Tuesday, April 13, 2010

Momentum Trading

The Evolution of Momentum Trading

With momentum trading, traders concentrate on stocks that are moving significantly in one direction with big volume. Momentum traders may hold their positions for minutes hours or days at a time, depending on how fast the stock is moving until it makes a reversal or change in direction.

Stocks move in cycles-and learning to interpret where a stock is in a cycle can lead to an uncanny ability to capture significant gains

Along with stocks, the market itself moves in cycles; knowing which bias to use when (short or long) can hyper-charge your trading results.

Premier stocks can provide significant clues to their long-term potential-knowing what those clues are is as simple as following a few basic rules

Finding these premier hi-scoring stocks is made much simpler when you understand that patterns tend to repeat themselves.

Realizing that a certain breed of stocks produce these repetitive patterns, stock scans can be built to target the next batch of prospects.

Finding and analyzing these stocks for buy signals can be the most productive thing you do financially for the small amount of effort invested

This system excels at keeping your money working hard — the annual ROI (return-on-investment) on the right momentum stocks can be phenomenal

In fact, the top traders of all time are momentum traders including one who turned a $10,000 account into $42 million in 2 years a few years back (try to do that with Forex ;).

You will understand why the old way of investing in the markets is a thing of the pastgetting wrapped up in noise can cost you a lot of money in missed opportunities.

Its All About Time/ Price

The basis of any successful momentum trading system is how the price action performs within specific time periods.

But whereas, many momentum trading systems operate within a set of broad parameters kind of like a hatchet, my long-term study of the markets mega movers showed that there were excellent common entry and exit signals more like a scalpel.

How would you like to catch 99% of a move? This is not an uncommon occurrence when you understand how the price action operates within sets of waves inside of these cycles.

Getting back to my point about time/ price, what this means simply is what the price action does in a defined period of time will often telegraph its future potential.

Identifying these stocks at the correct point in time in its cycles can lead to unfathomable returns in the markets.

In fact I like to use the analogy that martial arts can teach us much about stock selection. Have you ever seen the one-inch punch?

This was something the late kung fu master Bruce Lee excelled at. He had the ability to produce damaging blows to his opponents with a punch that began one inch from the persons body.

It is a demonstration of the explosive strength of breakouts that can happen when the right conditions of price tension and time intertwine.

In fact a recent biotech stock did just that with a 300% gain in just a few weeks. This was an optionable stock producing even more stratospheric gains on the options.

This is what can happen when the right momentum meets the right cycles.

These are just some of the simple but little known concepts that consistently allow traders to identify the top potential trading prospects in the market at any given time to momentum trade.

Momemtun trading has provided me my best profits over the years compared to other trading strategies.

If you could learned and be profitable with momentum trading would you be interested? If so, read on.

DVD #1- Momentum Trading Introduction And Basics

DVD #2- Elite Wavetrader Trades

DVD #3- How To Analyze Momentum & Pattern Quality To Isolate The Top Trade Prospects

DVD #4 — Stock Cycles How To Nail Turning Points in a Stocks Price Trend With Uncanny Accuracy

DVD #5 — The Art of Stock Timing How Massive Stock Market Wealth Is Created

DVD #6 — Fundamentals and Stock Scoring How To Shine A Spotlight on the Markets Top Trading Prospects

DVD #7 — Introduction to Short-Term Swing Trading How To Generate Momentum Stock Profits in an Iffy Market

DVD #8 — Quick Start & Simple Scans — How To Get Started Quickly With Elite Wavetrader

Elite Wavetrader Trading Course Manuals