I learned my awesome trading strategy from SuperTrades
However, I adapted his strategy to fit my own style – I found that i need to have a strong set of rules especially when it comes to cutting losses. I made a lot of money just copying Supermans own trades but i found that often i would enter some wishwashy swing trade and end up taking a huge loss because i still ‘ believed in the thesis’ even when the stock was tanking.
My own strategy has me keeping much tighter stop losses and yes sometimes i sell a little early and take profits too quickly but it works! And that is what counts at the end of the day.
A few days ago I did a brief posting on here explaining my momentum chart trade of $THOR. I sold my position for a nice profit today. Here is an annotated daily chart of the trade.
So you can see I bought in to this earnings winner at $39 per share. People tend to think that a big gap up and green candle after earnings is the end of the move and now its time to short it back down to ‘where the POS belongs!’ – Nothing could be further from the truth! If the volume on the day of the stellar earnings report is at least 150% more than average and RSI is more than 70 on the daily and weekly charts then it can be just the START of a bullish run! It makes sense right? Now often there is a pullback a few days after the gap up on earnings and that is why i took my stress free 5% gain in 3 days. Yes, I probably sold my position too early and it might well continue upwards, but that was one easy swing trade. These types of trades are my bread and butter and they have about an 80% success rate in my experience – if you screen for the BEST ones. It is also very important to cut the ones that don’t work very quickly. I use the 4 ema as a trailing stop loss.
Anyway more updates to come on more stocks soon!
P.S see how I learned to trade HERE