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Every traders 2nd worst nightmare

Nearly every traders nightmare is being stopped out of a trade – it happens to nearly everyone (except me of course but more on that later)

But, every traders 2nd worst nightmare is just around the corner, always lurking and always ready to twist the knife and maybe wiggle and jiggle it around for good measure

In fact this is likely worse than being stopped out for most inexperienced traders & active investors

What is it that could make your blood boil more than being stopped out?

Well it is being stopped out AND then watching price do what you thought it was going to do only without you participating in the move

THAT is a traders 2nd worst nightmare

Is this your “I was right dam it!” trade trade?

The only reason your not on it is that you were stopped out – maybe a little too tight on your risk control and stop placements

How many times have you had that “sick to the bottom of your stomach feeling” when price tickles your stop loss and then turns around and does the happy dance to your targets without you?

…and this is one dark experience that my group of insiders and I have not experienced for some years

Don’t mistake me for never having a loss – but I have not been “stopped out” for many years all because we utilise smart trading & investment practices

One now that I hope you will embrace now that you are about to be made aware of this boogyman slayer of method

The simple solution is to use stock options to express your trade instead of outright stock purchase, spread betting or CFD’s

Stock options, if they are new to you, are similar to a deposit (not accurate but good enough if this is the first time you are hearing about them)

Like a deposit you can NEVER lose more than the deposit amount no matter how bad things get – BUT should we be right with the trade idea we get a proportional benefit and the deposit can increase in value along with the stock price moving favourably

So you see you will never need to be stopped out again as your risk is controlled by the amount you use for your “deposit” to reserve or control say 100 shares

…because we know that we will never get stopped out again we get to wait and see if the stock price comes back to being favourable – which VERY OFTEN does with my methods

This is a very unique way of trading and allows you to turn a bad trade into a winner should you be right generally speaking with the stock (and most of the time we are all right) but sometimes you get the fine tuning of your entry slightly off kilter – which is why you may get stopped out in the first place

Now you will never be stopped out and you get to see truly if your stock selection does what you thought it was going to do and profit from it if you are right

Pretty cool huh!

That is in part what I send out in y daily alerts – which stocks Im trading – the options Im using as well as where I believe the stock will get to

I just need to then sit back and see if price gets there

…and if you want me to send you, your own daily alerts then follow the link below and start getting them in your inbox before the markets next open

Thats all folks
Happy Trading
Phil Newton

 


Still need a little more help?

Risk:Reward Natzi’s can go choke themselves

Risk & Reward ratios are a load of old potatoes

Perhaps it is a crock of something smelly and brown

or maybe it is nonsense…

At leat most of the time

This ratio is to be ignored – I dont use it and I dont care for it most of the time

In fact the more you risk for smaller reward the higher the theoretical probability of success you will have

Weird eh?

What would you rather have?

  1. A lower risk to reward?
  2. A higher probability of success?

I would rather have a high probability based outcome based on actual track record results than “ensure I have a good R:R ratio” like the text books say

Me: “Jeaves, pass me my retching bucket!”

On its own this ratio is useless and should be treated with the contempt it deserves

In fact – just ignore it completely because you will get more done without stressing over if your trade has a 1:5 or 1:3 risk to reward ratio

Because it is all theoretical based on mostly intangible guesstimates

I can also move the risk and reward sliders up and down to “get a figure I like” to appease the R:R Natzi’s

When you’re trading with real money in a real account come back to me and we can have a grown up conversation about it but until then keep those theoretic views to yourself

If you are making money consistently and seeing good results based on solid time tested research which has proven to be realistically attained with actual trading results then does it matter what the risk reward ratio is?

As someone who has been doing this for 22-yrs and made a living from it full time – maybe I do have a view that could be better than the theoretical armchair warriors out there – just sayin’

Hopefully you can get my playful tone here

Risk reward is but one very small facet – and as far as Im concerned irrelevant facet – to a successful trading strategy

Of course the real secret is a fine balance of risk reward AND probability which is what I focus on

That is all for now – End rant

Thats all folks
Happy Trading
Phil Newton

 


Still need a little more help?

I think therefore I’m wrong

The more I think about my trades the more I bugger things up

The less I think and keep it simple as to 1 of 6 possible outcomes

For example,

If the chart is going up then you likely better off being bullish on that chart

It is all too easy to think you have a good trade idea – but if you wait for your entry criteria you will know you have a good trade idea and you can replicate that process to generate more good trade in the future

…which is what all good traders & investors do

Stop thinking (too much) and start trading (your plan)

Thats all folks
Happy Trading
Phil Newton

 


Still need a little more help?

