How I Have Earned 33% Since August
Stockscores Foundation for the week ending October 16, 2017
In this week's issue:
In This Week’s Issue:
- Stockscores Webinars – Why 1% Matters, Stockscores Strategy Overview
- Stockscores’ Market Minutes Video – Measuring Market Mood
- Stockscores Trader Training – How I Have Earned 33% Since August
- Stock Features of the Week – Abnormal Breaks
Stockscores Free Webinars – Why 1% Matters
Thursday Oct 19 at 6pm PT
Employing a strategy for picking stocks and ETFs that give you small improvements in overall return will have a dramatic effect on your retirement savings over time. In this webinar, I will show how the math works and share some scans that I use to find good long term holds for your retirement portfolio.
Thursday Oct 26 at 6pm PT
This webinar will provide an overview of the position, swing and day trading strategies of the Stockscores Approach to trading. Participate in this free webinar, whether you are interested in the conservative, long term trading of Exchange Traded Funds or the active approach to swing and day trading the market.
To register, click here or go to the Upcoming Events page on Stockscores.com.
Stockscores Market Minutes – Measuring Market Mood
Stocks and markets have a mood that needs to be understood before trading them. There is a simple technique you can use to determine what the mood is and whether the market is overly emotional, with fear or greed. That plus my market analysis and a look at how I traded INFI last week.
Click here to watch or go to the Stockscores YouTube channel,
To get instant updates when I upload a new video, subscribe to the Stockscores YouTube Channel
Trader Training – How I Have Earned 33% Since August
Early in August, I modified how I pick swing and position trades for the Tradescores.com Alerts service. The changes to my strategy have not been major and the basic concepts are the same as they have been for the past 20 years. However, some tweaks to reflect the current market conditions and the dominance of computers in today’s trading world were necessary. Thus far, the results have been very good.
Big winners include INFI up 148% in 11 days, RDNT up 41% in 45 days and CAPR up 141% in 12 days. Here are all of the trades, winners and losers, that have been entered and exited since early August:
Here is a performance summary using a $1000 risk tolerance and no margin:
Notice that the success rate is not that high (57%) despite the strong gains. This demonstrates the importance of what I say often. You have to minimize the size of your losses and maximize the size of the gains. It is the big winners that earn you the return, not being right every time.
How am I picking these big winners? As I have always done, I am looking for stocks breaking through resistance from a predictive chart pattern with abnormal price and volume activity.
What is different is how I define resistance, now putting more emphasis on trend lines rather than horizontal resistance.
Computers trading the market are the reason. Markets are more efficient and price in new information more quickly. There is less speculation as markets now react to news and rumors very quickly. If you wait for a pattern to build, a lot of the profit is taken away. You have to jump on stocks when they first start to behave abnormally, provided the pattern is right.
I will be creating some new strategy documents for the Stockscores Education Center. These will be available in November before I run the next live trader training education series that will teach my current and new strategies. If you want to learn them, consider registering for one of the Stockscores trader training courses.
The market has changed, making it important to evolve. Small strategy rule changes based on a lot of research and data collected has made a big impact on results, not only to swing and position trades highlighted above but also my day trading strategies. I will be doing a free webinar with an overview of my current strategies on Thursday Oct 27. Click here for more information or to register.
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I found the following stocks to consider using the Abnormal Breaks market scans for the US and Canada.
1. PLGPLG is breaking its downward trend line with abnormal price and volume today, a good sign that the stock has made a bottom. Support at $0.40.
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2. XNETXNET breaks up from a rising bottom with strong volume support today. Support at $4.20.
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3. HRGHRG has bounced off of support at $15 a few times and today is breaking its downward trend line with increased volume. Support at $15.
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