Each Saturday or Sunday a list of “trending stocks to watch” is published in the Stocks and Stock Market Analysis section. These are stocks to watch for trade signals in the upcoming week. The signals are based on daily charts, so this is a swing trading strategy, although the concepts could be applied to day trading as well.
Charts are published with lines that mark the entry, stop loss and profit target. This video explains how those trades are chosen, and where exactly the entry, stops and targets are placed. It also discusses taking a position size is perfectly calibrated for the trade in question.
Please note that these trade signals are not a forecast. I am not predicting where the price will go. It is a mathematical strategy where our winners are bigger than our losers. The strategy win rate is usually near 50% (half trades win, half trades lose) but because our winners are bigger than our losses the strategy still tends to produce profits.
I tried to cram as much into this 20 minutes as I could, so there may still be a few questions (feel free to ask) and a few slips of the tongue (I say the wrong number a couple times, but it still should make sense). In 20 minutes I couldn’t get to everything, but this should give you a good idea about how to enter the trade, exactly where to place stops and targets and how I end up with the stocks on the list that I do.
How to Use the Free “Trending Stocks to Watch” Trade Signals (Video)
Best wishes in your trading,
Cory Mitchell, CMT
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