learn about trading support and resistance and see if your trading results improve.
- See more at: http://www.netpicks.com/support-resistance/
- Visit our website: http://www.netpicks.com/
- Download the free indicator blueprint: http://www.netpicks.com/blueprint/
- Options Hot List PLUS Training: http://www.netpicks.com/oftbrightbreakthroughs
support, resistance, support and resistance trading, reversals, trend
I prepared NFLX in great detail but it was not easy to form a bias. There was an earnings miss with a positive reaction. But there were some elements in the catalyst that were positive. The technicals were also strong so a reversal wasn't obvious at all. In the end the price action fitted the catalyst and setup: indecisive and choppy. Nevertheless, there was a solid trend PB trade that occured EOD. SPY was trending all afternoon and this was an important factor.
Great HTF BO opportunity that I missed due to ilness, but also a lack of proper preparation. These are great opportunities that I need to capitalize on, because they don't occur that often. The trade was an opening range consolidation which is a trade I made my most P&L on ACB. On this trade I really must size up.
To make things easier for you, consider that trend as the force behind the continuation move in the market whereas Fractal wave as the force behind reversal movement in the market. Typically, we will have these two forces in balance in the market. During Excessive momentum, this balance is broken. It means that the continuation force was greater than reversal force since the trends was driving further beyond the defined range by Fractal wave. Now probably you are starting to make some sense. That is good. Your intuition will start to tell you that this excessive momentum can provide good trading signals. Here is one-piece definition of the Excessive Momentum. Excessive momentum is the broken balance between continuation and reversal force in the market. When the balance is broken marginally, we can consider it as the market anomaly. Two potential scenarios can drive the occurrences of Excessive momentum. Firstly, the excessive momentum could be caused by some irrational price reaction like the late comers buying stocks after the stock have gone up too much. Secondly, the excessive momentum could be caused by strong belief of the crowd that the price will continue to go in the same direction. Whichever scenario is driving the excessive momentum, it is where we can observe the crowd psychology clearly. Excessive momentum provides the market timing.
Dow Jones Outlook, David Jones Takeover & Technical Outlook on the Japanese D...Invast Financial Services
During this week's Invast Insights we cover:
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► Technical outlook on Japanese Yen crosses
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The Breakout in GS - The PlayBook Webinar Series smbcapital
The PlayBook is a valuable Webinar event held every Thursday at SMB. Throughout the week traders submit their analyses of a particular trade. They discuss the Big Picture, any news pertaining to the particular stock at hand, and then offer a detailed explanation on why and how the trader behaved as he or she did. This week Mike discussed the Breakout Trade in GS. For more information on The PlayBook Webinar Series, please go to www.smbtraining.com/blog
this is breakout trading strategy to use. if you understand how the breakout works.you can gain up to 100pips 200pips.
.
if you understand market trending and break out. you can make money with forex.
.
After a large gap up of 6%, TSLA made a bullish opening range and pulled into VWAP. Institutional buyers were clearly present around VWAP on the level 2, and we got a quick bounce of VWAP and made a new HOD.
MSFT was gapping down on earnings news. They beat the estimates but also guided a bit lower. There was a key support level that MSFT bounced of. Together with a strong market MSFT reversed and made a strong PB.
Gold is the rally for real? Crude oil how low can it go? The S&P 500 looks like a roller coaster ride. What to do next? Get one professional's opinion!
Similar to A Look Back at 11 Stock Trading Setups (20)
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In this presentation, we will explore the rise of generative AI in finance and its potential to reshape the industry. We will discuss how generative AI can be used to develop new products, combat fraud, and revolutionize risk management. Finally, we will address some of the ethical considerations and challenges associated with this powerful technology.
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What website can I sell pi coins securely.DOT TECH
Currently there are no website or exchange that allow buying or selling of pi coins..
But you can still easily sell pi coins, by reselling it to exchanges/crypto whales interested in holding thousands of pi coins before the mainnet launch.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and resell to these crypto whales and holders of pi..
This is because pi network is not doing any pre-sale. The only way exchanges can get pi is by buying from miners and pi merchants stands in between the miners and the exchanges.
How can I sell my pi coins?
