How to best be prepared for each trading day using our LIVE Trade Pro services.
1) It’s important to understand that when I’m mentioning (confirming) a stock more than once, it’s more often times the better setup and a stock you’ll likely want to be in. These positions have a better likelihood of continuation and/or breakout even after the initial alert has been given. Focusing on these (even if you didn’t take the intial alert) will more often give you better probability of success and are often better percentage gainers.
2) Before asking a question please first take the time to look (study) the charts and/or this page. Often times you’ll find your answer there. i.e. areas of support/resistance, potential targets, etc.
Please post ALL trades
#1 It allows other members to see what stocks are actually being traded to build confidence, by seeing various results of other traders in the room and/or to perhaps more seriously consider that particular trade.
#2 It helps me to know exactly what trades have been executed. Now I’m not spending time on trying to assist traders to get a good entry on a stock that they already own. I can then put my focus more on other potential trades.
#3 It helps everyone by being able to see (in real time) various trade techniques being used i.e. scalping, day trading, overnight holds, swing trades, to better develop their own skills.
Using LIVE Alerts Regularly.
I would highly suggest to NOT wait for alerts (stocks) to go higher before you believe they are going to go higher. Probability shows that members that take immediate action (on a regular basis and are well diversified, while using stops) on stock alerts have far better results, with lower downside risk AND higher upside potential.
I would suggest that you may want to consider getting positioned into stocks in stages, versus loading up all in one shot. Though there are exceptions (a stock that is clearly in break out mode) you may have a good opportunity to still add later on a pullback and/or if the stock confirms the break out, higher.
By far the traders that have the most success (and most consistent results) are the ones that consistently follow (and use) my alerts. It’s very important that you be diversified. Implementing several alerts will not only reduce your downside risk but it will also greatly improve your chances for profitability. One great, profitable trade can easily well more than make up for one or two others that may not perform quite as well, so be careful about cherry picking these alerts.
By being well diversified… you’ll also find it easier to be more patient on stocks you’re holding that may not be confirming as quickly as you may have initially expected; so based simply on probability you’ll most likely have at least one stock that day that is surpassing (rally mode) everything else!
Narrow Your Focus A MUST READ
How you can start to drastically increase your profits by applying these simple steps.
How to better the probability of your success by narrowing your focus. This information is to help you to get into a position so that you’ll most likely end up holding the better stocks I’ve alerted for those bigger percentage gainers.
Step #1 Be well diversified into say 4-8 different stocks, preferably in various sectors.
Step #2 Pay careful attention (narrow your focus) to stocks alerted that I’m consistently bullish on in live chat, along with additional follow up information (updates) that may also include additional point of confirmation, expectations, etc. via emails and/or sending you chart updates, especially during market hours.
IMPORTANT: When I send an update during market hours stating that I’m going to be creating a chart on a stock that’s been alerted …or if I have included a link to a chart that I’ve already created, then consider that stock as upgraded (confirmed) to what I would consider to be a Premium Stock Pick.
Note: If you’re not able to be with us in live chat, you can always go to our recorded chat log. Understand that much of what I do in chat is over the mic so it’s not actually 100% complete. This chat log gets updated within minutes after the close, right onto our members website. Tip: Are you looking for more information about a particular stock (to help define which stocks I’m more confident about) that we’ve perhaps discussed that day? You can simply do a search within our chat log using that ticker to expedite the process.
Step #3 Consider adding to these positions (most times you’ll likely want to do so in smaller portions) during a pull back, near good levels of support and/or confirmation of a breakout. Note: I would suggest to look at each additional entry as a new (separate) position, not combined.
Step #4 Omit (sell) positions that are not confirming (perhaps even to raise additional working capital to add to your better positions) Note: Understand that just because a stock is boring does not automatically make it bearish, in fact sometimes it’s the calm just prior to the storm / breakout! So use some judgement here as you could otherwise find yourself taking away from stocks with the better setup, only to find yourself wishing later that you had sat tight for a while.
