When to get out of a trade

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Hey Folks – 

Just a quick heads up to join Jason Bond tonight at 8pm EST for penny stock momentum trading HERE (complimentary) – he’ll be focusing on how to trade breakouts like NVOS, CDIO, PXMD, BURU and ONVO!

On that note, I’m not a super huge fan of day trading, but the way the Market’s been lately, I’ve had to pull this weapon out of my war chest to give me a fighting chance.  Here’s some tips on how I wield that weapon 🤺

First of all, when I am day trading, I like to use a 3-minute timeframe (which you’ll see on the chart below).  I think this works better for me than a 1-minute chart because it cuts down on the “noise” of frantic 1-minute moves.

Next, I am looking for strong stocks that are breaking above the 3-min moving average (which is the yellow line on the chart below), and ideally have a “GO” signal from the AI-driven algo as well.

Here is an example of a trade I was following in my Bright Ideas 💡 newsletter yesterday that checked all of these boxes.

This combination of indicators led to a staggering 30% rally yesterday, before a late-day pullback.

One thing I hear from traders a lot is, “When should I get out of a trade?”

Well, I can never tell you what to do with your personal trading, of course, but let me share my personal experience.

I like to ride those strong trends like we saw yesterday for that stock I was stalking, as it was trading above the 3-minute line for as long as it goes.  Sometimes stocks go up a lot more than you would ever imagine!

Now, also notice when the momentum started to drop.  An easy way to tell that a stock is starting to change directions is when the colors of the bars start to change (this is a favorite feature of mine from my BlackBox* software – see the P.S. message below for more!). 

You can see this in the chart above when the stock begins to fade below the 3-minute line for a few bars, which is right before the “No GO” signal appears.  

When those ominous indicators appear, I like to go to the sidelines for a while.  It doesn’t mean the trade is done, and I am not coming back to the stock.  It simply means that I am going to wait for the next strong signal to appear.  That is how I increase my odds of winning.

Like I always say, you’re always just one button away from being out of a trade… and then one more can get you back in.

It doesn’t matter if I have a profit or a loss when the “sell” signals appear.  The market is clearly telling me it is dangerous to be in the stock at that time, so I better wait for the “all clear” signal again before I get back in.

If you want to see how I manage these types of signals in real-time, there is no better place to be than our “Market Masters” live trading room during the day.

And right now I have opened up a monthly rate to all of mine and JW’s services, which you can join with this link.  Just make sure you use the code “CHEERS” 🍻to unlock the big discount I’ve add in there.  (If you want to upgrade your current service, always feel free to give Jeff Brown a call 1-800-585-4488!)

No matter how you approach your trading, I think it is always important to have a solid game plan before you make any trades – and then stick to it!

As I just pointed out, when I land on a strong stock like the one from yesterday, I don’t want to abandon it completely just because it slipped into a “No Go” for a while.  The next turn could be coming at any time, and the sooner I can latch on the next trend higher can make all of the difference.

That’s it, to YOUR success and don’t forget to hang out with Jason tonight!

P.S. As I said, BlackBox* is the new charting software I use, and it’s much more detailed and reliable than the other apps I’ve used. Here’s a special link they’ve extended to RagingBull subscribers!  And here is a link to their recent training with us in case you missed it.

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