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.
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.
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.
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.
Financial freedom is a journey
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