Selling pi coins is really easy, but first you need to migrate to mainnet wallet before you can do that. I will leave the what'sapp contact of my personal pi merchant to trade with.
+12349014282
What price will pi network be listed on exchangesDOT TECH
The rate at which pi will be listed is practically unknown. But due to speculations surrounding it the predicted rate is tends to be from 30$ — 50$.
So if you are interested in selling your pi network coins at a high rate tho. Or you can't wait till the mainnet launch in 2026. You can easily trade your pi coins with a merchant.
A merchant is someone who buys pi coins from miners and resell them to Investors looking forward to hold massive quantities till mainnet launch.
I will leave the what's app number of my personal pi vendor to trade with.
+12349014282
Lecture slide titled Fraud Risk Mitigation, Webinar Lecture Delivered at the Society for West African Internal Audit Practitioners (SWAIAP) on Wednesday, November 8, 2023.
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Well-crafted financial reports serve as vital tools for decision-making and transparency within an organization. By following the undermentioned tips, you can create standardized financial reports that effectively communicate your company's financial health and performance to stakeholders.
Yes of course, you can easily start mining pi network coin today and sell to legit pi vendors in the United States.
Here the what'sapp contact of my personal vendor.
+12349014282
#pi network #pi coins #legit #passive income
#US
how to swap pi coins to foreign currency withdrawable.DOT TECH
As of my last update, Pi is still in the testing phase and is not tradable on any exchanges.
However, Pi Network has announced plans to launch its Testnet and Mainnet in the future, which may include listing Pi on exchanges.
The current method for selling pi coins involves exchanging them with a pi vendor who purchases pi coins for investment reasons.
If you want to sell your pi coins, reach out to a pi vendor and sell them to anyone looking to sell pi coins from any country around the globe.
Below is the what'sapp information for my personal pi vendor.
+12349014282
how to sell pi coins in South Korea profitably.DOT TECH
Yes. You can sell your pi network coins in South Korea or any other country, by finding a verified pi merchant
What is a verified pi merchant?
Since pi network is not launched yet on any exchange, the only way you can sell pi coins is by selling to a verified pi merchant, and this is because pi network is not launched yet on any exchange and no pre-sale or ico offerings Is done on pi.
Since there is no pre-sale, the only way exchanges can get pi is by buying from miners. So a pi merchant facilitates these transactions by acting as a bridge for both transactions.
How can i find a pi vendor/merchant?
Well for those who haven't traded with a pi merchant or who don't already have one. I will leave the what'sapp number of my personal pi merchant who i trade pi with.
Message: +12349014282 VIA Whatsapp.
#pi #sell #nigeria #pinetwork #picoins #sellpi #Nigerian #tradepi #pinetworkcoins #sellmypi
2. Some Quick Background
About every Wednesday morning, I’ve been
posting trade setups to TraderPlanet.com
This has allowed people to see my approach and
what’s working in the market.
And my setups have been working very well.
3. About Me
I help people become
great options traders.
(who doesn’t love corgis?)
4. Keep in Mind
These ideas are not “hindsight” trades. They
were posted LIVE on TraderPlanet.
That means there is plenty of uncertainty when
these ideas are shared.
5. How this is Structured
We will go over the trade setups posted, the
reasoning behind the trade setup and how the
stock looks right now.
I’ll then provide a lesson with each one so you
can use it in your own trading.
7. Setup #1: UNP
“Late-cycle areas such as energy and utilities
have been doing well, and one area to watch
in the next month is rail stocks. On a
fundamental basis, these names tend to do
well when there is demand for their services
-- and if commodity prices and volume
continue to rise, the demand will rise as
well. UNP just broke out of a broadening
triangle formation, and is now a clear
market leader.
The stock is a little extended from the recent
rally but watch this name for a pullback
opportunity in the 190-187.50 area. ”
11. Setup #2: NSC
“NSC is completing a base on base
pattern with a key level of
resistance at 98.
This level will most likely hold the
first time around but if it
completes a higher low and
breaks out, it's a quick move to
100. This stock reports the
morning that this article comes
out so price volatility could
change the pattern.”