Step #5 Assure profits into the rally. Once these better setups begin to see follow through and are up approximately 8% or more Note: (It’s important to understand that this is calculated from the alerted price given, not necessarily the price that you purchased the stock at.) I most often suggest then to start locking in some of those gains (selling a portion) There are significant benefits in doing this.
a. It puts you into a position where you’re more likely to snag a profit even if the stock pulls all the way back to your break even point. For example, lets say you’re stock goes up 8% and you lock in (sell) 1/2 of that position. You just helped yourself to assure some profit and then by selling the second half of your position at break even, assured a solid (money in your account) realized profit of 4.0% Not so bad.
b. It’s easier to stay the course in case of a pull back because you’ve locked in some gains and are now less likely to sell based on how much you’re up but rather stay the course based on the better probability and perhaps even an opportunity to add to that position lower, provided that the trend is intact and continues to show good evidence of the likelihood to move up from that point. Note: I always suggest to not add to a positions based only on it being lower. So when considering such you may want to ask yourself this question …If I didn’t own this stock now, would I be buying it here? If the answer is no, then I would suggest caution. If yes then would seriously consider adding at that point (perhaps based on profits gained sold into the earlier rally)
c. If your stock then continues to rally higher, I would suggest to continue to sell in segments on the way up to help better put yourself into a win, win situation. You may want to consider selling 1/3 (or perhaps even less) at a time if you have a significant size into the trade. On better trades (momentum trades) you may want to wait to start selling some say at around 12%, 17%, 23% or higher before totally exiting your position. Yes some stocks will continue higher but keep in mind, we’re out to get a nice chunk out of the move, not to try to call tops and those that do typically lose much more than they win. We want to go with what’s most likely. And what’s most likely is most stocks will pullback, especially if that run is over a short duration of time, say 2-4 days. Note: If you have what you consider a small position, you may not be eager to sell 1/2 on an extremely bullish stock. At this point it’s more of a judgment call and just be sure that you’re OK with it no matter what the direction of the stock when it hits that point.
Step #6 One other option you may want to consider, especially if you’re already an active (day trader) is what I simply refer to as either and/or, meaning day trade these momentum stocks alerted and/or swing trade. Quite simply put, say you have a large position in one of the stocks alerted and you do not want to hold overnight but you’re pretty certain that I’m correct on the likelihood of the stock continuing higher if held overnight (swing trade) You may want to consider locking in the major portion of profits and leave in a small (overnight) position to further take advantage of the trade without the high risk. (An amount that you’d be comfortable with no matter what the outcome) Make sense?
A MUST READ…
How to reduce risk …and increase your confidence. One of the best ways I know of to reduce risk without getting stopped out multiple time in a volatile stock/market is to reduce your size. Try buying in small portions and add when (if) you’re seeing better confirmation, either on a pull back and/or possibly if it then confirms higher with a potential breakout signal.
This can vastly increase your level of confidence in a position now because you’ve lessened the level of risk. There are also additional benefits. Say you typically put in 10K on a stock with 1.5% risk. Now say you put in 1/2 that amount or 5K. This can put you in a position where you now have more wiggle room, say 3.0% (versus 1.5%) without risking any more actual dollar amount. So now you’ll likely to get shaken out of a good setup based only on the short term action, provided the overall trend of course in intact. So instead of getting stopped out on a full position based only on a certain (larger) dollar amount “percentage” on what is most likely a good, longer term position, you’re much more likely only to stop out if the chart is indicating to actually do so. Understand this is not suggesting to do without (to take out) stops.
Help! If you have any questions about these strategies or others, I’m here. You can simply give me a call or email me. 8:30 AM – 8:30 PM EST Thanks!
LIVE Alert price verses your actual buy point…
Understand that alerts given to take profits or to cut losses are based on the price that I alerted the stock at, not necessarily YOUR buy point. This is one key reason that I suggest not to wait for additional confirmation after an alert is given. The signal (in most cases) has already been confirmed. You do not need a stock to go up an additional say 4-7% to confirm that the stock is likely to go higher. Also it’s important to understand that just because a stock is trading under your buy point does not necessarily make it a sell, meaning that the trend (trade) may well still be in tact and in fact may be a better buy opportunity after a pull back verses stopping out for say a small loss.
Important reasons as to why you may NOT want to wait for my signal to start locking in profits….
- Sometimes things happen quickly and I may be busy helping another member, or perhaps out for a short duration during market hours, thus perhaps not able to promptly send out an alert to suggest to lock in some profits. If you’re up on a position say 8-20% (in some cases perhaps somewhat less) know that I would typically suggest at that point already to be locking in at least some (1/3 – 1/2) of those profits. You’re not going to go wrong by taking at least some off the table in such cases. You want to be consistently locking in those gains to assure consistent profits.