Investment advice from Paula Abdul

You know that Paula Abdul song, the one with the cartoon cat?

There is a part of the song which aptly describes how to trade.

Interestingly it is some of the best investment advice you could take and from the least likely place in this instance

The lyrics go something like this;

“…Two steps forward and one step back…”

Something – something – more mindless drivel…

“…because opposites attract”

Ok it’s a tenuous link at best but it is something I’ve used for years to describe what a trend looks like that is easy to picture in your minds eye even if you have never looked at a chart previously

Price needs to move forward more than it moves back on a regular basis to be an uptrend – just like Paula sang.

When you get to the next floor or level there are usually flat parts like a floor or ceiling – price very often runs the stairs back and forth between these platforms because opposites attract

Nice one Paula!

This is at its most basic what Im looking for when finding stocks to trade today – which way is the stock moving? If its going two steps up for every one step down – you have to, I mean HAVE to call an uptrend

It is that simple

You do not always need the fancy tools and the latest wizzbang gizmo based on 11th century mathematics

It makes me gag sometimes the horse crap you get told

If prices are overall pointing upwards then you should likely be bullish or vies versa

If you cant tell whats going on – skip that stock and move on – there is always another stock to look at

This is what I spend my 60-mins-a-day doing – find a stock to trade with one of the 6 methods I teach and then make sure it is the best stock that I can find today to trade

Then I send that stock out (before the markets open usually) to the premium alert members

 

See you on the inside…

Happy Trading
Phil Newton

 


Still need a little more help?

Road Rage Trading

Some jerk nearly ran me off the road earlier, all because he wanted to squeeze in between me and the car in front when there was clearly not enough space just so that he didnt have to slow down while overtaking a parked car in his lane of the duel carriage way

I could see him set himself up for this act of stupidity because like a self aware and responsible driver I am I make myself aware of what is going on in around and ahead of me and not simply inside of the steel box of combustable doom

Needless to say I leaned on the horn continuously the moment he came within 2inches of my wing mirror which by the way was the same moment he decided to put his turn indicator on – [like thanks for the heads up!?!]

Im quite certain I ruined his day as he swerved, braked, accelerated, braked again and generally weaved and bobbed while still trying to effectively put a square peg in a round hole by attempting to pull in front of me

I of course won – I was in right – although closing my eyes briefly also helped significantly

Consequently this jerk got a serious case of road rage and tailgated me for a while before the finger waging of his wife caused a move back to normal and much safer driving – I think he pulled over to shed a tear or two

While I am completely amused by the whole situation it did get me thinking

How many road rage type trades do you end up placing when things do not go quite your way?

If you do everything you are supposed to do you will most likely eliminate the rage

Just like if road rage dude had indicated I may well have slowed down to “let him in” because that is the safe responsible thing to have done and not to try and wedge in as he attempted to do

That is planning and if you plan ahead for your trades too you will avoid road rage or trade rage and many forms of collisions in a mobile Molotov

I send out my daily plan for my trades well in advance of the market opening and if you want me to send you my plan too you can view the details of the premium alerts by clicking here

What are you waiting for…?

Consider this your personal invitation to start receiving YOUR alerts every weekday

It is exactly like having your own personal research team – only better

Get the next Alert – Take Action Today

…It is reassuringly inexpensive

See you on the inside…

Happy Trading
Phil Newton

 


Still need a little more help?

Be wrong & still make 29.2% ROC

This is one of the things about doing what I do the way that I do it

You can be wrong – at least initially – and still get paid

QCOM was one of those trades for me where I did everything I could to ensure that my premium alert members saw a reasonably fast profit

But sometimes you just have to wait

This stock move a little way in my favour initially THEN spend the better part of a couple of weeks dithering on the wrong side of OK

Now this is in fact just fine as part of the methodology I teach and use myself for your alerts – the timing looked good in real time but didnt work out straight away

Traditionally this is where you get stopped out and start blaming everyone and your broker for screwing you

With these methods we just sit patiently and wait to be right – as long as my view point hasnt changed we usually have around 35-40 days to “manage the position more effectively”

QCOM – I was wrong and still got paid 29.2% ROC

As you can see on the image, we also closed HCA for a 26.5% ROC

Oh and the best part is that I spend the afternoon eating fish taco’s and supping cocktails because I refuse to be chained to the desk trading – and neither should you be…

Perhaps – my alerts will help you – perhaps they wont – but after 22-yrs of trading – I think, nay Im certain I’ll be doing what ever I want to do after my 60-mins a day trading and off to do something more interesting

If you sign up – before midnight today – and email me the secret phrase “Fish Tacos” (which is what I have just enjoyed with my wife yum) – I’ll hop on a mini training session to help you get up and running with the alerts

What are you waiting for…?

