The process also help to embed in your brain these setup patterns. If those patterns are present it dramatically improves the probability of trendy boutique following through. Below are the following financial stocks I am watching along with a few other stocks as well. Only purchase mutual shares and cash you are totally comfortable with. They may job individually along with you, supplying purchase advice and handling your stock portfolio. Accordingly, I intend to allocate a higher percentage of my portfolio to international stocks, especially US/HK tech stocks. First thing in the morning I obsessively study stocks that make 8% moves and 5 dollar plus moves in 5 days and study stocks up 80% plus from 52 week low. The stock trading advisory services make conscious efforts to ensure the security of the capital that has been deployed with them. The best part of doing it is , you will build your own knowledge and base your trading based on your own observation and your own derived rules based on what “actually” happens in a the market. Doing this daily everyday builds incremental expertise.
However, since RSI is approaching an overbought level there may be a chance of short correction and for now $6.50 level will be hard to break. Now that is a very valuable insight to improve our success rates with swing trades. The process of going through these past immediate winners helps us incrementally improve our trading as we gain better insight. That particular move we call momentum burst has certain unique dynamics to it and based on study of thousands of such past moves we have derived our trading scans and guidelines for entry, exit, risk, stops and setup selection. Studying immediate past winners tells you what is working in the market and what kind of setups to look for to find those kind of winners. As i trade two types of setups, one looking for big moves and another looking for short term moves, I focus my efforts on studying that timeframe and magnitude move.
In these trades I move my stops quickly once it makes 20% move. Because if you want to find 8 to 20% moves in 3 to 5 days, you must know thousands of such moves. Moves of 8 to 20% start from some kind of pullback or sideways moves. As a swing trader we want to focus on explosive short term moves of 8 to 40% in 5 days or 5 to 25 dollars in 5 days. It helps you to focus on most explosive part of a trend move. They are not up 3 days in a row before start of the move. The indexes have been up 5 to 6% at best this year, but we are already up several multiples of that with minuscule risk using such explosive moves. Businesses that defies common sense are best to be avoided. Some are high tight flags, some are double bottoms near top of the range, some are bottoming setups from 52 week low, some are part of range bound action.