<<excellent results so far with isolating strategies>>> Haven't been lazy this morning, I've isolated and written out some really good strategies for playing the earnings plays, before, day after earnings, 1-3 days after earnings... and playing the watch list plays that are 24-48 hours old. I haven't yet tried it on 3 day old watch list plays which all I did was set up an alert for those. Usually I got lazy and sufficed with only 2 watch lists or 2 days of earnings plays.
2) excellent results using buy stops to enter trades of 1-3 day old watch list with or without alerts... I have only tried it today with 1 day old watch list, usually I do it with just alerts on 1-3 day watch list but this strategy is way superior.. I got 'buy stopped' in today to 2 watch lists stocks from yesterday in this way. This is especially important in stocks that are in a technical position to move but just doesn't for any reason (except of course bad news)..
3) excellent results in short huge gap ups today with another strategy. I have been working most of the night and early morning till about 12:00. It felt like a laboratory experiment but I was the guinea pig instead of threaders...
4) already printing strategies for entering earnings plays I have the format for construction of the 'plan' (i.e. setting up the strategy in the watch list according to technicals in the earnings plays after the 'news' breaks on on beating earnings, or in anticipatory upswing when you are noticing the stock is moving up, applying the strategy, looking at backdrop of market climate etc, )
a) in a cup and handle formation or breakout from triangular formation
and breakout from base on wide range expansion..et
b) using the 5 minute versus the 10 minute chart..
5) Special strategies for intermediate players who can short sell on an earnings gap with minimal risk...
I'm pretty excited about some of this especially since I only have to look at end of day to determine what my new 'buy signal' will be the next day. I don't want to spoil this 'inspirational' mode by posting, or even watching CNBC since I sold my positions from yesterday and 2 new position I was 'stopped into' this morning so currently I am in no trades.
What I really did was 'isolate' strategies I use myself but not actually 'put a name to them' as I would set alerts automatically on about 20 stocks after market close..
I am working on this probably through the weekend but will take a break at 3:00 for the 'last hour rodeo' if I have time to post.
The underlying reason why these strategies work is simply that the stocks were selected BEFOREHAND and expectations were just not met within 24 hours but the stock is still in a nice 'ready mode' for breakout
reason 2) in the case of a stock with strong momentum it could hit a snag or 'bull flag' before continuing the upswing the next day and if you dont follow it you will miss the continuation of the uptrend.
I have also included in the strategy how to 'circumvent' that error..
All my previous errors or shorting (not turning around to short after a successful price rise) have been corrected in the new strategy.. The back testing of course is not long since I've been shorting for only 4 or 5 months but they are similar strategies for going long 'just turning the chart 'literally'' upside down and with stop losses you won't get killed because of inadequate back testing.
These strategies will change the focus of the entire Market Gems Manual as they will be added and could conceivably add 25 or more pages to an already expanding volume.
They will also give us an edge if any of you want to use the real time trading forum as we can discuss the efficacy of the strategy in real time....
They won't be printed, not even to subscribers just yet as they are the results of 4 years of trading and 200 trades. Once they are 'final' they will be added to the manual when it is published.
Before they are 'final' they will be a 'separate' strategies trading handbook that we will use for our watch list and earnings plays.
Acquiring a language is inborn and a natural process. When a child of 3 speaks with perfect grammar we expect that, as acquiring a language is the natural progression of linguistic capability which is inborn. When you teach English as a Second Language as I have for 5 years, who learn to isolate the 'grammar' that comes naturally to you and I, but not so naturally to a speaker whose first language is Hebrew, Spanish, Italian or whatever. You have to actually teach grammar to a 14 year old student whose mother tongue is Hebrew and can't speak even as well as an American 3 or 4 year old.
I've put in stop losses and buy stops for so long that I do it by rote (like speaking English when it is your mother tonuge) but now I realize the process is not natural for a 'foreigner to day or swing trading'. Utilizing these rather easy straightforward strategies we won't have to say things like 'rats how did I miss KIDE that was up 6" etc.
The process of creating a watch list and just saying 'buy trigger' might not make as much sense to a newbie as it would to a seasoned trader. So I will be showing you the rationale behind the 'buy trigger' and the 'sell short' when your stock has 'popped' after earnings gap etc... |