15. Setup #3: VVIX
“Is it really that quiet out there?
You would think that the market would be a
little more scared, that investors would be
buying protection as we head into the summer.
But that’s not what we’re seeing.
The traditional "fear" index is the VIX, which
measures the supply and demand for SPX
options. With a reading of 13.71, it puts it in
towards the lower end of its six month trading
range.
But let's go down the rabbit hole just a little
more.
The VVIX measures the supply and demand for
VIX. I feel that this chart is just as important as
the VIX because investors are not just using SPX
puts to get protection-- they're now using VIX
calls. [continued…]”
16. Setup #3: VVIX
“The current reading in the VVIX is in the 65's,
which puts it almost near six month lows.
What does this mean? Very few people are
using the options market to protect
themselves. And you think that they would,
with FOMC minutes due out, along with jobs
numbers and economic data.
The trade here is to get long "vol of vol." That
simply means buying straddles (a combination
of a call and put) on the VIX or VXX before the
fireworks start on Wednesday afternoon.
If we get a ripper of a rally, the VIX will tank
further, and if things start getting ugly, the VIX
will spike. The only bad outcome would be a
non-move, but given the way the market's
been trading, "movement" is a high odds bet.”
18. Lesson
When you see the “vol of
vol” get too low, that’s a
great time to buy straddle
spreads on VIX options.
This is a hilariously advanced
trade, but really really fun.
20. Setup #4: IBB
“If you find a money manager who has been using leverage to get
long tech, biotech, and all the stocks that worked in 2013,
you'll probably have to talk him off a ledge.
Biotech is one of those "leading" sectors that was hard hit
during the March/April pullback. And we now have a level
that if broken, will make this market a lot more healthy than
what it currently is.
Depending on the way you tilt your head, IBB (the Nasdaq
Biotech Index) is forming an inverse head and shoulders
bottom, or potentially an ascending triangle.
The most important thing here is the resistance level that
has held for the past month, right at 235.
If that level is breached and we start to see upside
aggression again, it indicates a resurgence of risk appetite.
Biotech was one of the areas that led this market to the
downside. If 235 clears with gusto, you can make a much
better bull case for the market.”
22. Lesson
You don’t have to “nail the
bottom” to make good
money on a pullback.
Waiting for levels to
present themselves can
give you better odds at
the expense of a higher
basis.
24. Setup #5: LNG
“Stocks that worked very well last year have been hit the hardest,
and there has been a very rotation into materials. Certainly
not the most bullish part of the market cycle.
Many energy names are standouts that are much stronger
than damaged.
Cheniere Energy Inc. (LNG) is in the liquified natural gas game,
and judging by the stock price the game has been good. It is
hovering near all time highs and has built a base. A simple
breakout play should suffice here-- a move above 60 would
be a clean breakout with an initial target at 65.
However because this market has seen its fair share of failed
breakouts, a more nuanced trade would be to anticipate the
breakout here with a stop under 55 and then sell half once
the stock does break 60. With implied volatility at one year
lows, long calls are a cheap way to play it-- something like
the July 57.50 calls with similar risk management as stock.”
28. Setup #6: BHI
“One of the hot areas in this market continues to be materials
and oil service stocks.
Names like HAL, HES, and SLB have all seen clean breakouts
and range extensions to new 52 week highs, and news driven
plays like LNG have rewarded investors several times over.
One oil play that hasn't broken out but looks ready to is BHI.
After a strong gap higher on earnings, the stock has been in an
ever-tightening range with compressing volatility. This means
that for about two months, buyers and sellers have been
agreeing on price, but this cannot last much longer.
As the major trend is up, when there is volatility expansion it
will most likely follow the uptrend as well. Watch for a break
and hold of 71, with a measured move target of about 74-75
per share.”
30. Lesson
Price acts differently on a
breakout versus a pullback.
The “energies” are different
so don’t expect the stock to
trade the exact same way at
a specific level.
If you don’t trail your stops,
you’re looking for a world of
trouble.
32. Setup #7: EA
“PEAD is short for "Post Earnings Announcement Drift,"
where a stock sees a strong move on earnings in
response to improving fundamentals, and then the
stock continues to rise in price due to steady demand
for the company. EA (Electronic Arts) is in such a
setup.