- If you’re trading options it may not be advantageous to hold for a longer duration, even if I believe the stock is likely to go considerably higher over time. i.e. “swing trade” I certainly understand that at times you’ll want to perhaps hold overnight on a position that is likely to break out. Just be sure to know (be realistic) your own risk tolerance and understand how the factors of time and volatility may affect your trade (profits)
- If you have a large position you may want to start to scale out of that position (a portion at a time as the stock rallies) prior to my alerts to lock in gains to help assure profit and/or to insure against a loss in case of a pull back. This can also give you an excellent opportunity to add back in on a stock (while holding a core position) after a stock has pulled back, giving you additional profit potential on a trade.
Understand that having an exact stop (contrary to most traders thinking) is NOT always the best way to go. There are many variables including the areas of support, your buy point, volume, etc. Often times one will get stopped out only to watch their stock go much higher, right after the fact.
Some important things to consider:
- I would suggest to NOT put in a stop at the open nor just prior to the close. It’s pretty much the same as asking to get stopped out.
- Often times it may be a better buy opportunity verses a sell opportunity when a stock pulls back, provided that everything else (i.e. the trend) appears to be in tact.
- There are also other things that you can do to reduce risk; one, is to buy smaller amounts. 🙂
It can be advantageous to have a stop:
- If you’re going to be out for a long duration of time, and not able to be in a position to sell the stock manually.
- If there is a max percentage of risk your willing to take on a trade, you may want to place the stop at that exact point.
- It’s important also to consider what may be considered critical support. Case in point, if you’re in a stock that quickly sells off and is down 10% and at critical support, you MIGHT want to consider taking and additional say 1.5% risk on that trade to see if it may reverse. Not always an easy call to make so if you’re not sure, I would suggest to stop out in order to preserve your capital at that point.
- When there is a known area of support broken that you’re quite confident would be a clear sell signal, no matter what the percentage of risk, even if the amount is less than say one percent. There is NO reason to take additional risk if the stock at that point is technically broken.
- Peace of mind. It can be quite frustrating watching a boring stock all day long to wonder if it’s going to hold or not. In such cases I think it’s a great idea to put in a stop. That way you can keep your focus more on other trade opportunities verses staring at a stock that going possibly no where that day. Note: It is NOT automatically a sell signal simply because a stock is boring for a duration of time.
- Trailing stops? Though I typically suggest to lock in gains into the rally, you may also want to use trailing stops (after the run) in order to assure additional profits if a stock appears to not be holding initial levels of support.
Please USE stops!!
- Though I strive to only alert stocks that I believe it would be more advantageous to add to on a pull back verses stopping out, please understand that if I put out an alert to take a hit on a stock with a specific price to do so, it’s most likely that the stock is broken and NOT one that you want to hold onto hoping it may come back.
- It may seem painful to take a say 5% loss on a trade at the time but not the type of pain you may well experience, of watching it then go down day after day , week after week and find yourself now having the stock need to go up 38%+ just to break even!
Bottom line is you want (NEED) to DRAW A LINE somewhere to reduce risk and preserve capital based on your own risk tolerance.
On Sat, Oct 31, 2015
Hi Scott,I am not sure I can participate in the live training this Monday but think it is a good idea and hope to participate in the future. One thing I struggle with is stopping out at times. Mostly because I am unsure when to give it that little extra vs. stopping out and moving on. Essentially what to look for in reading the tape to determine if you should give it more slack or if it is sell pressure or not liking the action and should just stop out. When I hard stop I seem to miss bounces and when I don’t stop because I feel it is being played I end up not getting out until until down a few more percent or so. Just have hard time reading it. Maybe I should just hard stop on be done with it.LIVE Trade Pro Member
On Sat, Oct 31, 2015
OAS was a good example of that, we saw the setup but the move didn’t confirm (as quickly) as expected.
Trading through earning releases.
I suggest to NEVER hold through earnings. Just way too high a risk factor. You can always trade prior to and/or after without the gambling effect and be just as (if not more) profitable than with these kinds of plays. Truth is you can often times you can find a good entry on stocks AFTER an earnings report with just as good of a percentage gain or more than holding through, with far less risk. There is for the most part no real advantage to hold through these types of events.
