Monday, July 11, 2016

Harvest Profits Now


The worst time period in the market is from May through September. Over the last 50 years, $SPY has averaged less than 0.13% in these 5 months. This is the time of the year traders should have little exposure in the market. There are growth stocks on  My Watch List  every week and I only take a very small position when the market is in a confirmed uptrend. I also do a lot of Virtual Trades to keep my trading skills sharp and to test out some new strategies. 

As a trader, you are looking for a Return on Your Money but I look for  Return of My Money  during the summer months. Growth stocks this year have returned 5% in most cases and rarely have they given us more than 10% profits. I have targeted 6% to 10% profit targets in my trade plans for stocks on my watch list and -3% to -4% as a loss exit. When my profit targets are met, I will have trailing stops in place if the stock continues to exhibit high RS ratings and trading above 21 day ema.  This is how I view Return of My Money


Leading Growth Stocks


I have highlighted over 50 growth stocks in my blog and tweets in the past month to alert retail investors like myself who are managing their own trading account. These are the stocks that the institutions are buying. They account for over 75% of the stock market activity. That is one reason why I look at stocks that have an RS ratings above 90 and trade more than $100 million daily. Market has been bullish last week and $SPY, $DOW and $QQQ are approaching their all time highs. It is a euphoric phase we are going through right now. GREED  is beginning to set in. This is the time to give your positions a second look and harvest profits or adjust your trailing stops. Quite a few of these stocks are getting extended. The worst thing you can do is to give back these profits. Here is a list of these stocks:

  • $AEM
  • $NEM
  • $ABX
  • $GDX
  • $SLW
  • $RGLD
  • $BGS
  • $OKE
  • $DG
  • $AWK
  • $NI
  • $SJM
  • $WEC
  • $DG
  • $DLTR
  • $ALGN
  • $MO

Stocks on My Watch List

  1. $MLM
  2. $VMC
  3. $SWHC
  4. $ULTA
  5. $NVDA
I am looking for low risk trades utilizing Option strategies this week. I shall review a case study on $NVDA in my next blog and share with you how to go about having little exposure of your $ in the market to profit from growth stock that the institutions are supporting.

Happy Trading!



Amin
Follow me on Tweeter @spotlightamin to keep yourself current on what is happening in the market.







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Do not take a position unless you are prepared to sustain a TOTAL LOSS. Your loss could include the money you invested as well as commissions and transaction charges.


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