I know, I know. I’m always saying one trading strategy or the other is my favorite.
I love pivot trading. I’d bet my house on moving averages techniques. I can’t get enough of short-term trend trading….
But, the truth is, every technique in my arsenal excels at one particular type of trading. That’s why I have so many “loves,” so that I can address any asset, in any market, in any situation.
For example, we use pivot trades in our First Strike portfolio, which Roger and I built based on 25+ years of trading system development.
First Strike is all about getting in on an explosive stock opportunity BEFORE it makes its big move. That’s where the real money is made in the market, but spotting these “lightning stocks” at just the right time has been a closely guarded secret for decades.
If you join us, you’ll have the chance to lock in profits like:
Typically in 60 days or less and always on well-known, established Blue Chip stocks.
Would you like to start racking up steady, repeatable profits like 1,487%? Would you like to get in ahead of the crowd?
That said, let’s talk about my “favorite” technique for day trading, the 2X Insider Strategy.
This one uses swing trading or short-term trading strategies to spot and execute on intra-day trades, taking advantage of low volatility periods when markets are consolidating and preparing for the next big move.
Here’s what it looks like in action…
Step 1: Find the Setup
The 2X Insider Strategy is all a pullback away from the main trend that is accompanied by a gap.
A reduction in volatility and trading range is not what I want to see after the setup is triggered. I like to see the stock get back in line with the trend within a few days of triggering the set up.
So what I do is find a setup that occurs after the market made a 10-day low against the current trend. This way I catch the market after a short pause and immediately before the market resumes the strong trend.
You can see in this particular example how the stock is trending strongly before it makes a 10 day low and the pattern sets up immediately thereafter. You want to see a wide bar and two inside days following that bar.
Step 2: Place your entry
Once you isolate the setup you can place your entry order for next day’s opening bell. The best way to trade the 2X Inside Strategy is to place a buy stop $0.05 above the high price that was achieved on the third day, and once you’re filled you need to place a sell stop about $0.15 cents below the third day low price.
The example below is to the long side but the strategy works just as well to the downside. Just make sure you don’t confuse sell stops with buy stops, because this will cause you losses on top of missing out on the trade.
Step 3: Target your exit
The exit point would be a MOC (market on close) order that you would place after your fill.
Many traders try to predict intra-day market peaks and I’m one of them. However, after testing dozens of different exit strategies I found this method to work best with liquidating near the closing.
The momentum is coming back into the market after two very quiet days, so typically the momentum follows through till the opening bell, especially if there’s extended buying coming into the market.
You can see the entire pattern from beginning to end on a daily chart in this example…
But that’s a whole day… What about doing this in just 15 minutes?
That’s the time frame I use for stocks and ETF day trading. The 15- minute time frame reduces the amount of random noise that is present in intra-day stock chart analysis and it helps me see more focused price action.
One more thing about our First Strike portfolio…
It’s one of the most explosive trading techniques we’ve ever developed, and no Lightning Stock has ever lost more than 13%. Our wins? They speak for themselves.
Gains like 487.3%… 320.8%… 810.4%… and more…
Every Monday we scan the market for stocks exhibiting our 10 Lightning Factors. When we find an opportunity that exactly matches our criteria… We pounce. Then we use our dynamic profit system to extract MAXIMUM cash from the trade, while minimizing our risk.
When you join us today, you’ll have complete and immediate access to the WealthPress First Strike Portfolio.
Before I leave you, remember that the majority of all stock market trading action breaks down into two primary trends: The main trend and the minor, or short-term, trend. The main trend is… the main trend that’s driving trading action and guiding the overall direction of the asset you’re watching. The minor trend is what’s happening in the short-term that will open up an opportunity in that longer-term trend. That’s where you’ll find your trade. Sounds simple, right? It is, as long as you follow my three-step strategy…