We don’t see these types of trades often, but when we do, they’re easily our biggest account builders of the month. We traded a biotech stock called ANAB. Lately there has been a lot of buzz in the biotech sector. This indicates that the sectors are currently being rotated and a lot of investors are piling into low float biotechs.  ANAB has an 11 million share float so even though its priced at $50, we can consider it a low float stock.

Massive Gains Trading ANAB

We took ANAB right as it broke over the first candle for an opening range play. I entered for a long right at $54 and was selling off my last shares at $59. Even if you missed the first entry the stock was flagging all day. We reloaded on the trade and once it ripped over $60, it didn’t look back as it ran up to $72. Where I made my mistake was getting out of my position around mid-morning at the $62 area. But this was one of those moments where it was probably healthy to stick around a little bit longer. The momentum kept piling in so you can see flag pattern after flag pattern, followed by a daylong consolidation. If you were watching, you would have seen a lot of different opportunities to make money on ANAB.

Consistency is Key

Trading rules and discipline are always the same. First you’re looking for the opening range breakout and then entering a quick flag pattern. Follow the stock along its EMA hitting the dips and other setups that you see. That’s the simple way to go after these types of momentum stocks. Opening range breakouts and flags are really powerful patterns. Just trading 100 or 200 shares of ANAB back and forth can give you a great return if you have the right rules and discipline in place. When you have this type of range, you have the ability to make big account building days.

Perfect Storm for IPO Breakout

Account builders are really important when you have a small account. That’s how you can double your small account. Keep an eye on these types of stocks, especially in this type of market.

Here are the key factors for trading an IPO breakout:

1. IPO stock
   • IPO stocks are usually hot within the first year of its offering. People are talking about them, focused on them, and trading them. When the company has not only buzz but real money pouring in, certain IPO stocks can explode.
2. PR or earnings report
   • Timing these huge moves are hard, but not when you have your ears to the ground. When a stock comes out with sudden PR news or blow out earnings results, you can anticipate these movers much easier.
3. Hot sector
   • Keep a pulse on what sectors are hot and which are fizzling. Maintaining a watchlist of sister stocks in the same industry often indicates where investors are rotating their money into.
4. Low Float
   • Low float stocks are the prime characteristics for momentum stocks. The fewer the number of shares available to trade, the harder the price will push when the momentum flows in. As traders, large price ranges are essentially our life line.
5. High relative volume
   • Relative volume is proof that momentum is piling in. New money buying up the stock and pushing the price higher means a multitude of opportunities for the modern day trader.

If you’re not sure of the setups and price patterns that we’re talking about you can learn them all here at our Bulls Bootcamp. It’s an intensive 60 day course to teach you exactly how I trade and why. To learn more or signup, email me at kunal@bullsonwallstreet.com today!

The post Trading IPO Breakouts: The Factors Needed For The Perfect Storm appeared first on Bulls on Wall Street.

Trading stocks reacting to news without reading it? Seems like a weird thing to do but let me explain.

Our bread and butter is trading momentum stocks, especially those that get hit with news. We took a trade today in SHOP that got rocked after some news hit the market. The actual content of the news isn’t as important as how the stock reacts to it. We look for a setup to form that gives us an opportunity to enter the stock.

News Surges Volume and Price Range

When you have a technical analysis pattern and you’re marrying it with fresh news, you’re likely going to get a surge in volume. This volume is going to give you a bigger push than what you would get on straight technicals alone. One of the things that I always look for is expanding volume, and in this case it was 6 million shares.

Shorting SHOP

As this news came out, SHOP spiked down to $110. I don’t like to chase these things down on the first candle. I always wait for it to pop or a technical pattern. As it hung out under its VWAP, I notice it developed a big ORB pattern. The ORB pattern stands for the opening range breakdown. SHOP developed a morning range and then violated the support level, signalling an imminent break. I anticipated the flush as it began curling down underneath the VWAP so I added into my position. Once the flush came I covered some at support and into the thrust.

Exit Target at Support

Remember, you don’t know how far down its going to go, but you need to have an idea in mind. I used the daily chart to see where the first levels of support could be. I also have my 50 SMA acting as support near the same area. I want to be covering into that spot since it’s a potential a bounce spot.

This is how you pick your targets. You look at stocks on multiple time frames and then use a little bit of common sense. When it’s starting to get a bit extended and close to support start taking your gains. I always like to leave a little for a home-run especially when you have a good setup with news. Remember to move your stop to your entry price to make sure you’re guaranteed a profit on the trade.

