Dear Friend,
This market is filled with opportunities if you know where to look and get in before the herd comes rushing in…
It's possible to be in a position to reap the reward.
Of course, that's hard for a lot of traders to grasp.
Most new traders typically ask these questions when they first start:
- Do I need to look at chart patterns?
- Should I focus on the fundamentals?
- Do I need to take a quantitative approach and become an algorithmic trader?
- Do I focus on catalyst events?
Heck, some will just randomly jump into stocks because they see them moving or because their friend told them about it.
If that sounds familiar to you, then listen up.
I believe there are two factors I believe all traders should focus on right now...
Timing and Location
I mean think if you could've spotted the whole EV craze before all of those stocks to take off.
Now, I actually have a strategy known as the catalyst runup strategy, and it helps me identify where I should look for opportunities and how to time my trades to near perfection.
How does it all work?
Timing And Location Are Everything In The Market
Let's face it if you're able to locate a sector and time your entries properly… you can put yourself in a position to make money.
However, the hardest part is to understand which area of the market, or which stocks, will pop off next. What's even more difficult is trying to time your entries and exits.
I've actually developed a strategy that pinpoints when I should get into a specific stock and lock in gains, or take a loss if it goes against me.
It's what I call the catalyst runup.
You see, I believe catalysts are what truly move stock prices. Sure, chart patterns might work, but what causes these chart patterns?
If you guess catalysts, you're absolutely right.
Catalysts are simply a fundamental reason why a stock moves, they can range from earnings announcements to a data release.
The key is to spot these catalysts AHEAD of time, and trade around them.
Now, most traders try to trade stocks after they release news. To be honest with you, that's a little too difficult to analyze and dissect all the information… and I prefer to keep it simple.
Let me show you what I mean by that.
We received some news about the cannabis industry on Friday. So that's one area (location) I want to focus on. So stocks I'll watch include: CGC, CRON, ACB, TLRY, APHA, IGC.
With these stocks, I'll look for key areas to buy, stop-out, and take profits.
I'll wait until tomorrow morning to see what those stocks are going in the pre-market before I develop a plan because things can change very quickly.
I do want to show you how I time my trades today though. So here's an inside look at one stock on my watchlist.
Gamestop (GME)
Catalyst Dates: Earnings December 8th after the market closes
Buy Zone: $15.00 to $15.50
Profit Zone: $18.00 or higher
Stop Zone: $14.50 or below
Options: No options
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