Stock Trading - Partnership wih Students

2008-05-21T08:51:00.000-07:00

Swing Trading Partnership Program
offered by TraderHuang

This is an ongoing educational program
(Students only or qualified investors)

New sample: SIMG

How does the partnership work:

You open a new account and setup a "Limited Trading Authorization" account: I can only log in to trade for you while you are not available.
You have the total control of your account. You can cancel this partnership anytime.
I provide stock picks for your swing trading.
I will take gross profit of 30% for each trade
I get paid only after each trade is completed
Your risk is the potential loss of each trade
Your gain: Your money is working for you without your input and you will learn more about stock trading as time goes. This is part of the ongoing education in real world. Once you can master the art of trading, you can fire me any time without any reason.
Each trade, I have a trading plan with stop loss level and target level. It does not matter where I am, you can always able to close out the trade without me available

(Contact me for more detail: traderhuang@gmail.com)

Examples:
Case 1
3/17/2008
CRUS - Swing Pick
Buy above 5.60
Stop loss 5.00 (about 10% loss)
Target 7.40 (about 32% gain)

4/18/2008
CRUS: today it hits target level
Closed out at $7.40
Profit is about 32%
________________________

Case 2
3/18/ 2008
ANAD:
1. closed at 6.76
2. Buy above 7.05
3. Stop at 5.85 ( 17% potential loss)
4. Target at 11.00 ( 56% potential gain)

4/23/2008
It hits target price today
Out at about 11.00 for over 50% gain

SIMG : hit target

2008-05-20T21:23:00.000-07:00

4/23/2008

SIMG : swing pick

Buy above 5.35

Stop Loss : 5.15 (3.7% potential loss)

Target : 6.85 (28% potential gain)

_____________

5/20/2008

SIMG:

Hit target at 6.90

Profit : 29% gain

EXM :

2008-05-12T08:50:00.002-07:00

New current pick:

5/12/2008

EXM

Trading Plan:

Buy above 48.05

Stop 45.50 (tight strategy: same day’s low), or crossing 10DMA

Target: 80.00

Shares : 170 (about $800 capital)

Reward / Risk Ratio : 12.53

Potential Profit : 5431.50 (about 66% gain)

Potential Loss : 433.50 (about 5.3% loss)

First Resistance : 57.80

Will make the final decision in last hour

Will monitor it closely for few days after entry
If it moves the way as expected for few days, I then let it runs for target. It may take 2, 3 months
If it reverses within few days, I will get out even before hitting stop by watching with my charts.

Why Swing Trading : in Bull Market

2008-05-02T17:04:00.000-07:00

Day Trading : I have been day trading for years and I can make good living. In day trading, no matter how good the stock is, it only has few hours of time to move up even I am right. The potential profit is limited.

Swing Trading: Finding a strong uptrend momentum stock in a bull market can make you rich, very rich. With the right stock, I can let it runs for weeks or months to hit 100% to 1000% profit. The potential profit is huge if I am right.

In March, 2008, I read the success story of Nicolas Darvas. It changed my mind to focus swing trading.

As all my students know that I have been day trading and teaching using breakout patterns. I do not rely on the fundamental analysis and I do not spend time to do any home work the night before. In Day trading, I spend the first trading hour to search for momentum breakout stocks with higher volume to trade based on my trading patterns.

With my ability to search the momentum breakout stocks during the first 4 trading hours, and enter the trade for swing proved to be amazingly successful.

After reading 2 extremely success stories about swing trading using patterns. I make up my mind to switch to swing trading. With compounding money management, swing trading can create wealth big time.

In swing trading, I have time to trade for myself and for partners’ accounts.

This program will be active in Bull Market and may stay out in bear market.

Students can learn how to trade with real money in play and I am the partner/mentor.

