Approach

Simplicity, Awareness, Concentration, Introspection

Trading

Day, Scalping, & Swing, Futures, Momentum, Growth Stocks,

Focus

XLQ Dashboards, XLS Trade Tools, Market Analysis, Stock Analysis

About Me & My Trading

Why I Trade

My journey began in 1996 with aggressive investing in various mutual funds, driven by the mistaken belief that their diversification would protect my capital. The crash of 2008 served as a major turning point, leading me to realize that I could generate better returns by investing in individual equities instead of relying on a mutual fund middleman. More importantly, I find deep fulfillment because I truly enjoy every aspect of trading! My motivation solidified around a shift in 2010 when, after achieving only minimal success (+3% to +10%) by following the crowd, I began focusing on a more strategic approach. The idea of using statistical research and historical precedent as a logical and quantifiable method immediately struck me as a high-probability path to success. Furthermore, many people ask me about my knowledge, and the answer is that I relentlessly read books written by the best and most successful traders, as well as those on performance psychology. I view learning as a lifetime pursuit and believe anyone else could easily achieve what I have done.

How My Trading Developed

My strategy evolved significantly, starting with the shift in 2010 that focused on growth stocks and futures, which dramatically increased my returns (jumping +30% to +100%). Since 2012, I have been a full-time day, swing, and position trader. For short-term trades, my focus is primarily on momentum and growth stocks that possess sufficient volume (liquidity) and volatility (measured by ATR). I generally look for low-risk (high-probability) trades with small, well-defined risk—meaning the shortest distance to "wrong" and logical stops—where the potential risk-reward is heavily skewed toward the reward side. My entries rely on simple, robust strategies and popular technical patterns. I trade both the long and short sides, essentially looking to go long strength and short weakness. I also trade futures and use index, sector, and inverse ETFs as a hedge against open profitable balances. Intraday, I maintain a top-down awareness by paying close attention to the 10-minute action on the S&P 500 and Nasdaq, as well as various futures contracts. I've found a profitable edge in breaking a day's session into several 'observed time tendency' segments, preferring to pursue the 'easy money' by trading with the trend and fading obvious price extremes.

Risk/Reward

No one can make a stock move up or down so my main attention is on controlling the amount of money I lose (i.e. the frequency and severity of loss). My primary focus is controlling risk! I use different risk reward ratios for different conditions and strategies. I focus on performance statistics that matter such as my average risk reward ratio, average percentage of profitable vs. unprofitable trades, and average gains vs. average losses.

Entries & Exits

I focus on inefficient, growth & momentum stocks. I prefer stocks with strong or accelerating fundamentals and relative strength, sound bases or consolidations, and signs of institutional volume for position trades. Entries and exits rely heavily on technical action. I prefer to scale in and out when possible. Taking partial profit allows me to ring the register, maintain emotional control and still participate in unforeseen profitable swings. I will let a winning day trade swing over in order to "let my winners run". And roll over a successful swing trade into a position trade if a longer term opportunity exists. I combine offensive and defensive strategies plus dynamic and static signals for exits.

Market Timing

Market health & trending direction are the most important factors in whether I chose to go long or short in a trade. I'm looking for candidates that will move the quickest or longest. My goal is to time entries just before price makes a significant move and to gain a profit cushion immediately. Additionally, I'm attempting to participate in potential, favorable outlier moves. In an effort to enhance timing and candidate selection, I've created quantitative market models and proprietary stock screening reports to track acceleration and deceleration in the major indices, sectors, industry groups, and individual stocks.

Investor’s Business Daily Radio Show

I was happily surprised when invited to be a guest on the Investor's Business Daily Radio Show. A special thanks to Matt and Amy! They were both so kind, fun, and genuine! Episode 01/03/2015

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