Frequently Asked Questions

Below are a few of the more common questions regarding the stock setups presented in the videos. This page will continue to be updated so be sure to check back on occasion.

How should I trade these ideas?

Make them YOUR ideas, there is no one best way to trade. Everyone has different amounts of capital available to deploy, different risk tolerance, different amount of time to commit to trading, etc. These ideas are not specific recommendations; they are simply ideas to potentially trade. Each idea will be followed until the “worst case stop “ is triggered and then the stock will not be updated unless it presents another low risk entry point.

When should I get in?

Generally speaking you should go very slow early in the morning. Be careful not to chase stocks higher or try to get a head start on a move by entering; in the pre-market or before any build in momentum or break past key resistance (longs) or support (shorts). The first 30 minutes or so of trading in the regular session is a time when we often see a lot of false movement, be sure to trade extra cautiously until the tone of the day has been set. See the question gaps below.

How long should I hold?

The ideas mentioned are meant to be swing trade ideas but the largest part of the move often comes much quicker. It is not up to us to determine how long to hold, our job is to listen to the message of the market. The most important holding consideration is to CUT LOSSES QUICKLY. When a stock violates the “worst case stop level” there is no reason to continue holding and you will be on your own at that point.

Should I trade all of the stocks mentioned?

It is unrealistic to expect all the setups to meet their entry parameters each day and not all setups will make sense for you. The stocks mentioned are POTENTIAL trades only, it is up to you to decide which ones (if any) fit your approach each day. Some days there will be more trades triggered than any one individual could reasonably manage, focus on the setups that fit your approach and expect to miss some good setups. When you miss a good trade it is best to review why you chose not to get involved or what you could have done differently to make sure you are more focused for the next day.

Why do you mention longs and shorts each day?

No one can predict exactly what the market will do each day which is why it is crucial to be prepared for anything the market gives us. When the overall market is trending bullishly you will want to focus on purchasing the strong stocks. During bearish periods your focus should be on shorting the weak stocks. More neutral markets will often offer great opportunities trading long and short in the same day. As always, your first priority is risk management which is why you need to be prepared for anything!

GAPS- If the stock gaps in the direction of anticipated momentum, do not allow yourself to become excited and chase the stock as sloppy entries will put you in an immediate position of weakness. As a general rule you should wait to see if the stock is capable of holding above daily Volume Weigheted Average Price (VWAP) for long plays or if it becomes trapped under the VWAP for short sales. More information about using VWAP for entries is available in THIS ARTICLE

Do you have a track record of your recommendations?

The purpose of this service is to provide you with actionable ideas and keep you focused on the risks in those ideas as well as risk and opportunities in the broad markets. The intent is not to give specific recommendations. Each person will trade the ideas presented differently or may choose to not follow certain ones and thus track records provide distorted views of what actual performance may be by the end user. The constant emphasis on risk management and education should provide you with large downside protection if you are willing to provide the discipline.

What is the point of the “B-list stocks” versus the main ones on the watchlist?

The “main watchlist” is meant to focus your attentions on what appear to be the highest probability/ low risk setups, these stocks show the suggested entries and stop levels on the spreadsheet as they were analyzed and explained  in the daily video .  The main  stocks are brought to the forefront after manually analyzing scores of stocks on multiple timeframes.  If there are an abundance of setups that appear to have a reasonable chance of trend continuation, the other symbols will end up on the “B-List”.  Many times there are some excellent movers on the “B-List” and they are brought to your attention so that if the main stocks do not trigger trades there will still be opportunities to cull from through the trading day.  If you choose to trade the “B-List” stocks you will be completely on your own as time does not allow for a complete analysis  of such a long list of stocks.  The idea is to “make each trade your own” with the analysis techniques discussed in the videos.