IMPORTANT: I always do my utmost to let you know when earnings are approaching. Please understand however that it’s always your responsibility (even if a stock has not been stated as closed) to lookup earnings dates on stocks and to have this information at hand in order to trade them as suggested.
Before asking questions about a stock and/or trade strategies please read the following.
Please do NOT ask a general question when asking for help such as “What do you think about this stock“? There are very important factors that I need to know in order to make a good assessment of your situation and to offer help.
Are you looking to buy the stock or sell the stock? Do you already own the stock? Are you long or short? How many shares do you own? What is your entry point? Is this a quick trade (day trade or possibly overnight) or a swing trade (a longer term hold). Do you own other stocks? Are you diversified? Do you have cash on the side to work with?
For example I may be asked a question like.. “Where is resistance“? I then give the person the answer to their question. “$20.00” Then however (yes, this actually happened) it gets interpreted (incorrectly) that the stock can’t push through that mark so the person then sells the stock for a small profit when in fact it was only the beginning of a significant break out for that stock! Please be specific. 🙂
Please do NOT chase!
Every once in a while someone will ask me about a stock after it’s gone up considerably (yes, even 6% -15% higher) from the point alerted. Please do NOT let this happen to you! Though it may not be the most popular method, the best time to buy is not when everyone is flat out excited about how high a stock is going up, it’s BEFORE the run. 🙂 i.e. ( 04-22-13) Would you rather be a buyer on NFLX or a seller? 🙂
Use the ALERTS
I realize that this may seem like a given to most however believe it or not quite frequently I run into the following situation. I’m being asked about other stocks while in the midst of giving (extraordinary) alerts on stocks!!
Please do not ask me about several other possibilities (potential trades) when I’m in the midst of sending out alerts that are obviously confirming as fast as they are put out. 🙂
It’s rarely a good decision to just sit and wait and and hope that everything will be OK. You need to be proactive, to take action. Sometimes trades just don’t work out. Please do not waste your valuable time complaining about a trade, thereby losing your focus and perhaps put yourself into a position of missing out on new opportunities. i.e. On Wednesday, Sept. 26th while the market was continuing to retrace FSLR gave an excellent buy signal, bouncing off it’s 50 day moving average that day. That stock rallied, up over 14% the following day. One alert like this can make up for a lot of missed ones.
Guide/Rules In Chat
Off topic chatter during market hours needs to be kept to a minimum. Yes, we like to have fun here and there however our primary focus needs to be on trading.
Do not spend the entire day typing about a stock(s) that everyone wishes they had but do not and will not because the opportunity is already long gone. We are here to find new opportunities and doing such only causes distraction from being able to do so (to see new opportunities)
Please do feel free to offer any information in chat (including links) that are relevant to the overall markets, individual stocks and/or trading strategies that may be a benefit.
Day Trade Alerts
It’s important to understand that these are stocks that I’m anticipating to move very quickly and not meant for longer term holds and that confirmation (always) is key and that tight stops are a must and locking in gains that same day is essential.
I would suggest .5 to 1% absolute max risk on ANY day trade positions.
Important: Because of the extremely fast moves that can occur I will not always have the opportunity to alert all on when to take profits. Would suggest to not wait for such and assure your profits into any significant rally.
If you’re considering using this information “day trade setups” I would highly suggest that you first be sure you have a solid understanding of the risk and then act accordingly.
These stock alerts will be identified as such “Day Trade Only”
Things you can do (and to not do) to increase your profitability.
I strive to find trades that have a max. of 2% downside risk and 10-20% upside potential. If a trade does not follow through I would suggest to not take more than 3% loss if at all possible. It’s also important however to understand that it can be a fluid situation at times. Premarket trading, volatility (especially at the open) can at times be extreme, so downside risk may need be adjusted to slightly more or less depending on other factors such as news, overall market conditions, etc. Another good way to reduce risk is simply by cutting the size of your position, giving you also more flexibility to add to a position lower and/or higher …as long as all other factors indicate that trend is well intact.
Though my ultimate goal is for a stock to continue up immediately after an alert is given, it’s not unusual for me to be a little early for the party at times. As long as everything about the chart is in tact (including the downside risk factor) it’s proven best (by far) to be patient for the trade to follow through in such cases. It’s usually not a good idea to sell a stock based ONLY on that it may appear to be boring for a while. The goal is to assist you in entering BEFORE the run and though at times it may seem a bit of a wait, the rewards can be and often are, exceptional.
