Monday, July 14, 2014

This is How I Prepare My Swing Trading Plan for the Week

Spending quiet time outside of the market, uninfluenced by emotion and biases is required for most successful traders. To get ready for the coming week, I spend my weekend analyzing sectors, basic scans (like the 4 percent breakouts), proprietary scans (like bottoming formations with a few unique variables added) and reviewing my watchlist.  The time I spend on the weekend is by far the most important work I do.

That's right.  It's not the time I spend executing trades, nor is it the decision I make in picking a stock.  The real work comes from developing the game plan.  It's during this time that I get a real feel for the market.  There are times when it's tough to even put into words what the "feel" is, but I know it's there.  It is at this point that I write down my game plan for the coming week, which I send out to Trade Report members.

Here is a free view of the Trade Report game plan for the week, which I develop for Trade Report members on the BullsonWallStreet website.  It is exactly what I trade from.  Since starting the Report the results have been fantastic, with a 14 percent gain in two months.



Tuesday, July 01, 2014

Are You Being Lazy Building Your Swing Trade Watchlist?


Building your swing trading watchlist can be a lot of fun, especially in the beginning of it's creation when ou find tons of new stocks.  However, after a while it can become a grind.  You start skimping on your scans and head over to twitter and see what the twiiterati is watching.  Or you forget about your stock sector analysis and figure you can just trade the ETF.

Yes, we've all been there.  After a while your watchlist gets bigger and less manageable.  Pretty soon it's been a year and you wonder why a beaten up stock is still in your breakouts list.  It happens to the best of us.

I combat this by starting a new, totally fresh watchlist every two months.  I've found two months is the point where my watchlist tends to get away from me.  While it may seem starting your watchlist from scratch is a pain, it actually is invigorating and lots of fun taking a fresh look at many of the stocks you were trading.  There also is the added benefit of getting away from trading the same stocks over and over.  Rather than reach for buypoints at the same old stocks, you'll find yourself with better entries in stocks that have better setups.

I challenge you to mark your calendar two months from now as "rebuild stock watchlist" day.  I'm willing to bet that when you are done you will wonder who stole your watchlist.  That is how different it will look!

If you would like to learn more about how I trade, receive my nightly focus list with market analysis, setups and trade alerts, sign up for a 7 day free trial at BullsonWallStreet.com.  

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Monday, June 30, 2014

What is Your Best Trade of the First Half of 2014?

With 6 months in the books, I would like to know what your best trade was during this amazing first half of the year.  Tell me the stock, your stats, why you entered and exited the trade.  You can leave it in the comments or email me.

The best explanation gets five chart requests annotated by me in July!

Thursday, June 26, 2014

The Minimalist Swing Trading Setup

I often get asked about my setup for swing trading.  I wish I had an extravagant answer.  I love looking at pictures of trader setups that show 6 stacked monitors feeding every bit of data a person could ever want, but I follow a minimalist approach to trading.


My stock trading setup:

1.  One 27 inch "all in one" computer.

This is a good mix of portability and power.  I prefer not looking at a small screen all day, so I traded in my laptop for a bigger screen that still provides portability.  The screen has a high resolution so I can split it when needing two sites up at the same time without having to tab back and forth.  For instance, when I want my focus list and charts up from TC2000 and my broker in view at the same time.

2.  One iPad

I recently added this to the setup only for blogging and the Trade Report.  Here I view member emails and social media like twitter.  I like to keep this separate from trading.  I also use it to read when I have down time.



That's it.  It is simple yet has everything I need to trade effectively.  The best part is it keeps me from information overload, which can be a nightmare for swing traders.

What is your stock trading setup?  I want you to share in the comments below.  

If you would like to learn more about how I trade, receive my nightly focus list with market analysis, setups and trade alerts, sign up for a 7 day free trial at BullsonWallStreet.com.  

If you like this article, follow me on twitter and retweet.  



Monday, June 23, 2014

How To Fight Your Survival Instinct To Become A Profitable Trader

Thousands of years ago, we didn't have the luxury of walking into a grocery store and easily fulfilling our base needs.  We lived in the state of nature, fighting off the elements and other predators, and could not pass up on something that was right in front of us in order to wait for something better.  That something better might not present itself.  Thus, we are wired to take what is immediately  front of us.

This manifests itself in trading.  Once we get the smallest of profits, years of evolution tells us to take that nut and pack it away.  A trader must fight this survival instinct.  Continually taking small gains before a trade has time to work for you is the road to ruin.  You can  pick the greatest stocks the market has to offer, but if you are cutting your profits short, your account will die a slow death.

Fight this survival instinct by having a plan before entering the trade.  Set your stop, set your target, and forget about the trade until either the stop or entry is hit.

If you would like to learn more about how I trade, receive my nightly focus list with market analysis, setups and trade alerts, sign up for a 7 day free trial at BullsonWallStreet.com.  

If you like this article, follow me on twitter and retweet







Wednesday, June 18, 2014

The One True Golden Rule of Stock Trading: Smart Risk Management

I became a successful stock trader once I focused on managing risk instead of a stock picking.  Risk management is the golden rule of stock trading.  As George Soros said, "It’s not whether you’re right or wrong that’s important, but how much money you make when you’re right and how much you lose when you're wrong." 

I took these words to heart.  I will not trade a stock unless I have a  2:1 risk ratio.  What this means is if I risk one dollar, I must have a reward of at least two dollars or I do not take the trade.  In other words, if I buy a stock at $100, and my stop is at $98, my target must be at least $104.  

My trade results back the benefit of smart risk management.  Members of my nightly Trade Report receive an alert every time I enter or exit a trade.  Since the Report started on May 13, I have made 14 trades.  My win rate is exactly 50 percent.  You would expect that I am breaking even, right?  Wrong. I am up $7,543 in just over a month (and that does not include the +$4000 YELP trade, which I am still holding).  My average win is +$1628 while my average loss is only -550. I am getting 3:1 on my trades.  

How did I get these results?  By having a plan before entering the trade and making sure I always have at least a 2:1 risk ratio before entering a trade.  It's all about risk management, the one true golden rule.




What is your Golden Rule?  I want you to share in the comments below.  

If you would like to learn more about how I trade, receive my nightly focus list with market analysis, setups and trade alerts, sign up for a 7 day free trial at BullsonWallStreet.com.  

If you like this article, follow me on twitter and retweet.  


Friday, June 13, 2014

Revisiting A Setup That You Must Know: The Gap Fill

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Back in late May I analyzed PETM to demonstrate the development of a possible breakdown-pullback to gap fill setup.  This setup can take time to develop, but can be quite profitable when it does. 

Notice that since that time price has bounced back up to the bottom of the breakout bar,  This is common.  In time, I expect to see the gap get filled.  If it does, $62 will be an excellent short entry.  The gap-fill is a simple, yet profitable strategy.