1. The nature of the gap down
2. The post selloff range
3. Key support levels
4. Upcoming news events

The post What To Do When A Momentum Stock Gets Crushed Off Bad News (Boeing) appeared first on Bulls on Wall Street.

Now that the election is over, the market can get back to business.

Business before the election was an epic pullback off highs that made for a historic October to remember (or forget!). However, we are seeing some improvement. The market is bouncing off October lows and as of this morning, has taken out two key resistence levels (the 9ema and 50ma).

The key for us now is how the market reactions to a strong post election open. If the reaction is stays strong, I’ll look to trade TQQQ, SPXL, HABT, TWLO, NFLX, FB, ETSY, AMZN or ULTA (We discuss these stocks in the video).

In today’s video, I show you exactly what to look for,  key levels and stocks to potentially trade at the close today. This is the same type of analysis I do for Trade Report members. So watch, learn and let me know what you think!

Swing Trade Service

This swing trading service is great for those that work and can’t monitor the computer all day. We have in-depth nightly reports on the gameplan for the day/week and all stock picks that I trade will be alerted and emailed to you.

Check out the Swing Service HERE

Follow me, Paul Singh AKA “TheMarketSpeculator” on Twitter or email me at SinghJD1@aol.com

The post How To Swing Trade Post Election Results (Key Levels and Momo Stocks) appeared first on Bulls on Wall Street.

In Day 11 of the 30 days to master part-time swing trading challenge we use volume to analyze accumulation and distribution patterns in stocks and markets.

Accumulation and Distribution: Keys to Analyzing Volume

Let’s keep this simple by thinking of accumulation as buying, and distribution as selling. A bullish stock shows strong signs that a stock is being accumulated or a high level of demand.  Conversely, a bearish stock shows more supply than demand in the form of distribution. The more accumulation we identify, the more buying pressure there is on the stock. The more distribution, the more sell-side pressure. As this pattern gets stronger and continues longer, trends in the direction of the pressure form.

How do we identify accumulation and distribution?

By analyzing volume patterns.

Identifying The Volume Patterns

As we have already noted, positive volume patterns signals accumulation, while a negative volume pattern signals distribution.

The simple way to think about accumulation and distribution volume patterns is to simply eyeball the chart and study the volume bars. Pay close attention to the size of the bars, especially the bars that are outside the average size.

If the big bars are green, and the smaller bars are red, we can decide that sharer is more buying than selling volume. This is accumulation.

On the other hand, if the big bars are red, and the smaller bars are green, there is more selling than buying. This signals distribution.

Keep in mind that we are not focused on one or two individual bars, but overall patterns.

Multiple bars make trends.

The Distribution and Accumulation of Twitter

Take a look at the Twitter chart. Notice that from 2014 thru 2016 the stock was in a downtrend. However, there were periods where price action alone would indicate a potential bottom or reversal. However, every one of the bounce attempts failed and were actually textbook short opportunities.

Now it’s easy to say this now, but how do could we know during this period that twitter was a sell?

By the volume pattern.

During this two year period, red volume dwarfed green volume. It was not until late 2016 and early to mid-2017 that we started to notice a change in the volume trend. Now big green started to outpace red volume.

This signaled a dramatic shift in the volume trend. Now there was more buy-side pressure than sell-side, which predicted the 2017 and 2018 uptrend.

How to Analyze Volume in Uptrends, downtrends and Rangebound Markets

Now that you know what to look for, keep in mind what type of trend a stock or market is in, and then analyze the volume pattern according to their parameters.

1. If stock in uptrend with positive volume pattern (accumulation): expect continuation of uptrend
2. If stock in downtrend with negative volume (distribution): expect continuation of downtrend
3. If stock in uptrend with negative volume (distribution): Expect reversal at some point
4. If stock in downtrend with positive volume (accumulation): Expect reversal at some point
5. If stock rangebound or bottoming with new accumulation: Expect breakout at some point
6. If stock rangebound or bottoming with new distribution: Expect breakdown at some point

Now that you know what to look for watch today’s video and then do the exercise.

