Trading Stocks & Personal Development: Making the Complex Simple.
A useful tool for improving trading is to analyze trades that you did not take. IBN has been on my radar for since the April breakout. I did not trade it because the volume pattern was not to my liking.However, the risk ratios have been good through out that time period. Price has been near... Continue Reading →
In my Thursday report to members, I talk about the current market, making adjustments and poker:Before we begin, let me compare what's going on now to poker. In Texas Hold'em, the best hand pre-flop is pocket Aces. Most players try to get as much money into the pot as they can when they are dealt... Continue Reading →
What do I mean by high probability? In trading, I define a high probability setup as one that gives me a significant edge over an average trade. For instance, in my back tests, when stochastics hit 90 (extremely overbought) in a bear market, coupled with a few specific trading setups, the success rate of shorting... Continue Reading →
This picture I created ain't pretty, but it does a good job of showing the type of volume pattern I look for during bottom formations:
Here is the intra-day trade alert I sent to my subcribers (this is not a regular feature of the Trade Report, but I do send trade alerts from time to time):The gap down this morning blew past the entry and stop points I had set for SSO and QLD. Also, most of the stocks listed... Continue Reading →
I'd like to pick up a few long positions in anticipation of an inauguration rally. The fact that we are very oversold increases the chances of a rally. I will still use tight stops with the strategy of taking a small loss with the possibility of a big gain.
1. Be patient with trades and setups. Do not chase trades. Let them come to you. If you miss a trade, that's okay.2. The best setups in this market focus on extremes. Buy extreme weakness and sell extreme strength.3. Watch for accumulation patterns that form as prices base near lows. This will get you in... Continue Reading →
My strategy over the past few months has been to be patient and wait for extreme conditions to surface before making both long and short entries. A good example of this type of trade is the SKF position I entered yesterday (detailed in the trade report). Here are my entry notes with chart:I took one... Continue Reading →
While the "edge" or probability for the trade may be 50 percent or less (accumulation pattern is not what it was a week ago), SSO does provide a low risk entry point that can be easily managed with a stop under the recent lows.I am willing to take low risk setups even if the probability... Continue Reading →
As long as the lows hold, the bottoming thesis is in effect. I have focused on more short term 3-6 month charts lately, but here is a two year chart showing the power of the oversold RSI, even in a longer term down trending "topping" market.
Paul J Singh 