After a strong breakout on earnings, the stock ran from
32 to 36, and then pausing for a month. During this
month volatility has continued to contract, but on
Tuesday it saw a breakout of the pattern to new highs
on increasing volume.
A long here with a stop under 34 is a good position trade,
with initial targets at 37.”
34. Lesson
PEAD stocks can be absolute grinders, meaning that there
isn’t a ton of momentum or that it fades quickly…
especially if it is a larger cap stock.
The target was hit on this stock pretty quickly, so trailing
stops would have worked.
Also, looking for a pb2bo (pullback to breakout) pattern
off that level is a good setup for a PEAD stock.
36. Setup #8: QCOM
“Qualcomm (QCOM) has been in a basing pattern for
nearly four months. The proper name for this pattern
would be an "ascending triangle" because the pivot
lows have been decreasing and the pivot highs have
been at the same level.
A simple way to play it would be to wait for the breakout
above 81 and then buy the Aug 80 calls, with a target
of 85 per share. A "trickier" way to play the stock
would be to look for the resistance level of 81 to act
as a magnet so you can get a better basis on your
position. Buying calls on the breakout of 80 and then
scaling once the stock hits 81 would be a way to stick
around in the position for a little longer with less risk,
especially as earnings approaches.
A breach of the lower trendline would signal that the
pattern is broken.”
38. Lesson
Anticipating the breakout as a stock
approaches earnings is a very powerful
setup as investors may start looking to
position themselves into a bullish
fundamental idea.
Also, failed breakdowns (like this one) can be
a great pattern in and of themselves.
Holding through earnings, however, can be
pretty stupid.
40. Setup #9: N
“’Dregs’ stocks are former high flyers that have not had a
particularly good run of things. This can be due to a
drop in earnings growth or just bad luck from a lack
of momentum.
Either way, dregs stocks become beaten down and shorts
start getting greedy. If these stocks start basing out,
there will be buy stops hit from shorts as well as
those looking to initiate new positions.
N (NetSuite) has had a rough go of it this year. Once
trading up to 120, it saw a 50 point selloff during the
momentum "blowback" from March to April.
It has now undergone a technical consolidation known
as a triangle pattern. If it breaks to the upside, it will
retest the June highs at 90 in short order. Odds are it
will pullback from that-- if it makes a new higher low
and clears 90, then it will be a longer term trend
change that you can milk for months to come.”
42. Lesson
Basing patterns can easily evolve. A symmetrical triangle
pattern can morph into an ascending triangle pattern,
which can then morph into a cup and handle or
something else.
And if the market doesn’t fall apart this month, this
sucker is running to 100.
44. Setup #10: WDC
“After a very strong rally from May to July, the stock has
done nothing besides settle down in a three- point
range.
The important thing to note is that the stock didn't break
its range to the downside while the rest of the
market was selling off in August. This indicates a good
amount of relative strength provided by convicted
buyers.
A move to 103 would confirm the breakout, but an
anticipatory long here with a tight stop is a good
trade as well. “
46. Lesson
If a stock fails to see a hold with volume
above an “obvious” level, tighten up your
stops because a failed breakout will take
the stock all the way back to the bottom of
the range.
48. Setup #11: GMCR
“Over the past four earnings events, Keurig Green
Mountain (GMCR) has seen strong moves higher in
response to improving company fundamentals.
And because of the continued aggression by buyers, the
stock often fails to fill or break below that earnings
gap.
I'm expecting a similar pattern to develop this quarter. As
GMCR fades its earnings move, it will come into
levels in which buyers aggressively come in and
defend the stock from coming lower.
A straight stock position is not the best way to trade this.
Instead, an Oct 120/115 put credit spread is a bullish
play that takes the bet that GMCR will be above 120
by October options expiration, which is good odds
and good risk/reward.”
50. Lesson
I freaking LOVE pb2ma (pullback to moving
average) patterns after a strong move
higher on earnings.
Bull put spreads are an option strategy that
allows you to make money as long as the
stock doesn’t breach a key level. That’s
what happened here.
51. Want More?
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