If you’re not sure of the setups and price patterns that we’re talking about you can learn them all in our Bulls Bootcamp. It’s an intensive 60 day course to teach you exactly how I trade and why. Our next bootcamp starts on October 12^th, 2017. To learn more or signup, email me at kunal@bullsonwallstreet.com today!

The post Trading Stocks Reacting to News Without Reading It appeared first on Bulls on Wall Street.

We get hundreds of inquiries about our 60 day trading bootcamp so we thought we would share some more insight into what exactly goes on during those two months of intense stock trading education. There are many great components that go into our classes including live webinars with Q&A’s at the end of each one, a proven course format, experienced instructors, and so much more.

Below are 5 key factors included in our bootcamp that are vital to your trading success.

Trading Plan

In our bootcamp we teach our students all of the various strategies for capturing a winning trade. But at the end of the bootcamp we also require them to put together an actionable trading plan of what they learned. This plan acts as their guide for implementing their knowledge in a real market. It gives you, the student, more clarity and focus into your trading strategy. Once submitted, these plans are evaluated and once a student is given the green light their ready to start trading.

Market Recaps

After the close of the market my students are invited to join me for a market recap session. This is where I reflect on the major moves that happened for the day. Then we’ll evaluate the best ways a trader could have made these trades. I also review all the trades that I’ve made and give myself a self evaluation of the day. Finally, students who want a second opinion on their actions or stocks that they’ve looked at can bring their trades to the table.

Swing Strategies

All trading strategies we teach can be applied to different time frames. Whether you’re a day trader or a swing trader this bootcamp teaches you what you need to learn. For those with full time jobs looking to be a part time trader, our swing trading lessons will help you learn how to manage both and do it successfully. We have our own swing trading expert and my personal mentor Paul Singh to lead the swing trading division. For the swing trading students, Paul provides his own market recaps, trade alerts, and classes.

Patterns to Trade in All Markets

Everything you learn in our bootcamp is applicable to different markets. Do you prefer futures, options, or heard any exciting news on cryptocurrencies lately? What makes our educational course vital is that we focus on the core principles of successful trading. This includes risk assessment, momentum scanning, and trade management. The lessons you learn here can very well be applied to all markets of trading.

Community

Finally, joining our bootcamp gives you a lifetime membership to our online and offline community. Here traders can reach out and connect with like minded people to share trades, tips, stock alerts, but most importantly encouraging support! These are just a few advantages to being part of a trading community as opposed to going at it alone. Having support from similar people can cut down on years of development time that you can use to grow your trading account.

Our next bootcamp starts October 12th. It’s an intensive 60 day course that teaches you exactly how we trade and why. To learn more or to signup, email me at kunal@bullsonwallstreet.com today!

The post We Prepare You For Trading Success – Here's How appeared first on Bulls on Wall Street.

Here is an important lesson about giving back profits on secondary setups.

The Game Plan and Execution

I did all of my homework on Sunday night the day before. I told all of my students both on Sunday night and Monday morning before the market opened that MOMO is the play of the day. Our plan was to hit it at the open, it’ll probably drop really fast in the first ten minutes and then we’d be done.

I knew MOMO was going to break under $36. If the stock opened even slightly green, that would have been the perfect spot to get in. Once it opens green and starts drifting towards red, that’s where you enter in with full size. So once the market opened, MOMO just tanked and I was up $1000 on the trade quickly.

Biggest Takeways

• I got greedy. As MOMO started to shake out, I ended up reshorting it when there was clearly no real setup.
• The secondary setup after a big flush is never as good because you’re using your daily range on that one push. Now that it’s over, I’m shorting mid-range when there’s no edge.
• The VWAP was so far away, by trading with a stop that’s too far, I ended up holding my huge position for too long.
• I ended up giving back a chunk of my profits so now I was stuck in front of the computer all day. I wanted to make it back. The rest of my day was just grinding.
• What we saw here was a big flush down right at the open. The previous day had more of a stair step down. You can carry these stair steps longer since they’re more gradual. But when you’re getting flushes, you have to take them.
• Finally the holy grail of lessons is and always will be to trade when you have a plan, when you have a pattern. Trade only when you have an edge, a strategic advantage on what’s going to happen and your reward to risk on it.

