June 4, 2007

In this week's free newsletter, we'll discuss  Trading Multiple Timeframes.

This market is powerful, there's just no getting around it!  If you're trying to short sell anything these days for something other than a quick scalp, you're facing a stiff headwind.  The real money is being made on the long side, and there are multiple timeframes which are paying off very nicely right now.

Take today for example.  Here at TheStockBandit.com, we took 4 trades:  2 of them we are swing trading for multi-day moves, while the other 2 trades we entered were just quick day trades.  And all 4 of them showed us gains.

Bread, Butter, and Gravy

The swing trades are what we tend to focus on most - they're our bread and butter.  Generally, we hold them for a few days up to a couple of weeks.  They provide larger moves but sometimes take a little more time to develop.  We like to buy stocks coming out of defined chart patterns like bull flags or triangle patterns, and it works to our advantage.  Today's entries are showing us gains of 4.3% and 4.5%, which is a nice start to the month.

The day trades give us added market exposure while we're waiting for the swing trades to develop.  The profits from these trades are the gravy.  As an example, today's day trades lasted only minutes, but they added considerably to the bottom line.  The day trade candidates are also based on the charts, but we just look to grab the initial moves in them.  Let's take a look at today's moves for a before and after review.

IDSA had built a well-defined pattern and has had nice recent momentum.  Upper resistance was our trigger zone with a $17.25 buy point.  This one spiked quickly higher to allow us to book fast profits, and it's a good thing because it had returned to the breakout zone by the end of the session.  Here's a before and after look:

TCNet chart courtesy of Worden Brothers, Inc.

TCNet chart courtesy of Worden Brothers, Inc.

BWLD is another one we day traded today for a quick gain.  The daily chart shows a nice uptrend, but with a high propensity to gap we were not looking to hold this one overnight.  This stock triggered a buy for us right after the opening bell, and it was only a matter of minutes before we took profits to book the gain.  Here's a before and after look:

TCNet chart courtesy of Worden Brothers, Inc.

TCNet chart courtesy of Worden Brothers, Inc.

Trading multiple timeframes is a nice way to diversify with your trading, especially right now when the market keeps edging higher.  If you know how to catch the initial move when a stock breaks out, you can build up some quick profits while your other trades work on a different timeframe.

There's nothing better than having your money working for you in the short-term AND in the intermediate-term as a trader!  Use the strength of this market to uncover more opportunities on multiple timeframes, because there are plenty of them right now. 

Come Trade Multiple Timeframes With Us!
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"I have to say you provide an incredible service.  It's amazing to this old-school guy how you can multi-task like this.  I'm a very satisfied customer."   - Randall B., CA

COME TRADE WITH US!

Jeff White
President, The Stock Bandit, Inc.
www.TheStockBandit.com

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