If you’re like most stock traders, you have a personal preference towards trading in a particular time frame, such as daytrading, swing trading, or position trading (click here for a clear comparison of these styles).
However, do you know you can substantially increase your trading profits by combining trades of two different time frames…within the same stock?
In this educational trading video, we use an actual example of a past trade to show you exactly how we do it.
Fat Facebook Profits ($FB)
After buying shares of Facebook stock in December of 2013 and February of 2014 in our nightly stock trading letter, we sold the full position on March 10, locking in separate price gains of 49% AND 12% on $FB.
The 49% gain was from the $FB position (core) trade, which we held for 3 months. The original entry was based on a pullback from a strong breakout.
The 12.5% gain was the result of an intermediate-term swing trade we rode for 3 weeks. Entry point was based on a post-earnings gap up.
In the 6-minute trading strategy video below, we walk you step-by-step through this actual Facebook trade, clearly explaining the rationale and techniques for the entry and exit points of both the position and swing trades.
For best viewing quality, play the video below in full screen mode by clicking the icon on bottom right of video player window:
While the Facebook trade was quite profitable for newsletter subscribers who followed our exact, preset entry and points, we have successfully used this strategy with many other trades over the past few months (+58% in $TSLA [still open], +40% in $SCTY, +20% in $SYNA, and more).
With the combination of position and swing trading being one of our best trading techniques for buying top-rated stocks in bull markets, subscribe to The Wagner Daily today to ensure you profit from our next big winner.
I didn’t get why you haven’t sold the stock when it hit the 50 day MA a few weeks back but did when it hit the 10 day MA on March 10
Hello Hari,
The first pullback to the 50-day MA after a major breakout is usually a low-risk buy entry point for those who missed the breakout. Thereafter, odds usually favor a retest or push through of the prior highs. At that point, we tightened the stops to sell into strength.
Cheers,
Deron
Thank you Deron for your clarification. But couldn’t this pullback be a good entry point too?
Sorry about the late reply. I was out of the office for a few days last week.
Anyway, with our stock market timing model currently in “sell” mode, we are not presently looking for new long exposure on the stock side.
Even if the pullback entry is good, a vast majority of breakouts and pullbacks fail when overall market conditions are weak and stocks are under distribution.