Trade stocks with high potential of gains of 5% to 10% in 3 to 5 days,
Ensure maximum risk reward ratio that keeps making a profit
Hold positions as long as they move in the planned direction and move stops to protect gains (see examples).
TradeSelector Trading Method
TradeSelector is a stock picks service for short term trading known as Swing Trading.
We enter trades using Technical Analysis: daily price movements, short and long term trends and areas of technical support and resistance.
We use patterns we know have the best odds of being profitable, then create a trading plan with entry, stop and the most likely target price.
We compare the risk to the potential reward and determine if the risk is justified before we enter the trade.
Our low risk balanced method doesn't promise to make huge net portfolio gains (don't believe those that do) but makes a steady consistent gain (see our full Trading Performance ) Look at How We Trade for more infornation, or visit our Sign Up Page for other details.
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This past week the markets continued to move up and down with big swings in both directions. Volatility is the new name of the game and is no place for inexperienced traders. It is extremely important to have a plan in place as the market can move against you very quickly.
The move up on Wednesday was on very low volume and failed quickly on Thursday. The move down on Friday was on very strong volume, a whopping 45% higher on the DJ-30. We didn't hear any stories about some broker with fat fingers adding zeros to sell orders this time.
Friday's close was the lowest close since Feb. 8th on both the DJ-30 and SPX, the NASDAQ Composite had moved up the most so a new closing low has not been printed. However much of the gains are directly attributed to AAPL and it is now over bought and in danger of dropping hard. If AAPL closes below the 50 day sma currently at 250 it can easily drop down to 222 or even 200 and that will make the NASDAQ the leader on the way down.
This coming week we expect the market will continue lower, our open positions and the selections on our watch list are inverted ETF's. This move down is not perfect or easy to trade as a number of the indicators we use are showing a divergence with price, In other words they are pointing up when price is obviously pointing down, so caution is a must.
This week we changed the charts below and instead of the normal candle charts we posted line charts. The pattern that has formed is much easier to see in the line charts. If you look at the SPX, DJ-30 and NASDAQ charts below you will see the M pattern that has been formed over the past two weeks. Most traders can identify the bullish W pattern, but it is not always as easy to see the bearish M pattern. Line charts only show closing prices so although patterns are easier to see they do not show the highs and lows of each trading day.
Gold has formed an ascending triangle, a break up should take it to new highs.
The U.S. Dollar has broken above the 87.45 resistance area and now has 91.60 in it's sight.
Heath Feb 12, 2010 I have been a member of just about everyone on twitter to try and sift through for additional information to help me grow as a trader. I just wanted to let you know you guys and alpha trend are the top of my list by far. Thank you for taking time to help new traders. Parag Dec 13, 2009 I find your analysis, picks and commentary to be exemplary and very hepful and most of all very 'on the money'. Scott Newbury Nov 04, 2009 These guys really know what they are doing and I can recommend their membership to other home gamers. Thanks for the great swing trades guys :)