Now I have the mentoring program for students

About my swing trading

About My Swing Trading

2008-05-01T17:51:00.000-07:00

About MY Swing Trading:

To have a meaningful result, I will let the stocks to run for few weeks
Market trend is critical- when overall market is in strong uptrend (Bull Market) and I trade with a strong momentum stock, I will have a much better result.
In Bear market – I may stay out or trade less. Too many investors ignore this bear market and keep holding their trade to big losses.
For swing trading, I will have a plan with stop loss level and target level in place before I make the trade. Depending on the stock’s behavior, I may get out sooner without hitting stop loss or target level. The first few days are critical. Once I have good profit built up in the trade, I will let it runs with bigger room to swing as long as it stays above my entry level. I must have a reward/loss ratio of 3:1 or bigger. That means if I am wrong, I will lose $1.00. If I am right, I will win at least $3.00 in proportion. Swing trading is a game of probability. I expect to have some losses, but I will limit the losses to small scale.
I will never buy more shares when the stock is going down. The world's most successful traders never add averaging down. They only add averaging up. Successful traders will cut loss early and never look back and feel sorry. They can always buy back or trade another momentum stock. The market will never run out of opportunities. We may run out of money.
Ideally, I want to have 25%-50% profit for 4, 5 weeks of holding time. I will use Breakout of consolidation/pullback/trading range Pattern. For 50% to over 100% profit, I will use Bottom Up Pattern, it may take 3, 4 or 5 months to accomplish. I may have a few trades with small losses before I really nail down one to hit my target.
With Compounded basis, Swing trading can create wealth. Successful traders are making millions every year.
50 years ago, Nicolas Darvas figured out how to trade stocks which broke out new high for his Trading Box (chapter 3, 4). This is exactly what I teach for years with a breakout new high pattern after consolidation or pullback. It took a lot of hard work and a struggling period for Mr Darvas to reach $250,000. Then he made a fatal mistake of giving up his winning method. Spending hours of studying the fundamentals of the stocks proved to be a waste of time. "Using the fundamental approach, I was wrong. On the other hand, using the technical approach, I was right. Obviously the best method was to try to repeat the successful approach" he said. He finally figured out that listening to rumors, tips, broker's information were a mistake. After he went back to his breakout box trading, it was easier and faster for him to reach $2 million profit (chapter 8, 9). You need to read this story to have the proper trading attitude.
Almost all successful traders experienced crisis before they could be successful. At the early stage of their trading careers, they did not realize that a Bear market or a market correction was not the time for long trading. All trading methods might not work. Trading strong momentum stocks in a Bull market can provide huge profit which I can not accomplish in day trading. Most investors are afraid of buying at new high. Successful traders only buy at breakout new high. I learn from others' mistakes. "Trade with the Trend"
If you are not better than me, get me to be your partner. (Do not afraid to make 500% - 1000% on your investment.)

Common Mistakes You Must Avoid

2008-05-01T17:50:00.001-07:00

These are the common mistakes you must avoid:

You stubbornly holding onto losses when they are small: You don’t want to take a loss, so you wait and you hope, until your loss gets so large it costs you dearly. This is by far the number one mistake most investors make.
You buy a declining stock because you think it is a bargain and cheap. it will lead to miserable result
You add more shares to averaging down in price rather than up. You are putting good money after bad. This strategy can produce serious losses.
You buy stocks based on tips, rumors, split announcements, and news, stories, advisory recommendations, or opinions you hear from market experts on TV. (Chart pattern is the most reliable vehicle. If a stock breakouts with higher volume it tells me every thing. Your opinion, my opinion or anyone's opinion is meaningless. Study Fundamental analysis is a waste of time)
Buying old names you are familiar with.
You do not use charts and are afraid to buy stocks that are going into new high in price. Most investors think that a stock making a new high price seems too high, but your feelings and opinions are far less accurate than the market.
You get out of a winning trade too early by cashing it small, while holding the losers
You Worry too much about taxes and commissions.
You speculate heavily in options or futures because you think it is a way to get rich quick.

If you have a hard time to change your trading mindset, you can join my partnership program

About my swing trading