More Tips for a Choppy Summer Market
Last week is another great example of the power of using the best tactics and principles for more challenging markets.
A choppy summer market can be discouraging for some. Here is how we made money last week during one of the worst weeks of the year. More great tips for choppy market conditions.
Stick with What is Working
One of the things we were noticing was how top chart patterns were still working well in the healthcare space. AI hardware plays? Not so much for now.
We saw another biotech, TXG, meet all the requirements in the rapid account growth videos and soar 20% quickly for a big profit for those using our high tight flag strategies. TWLO, a software play, worked also but did not hold as tight of a stop and turned over sooner. The 2 often go hand and hand. In other words, a cleaner breakout tends to lead to a bigger move overall for stocks over $20.
This got us excited when we saw AMLX Monday evening. We told customers about the possibility of a big high tight flag breakout the next day.
AMLX did not disappoint. The stock reached our entry trigger the next day and soared nearly 25% from there within a few days. It held a 2% stop loss below the ideal technical entry point taught in the videos while surging 10x that amount. Not unusual for this extremely bullish pattern.
The only other high tight flag breakout taught in the course videos, in the better price range, worked as well. TWST was another nice win for those using the rapid account growth course videos.
Low Priced Stocks Generally Means Lower Win Rate
We have been emphasizing in the daily alert and on the blog to stay away from low priced stocks. Under $20 has been a hazardous area – we find that especially true in choppier markets.
There are a few diamonds in the rough but there is a reason why many fund managers are not allowed to buy lower priced stocks. They tend to be unreliable, crash quickly and lead to losses over time.
We have found this to be true also outside of a select few in well established long term uptrends with a rising 200 day moving average.
During the summer volume tends to fade as money managers go on vacation. Add a ton of earnings reports during earnings season and the stocks just do not hold their levels as well. We also see a lot more false breakouts and false breakdowns this time of year.
This combined with an already shaky area of the market (stocks under $20) and you can run into problems when focusing exclusively on this area of the market.
Know When to Trade and When Not To
As we have been saying over the years, its often best to avoid the first 5 minutes of trading during the summer. Our #1 strategy for rapid account growth is an exception but only with a solid catalyst. Any hair on that catalyst and its probably best to at least wait for the first 5 minutes of trading if we trade it at all.
If we are taking fairly large position sizes, we do not want to sit on a 10% to 15% loss (or more) and hope that the stock comes back. The first 5 minutes can be dicey and the market will soon decide on the stocks direction that day. A big gap higher is a good sign but we do not want to see it trending lower suddenly pre-market.
If it does just before or after the market open, it could come back quite a bit. If we do have a top opportunity, like TWST this week, its best to go for it and put in the stop right away.
Sticking to Your Stop Loss
Its OK to give trades a little more room during summer or holiday trading but with these strategies but we want to lower our position sizing so we are not taking any more dollar risk on the trade. Less is best.
Before entering a trade, we want to know exactly where we are getting out if it goes against us. HODL (hang on for dear life) does not work long term with short term trading. Every great trader I have studied ruthlessly stops out when they should. Generally its a pretty tight stop loss. Again, this goes for trading and not for long term investing or a ranking system.
But its important, especially when entering early in the day, to know your stop loss point before entering the trade. That way you can immediately put in the stop loss order.
The best loss is a small loss as the old saying goes when trading.
Sizing Down
Our #1 strategy for rapid account growth is still working great overall, but most strategies will not in this kind of environment. So if your strategy is not performing well after reviewing the last few weeks of trades, at least size down during market conditions not supportive of your strategy.
You can look at stocks in the better price ranges and stick with those for now as well.
There is Always a Bull Market Somewhere
Another important tip is to take some time to assess what areas of the market are working best at the time.
After we mentioned the small bottoming pattern on gold to customers a couple weeks ago, the price of gold has suddenly come to life. However, we would rather not see the 50 day moving average below the 200 day. So its susceptible to sharp pullbacks with so much overhead resistance. The same applies to bitcoin and ether during a tough year for crypto.
But nearly all of our healthcare trades are doing well. Biotechs, managed care and otherwise. We continue to trade them until they no longer work. If it meets the rules in our top strategy for rapid account growth, we generally trade it anyway.
An A+ setup goes a long way in overcoming the market and industry trend. Again, these only come up maybe once or twice on average. TWST and AMLX were 2 examples last week.
MRNA was a high tight flag breakout intraday. We have a special video on that pattern below.
Prepare for What is Next
The big money returns from vacation after Labor Day and the volume starts to increase in the market again. So early September can be a good time to trade. Last year September was an excellent month for us personally.
So always be prepared is the lesson here. Seasonality is only one factor and split government is generally good for the market so election results may not matter much this time around despite what the FUD (fear, uncertainty and doubt) is telling you online.
Also, the bond market and mortgage market generally already have all factors priced in.
How We are Preparing for the 2nd Half of 2026
We have developed some new exit strategies that are working great in 2026. We will be offering more videos on this and that list of rules that worked great in the past and are cleaning up in 2026.
The new videos will be released soon to customers.
A+ Setups, Boot Camp Highlights and Swing Trading Jackson Hole
Our Top Strategies for Q2 Earnings Season
Final Call for the Best Quarterly Offer All Year
