The Method

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The Method Pt. 1

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Is it possible to discuss an entire method in a few simple pages on a website? I'm gonna say no...but try it anyway! LOL. Then again, Richard Dennis, famous co-founder of the Turtle Traders said you could teach someone everything they need to know about trading in 8hrs. Then you'd have to spend 8 months getting them to believe it! I am gonna have to agree with that statement. The method I trade (trend following low priced stocks) is amazingly simple to grasp. However, it can take months to learn.

Why? Because trades can run, fill up your account with money and beg you to take profits too soon. They can go up a little, then crash suddenly leaving you stuck like a deer in headlights unable to close a losing position. They can run up, stall, and go nowhere for days then rocket to the freaking MOON the moment you close them. In other words, trading can totally mess with your head!

That's why it can take months to learn. Because in the market you need to act based on what you know, not what you feel at the moment.

Let's take a look at a chart that exemplifies what I look for in a trade...

Wa-howw! They really don't get much better than this. A clean break and run. No retest. No fakeout. Just a clean, smooth, actionable trade. It's trades like this that can really make your year. And I'm willing to put down a lot of -5% and -10% losses to hunt down these low priced, big trending stocks.

And the best part about these trades is that you don't have to trade them perfectly. In this chart, over a 4 month period, HDY makes a 300%+ move. For me, if I catch any part over 25% I'm a happy trader.

Before I started trading this way, back when I was a big, fat LOSING trader, I would over complicate my trading to such a degree it was impossible to make any method work! And I traded them all. I traded news, tips, hunches, CNBC, indicators, other people's systems, whatever. I was all over the place. Now I stick mostly to these (I have 2 other methods) and my trading life is much easier.

Before we go over EXACTLY what I look for, let's take a look at the mess that my charts used to be, covered with all of the indicators that I used to look at, thinking they gave me the edge I needed to make money trading.

Go ahead, click Part Two and have a good laugh...