Goal
Trading is already very complicated. But we want to make it easier. So we want to share some of our own trading styles that we have developed over our 20+ trading career. So we don’t need to watch the market all day long and we don’t need to be near to a computer or phone at all. It works best for regular office works. It is set and forget.
How to set and forget our trade?
This is very important. Normally we scan thousands of stocks, ETFs AFTER MARKET CLOSE to find best and low risk trades. We do trade other securities like options or futures during market, but we don’t want to share any of that on this website. That is not our interest of this website.
Once we identify some good candidates, we will post on this website with detailed limit entry and stop loss and target price. Everything is pre-set. Next day when market opens, if the limit price get triggered, congratulations, you are in play. If not, cancel that order after market close unless it is still a good pick. So all we do is at night, pre-set some orders and adjust stop loss or target. Let your trades run its own course.
Our Trade Holding Time Frame
No day-trading. Holding period varies from a few days to a few months.
Trade Example
The above chart shows a very typical trading setup we scan. Based on this chart, we can see a few trading rules we are following:
- Stock must make higher high and higher low to form a bullish trend
- Close normally needs to be above ma(5), ma(10) and ma(20).
- To avoid gap up on next day, we set buy limit on close price or slightly above today’s close price to ensure previous high is clearly taken
- Stop Loss is set to as today’s low or recent low. We can also move stop loss up along with ma(10) or ma(20) to lock profit afterwards
- Initial Target is pre-set to 10% gain.
- Exit if price closed below ma(5), ma(10) or ma(20) depends on your investment term.
This is another example with similar entry and exit.
Above is another example which is our favorite stock Apple Inc. We did not put the detail buying points there, but based on the rule, we can easily the set up as below:
- Buy limit at around 130 which is the close of 2021-06-14. It clearly breaks out the previous high and formed a higher high.
- Close above all ma(5), ma(10) and ma(20)
- Stop loss is set to the low, or slight below of the low on 2021-06-14, which can be 126.
- Initial target is 130 + 130 * 10% = 143.
- Possible sell might be triggered on 2021-06-25 because it closed below ma(5) which is totally fine. But since next day it breaks previous high again and we can potentially buy back in and enjoy another huge up swing till 2021-07-14 when closed below ma(5) 146. That is 12.3% gain over a month. Not a bad trade.
Final Note
Please read the above examples a few times so you understand exactly where to enter, where to exit. Do not simply buy and hold and forget. You must set it properly so you can forget, otherwise the market will happily take all your money and you should not invest in stock market. The market is your teacher and it is not your friend.
We scan thousands of stocks, ETF every day to find those trades, do the heavy lifting, to share and make trading easier for our dear friends, but that does not mean you can just blindly take those trades and expect to make huge money. Please take some time and study it and understand it. Overtime you will find out that you will have the ability to identify high profitability trades and you can then help your friends and families.
Enjoy Trading, my friends! 🙂