It’s usually not a good idea to change strategy based on a one day event or short term, intraday action. Again, as long as everything about the chart is in tact (including the downside risk factor) it’s proven best (by far) to be patient for the trade to follow through in such cases .
Don’t wait till a stock sells off to be convinced that stock has topped out. It’s almost always best to be locking in at least some profit on the way up, into the rally!
Tops and bottoms (trends) are usually more of a process than they are a one day event.
Have a place where you draw the line as to how much risk you’re willing to take on a trade.
Have a plan as to when (what point) you’re going to start locking in profits, typically just prior to critical areas of resistance. If you don’t have a plan yet, ask me!
It’s rarely a good idea to wait until a stock goes considerably higher to confirm that it’s likely to go even higher before entering the stock. Remember, these are ALERTS, (confirmed buy signals) not stocks to watch.
Don’t overload into any one position. Never risk more than you’re able to handle if the trade goes against you.
Ask for help BEFORE it becomes a major issue (if possible)
It can be very high risk risk to hold a trade through any company earnings. You’ll never see me give an alert based on my expectations of an earnings report. If that’s you’re trading style, OK but please don’t ask me my opinion on how I think earnings will be. I have no idea.
Helpful techincal charts that you’ll want to use every day.
Use these mini stock charts frequently (type in your own ticker symbols) to help in your decision making process during market hours (charts update every time you refresh the page) I use these every trading day! It can greatly improve your perception on what’s really happening with a stock(s) longer term outlook verses very possibly basing your decisions on only short term intraday moves.
Don’t look at your profit/loss on your trading platform during market hours. You’ll too often times find that you’re trading based on it rather than the charts. If you trade based on the charts (not looking at your account) you’ll most likely see a better result in your account be the end of the trading session. In order for this to work however, you can’t cheat, meaning don’t try to figure it out in your head as to how far up or down you are at any point during the trading day in your head. It’s NOT easy but can be done and it works. The one exception I do have on this is if you’re up a considerable amount on a trade. Lock in some profits.
Stay clear of hype stocks. There are just too many other trades that are far easier to trade with much more profit potential.
We do NOT promote penny stocks under $1.00, pink sheets or anything of the like.
How you can drastically increase profits using my strategies.
One problem I see some traders having at times is selling a stock that has been alerted, way too early. Now I’m all about taking profits when they are to be taken however one thing you don’t want to find yourself doing is to be taking say 3-4% profits when the probability is HIGH that it’s wanting to give you say maybe 10,15, perhaps 20%!!
How do you know which stock(s) these would be? First, be sure to go over my latest chart updates prior to the open. Even though I may not be sending out an additional alert on a particular stock at higher levels, I’ll often update charts on stocks where I believe there is still good upside left.
Another excellent way to get a better understanding of which stocks I’m more bullish on is to go through our chat log (updated daily on the members website after the close) and do a search on the ticker symbol(s) to see what me and/or others are saying about that stock. You may want to try for example doing a search now on of our recent alerts put out on DANG, from yesterday’s chat log.
Guide/Rules LIVE Alert (via email)
- Unless urgent please do not send email just prior to the market open or just prior to the close.
- Please be very specific to help me to best address your concerns and to be able to do so in a timely manner. If it’s a complex issue I may ask that we continue the discussion to help with any issues via the phone.
- Do not write asking me for a good stock to buy. I ONLY send out a LIVE Alert on a stock when I believe it’s ready to be sent. Being overly eager to find a trade is never a good idea and usually ends up badly. Understand that recent alerts that are still open are still valid alerts and often times a great opportunity is already right in front of you. 🙂
- Please do not write complaining (making an excuse as to why you missed every good call) and then asking me if I have another good stock that you can buy that you’ll not likely take advantage of even if I gave it to you.
- Many variables here however If I believe that the risk should be less than 1% I’ll always state such on the initial alert, Otherwise would suggest 2-3% max.
- Typically 2-3 days however can be up to 4-5 and in some cases (depending on market conditions) a few weeks.
- A signal that I at times use in chat. Implies that stock is likely (poised) to run higher. Still considered to be reasonably low and very bullish in my opinion.