The Day 11 Exercise

1. Pick 10 different types of stocks
2. Go back 5 years and analyze the volume patterns during each chart’s major uptrends, downtrends and range bound phases.
3. Now study the current patterns in these stocks and predict future outcomes.

Previous Posts

Day 1: Getting Started

Day 2: Analyze the Market

Day 3: How to Use Moving Averages

Day 4: Managing Risk and Setting Stops

Day 5: Managing Risk on a Macro Level

Day 6: Managing Risk and Taking PROFITS

Day 7: The Reward to Risk Ratio

Day 8: Stochatic Indicator

Day 9: Case Study Webinar Replay

Day 10: 5 Keys To Trading With Volume

Swing Trade Service

This swing trading service is great for those that work and can’t monitor the computer all day. We have in-depth nightly reports on the gameplan for the day/week and all stock picks that I trade will be alerted and emailed to you.

Check out the Swing Service HERE

Follow me, Paul Singh AKA “TheMarketSpeculator” on Twitter or email me at SinghJD1@aol.com

Important Links
Link to YouTube Live-Stream on June 26th

[rf_contest contest=’10333′]

The post How to Analyze Volume Patterns to Unlock Accumulation and Distribution of Stocks (30 Days To Master Swing Trading Challenge Day 11) appeared first on Bulls on Wall Street.

In day 8 of the 9 days to master part-time swing trading challenge as I show you how use the stochastic indicator to trade overbought and oversold conditions in stocks and the overall market.

The Concept: Overbought and Oversold

As swing traders, our favorite stocks and market are those that show strong momentum (rate of change in one direction).

However, in momentum markets there usually comes a point where the momentum becomes so strong and outside of the normal trading range that the rate of change in price action becomes unsustainable.

This is known as an overbought or oversold condition.

An overbought or oversold condition is where price is likely to consolidate or reverse.

However, there is no guarantee that this will happen.

In fact, in some supercharged markets, overbought or oversold levels can persist for a long time without a reversal or consolidation. We will talk about in later challenges, but for now let’s work on identifying overbought and oversold levels.

Stochastics

As you develop as a trader, you will be able to identify overbought and oversold conditions without any indicators, just by analyzing the price action. That being said, the best objective way to analyze overbought and oversold levels is to use the stochastic indicator.

The stochastic indicator measures the rate of change, or acceleration, of a stock.

That’s the extent of what we need to know.

While there is a formula for it’s calculation, all we need to know to trade effectively is how to use it (you don’t make any money by knowing the formula and plugging in the numbers!).

Here are the keys to using the indicator

1. Set the indicator at 5,3,3
2. Classify a stock or market as overbought at 70+
3. Classify a stock or market as extremely overbought at 85+
4. Classify a stock or market as oversold at 30 or less
5. Classify a stock or market as extremely oversold at 15 or less.
6. If the indicators reverses sharply, expect reversal
7. If price action stays in the overbought or oversold zone, expect trend to continue.

Remember, we are not going over any setups today.

Instead we are learning how to use the indicator.

Keep in mind that these classification are just a guide, and not actual buy or sell signals. Buy and sell signals take into account many factors along with these levels.

Watch today’s video for a more in depth analysis with charts on how and why we use stochastics.

The Day 8 Exercise

1. Pull up the charts for SPY, QQQ, NFLX, AMAZN, FB and GOOGL.
2. Identify every overbought and oversold condition over the past 2 years.
3. Note where they because overbought/oversold and where levels became extreme.
4. Study price action and patterns after these levels were hit.

Previous Posts

Day 1: Getting Started

Day 2: Analyze the Market

Day 3: How to Use Moving Averages

Day 4: Managing Risk and Setting Stops

Day 5: Managing Risk on a Macro Level

Day 6: Managing Risk and Taking PROFITS

Day 7: The Reward to Risk Ratio

Swing Trade Service (Limited Time Offer Get 50% Off)

This swing trading service is great for those that work and can’t monitor the computer all day. We have in-depth nightly reports on the gameplan for the day/week and all stock picks that I trade will be alerted and emailed to you.

For taking the initiative with your trading education with this series, we are offering you 50% off all swing trading packages.

Note that this coupon code will only be valid for another 2 days before it expires. Use coupon “SWING50” at checkout to get 50% off!

