Hey Market Pilots,
Making money trading stocks isn’t about knowing every possible setup nor taking every possible setup. It’s about finding the most reliable so that your wins are consistent, lower risk, or pay off in a big way. In my years of studying, I discovered a setup that I love for its reliability and energetic nature. I call it the trampoline set up for just that reason.
Having a few setups that work well for you has the added benefit of skipping over all the other junk out there and just looking for the ones you recognize. If I had 100 setups, I would either be finding them all over the place and probably get overwhelmed or I’d have to be on the lookout for an unreasonable amount of combos.
But if I am only looking for say, 5, then I can easily look around with a dedicated eye searching for charts that exactly line up with what I am looking for. My trampoline setup is fairly simple and easy to spot. It first starts with the Moxie Indicator being over zero which indicates that momentum is up or positive. The next item is for price to dip below the 50 SMA. What this combo tells me is that energy and momentum are still positive, but price is down, creating a beach ball underwater effect. Once price is finished going down, the upward energy as indicated by Moxie quickly pushes price right back over the 50 SMA and onto a new upswing.
I have had two really great trades in the last few weeks and both were set up with the trampoline move. ASNA gave me a quick +85% gain in just over a day and GOGO gave me a little over 50% in a few days. When I get results like these, I don’t need to scour the market for all sorts of different configurations. I just wait for the ideal setups to come along that I know work.
So take your time refining what it is that resonates with your brain, your eyes, and your style. Then take that and apply it in a consistent manner to the market; one where you can see the pattern setting up and enter when it confirms. There doesn’t have to be anything overly complicated about it, but it does have to work well enough for you to size up when things pan out.
Over and Out,
You Profit Pilot