Effective Ways of Trading a Typical Summer Market

 

Our top swing trading setup for the week, PAY, is already off to a very nice start.

 

The stock quickly moved about 10% higher from our ideal technical entry point.  However, lower priced stocks in similar patterns are having a tough time.

 

The very end of July and the first 10 days or so of August tend to be one of the worst times of the year for swing trading.  And today we will discuss the challenges of summer trading and what we can do to succeed during times of the year where most traders have a tough time making hay in the market.

 

The Keys to Success in a Summer Market

 

Normally you see less liquidity this time of year.  A lot of large investors and fund managers go on vacation while earnings reports are raining down on the market at the end of July and early August.  This leaves less money for a lot great earnings reports and companies with improving outlooks.

 

This sudden lower liquidity with a lot of big catalysts throughout the market leads to a “sell the news” reaction for a lot of stocks.  Stocks that would gap and go during other times of the year have a higher chance of gapping and fading instead.

 

This is especially true on stocks with overhead resistance.  So one key to success right now is to trade stocks with little or no overhead resistance to begin with.

 

When stocks have overhead resistance, especially stocks in large bottoming patterns, you have a lot of buyers that bought the stock only to watch it fall substantially below their entry point.  And its only natural that many will sell once they get back to even.

 

Its tough to change human nature across all investors and traders so its better to use it to your advantage.  Right now we are seeing a lot of stocks with overhead resistance suddenly pull back sharply after an initial good start after a great earnings report.

 

The ones with no overhead resistance (breaking into all-time highs) are a little better – especially this time of the year.  This is why professional traders will focus on the new high list to start looking for good investments or trades rather than the new low list.

 

The Biggest Key to Trading Success in a Summer Market

 

One of the best things you can do is to just focus on the very best technical patterns.  Our #1 strategy for rapid account growth worked great last week using the rules in the rapid account growth videos.  We have been talking about taking more off at the first profit target and this is a great approach during a “sell the news” earnings season like we are seeing this quarter.

 

This “sell the news” reaction occurs more often during Q2 earnings season and we noted this was occurring this year in the daily alert service early on during earnings season.

 

So the 2nd tier and third tier opportunities are more hit or miss while the ideal high tight flag breakouts are still hitting the first profit target with a high win rate.  This is especially true in the ideal price range taught in the rapid account growth course.

 

Suddenly the nuances of trade selection in the course are extremely important.  For instance, AMPX on Friday did not meet the consolidation rules taught in the course while another one met all the rules.

 

The one that met the rules hit the profit target right away while AMPX did not make it to the profit target before hitting the stop.  We are seeing this over and over the past couple weeks.  The ones that meet all the rules pre-market in the ideal price range are going great while the ones that do not meet our rules pre-market are more hit or miss.

 

So stick with your #1 strategy in the ideal price ranges and industries and be skeptical of everything else right now.  Also, be sure to make it automatic with OCO orders (which includes a limit order) and stop-loss orders.  And be sure to raise the stop on the remainder right away after the first profit target is reached.

 

Another key is to avoid lower priced stocks in general right now – especially starting a few days before the Fed meeting and before key inflation data is due to be released.

 

Another Way to Improve Your Trading Right Now

 

A lot of the best stocks that get off to a slow start will set up great earnings flags and other bullish technical patterns later in August.

 

The last few weeks of August tend to be very good for swing trading these patterns if you look for the ones that hold up best earlier in the month after a big earnings gap.  As long as the market holds up OK next week and the rest of the month.

 

So one approach is to just wait and get a list of the best earnings flags setting up.  And then look for a good entry later in the month.

 

We will have some great ones later this month in the daily alert service.  This is a great approach for newer traders and swing traders that are not real consistently profitable over the years.

 

The Best Thing You can do to Improve Your Trading

 

But the best thing you can do to take your trading to the next level by far is to quickly learn the top technical pattern for rapid account growth.  Most high tight flag breakouts should be avoided right now but we will be trading the top 20% that have a much higher win rate and higher percentage of big winners.

 

Our new 1 week trading boot camp starts tomorrow and will focus on this top strategy for newer and experienced traders alike.  A strategy that continues to work great this quarter.

 

In the 1 week boot camp we will be getting a list of the top high tight flag patterns, checking each using our rules each morning and showing how to very easily trade these each day in real time.  Last week we saw 4 meet the rules pre-market on one day.  All of them hit the first profit target before hitting the stop making it very easy to profit big on each.

 

Some of the top high tight flag breakouts will sometimes make enormous moves in the weeks and months ahead.

 

If interested in taking your trading to a much higher level in the current market, you have to order by tomorrow morning.  We extended the special offer for 1 more day.  It all starts tomorrow at 4pm EST.

 

 

 

More Info on the New 1 Week Boot Camp to Level Up Your Trading in a Big Way

 

Join the Boot Camp by Tomorrow Early to Receive This Special Offer and Payment Plan