Wouldn’t it be wonderful if you could emulate why some of the best traders succeed consistently when you’re not quite hitting those heights yourself?
How is it possible that some do and some don’t, when you’re all using the same tools with access to the same method?
It has been a mission for me to “bottle” that piece of magic. From a technical point of view, we have a system that works phenomenally well, whether you look at it quantitatively or from a discretionary perspective.
And in the past few months I have begun to unveil what distinguishes the spectacularly successful among us.
It boils down to the ability to only take the most obvious setups when they present themselves, and largely ignore everything else. This will result in times where you’re observing more than you’re actually trading.
But how do you cultivate that sit-down power?
By knowing that when you get it right you will be so richly rewarded that it’s not worth chasing everything that moves.
This is where the concept of ‘Good Leverage’ comes into play.
Most traders make big mistakes with leverage. But when you use it correctly and sparingly, it can actually help you be more fussy … because you know only to use it with the highest quality setups.
Also, if you use it in the correct way, you won’t be too badly affected when you have a bad trade.
I covered all this during my webinar last week, which you should have access to by now.
Be a Lion, Not a Headless Chicken
Last week I started to give an analogy, which I developed further in the webinar.
With your trading, be the lion … not the headless chicken!
—
Current Market Behavior:
The S&P bounced off its 200-dma on Friday, which might prove to be pivotal. My S&P Swing Timer is still just a tiny bit oversold while the OVI for the index has flattened out.
Market Outlook:
Many commentators are saying we’re in for another V-shaped recovery … probably because it serves their interests to say that!
I’d like to see more confirmation first, though most of my attention this week is focused on bullish setups.
Stock Selection:
Focus your energy on consolidations near Key Levels, with other Big Money Footprints in evidence. You’ll get bigger odds on your side, and you’ll be able to manage your trades effectively to control your risk.
This applies also to options traders who like some adventure.
Application:
One of the first Fast Filters I gravitate to is simple consolidations. Try it!
Software Upgrades
Further tweaks were made last week across various applications. For our options traders, very soon I will deploy new filters for larger leverage multiples as we discussed in the webinar. This way you will be able to filter for ‘Good’ Leverage stocks with cheap options. I will create the Fast Filters for these, so you can access them in one click. And you can always tweak them to create your own unique Fast Filters too.
—
Remember, you can play the video at 1.25x or 1.5x speed if you want to save time! I have placed all the stocks covered in today’s review in your “Latest Preview” watch list.