Our next 60 day bootcamp starts October 3rd. If you want to learn how to trade stocks from A – Z this course is perfect for you whether you want to be a full-time day trader or part-time swing trader. If you have any questions or want to save your seat then email me at kunal@bullsonwallstreet.com

The post Day Trading Mistake: $1000 PROFIT to $297 LOSS appeared first on Bulls on Wall Street.

Why You Should Focus On The Best Plays

When trading stocks, it’s important to trade the best plays. Sometimes there’s so much action happening in the market that a trader can get overwhelmed. A major symptom of erratic traders is paralysis by analysis. Be careful of how many stocks you’re trying to get in and out of in one time. Focusing in on a handful of the best ones will allow you to get more elongated gains.

How To Trade Stocks Reacting To News

With so many stocks out there, what successful day traders tend to do is focus on stocks with momentum. To us, volatility is our lifeblood. Without it, we will perish. The most volatile stocks tend to be those reacting to major news. We love trading stocks reacting to either good news or bad news.

Post Earnings Drift

What we’re essentially doing in these plays is marrying the underlying fundamentals of a stock with the technical price action in the stock. The best news to play is earnings and earnings season is one of our favorite times of the year. When a stock gaps up or down after earnings is released, it can setup intraday for some really powerful moves. Check out our trade in KITE, where the stock gapped down and we waited for the perfect intraday setup.

Intermediate Time Frames

Trading earnings gappers is not the only plays we bank on. In fact, we have a toolbox of setups that help us analyze a stock’s price action and look for opportunities in a variety of different ways. One of the other ways we trade is by aligning multiple timeframes to setup a case for a stock. When a stock puts in a significant supply or resistance levels on the daily chart, we can trade around those to put probability in our favor. This is how we trade with an edge.

Trade Moving Average Pullbacks

The daily chart is extremely important because it acts as our starting point when deciding whether or not we enter a trade. We use the overall price movement to dictate the direction of our trade. If we see the intraday price action correspond to our case built from the daily, then we can execute the trade. One of our favorite plays is to align the price with technical indicators like the 20 Day Moving Average.

Mental Capital vs. Financial Capital

Trading is by no means an easy endeavor. In fact, it might be one of the difficult challenges you will ever attempt to undertake. One of the biggest barriers is trading psychology. When a certain trade doesn’t go your way, it’s important to survive for another day. Survival doesn’t rely only on the dollar amount in your wallet, but also the mental fortitude in your mind. When trading, it’s important to preserve both mental and financial capital.

How To Build Your Account

Finally, trading is meaningless unless we can learn to extract money from the market. But an often overlooked concept is that trading is a marathon, not a race. Building wealth is a step by step process, one which requires a new set of skills. Learn how to build your account little by little and one day you might be surprised to see a huge number staring back at your face.

There you have it! 7 Great lessons to get you started on the right track.

Get Started With Our Free Trading Kit

Our trading kit is the best free resource out there for new and struggling traders. It includes:

• Intro to Trading Course
• Comprehensive Trading Handbook
• Trading Consultation

Download your free trading kit here.

The post 7 Intro Lessons for Newbie Traders appeared first on Bulls on Wall Street.

AAOI is a stock that was down on Friday by 35% based on bad earnings. This stock got smoked out. Looking at the daily chart, AAOI dropped from this negative news hitting the lower Bollinger Band. Additionally, AAOI was struck with an SSR, a Short Sale Restriction. Often times when a float, the number of shares outstanding that you may trade, is really low on a stock we can really nail a squeeze in the other way. The float for AAOI was 18 million and 17 million shares in volume traded that day. Basically the entire float was dumped and rotated. You can be sure that anyone that wanted to sell got out of this thing.

AAOI Squeeze Trade

First thing we see in the morning was it opening strong, a tell tale sign that maybe this thing can squeeze. Once the stock started to hold its opening range, I got really interested in trading it at the open. I wanted to get in quick. As AAOI started holding lows and holding above its MAs, I’m thinking a squeeze was going to start.

My Entry

I entered a few 100 shares at the open and ended up scaling out into the upside. Once the stock came back and held the VWAP, that’s a sign it may have another big move. When you get a stock that moves hard and you get a pullback where the first test of that VWAP holds, you have to be ready to enter. Once it starts to hold, I come in and start adding my position close to support. Then, as it continues up the trendline, you start adding more. I added at the flag break and scaled out of the move. I added at the following pullback. When the stock dips down and remounts the 9 EMA, you can re-add this for the next run.