Consider this your personal invitation to start receiving my alerts every weekday – and eat tacos whenever you want

It is exactly like having your own personal research team – only better

 

Happy Trading
Phil Newton

 


Still need a little more help?

Go Slower & Get Profitable Faster

It may seem bazaar but going slower is not a new idea

The parable of the hair and the tortoise is one from most peoples childhood another popular saying which I always seem to bugger ups is something like “less haste and more speed”

Although the point is that trading and investing – just like any business – is like a long distance race and nothing at all like a sprint

Im sure you get it now

Anyway – I received a question in the mail bag from a long and adoring fanboy of yours truly which went along the lines of

“Phil, a quick question for you, would it be easy to make a scalping +20 pts for @YM to use between 7-9pm”

[note – YM is Dow future and the time is the 2hrs prior to close EST for my international readers]

A simple enough question but the answer is one that most people do not want to hear my response to this is below which I thought would help many people who are in a similar situation themselves

Go slower, not faster

If you have a trade window of 2-hrs every day – and you have been trying to “scalp” in that time window – which I might add is a bloody difficult thing for a pro to do let alone a noob to learn how to do from the outset – AND you have been at it for several years (well done BTW) BUT not yet made it work for you

… I think you have given that a good crack of the whip and it should be time for you to try a different method

Day trading is an all day job so if you do not have the time to watch 1 or 5 min charts to scalp a few trades at some undetermined time during the day – then you shouldnt do it – I spent 12-years doing it and the one thing I say say in day out was people with a VERY small time window to trade and FAIL at it regularly

Basically – you dont have time to scalp – so what do you have time to do?

Number 1 – You could start taking this trading lark seriously, less like a hobby and more like a business

How? – Look backwards – you have 2-hrs to trade and do research etc – so use the methods you like and go up time frames instead of down a time frames – going slower will get you profitable faster

My suggestion – is swing trading, go up the time frames and not down

It is not sexy – but it will make you less stressed over trying to find a “scalp” every day while still making money

See you on the inside…

Happy Trading
Phil Newton

 


Still need a little more help?

Taking the path of MOST resistance

The fastest path to profits is the line of LEAST resistance and I see a lot of traders and aspiring traders do the complete opposite and go for the path of MOST resistance.

I know, its simples right?

I teach all my Trading Apprentices this principal as one of the foundations stones because it then doesnt matter what TACTICS you use to get in the trade you will have a SOLID STRATEGY to start with regardless of the tactics

Awesome right?

Do how do you do it?

Well, let me tell you as it is very simple

Look Left

That is it and what you are looking for is a speed bump or a pause in price a cluster of bars where price action has stopped

That is a barrier or a prior logical stopping point as that is where price activity has stopped before – then there is a good chance that price will stop there again

This is where I usually like to set up most of my entries for the Premium Alerts too

Now for the hard part – you then NEED to;

Look up and left – if you were bullish
Look down and left – if you were bearish
You basically want to look for free space as you do this – are there there any speed bumps along the path you expect the stock price to move?

If there are the first one is where you can expect price to get to first [ob-vee-us-ly – – roll-ee-eye emoji]

Additionally, you are looking for as large a distance as you can to the next logical stopping point WITH clear clean price action ie. multiple consecutive up or down bars on that previous move to your entry zone

…because THAT is your path of least resistance

  • That is why my Trading Apprentices ALL report unsolicited success stories
  • That is why Im seeing 85.7% of my premium alerts closed profitable
  • That is why you can have absolute confidence in being able to follow in their footsteps and start your own success story
  • This is what I send out in the Premium Alerts – which is just like your very own personal research team

What are you waiting for…?

Consider this your personal invitation to start receiving Your alerts every weekday

It is exactly like having your own personal research team – only better

Get the next Alert – Take Action Today

…It is reassuringly inexpensive

See you on the inside…
Happy Trading
Phil Newton

 


Still need a little more help?

Do you crack one off every day?

Every day you should crack one off.

I do

…and I feel better for it and more importantly so does my account balance

What?

Did you think I meant something else?

You did dint you?

I am of course talking cracking out a new trade on every day – what did you think I was talking about – pah!

Anyways

One (trade) and then done for the day then tomorrow also one (trade) then done.