Check out the Swing Service HERE

Follow me, Paul Singh AKA “TheMarketSpeculator” on Twitter or email me at SinghJD1@aol.com

[rf_contest contest=’10333′]

The post How to Trade Overbought and Oversold Conditions with the Stochastic Indicator (10 Days To Master Part-Time Swing Trading Challenge Day 8) appeared first on Bulls on Wall Street.

In day 5 of  the 10 days to master part-time swing trading challenge I show you how to manage risk on a macro level.

In other worlds, we need to not only manage risk for specific trades, but also our overall account.

The Concept: Managing Account Risk

Why do we manage risk for specific trades?

It’s because that trade does not exist in a vacuum.

It’s part of a bigger story.

That story is the growth of your account, and that growth can’t happen if your risk digs to deep of a hole in your account.

The Mistake Traders Make

Most ametuer traders almost exclusively focus on risk per trade.

For example, they decide that why will risk 1% per trade and think that’s enough.

Sure, it’s true that 1% risk per trade is a good rule. You can lose 10 trades in a row and still only lose 10% of your account. That’s great.

However, what if you are in 10 similar long positions and the market takes a nose dive. Not only that, but let’s say the market gapped down, making each trade blow through your stops so that your average loss is 1.5% per trade.

Now you just lost 15% of your account in one day.

If you have a $100,000 trading account, you are now down to $85,000.

That’s not acceptable.

You will blow up your account this way.

The Fix

Here is how you correct this mistake.

1. Decide on a max risk range for you account at any one time (I like to keep it between 4-8 percent).
2. Analyze the market and according to market conditions, decide which side of your max risk range to be on.
   1. In strong markets at the beginning or middle of trends, you can go toward the higher side at 7-8%
   2. In strong but overbought markets, you must be cautious of a reversal and lower to 4-7 percent.
   3. In weak markets, say toward the lower range.
   4. In weak but oversold markets that  are strengthening, you can increase risk.
3. Add and subtract positions, and position size according to your overall risk parameters.

Watch this video for more on hanging overall account risk.

The Day 5 Exercise

Now that you’ve watched the video and understand why managing risk is so important, complete the following exercise

1. Go to February 2, 2018 on the SPY chart.
2. Pick 10 stocks on that day and assume you had entered before that day and  position sized and set stops according to 1% risk. (for example, AAPL, FB, GOOGL, AMZN, NFLX, NVDA, GS, X, FCX, TSLA).
3. Calculate how much you would have lost with that overall 10% risk in place.
4. Now adjust the account for better overall risk management.

Previous Posts

Day 1: Getting Started

Day 2: Analyze the Market

Day 3: How to Use Moving Averages

Day 4: Managing Risk and Setting Stops

Swing Trade Service (Limited Time Offer Get 50% Off)

This swing trading service is great for those that work and can’t monitor the computer all day. We have in-depth nightly reports on the gameplan for the day/week and all stock picks that I trade will be alerted and emailed to you.

For taking the initiative with your trading education with this series, we are offering you 30% off all swing trading packages.

Note that this coupon code will only be valid for another 6 days before it expires. Use coupon “SWING50” at checkout to get 50% off!

Check out the Swing Service HERE

Follow me, Paul Singh AKA “TheMarketSpeculator” on Twitter or email me at SinghJD1@aol.com

The post Managing Risk On A Macro Level (10 Days To Master Part-Time Swing Trading Challenge Day 5) appeared first on Bulls on Wall Street.

The post Swing Members Only Mentoring Session Recording (How to Break Down the Tech Sector Using ETFs) appeared first on Bulls on Wall Street.

Mike Tyson once said that “everyone has a plan until they get punched in the mouth.”

Just as Tyson’s opponents concocted brilliant plans to survive his assault and take him down, only to throw the plan out the window once he hit pulverized them, traders seem to always want to buy pullbacks until that dreaded pullback actually happens.  Once that painful dip comes, traders give up on the setup.

It’s understandable.

No matter how many times we see a market dip bounce, fear sets in that this dip will be the big one. So how do we mange the fear and stock to the plan?

