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One of the things I’m always preaching in our Trading Bootcamp classes is that as traders we have a responsibility to be in the best stocks. If a stock blows up and has huge volume, big chart break and the rest of the characteristics we look for in a homerun stock then WE MUST be in that stock. Being in the best & hottest stocks is 1/2 the ball game. As if you can get good at identifying momentum then its just about applying the techniques you learn to trade intraday along with managing your risk. Every week I go through all the stocks that made the biggest moves for the week and if I missed any of them I dig in and figure out where in my process did I either miss this stock or filter it out. Then I make changes to my process to make sure I can catch it next time. This is very important as you can have the best charting skills in the world but if your in the WRONG stocks. Chart patterns, indicators, oscillators everything that you learn about charting wont work as well or doesnt apply if there is no momentum/trend. When trending everything from moving averages to chart patterns become much more reliable. So start looking for the momentum each day/week and make sure your that you are in those stocks! This week alone we made almost 6k just on trading $dgly over and over the week before it was $jrjc and $dgly again. You dont need 1000 different stocks and setups to watch to make money. Most of my day is focused on a handful of them and then when I see the setup I make sure to hammer it.
For our new traders/students inside our hedgefund – CliqueFund this is very important as when your trying to grow a small account as cant be in all the stocks & setups. The commissions and lack of buying power will eat you alive. You need to make sure that you focus on the best stocks the ones that move the cleanest have volume and then take your shots. You cant trade every single stock I do in the chatroom as often I could be in 2-3 stocks. Most likely if you have a smaller account you can be in 1 stock at a time and if thats the case be in the BEST ONE.
9/2/2014 addendum: another 14 bucks today 70%. We took another 2k on this today. Stocks in play with catalysts, float, expanding volume, daily breakouts can go much.
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4 thoughts on “Trading Momentum – Trade Review DGLY”
Good video thanks for the lesson Kunal.
Wow, you should be charging people for this type of info. Thx for sharing though.
Thanks for explaining the strategy beautifully. Can you please elaborate on expanding volume when you get chance?
so say a stock does on average 1million shares a day. then the next phase of the stock you start to see 10millionshars or 20million sharse. you have 20x its normal or 20x its relative volume..