That is how it must go to see any success and to see the type of success we see in the daily alerts this is exactly what we do and it is what all professionals do

The professionals are not putting one trade on and then done for the month while they hope for the best with their one new trade and hoping that it works out – pinning all their hopes and dreams on that one trade to do well – for it to metaphorically head off to the big smoke and seek its fortune

Oh no, my dear and discerning reader. That will not work at all

Think about it like this for a moment – Let us say that you had a slightly different type of business and that you sold ladies shoes – [stay with me there is a really good point]

You would not hold only one pair of shoes in stock for you to sell in your shop or that when those single pair of shoes were sold you then orders a new pair from the supplier, popped them on your shelf and then hoped they sold quickly – ie. 1-at-a-time does not make a business

If that was your business you would be out of business very quickly and you can also see without any sort of business ak-you-min that it would be a bloody stoopid way to do business

Well in trading and investing that is the exact same thing as putting one trade on and then hoping for the best – with a “This time next year, Rodney” type of attitude

You only need to find one single trade every day – the best trade you can find AND…

…it MUST be a Cracker

This is what I send out in the premium alerts – which is just like your very own personal research team
What are you waiting for…?

Consider this your personal invitation to start receiving my alerts every weekday

It is exactly like having your own personal research team – only better

Get the next Alert – Take Action Today

…It is reassuringly inexpensive

See you on the inside…

Happy Trading
Phil Newton

 


Still need a little more help?

That time 1-trade kept me awake for 8-months

My first trade was in a UK stock call Waterfall which was a leisure company focusing on pool halls and sports bars

…and before I go further, I warn you now your sides may well split with laughter or a severe eye roll followed by a groan at my naivety

Anyway – I walked to the bank on a mild but sunny weekday

Yes, you read that right – I pedestrian’ed myself to my local bank to purchase some stock. 1-mile there 1-mile back

This was 3-days after my 18th birthday and I basically asked the cashier how to buy some shares in a company I liked

45-minutes later, several phones calls, paperwork filled in triplicate I had myself a carbon copy pink slip

and had my then life savings e-lec-tron-ic-ally sent to the City to seek its fortune

48-hrs later it was even more official, I was the proud owner of stock with a certificate to prove it curtesy of the morning post

That little bastard of a trade kept me awake for 8-months eventually, but not at first

Well, it definitely felt like I never slept and I’m quite certain that even at the heady age of 18 (and 3 days – hey it was important back then) my blood pressure rose to “she’s gonna blow” levels only seen by Scotty on the Enterprise

But, I was hooked…

and every day I would check the teletext (pre internet days people give me a break)

Almost immediately after my purchase it dropped from my purchase price of 54-pence to 53-52-50-49 and then eventually 48-pence and stayed there – that was when this shit got real for me

All I could think was;

“What what had I done?”

“Had I made the biggest mistake ever in my short life?”

“Would it come back?”

“I’ll give it one more day”

Every day I gave it one more day and I saw my paper loss turn and climb higher and two weeks later I was seeing a quick but small profit

Over the following weeks I saw it move quickly to around 72-pence

and I’m king of the world, look how clever I am but then I develop a worse class of problem than when I was on losing side

Now dont get me wrong it is a better type of problem – It is a high class problem

Daily I was consumed with that growing problem. It kept getting worse by getting bigger and then as it got bigger it gets worse

The writing was sadly not on the wall and nether was it on the ceiling at 3:27am. I know because I checked every day – “Ya know, just in case”

“When do I take profits?”

“I’ll give it one more day?” – continued for those 8-months along with high blood pressure, sleepless nights and exactly zero people to talk to about my unique problem

…because lets face it when you have exactly no clue what to do or what you are doing and when no-one knows what you are doing either – then its a problem

Thankfully my adoring reader – this story has an eventual happy ended

As the price crested £1.12 – I snapped (after leaving it one more day of course)

I left college at lunch fast walked, maybe I power minced at a pace that could qualify for Olympic trials. I most definitely did not run (that came later)

Retrieving my precious certificate with Golem like affection

Ran to the garage – hopped on my bike and pedalled as fast as my legs would pump

Stood in a queue for an obscene amount of time

made my request with the cashier (I know!)

endured several phone calls – filled out forms in triplicate and confirmed a price of £1.09 and 45-minutes later completed my first trade

I was a fucking wreck! – But, lets do it again!

That was when I knew what I wanted to do the rest of my life

It was also how I learned not to put one trade on and “hope for the best”

20-yrs later Im still doing it, quite successfully as it happens – trade small & trade frequently is the lesson

I think thats all for now
Happy Trading
Phil

 


Still need a little more help?