By having a process in place that gives us easy steps to buy the pullback without fear.

The Pullback Continuation Setup

In today’s video we review our recent winning BABA trade. This entry trigger for this trade was the pullback continuation setup. In this video, you will learn how to:

1. Identify the setup
2. Plan the trade around key technical levels
3. Assess the strength of a bounce
4. Analyze volume patterns
5. Apply effective exit strategy
6. Use sector analysis to increase probability

So watch, learn and let me know what you think!

Swing Trade Service

This swing trading service is great for those that work and can’t monitor the computer all day. We have in-depth nightly reports on the gameplan for the day/week and all stock picks that I trade will be alerted and emailed to you.

Check out the Swing Service HERE

Follow me, Paul Singh AKA “TheMarketSpeculator” on Twitter or email me at SinghJD1@aol.com.

The post How to Trade the Pullback Continuation Setup (China and the winning BABA trade) appeared first on Bulls on Wall Street.

Trading Psychology: The Missing Link

There is a ton of advice on trading setups out there in the blogosphere. Some of it is good, most of it is bad, but none of it impacts your trading as much as your own trading psychology. The “mental game” is usually the missing link that keeps a trader from trading profitably.

Why is trading psychology so important?

It is because human beings are not wired to trade. Our brains are constructed to perpetuate survival, not make money. That is why so many traders know exactly what to do to make money, but still do the exact opposite. Thousands of years ago, surviving in the state of nature did not require long term thinking, assessing probabilities, managing risk or handling draw downs. Instead, it required immediate action.

Here are 5 tips to fix your mental game and increase your profits.

Tip 1: Embrace Small Losses

Dealing with losses is emotionally the toughest thing a trader must deal with. Losses impact our emotions when we take a big loss, are in the midst of a ten trade drawdown, or get stopped out of a stock that immediately reverses and ends up hitting our planned target. The loss trigger leads to revenge trading, micro-managing, poor decision making and a number of other trading psychology pitfalls.

Fix the loss trigger by embracing small losses. Remember that small losses means you are doing something right. You are sticking to proper risk management. You know that these losses mean nothing if they are sandwiched by some bigger wins.

Tip 2: Think About Your Next 100 Trades

Many traders live or die by their next trade. While we analyze every trade, our overall guiding focus should not be gains and losses in the moment, but over time. Don’t worry about that one loss. This leads to recency bias that will reek havoc with your mind. Remember, in the grand scheme of your trading, that one loss is meaningless. Instead, think about, no obsess about, the next 100 trades. This will keep you focused on the process and not short term results. Remember, we are trading probabilities and sometimes you will lose on good trades. A drawdown does not mean you are trading poorly. Do not let good trades with poor short term results impact your trading psychology.

Tip 3: Fight Fear By Reducing Risk

Putting on a trade can be scary. Your hard earned cash is on the line, and you do not want to lose it. Anybody who has traded a paper account with success and made the move to real money knows the impact fear has on your trading. Fear manifests itself in trading by making it difficult to pull the trigger on a trade, exiting before hitting targets, pulling out of trades before the stop is hit and other micro-managing issues. If fear is showing up in your trading, reduce your risk. The smaller the potential loss, the less scared you are of the trade. For example, if you usually risk $200 per trade, lower it to $100 until the fear goes away. Then slowly increase risk in small increments until you get back up to $200 and no longer fear the trade.

Tip 4: Fight Greed By Partial Profit Taking

The opposite of fear is greed. While we love the challenge and strategy of trading, ultimately we are in this game to make money. This makes us greedy. Greed impacts traders in two major ways. The first is by making our targets too aggressive and illogical. For example, let’s say you enter a stocks at $90 with a target just under resistance at $100. As the stock hits $100, you think to yourself that you’ll hold on longer, it’ll hit $110 and you’ll double your profits. The sounds great but you set your target at $100 for a reason. Your stock will likely pullback at the resistance level. Thus, pretty soon that $10 profit is $5 or you lose it all. Greed turned a winning trade into a loser. Fix this trading psychology leak by taking partial profits. In the current example, take half off at $100, move your stop up to $95. This keeps you strategically sound while also letting your greed play itself out in a positive way.

