Sunday, June 4, 2017

How  I  Outperform  the  Market  Stress  Free


I am not a  "Day Trader".   Saturday and Sunday is when I do all my stock research and stock chart analyses.   Weekend is when I scrutinize the major indexes and review all my positions.   There is also no market noise to deal with and the last thing I want to do during the week is to sit at the computer and watch my positions.   I can never understand why anyone does that.   Watching your positions tick by tick does not make the stocks move.   It makes you second guess your decisions and you end up stressing yourself.

One of my favourite TV shows that I watch is  "Dancing with the Stars"   Nancy Kerrigan  and  Simeon (both Olympic Gold Winners)  practiced every day and spent  360 hours  to perfect their dance routine to reach the semi finals.   They got eliminated in the final rounds in spite of practicing every day to perfect their routine.   Trading is no different.   Before the market opens on Monday, I have to have everything in place  -  My Trade Plan,  My Stock Watch List  and any adjustments that I may have to make to my positions with  trailing stops.    


+53%  to  + 500%  Annualized  Returns

Every week, I pick only 1 stock or may be 2 at the most to place a trade on.   I am not a hedge fund manager with  $Billion  at my disposal.   Being a Retail trader and an Investor, there is limited amount of capital to work with.   I have to constantly harvest the profits to free up the capital so I can rotate my cash into another leading stock.   It is important to select the best of the best stocks out of the  10,000  stocks that we have in the US markets.   Since I only trade   Growth Stocks,   I narrow down my search to the leading stocks,  in the leading  IBD (Investors Business Daily)  Groups  and only in the  leading sectors.   Following are the results  (expressed as annualized returns)  of the 7 most recent stock positions  (3  are closed out and  4  are still open with trailing stops in place)  in the last 14 weeks:
  1. $IDXX ... 2/23 - 4/27 (5 weeks)  +154%
  2. $ANET ... 3/10 - Still in trade      +98%
  3. $HDB  ... 3/29 - Still in trade       +91%
  4. $PAYC ... 4/12 - Still in trade      +126%
  5. $VEEV ... 4/21 - 5/31 (5 weeks) +180%
  6. $ATHM ... 5/12 - 5/17 (1 week)   +500%
  7. $QQQ  ... 4/26 - Still in trade      +53%

The 3 major indexes  (reflects the performance of the US market)  that I follow, have exhibited the following performance year to date for 2017

  1. $DJI ...  +7.31%
  2. $SPY ...  +9.23%
  3. $QQQ ... +21%  

The performance of the  7 stocks that I have highlighted, far exceeds the performance of the general market as indicated by the performance of the 3 major indexes. 

This is the week when every trader should be looking to harvest the profits  as identified in the trade plans. You also want a trailing stop on your stock to lock in some of the gains that you have made.   Some of the stocks are extended  +10%  to  +20%   beyond the ideal buy points.   We had a   distribution day   on  3/21  and again on  5/17   when some stocks sliced thru the  50 day sma (simple moving average)   It can happen in the bullish market like we have one right now.   You want to protect your profits in the trade.   I shall tweet some of the trailing stops for the some of the stocks that I have brought to my readers attention on  Linkedin,   Twitter   and to my  IBD  Meet up  members in the Tampa Bay area.   Have a look and share it with your trading colleagues.   By all means, please continue to interact with me with your comments and retweets of my content.   I always like hearing from my readers and followers.

Mentoring Service

Don't procrastinate and learn from me:

How to Identify Winning Growth Stocks and Manage the Stock to Outperform the Market


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Investorspotlight.com

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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.