Sunday, December 11, 2016

My   Super Stock   of the Year


Every year, I come across a stock that makes my year.   Sometimes I miss them initially because I didn't listen to what the institutions were telling me.   Stock charts very clearly show the price and volume for each day the market is open.   When the institutions decide to take a position in a winning stock, it takes them several weeks to establish a full position.   I always look for increased volume above the daily moving average volume that results in an increase in the price of a stock.   That is a confirmation for me that institutions are competing against each other to accumulate shares in their portfolio.   

In my post last week, I had indicated that I will share with you some of the trading strategies that I employed on   $NVDA   during the last 12 months.   This stock came on my radar initially on August 7th 2015.   Market conditions were not favorable at that time to take a position but   $NVDA   surged   +15%   in volume that was   +700%   above average daily volume.   This is not a thin stock and it trades    +$200 million    daily (price of stock  X  shares traded per day)   This is a massive volume for the stock leading to an increase in the share price of the stock during unfavorable market conditions.   I was disciplined and stayed patient for an opportune time to enter into a position.   I continued to build    My Stock Watch List   every weekend and stayed engaged with the market even though the market was trending sideways during the summer months.   


Stock Trading History


My patience finally paid off within 2 months and an opportune time presented itself on October 2nd 2015.   Market was in    "Correction"   in September but than it rallied at the end of the month and we had a    "Follow Thru"   day on October 2nd.    Market status changed to    "Confirmed Uptrend"   I am a disciple of  Mr. William J. O'Neil - founder of Investor's Business Daily.   According to him,   "You should always buy something on a follow thru day"    Everything had just lined up for me to step in and take a position on    $NVDA


For illustrative purposes, I will use 400 shares of stock as an initial position ($10,000).   Total of  5 trades were established from October 2nd 2015 to October 24th 2016.   Profits were harvested within 3 to 7 weeks upon entering into these 5 trades.   Following is the summary:
  1. Oct 2 2015 ... entry  $25   exit  $28.50  (+14% in 4 weeks)
  2. Mar 21 2016 ... entry  $33.81  exit  $36.50  (+7.95% in 3 weeks)
  3. May 13 2016 ... entry  $40.09  exit  $45.66  (+13.9% in 3 weeks)
  4. July 5 2016  ... entry  $46.60  exit  $58.60  (+25.75% in 5 weeks)
  5. Sept 2 2016 ... entry  $$64.24  exit  $70.66  (+10% in 7 weeks)
Total accumulated profits from these 5 trades amounted to   +$12,072    This stock was never held through earnings.   We are in the 8th year of the bull market and earnings report can devastate the stock if the institutions don't like what they see in the earnings report.   I find it best to harvest profits before the earnings report is due.    

In my post next week, I will highlight some of the    Option Trades    that were initiated to take advantage of the stock trading along the    8 day ema (exponential moving average)   or the stock consolidating for several weeks while the market overall was consolidating.   The stock had a phenomenal performance of    +182.64%    from Oct 2nd 2015   to Oct 24th 2016.   Utilizing stock purchases as well as Options on stocks, we can increase our profits substantially without taking the risk of holding the stock through earnings.


Mentoring Service

If you would like to learn our system of     Identifying Growth Stocks    such as    $NVDA   and to profit from it, contact us    @ investorspotlight@gmail.com   



Happy Trading!

Amin

     

 








DISCLAIMER



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.


The Information I provide is for education and informational purposes only. The Information provided is not intended to be and does not constitute financial advice, investment advice, trading advice or any other advice. The Information provided is general in nature and is not specific to you or anyone else.


YOU SHOULD NOT MAKE ANY DECISION, FINANCIAL, INVESTMENTS, TRADING OR OTHERWISE, BASED ON ANY OF THE INFORMATION PRESENTED WITHOUT UNDERTAKING INDEPENDENT DUE DILIGENCE AND CONSULTATION WITH A LICENSED PROFESSIONAL. You understand that you are using this Information AT YOUR OWN RISK.