12 Minute Read

Tales of a Technician: How I would use the Stock & Options Reports

August 17, 2016

By | 6 Comments

Tales of a Technician: How I would use the Stock & Options Reports

Many of you have been using the weekly reports to great success. Some are perhaps under-utilizing them. And others still may not even be aware of these weekend gems. As one of the regular creators of the reports I wanted to take some time to enlighten you on how I would use them.

While there are myriad advantages to dutifully digesting these weekly missives, let’s highlight my top two: idea generation and education.

Idea Generation

When I first started trading the bulk of my time was spent scouring the market for trade ideas. Back then I had a Trade Seeker tool that ran across the top of my screen flashing tickers of potential stock setups. Combined with my favorite scans and numerous watchlists, I possessed tools galore for finding trades. It just took forever. Literally, hours a day. And sometimes at the end of all that searching I found nada, zip, zilch.

I would have much preferred to have a professional trader send me a list of the top 5 or 10 setups for the week ahead. Time is money. And anything that saves me hours is worth its weight in gold. As a mentor I want to save you loads of time. We all do. We want to accelerate your learning curve and give you every possible resource to succeed. Chief among these resources are the weekend reports.

To find the best patterns, I scour my world-class watchlists, run scans, and search the best sectors. Stellar setups are tagged and bagged. Mediocre ones are tossed. The picks are, in the end, the best I could find.

No doubt some tasty patterns escape my process every week. I don’t pretend to have a comprehensive catalog of the thousands of stocks in the market. Truth be told I mostly focus on the top couple of hundred liquid stocks and ETFs.

Bottom line: the weekend reports help provide tickers of interest for your consideration over the coming week.

Education  

A second objective of the reports is to enlighten you. If you’ve read them for more than a few weeks and haven’t picked up on some recurring themes, then you need to have your head examined. All successful investors have a process where they do the same thing again and again and again. I focus on the same stocks, the same setups and the same strategies every single time.

Dollars to donuts the bull stocks are either bull retracements, bull breakouts, or oversold stocks. The bear stocks focus on bear retracements, bear breakouts, or overbought stocks. In the options report I also focus on interesting volatility setups.

Again, and again, and again.

That’s it.

Your weekend reading of the report and analyzing of the highlighted stocks should be filled with Aha! moments. You’ll get quicker at identifying the same setups and drawing similar conclusions.

Each idea includes potential entry and exit points. They are potential price levels designed to give you an idea of where active traders typically place their buy and sell orders. Bullish triggers typically include buying above the prior day’s high or above resistance. On the flipside, bearish triggers include selling below the prior day’s low or below resistance. Whether you add a few cents or a percentage of the ATR as a buffer for confirmation is up to you.

Stop losses are typically focused around key support and resistance levels. The objective is to teach you HOW to trade. Not to tell you exactly WHAT to do. Furthermore, don’t feel like you have to play the particular strategies illustrated in the report. If I highlight a bull retracement on AAPL and walk through a long call play, that doesn’t mean you can’t enter some type of call spread instead.

It is imperative that you trade the strategies that you know how to make money with, PERIOD.

Final note. All position sizing decisions are left to your discretion. How many shares of stock (or number of contracts) purchased is completely up to you. Even the best picks have a decent failure rate. Risking a small percentage of your account in each trade will ensure your ability to withstand losing streaks.


Tackle Trading: Financial Freedom is a Journey. Sign up now for a 15-day free trial.

Financial freedom is a journey

The Tales of a Technician series is brought to you by Tackle Trading.

Sign up now and gain unfettered access to all of the quality content and powerful Scouting Reports that our Pro Members enjoy for 15-days absolutely free with no strings attached and let us show you what your trading has been missing.

Sign up now for a 15-DAY FREE TRIAL #


Legal Disclaimer

Tackle Trading LLC (“Tackle Trading”) is providing this website and any related materials, including newsletters, blog posts, videos, social media postings and any other communications (collectively, the “Materials”) on an “as-is” basis. This means that although Tackle Trading strives to make the information accurate, thorough and current, neither Tackle Trading nor the author(s) of the Materials or the moderators guarantee or warrant the Materials or accept liability for any damage, loss or expense arising from the use of the Materials, whether based in tort, contract, or otherwise. Tackle Trading is providing the Materials for educational purposes only. We are not providing legal, accounting, or financial advisory services, and this is not a solicitation or recommendation to buy or sell any stocks, options, or other financial instruments or investments. Examples that address specific assets, stocks, options or other financial instrument transactions are for illustrative purposes only and are not intended to represent specific trades or transactions that we have conducted. In fact, for the purpose of illustration, we may use examples that are different from or contrary to transactions we have conducted or positions we hold. Furthermore, this website and any information or training herein are not intended as a solicitation for any future relationship, business or otherwise, between the users and the moderators. No express or implied warranties are being made with respect to these services and products. By using the Materials, each user agrees to indemnify and hold Tackle Trading harmless from all losses, expenses and costs, including reasonable attorneys’ fees, arising out of or resulting from user’s use of the Materials. In no event shall Tackle Trading or the author(s) or moderators be liable for any direct, special, consequential or incidental damages arising out of or related to the Materials. If this limitation on damages is not enforceable in some states, the total amount of Tackle Trading’s liability to the user or others shall not exceed the amount paid by the user for such Materials.

All investing and trading in the securities market involve a high degree of risk. Any decisions to place trades in the financial markets, including trading in stocks, options or other financial instruments, is a personal decision that should only be made after conducting thorough independent research, including a personal risk and financial assessment, and prior consultation with the user’s investment, legal, tax, and accounting advisers, to determine whether such trading or investment is appropriate for that user.

6 Replies to “Tales of a Technician: How I would use the Stock & Options Reports”

  1. rolandc rolandc says:

    Thanks Tyler. I do appreciate the reports you and the other coaches do every weekend.

  2. Bill Trimborn Bill Trimborn says:

    Thanks, Tyler! I’ve been learning lots from these reports lately.

  3. Thomas Hammonds Thomas Hammonds says:

    Thank you so much Ty!

  4. Avatar STEWGILGIS says:

    Good advice. Saving time is money.

  5. Avatar terrywallen says:

    Thanks Tyler….concise and well written

  6. ScottMills ScottMills says:

    Great article Tyler. Just what i needed at just the right time. Thanks!

Leave a Reply

Chart Modal

Tackle Trading