Main Takeaway

It is very important to remember that when you get a stock that is a trender, it’s an amazing thing. When you get a stock that starts to trend, you always have to re-hit based on setup. One of the earliest mistakes I would make is just buy and sell, chasing and overtrading. But what you want to be doing is using different setups based on the time of day.

If you’re not sure of the setups and price patterns that we’re talking about and want to learn how to be a successful day and/or swing trader then our Trading Bootcamp is perfect for you. It’s an intensive 60 day course to teach you everything you need to know about trading from A-Z. To learn more or signup, email me at kunal@bullsonwallstreet.com today!

The post Banking On A Squeeze Trade At My Airbnb In Barcelona appeared first on Bulls on Wall Street.

SHOP

We get our ideas from the daily chart and SHOP had a few things working for it. SHOP was on my watchlist as an earnings breakout trade. The stock broke over the range and into $100 on news of strong earnings. I had a picture perfect entry on this stock. If SHOP was able to hold this level of support at $101.50, then I knew it had the potential to run. It had a history of making runs, it had a beautiful range that moves every day, sometimes $6 to $10, and I had a low risk entry.

As the stock was holding this first level and came out of range, I longed this stock 600 shares right at $102.00. The stock popped up to $103.70, at which point I sold off a few hundred shares. I was actually up $1200 but all of a sudden, the stock broke back underneath the VWAP. I knew this was weird since SHOP should have held above this level. When a stock breaks above the VWAP you want to see it run towards its high of day. It came back, broke underneath my buy price and broke under the 9 EMA.

I ended up selling this position near lows and took what was a huge gain and turned it into a loss. When you turn your winners into losers, it could really ruin your day making it hard to progress in trading.

The big lesson is to always aggressively manage your risk. We’re not just traders looking for entries. But more importantly once we’re in the trade, we must focus on how we manage the position. We have to keep rising up our stop losses. But the trade needs to at least be a break even trade. We should be selling it once the stock comes back to our buy price if we’re up that much. You don’t want to limit your downside. If you make a mistake like this every day, before you know it by the end of the year your seeing $100,000 difference in your total P&L from what you made and what you gave back.

If you’re not sure of the setups and price patterns that we’re talking about you can learn them all here at our Bulls Bootcamp. It’s an intensive 60 day course to teach you exactly how I trade and why. To learn more or signup, email me at kunal@bullsonwallstreet.com today!

The post How To Manage A Trade appeared first on Bulls on Wall Street.

Below is Ticker Review #2. If you want us to review a stock for you on episode #3 go to this link and fill out the information. http://content.bullsonwallstreet.com/stockreview

PBYI

PBYI had some news out and has gone on a massive run. After the run, it has gone through a very healthy digestion. When a stock goes from $30 to $90, they have to rest. There are two ways to rest and work off an overbought condition, via price and via time. PBYI has a range developing and has tried to break out but it just can’t do it yet. However it’s definitely getting there. The overall structure of the stock is bullish especially due to the volume accumulation. But be careful of holding too many shares of biotech companies because they can gap overnight.

CZR

CZR looks like a really strong stock. It recently had an uptrend but with multiple consolidations with breaks out of these flags. This last month it consolidated in a tight range from $11.15 to $13 and it finally broke. The range is tight with no signs of volume distribution. The recent thrust out of resistance was confirmed with two times its relative volume. This gives us the confirmation that the price break was real.

NVDA

NVDA has been a daily trader for me. NVDA had an epic drop of about $20 a few weeks ago from the entire tech market dropping. People always think of a pullback as being really bad. But we have to think about it from the bigger picture. What is happening in the market and what is happening in the stock? NVDA went from $100 to $170, so the pullback can be a good buy signal. Now NVDA is testing here but I would like for it to rest for a bit before breaking out into highs. If you don’t there’s a good chance of a shake and bake. But overall, this is an awesome stock with range and liquidity.

VRX

I’ve been eyeballing VRX myself. VRX was at $300 but has been on an epic downtrend. Recently it has started to pull out of the downtrend with some big volume. The push started from $9 to $14 with strong volume of 100 million. This volume is confirming that the bottom has been put in. You see a run where it’s doubled up followed by a nice consolidation where it broke again. All VRX is doing is flagging, resting on the 9 EMA, then consolidating on low volume.

