22% WIN in 3 DAYS!!! STRESS FREE!

Another super week in the stock market! I am up $4000 this week trading small caps that are bouncing back nicely this summer! In this post I would like to show and briefly discuss just one of the charts that made me a nice 22% gain this week in just 3 days.

I learned this momentum strategy from a Multimillionaire Trader (possible the best in the world!!) and you can find out more information on how you to could learn his strategy HERE.

I love momentum chart plays because it is easy to define your risk – for me it is usually the 4 day ema. If the stock closes below the 4 day ema i sell it! No questions asked! Momentum chart plays usually provide much quicker gains than swing plays, which makes these plays an excellent strategy for new traders with smaller accounts. The trick is too hold for a few days to a week and then sell, freeing up the capital to enable massive compounding of your gains!

This week $GRH was one of these amazing chart plays – see the chart below for how i played this chart.

grh_website

I bought in at $1.3 as large volume came into $GRH causing it to breakout to the upside, flying past the old resistance line at $1.3 in January 2014. As you can see from the chart the next two days were ‘rest’ days where the RSI remained strong (RSI > 70) and the stock held the 4 day ema. This is often a chance to add to your position and that is what i did with GRH. The next day saw a HUGE volume spike and a 20% increase in price. I sold all of my shares at highs of the day, happy with 22% gain in just 3 days. This stock could continue much higher though and I am watching the chart for a pull back to re-enter.

Check out where i learned to trade these momentum plays! SuperTrades chatroom!

Russell

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