Reblog: How to Trade Trend Continuations using Remounts (Live Netflix Trade)

It’s so hard to buy pullbacks!

That’s what a fledgling trader told me there other day after I asked him why she doesn’t trade trends.

I can understand her dilemma. I mean, how many times have you bought on the pullback only to see the stock pullback further. You then get stopped out before the stock eventually does exactly what you thought it would.

Talk about frustrating!

Well, that’s why we don’t guess by trying to time the pullback. Instead, we let the pullback play out before entering.

How do we do that?

By waiting for the remount of a key range, like the 9 (ema) and 50 day moving averages.

This gives us confirmation that the pullback is over and puts a repeatable process in place that gives us easy steps to buy the pullback without fear.

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Reblog: Step By Step Guide For Trading Momentum Stocks for Beginners

Momentum stocks can grow your trading account exponentially if you know how to manage risk, find good entries, and stick to your trading plan. New and inexperienced traders have to be especially careful because they can destroy there account as quickly as it can grow. Here are some of the best strategies and tips you can use to maximize your profits on these stocks. 

Daily Chart Breakouts

Daily chart breakouts are a great daily context to play for momentum plays. The bias is obvious, it is easy to define your risk, and there is usually great risk versus reward. For newer traders, it is easier for most to play setups that are joining an existing trend. You want to look for long periods of consolidation before playing a breakout, like we see with SHOP above. The longer a stock is trading within a range, the more powerful the move will be when it breaks major resistance or support.

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