If you really want to learn every aspect of my trading system, the Bulls Bootcamp is the way to go. It’s an intensive 60 day course to teach you exactly how I trade and why. We offer payment plans. To learn more or signup, email maribeth@bullson.ws today!

The post Ticker Reviews #2: Kunal Reviews PBYI, CZR, NVDA, VRX, EUR/USD appeared first on Bulls on Wall Street.

NVDA

NVDA is a stock that I trade all the time. This stock has great range, moving dollars a day and allowing me to catch good chunks. It also tends to trade on a lot of volume, 34 million shares on this day. So it’s really easy to get in or out. The setup I traded was based on a rubber band type trade. This stock was at $138 a few days ago and it’s been up 7 days in a row. Now NVDA is piercing the top of the Bollinger band, approaching the top level of resistance, and exhibiting really overbought stochastics. Trends are great when they’re gradual but when something runs too hot too fast, you often can get counter trend snap backs. Buyers are getting tired and they can’t push the stock up anymore.

My idea generation begins with the daily chart. Then, when I’m watching this stock intraday, I look to see how I can nail this thing down. On the 5 minute chart NVDA was simply riding its 9 EMA for a few days. It showed its first sign of a crack. In the morning you can see a big dump of about $4, which caught my eye. As it starts to bounce, you see the bounces fade off with lower highs unable to break over its previous highs. Now I’m hunting for my entry.

Our first entry would be in the wedge break. But as it flagged sideways for a few candles and the 9 EMA is curling down, we got an EMA sandwich. When your MAs are coming down on the stock, it compresses it to get it to push down. It will also help you manage your risk so that you can put your stop above the MAs. I entered with 300 shares and scaled out along the way. This was a quick counter trend trade. I’m not marrying it, but trading for some quick and easy profit.

If you’re not sure of the setups and price patterns that we’re talking about you can learn them all here at our Bulls Bootcamp. It’s an intensive 60 day course to teach you exactly how I trade and why. To learn more or signup, email me at kunal@bullsonwallstreet.com today!

The post How To Trade The End Of Day Fade appeared first on Bulls on Wall Street.

The hot topic on everyone’s minds lately is cryptocurrency. The big question has been where will bitcoin start to bounce? Will it bounce or will it crash? Is it done or will it start to move again?

I’m going to be doing a live event on YouTube on Wednesday July 19th, at 5pm with Rahul Sood, CEO of Unikrn. He’s one of my old mentors and someone who helped me start Bulls on Wall Street. We will be discussing “The Future of the Cryptocurrency Market” and how we can all capitalize on the crypto boom.

Bitcoin

Bitcoin has gone on a tremendous run from $600 all the way to $3000. One of the things that we talk about in trading is that when you have a big run, stocks also get tired and need rest. So after a big momentum push, periods of rest, or sideways consolidation is a powerful thing. Rather than crashing down, it sat around in a range. Stocks, currencies, the futures market gain power from consolidations. These consolidations allow the instrument to build up power and allow fresh buyers to come in and take it to new levels.

Right now bitcoin is hovering around $2100 – $2300 mark. What you can see is a certain level of support where it’s been holding. When you have support and you test that support numerous times the more valid the support level becomes. But another thing that happens is when you test the support too many times it becomes weak. When you beat down a door, it gets weaker and weaker. At some point when it breaks, it becomes explosive. If we want to be a buyer, we have to wait and see if that support holds.

Additionally we can see a top range that’s been developing. After drawing a trendline, you have clearly defined levels. This is a wide range. In trading, what we want is type areas. Type areas and consolidation give power and potential for explosion. The term is called range contraction. So when the range contracts and gets tighter and tighter, the break can be very explosive.

With the 9 EMA thrusting on it this is where we need to see a change. When looking at a market or a stock, we look for changes in character. We look for a change in the structure of how it’s acting. The first thing I’m looking for is to see if it starts to round and break over the 9 EMA. If the trendline break holds then I have confirmation. It means that this area is holding and I can start to take a position. But until that happens, I do not trust it.

Make sure to join us for our live YouTube discussion on July 19 at 5 PM EST. Click here to set a reminder so you don’t miss it.

The post Bitcoin Pullback Setting Up An EXPLOSIVE Bounce or CRASH? appeared first on Bulls on Wall Street.