Monitor  and  Respect  50  day/200 day  Simple  Moving  Average  Lines

Institutions account for over 75% of the total daily trading volume in the US stock market.  Most of the institutional trading occurs with algorithmic trading by computers.  These computers are programmed to scale up or scale down gradually with their stock purchases.  We as retail traders and investors do not have these tools to work with.  Our advantage lies in being very nimble.  We can get in and get out of the market faster than the institutions can.  This does require a lot of discipline and holding our emotions in check.  Being data driven is the key to preserving your portfolio and profiting in the market.  Institutions can not hide their purchases or disposition of stocks.  It shows up as either buying volume with the price escalating or selling volume with the price depressing. 

One of the simplest indicator that I teach my students is the 50 day and a 200 day (sma) simple moving averages plotted on any stock or index charts.  Institutions support the Growth Stocks that they are interested in when it touches the 50 day sma(simple moving average).  That is also the ideal time for us as retail investors to scale up with our purchases to be in synch with the institutions.  Same holds true if the stock or index plummets down the 50 day sma.  That is also the time for us as retail investors to scale down our positions.  This ought to be all figured out initially with a well thought out Trade Plan for the Stock.  It helps in keeping emotions in check and allows your trading system to take control instead. 

200 day sma is even more critical for us as retail traders.  That's the area that we don't want to be in as a Growth Stock investor.  Losses - capital as well as emotional - mount up and it becomes very difficult to recoup those losses.  Once the index or stock reaches that level, it can get even lower with institutions covering their short bets on stocks with options.  It is best to leave it up to the hedge funds that are    "Value Investors"    to prop up the stocks and the indexes.  For retail investors like us, the best approach is to be defensive and start migrating to  CASH  as the stock and the indexes begin to slice past the 50 day sma.   

Mentoring Program

If you are seriously considering getting up to speed with learning about Growth Stock Investing and trading, Zoom weekly live Meetup session may be one of the best ways for you to:

1. Look over my shoulder every week as I go through the process of looking for stocks of interest.
2. Analysing the stock charts to decipher the institutional behaviour.
3. How to Annotate stock charts on the brokerage platform for future reference.
4. Going through the Investors.com website to extract some fundamental and technical aspects of the stock.
5. Developing an appropriate Trade Plan for the stock.
6. How to position size when you take an initial stock position or add to the existing position.
7. Look over some of the conservative option setup to consider to either protect your stock or to increase the profitabilty for slight moves in the stock.

It will be a monthly subscription based service with a blog post weekly to help keep the subscribers abreast of the stock positions taken.  Subscribers will have the opportunity to present Growth Stocks of interest every week that they would like for me to highlight. 

Class size will be limited to few students to enhance the experience of active engagement with homework assignments.  Currently I am soliciting prospective students that could benefit from this start up Live Zoom Sessions starting in mid summer season.  Sessions will be recorded and archived  and will be available as long as you are a subscriber.

Send me an email at: 

investorspotlight@gmail.com 

if you would like to participate in this subscription service and start your profitable investing journey with my guidance and mentoring.

Happy Trading!

Amin Hemani