Professional Documents
Culture Documents
LEGAL DISCLAIMER
Before you proceed with the course,
make sure you read and understand the
following disclaimer.
By proceeding with reading this course, you affirm that you have read and
understand the above disclaimer.
Back in February and March, most of the market got beaten down because of the pandemic.
When the market started to recover in late March and early April, I received unprecedented
interest from people who wanted to learn the stock market. They believed it was a historic
opportunity. (It was — and still is.)
But a lot of people were focused on companies like cruise lines or airlines. They figured these
companies would bounce back. But I cautioned against these stocks because there was too
much uncertainty around those industries. How long would it take to come back? Would they
have revenue capacity on day one of re-opening?
Instead, my focus was on ignored stocks. I was making a list of companies that either weren’t
affected businesswise, or those that would be back on day one when the economy was back on
its feet.
An example would be something like McDonald’s (NYSE: MCD). First, McDonald’s was still
selling food for delivery or collection in much of the country. There was still revenue. But more
importantly, I had strong confidence that its business would be back day one. I was confident
that Americans would still go through the drive-thru and eat.
Fast forward six months, and you’ll see that McDonald’s not only fully recovered, it’s trading near
all-time highs. What about cruise line and airline stocks? They’re still beaten down.
There are also related companies — those that supply the EV industry. A good example would
be lithium and/or lithium battery stocks. While a lot of investors and traders focus on the big
name, I like to focus on the ignored stocks that run in sympathy to the big names.
Other price drivers are:
Also, big world events like the already mentioned pandemic. While most of the market got
beaten down, dozens of stocks spiked based on news around the virus. For example…
I have a proprietary method for letting winners run. But I’m consistent in applying the discipline
and rules I’ve developed over 23 years.
While most of my trades work — and I’ve gotten better over the years — they don’t all go my way.
When that happens, I exit my position.
Other times I take partial profits along the way. That allows me to lock in profits and let a smaller
position ride.
Here’s the three-year TCCNF chart showing my first entry and final exit:
This trade took a while. My first entry was on November 2, 2018. To be perfectly transparent, I
took partial profits back in 2018 a few days after entering. Then, in February 2019, I added to my
position and also took profits again. The rest of my position I held until August 2020. My total
profits for this trade was $18,900.*
(*Past performance isn’t indicative of future returns. Just because I’ve made money in the past
doesn’t mean that I’ll make money in the future. What works for me might not work for you.
Trade at your own risk.)
Here’s another more recent trade. This one was a bigtime IPO win for me…
This one was intense. When I alerted it, I thought it would be a swing trade. (As opposed to a
day trade or a scalp.) I told my students to NOT chase this one and only trade if they had a plan.
As you can see from the chart, this IPO ran like crazy and met my goals. I took partial profits
right near the top. Then the stock started to drop and got halted due to volatility. Coming out of
the halt I exited the rest of my position to protect profits.
That discipline made this one a SUPER TRADE. How often can you make six figures in a couple
hours? Yes ... six figures. This was a 71% win for a pretty incredible $106,667* in profit.
(*Please note: my results are not typical. I’ve spent years developing exceptional skills and
knowledge. Always remember trading is risky. Never risk more than you can afford.)
Now, I don’t only make ‘chart’ trades. Again, my favorite kind of trade is a swing trade. But when
the trade works, it’s amazing how similar the patterns can be … no matter the time frame.
The awesome thing is, you can learn the catalysts, the patterns, and the process. It takes time
and effort, but once you start to put everything together, it all pops out at you.
Another thing … sometimes the patterns repeat. That’s why on winners I like to take partial prof-
its and then let the rest run. And this can help you plan your moves in advance.
Of course, the patterns don’t always play out the way you expect. Trades don’t always work. But
once you learn to make — and stick to — a trading plan and set your risk levels, you can have
more control over the losses.
Screening for Potential Trades
It all starts with screening. Since I have three main strategies, I use different screens for each. I
specialize in finding value growth stocks and momentum news plays. But I also teach students
to never just jump into a trade as soon as they hear the news. I teach them to find an entry that
isn’t chasing.
Another thing I like to focus on is low-float stocks — like AUVI above. Low-float stocks with high
trading volume can be quite volatile — but that makes for the big moves I like.
My Favorite Strategy
Let’s take a look at another recent swing trade. On this trade I’ll show all of my entries and exits
on the chart...
Itamar Medical Ltd. (NASDAQ: ITMR)
Itamar Medical develops and manufactures devices to help diagnose sleep disorders. The com-
pany was an earnings winner back in January when I first bought the stock.
As you can see on the chart above, I added to my position and also took partial profits along
the way. This is one of the strategies I teach as long as the trade thesis holds. I also understand
how the overall market is acting — like the big dip in March.
Notice I used that dip to average down. That’s not something I’d usually recommend — especial-
ly not for newbie traders. But in this case I was happy with the company’s fundamentals. And I
believed the market would bounce back after the correction.
Again, trades don’t always work, but this one turned out to be an absolute SUPER SWING. It was
a 51% win for a beautiful $55,300 in profits.*
By now, you probably understand why I’m such a big fan of ignored stocks. Other traders might
shun them, but I’ll happily pay attention to them.
So… Now What?
There’s an opportunity to make money in the stock market if you know what you’re doing, if you
study, and if you’re not just looking for people to give you stock picks.
Plus, you can do it from anywhere. And my strategy doesn’t require you to be glued to the computer
screen all day long.
So this strategy is perfect for people who want to supplement their income but can’t be glued to the
screen all day.
The good news is, the stock market will always be around. (If it’s not, we have bigger problems.)
Once you master it and learn to make money from it, you can always have it as a potential source of
income. For a few people, it can lead to financial freedom.
Anybody can learn the stock market, even if you have no experience. That’s the beauty of it.
You can learn this no matter where you’re starting from. You do not need a finance or accounting
degree.
See, I didn’t have a teacher and I made some dumb mistakes at first. After a series of seriously bad
trading decisions, and faced with bankruptcy, I was ready to give up.
That’s when I started poring over charts from all my failed trades.