Tip 5: Fight Greed By Reducing Position Size

The other way greed manifests itself is when a trader trades too big by increasing position size. The trader thinks if she can make $1000 off 100 shares, by doubling the position she can double the profit. While this is true, she is commiting trading suicide because not only is the trader increasing potential profits, but also potential losses. A small drawdown no longer is insignificant, but leads to losses that are hard to come back from. The way to combat this common emotion is to religiously stick to your risk rules. If you have identified $500 as your max risk, you will never take a position size that increases that risk. This is the only way to protect your account. Remember, winning traders play defense before offense.

Conclusion:

Sound trading psychology is essential to becoming a winning trader. Humans are not wired to trade effectively, so we must attack the mental game as hard as we do when learning the markets and trading setups.

Take some time to identify your own trading psychology weaknesses. If mental errors like fear, greed, recency bias or issues with taking losses show up in your trading, implement the trading psychology fixes in this article and watch your results improve dramatically.

Swing Trade Service

This swing trading service is great for those that work and can’t monitor the computer all day. We have in-depth nightly reports on the gameplan for the day/week and all stock picks that I trade will be alerted and emailed to you.

Check out the Swing Service HERE

Follow me, Paul Singh AKA “TheMarketSpeculator” on Twitter or email me at SinghJD1@aol.com.

The post 5 Tips To Improve Your Trading Psychology appeared first on Bulls on Wall Street.

Are you shocked?

Probably, because most traders panic, make bad decisions and lose their shirts during market selloffs.

During our last market selloff in late June, Trade Report members and I had some of our biggest trades of the year. Check out the trading stats.

The cycle for most traders starts with a few months of fantastic trading as the market ramps up, a bit of a slowdown during consolidations, another big run where said novice trader starts envisioning future riches, and then the dreaded selloff that wipes out months gains.

It does not have to be this way.

In today’s video I show you how to break the selloff cycle with an automatic low risk-high reward play that allows you to master market selloffs and profit while the dumb money is losing. The beauty of this trade is you don’t have to spend hours analyzing setups or make rushed, often panicked decisions. Instead,  you use a a simple 2 minute process that allows you to hedge your account and potentially make big gains.

Watch, learn and let me know what you think!

This swing trading service is great for those that work and can’t monitor the computer all day. We have in-depth nightly reports on the gameplan for the day/week and all stock picks that I trade will be alerted and emailed to you.

Check out the Swing Service HERE

Follow me, Paul Singh AKA “TheMarketSpeculator” on Twitter or email me at SinghJD1@aol.com.

The post How to Trade A Market Selloff in Under 2 Minutes appeared first on Bulls on Wall Street.

The third trade in our “live trades” series reveals how I trade the rubber band oversold bounce setup.

It’s a fun setup. It’s a profitable setup. It’s also a commonly mistraded setup.

There are key mistakes traders are making when trying to catch oversold bounces; in today’s video I reveal exactly how to trade the rubber band setup profitably in 4 easy steps that focus on:

1. Extreme oversold levels
2. Key entry signals
3. Volume
4. Exit strategy

This is a live trade alerted to Swing Trade Report members seconds after entry. We have taken partial profits and moved our stops up to lock in big gains.  Once the “lotto” position is complete, I’ll update with another video.

Remember, our example is another in my series of live trade videos which makes it must watch: you’ll get into my head and see exactly how we plan and manage the trade as it develops. I’ll be back with another video on the exit.

This video is the third in the “Live” trading series.

Check out the first video to understand how $BRZU made our watchlist and the second video highlighting the gap down reversal trade in $NFLX. .

Remember, members of the swing service get all of these trade alerts intraday in real time.

This swing trading service is great for those that work and can’t monitor the computer all day. We have in-depth nightly reports on the game plan for the day/week, and all stock picks that I trade will be alerted and emailed to you.

Check out the Swing Service HERE

Follow me, Paul Singh AKA “TheMarketSpeculator” on Twitter or email me at SinghJD1@aol.com.

The post How to Swing Trade the Rubber Band Bounce Setup: UCO LIVE TRADE appeared first on Bulls on Wall Street.