Profitable stock trading technique

Hello guys I open this theread for hopeless losing traders which want to start making money in the markets. For traders which are here for years and no longer know which way to go. I ve been there same as you are now. I understand how you feel and what is your emotions.

First of all I do not want waste your time so I am telling you that i never make any penny trading forex market. What is making me money is long term trend following in high growing stocks according to canslim trading strategy.

Forgot about charts like you can see there and empty words how every member which start thread is a profitable trader with his stupid system. Forexfactory got many many members but I can trully tell you that profitable full time traders you can count on the fingers of 2 hands. And maybe all this guys are in James16 thread ...

I do not want to burden you with nonsense about me, but anyway you can read it here http://canslimer.net/about .I started this web because I want to open eyes every trader who is hopeless who consistently losing money and is tired of it. I am working hard there and I hope it will be useful here for you. Enjoy it

I want show you on first example what I am doing and how it all looks like.

The first stock i want to mention in our series is Ebay during the 2 years of nice bull run in years 2003-2005. This is prototype of my ideal trade. Everything on this first example is what I want to see in any of my trades. So let´s discuss it in details.




1.
Side away price action while the general market is in downtrend and the earnings and sales of ebay is accelerating. The stock showing us relative strength during the bear market.

2.
When the bear market ends Ebay starts to move up sharply and for months hold its 50 days (10 week) moving average. When it finally starts to correct its gains the ebay was up around 100%. It is crucial for me that stock after long term side away action make very strong first uptrend wave like you can see in Ebay chart.

3.
The correction. After strong move I like to see a correction move to 10 weeks (50 days) moving average line. My favorite correction pattern isn´t deeper that 25% and takes minimum of 4 weeks but i find over the years that the strongest breakouts without pullbacks takes 10 weeks. 10 weeks is for me a magic number and if I see a stock which corrects for this time and starts to move to the new highs i feel money in the air. But in current example of ebay we have much longer pattern of flat base which takes 23 weeks when it finally broke up to the new highs. But look once again how tight the base is in comparison with the previous huge up move.From 30 to 25. So the deep of the base is only around 17% what is great sign.

4.
Breakout and next rising wave. This time I´m in and making money until the growth structure remains untouched and this will happen when the stock in uptrend which is making higher highs and higher lows drop under the last higher lows like i show you in fifth point.

5.
The exit point. Stock after our entry makes nice move but now signals us that is time to exit and take our profit. How can you know it ? The last higher low in rising structure was disturb and this stocks is not safe for us anymore. Yeah it could start rising again and make me more than 12 USD per share but also can drop like a rock. And this alternative is not “sexy“ enough for me as a trader who trades more than 10 000 shares on this stock.

Dear readers I want you to understand that you only need one stock like ebay a year to make same money as you earn in 9-5 job a year. You don´t need waste your time in day trading anymore and trying to be rich quick. Be patient and market rewards you! Imagine that you only need one trade a year to make money. Wait for your opportunity to come to you and when it is close trade it with all your strength. Simple recipe which makes me few dollars in my trading career

ORIGINAL : http://canslimer.net/articles/past-lessons/11-ebay

Look at this chart. I traded this stocks since the feb. 2011. I got allocated there more than 50% of my capital. Look if you buy it at 70 and hold it as me to 110 you got more than 50% gain in less than half year. You do not need chasing your tail in daytrading random forex market. Making money in markets is not about this people. You only need 1 or 2 stocks a year like I posting here and you do not need anything else. It is all about making money not about trading you could make 2 trades a year and you can get a triple digit. You do not need to spend all day in front of pc screen ,really belive me .

ORIGINAL: http://canslimer.net/articles/trading-basics/22-1882011

I dont entry zour website!

Guys do you see the price? what this chart tells us ? Do you see any logic there ??? Look again on FOSL and this forex intraday chart. What you find easier to trade? nice long term trending stock or messy randomness full of lines stochastics rsi or I do not know all the names of this junk on the screenshot. What is easier to manage ? I am sure that many people who are reading this posts got charts same like this one. No wonder for me I was the same. People I was there, it takes me time to change thinking but when you one in your life make a huge trade which gains you more than 50% in few short months you will never go back to daytrading messy forex.

In the second continuation of the series from past lessons to future profits I will show you my two best helpers. You have to think that it would be strong momentum or fundamentals. Yes it is largely true but I found my to 2 best friends somewhere else. Their names are 50 days (10 week) and 100 days (20 weeks) moving average.
Without them I could not orientate in the market and for my trading technique they are absolutely crucial. When I am looking for stocks and they pass through my fundamental screening , I am comparing the share price to its 50 day and 100 day moving average.

When I got stock with great fundamentals like increasing earnings and sales, increasing institutional sponsorship etc. I want see this picture :

 

1. Nice cup with handle absolutely my favorite chart pattern. Look at what work done for us moving support 10 and 20 week moving average line. It holds price nicely for break out and when break out occurs the driving move gains us more than 50% in short 8 weeks.
2. After 8 strong weeks stock starts to correct again. Same thing but different chart pattern. This time price action gives us descending triangle. Again look at our helpers, moving averages. It supports price strongly and after the breakout stock gives us an opportunity to profit from sharp up move again.
3. Great example of what happens when moving supports fail to hold price in symmetrical uptrend. Very often when price brakes 50 and 100 day moving averages downside the quality of the base is not as good as tighter ones. When breakdown happens price used to be choppy like you can see on the chart or move sharply downside. In this example you can also see that price made something unusually for canslim stock in bull run and its correction to its 50 weeks moving average. When I see this happened I no longer hold stock on my watch list for possible breakout entries. In other words price correction to a 1 year moving average is too big for me and it is easy pass.
4. Stock recovered. Now it fits all all my requirements again and I am looking for possible entry. Market gives me an opportunity to buy break out of cup without handle pattern. But what is most important,moving averages done for us great work again. Look what happens before the breakout and how our moving friends tell us that “we going to hold the price prepare your money for breakout”. And that´s really happened and stock gives us an opportunity to profit.

ORIGINAL: http://canslimer.net/articles/past-l...oving-averages

Good job dodko, all the best to you and your approach!

good job

The god part about STOCKS is that it is not a ZERO SUM business like FOREX.

In FOREX, what 95% of people lose, a 5% of richies win.. so it makes sense to see so many market makers and so many people losing money.

In STOCKS, not.. that's why STOCKS look better. Only bad part about it, is that you really need a bigger account to get into stocks.. and in forex you can start with a very small account.