Buying Momentum Stocks Safely




tradewithZEN Announcements:

  • Trade transparency I call out all my personal trades in real time and keep track updated stats on this profit/loss spreadsheet.
  • Now on Ditto Trade! If you want automate your trading and can’t be in front of your computer all day you can mirror my trades in your brokerage account.

What you get with membership:

I will be sharing the exact watchlist of stocks that I trade with my own account. I believe this stock suggestion service will provide you with a constant flow of trade ideas, along with micro trade lessons on how to best utilize this list. TradewithZen will be delivered only through twitter, as it’s the most rapid form of communication to ensure you receive these trade ideas promptly. Ease of use was a top priority as not to interfere with my own trading.

The service has expanded as I have added timing signals for the following markets to take advantage of downturns (DJIA, NASDAQ, TSX).  This service is primarily a “long only watchlist” but I wanted to provide some additional trade opportunities to short when the markets are depressed.

Benefits of TradewithZen

  • Utilize timing signals to know when to be long, short, or neutral.
  • To help train your eyes to what a good stock setup should look like.
  • Alleviate the tedious task and burdens of doing nightly research.
  • Supply a pre-qualified basket of stocks for short term & swing trading.
  • Utilize micro-lessons to help with your entries and exits when applicable.
  • Provide my unique insights / outlook on the markets not found publicly.

Solving Two Major Problems Facing Traders 

This is not a trade alert service. You must determine your own strategy for buying and selling, but it’s my job to have you fishing from the right pond. I feel that one of the major problems facing many traders is a lack of quality trade ideas and because of this you end up creating a watchlist that never changes. You’ll watch the same stocks for months and years while holding stocks that you should have sold long ago. Marketwatch and CNBC are not the place to generate trade ideas. Trading with the masses is not the key to success in trading.

This brings me to the other main problem that traders face. Too many trade ideas. Technology can be a blessing and a curse by overwhelming traders when they watch too many stocks. You’ll save time each night when you receive my personal, highly-focused watchlist of stocks that are exhibiting a specific pattern that suggest it’s going higher.

Over the last 4 years I have been testing a particular strategy for locating stocks that have a strong chance of moving up in the short term, when my timing signal is bullish. In studying this list I also discovered that these particular stocks not only would outperform in the short term, but after a solid basing period (1-2 months) would continue higher with a new up-leg, reinforcing the “trend is your friend” concept.

When the markets are in a corrective phase (my timing signal is bearish), it pays to watch these very same stocks as they hold up very well. The problem is with so many stocks to watch each day it’s easy to forget about which stocks performed well last quarter and are likely to outperform going forward. I’m monitoring these stocks very closely and will alert you when there is a chart setup that I feel has a good reward:risk opportunity.

Catalyst (earnings, new product service, etc) + Quality Chart Setups = Consistent Profits

I already provide my market timing signal for free so you’ll always know when it’s time to be bullish. I also know where my strengths lie as a technician and I’m more effective at identifying  bullish setups than bearish ones. The main reason for this is that human emotions are the reason why chart patterns form (that never changes) and the one that drives stocks to new highs (greed) is much different that the one that causes charts to collapse (fear).

Another great side benefit of having access to this watch list is it will start to show bullish setups long before my timing signal flips. That is a key indication to know whether a market is strong internally and that a rally has legs. You’ll now have an edge when it comes to anticipating a market timing turn by seeing bullish setups first.

Finally if you’d like to receive a little more “one on one” time with me I obviously spend more time answering emails, providing opinions and guidance to subscribers. If you’re new to trading and want to avoid some early mistakes then this could be a big draw as well.

Why not give it away for free? Why bother charging at all?

I’ve invested a serious amount of time  in devising this strategy of identifying and tracking stocks with a certain profile. This watchlist comes with the comfort of knowing that I’ve personally researched, as these are the very same stocks that I risk my capital with. There needs to be a line that divides those who take this information seriously and those who are looking for free stock picks. I’ve provided information on zentrader for free for the last 4 years so it’s not about the money. Membership is now $30/month and will be closed at 100 subscribers. There will be a waiting list and you will be notified when a position is available.

In severe bear markets there won’t be any bullish setups and I’ve factored that in by pricing this very low. Some nights there will be no stocks to add to the watchlist and I never want to force a trade and for that I’ve made it extremely affordable for everyone.

TradeWithZen 

Who is best suited for this service?

I’ve designed this for any trader who is unsatisfied with their current watchlist of stocks or wants to cut down on the time it takes to locate quality trade setups. The stocks selected are very liquid with a 500-750k minimum average trading volume and I rarely select stocks under $10 share as they are more of a speculative nature. Many traders shy away from high priced stocks, but if you can’t turn a profit on a $70 stocks you aren’t going to have any better luck trading a $7 stock. If anything, you’d intensify your losses by trading low priced, illiquid stocks as you’ll find yourself trapped in trades. I rarely hold through earnings so it’ll pay to use the free site Briefing to double check before placing any trades.

I’m not looking for lifetime subscribers, but if you like the service you’re welcome to stay. Stay for 6 months and then take the knowledge you’ve learned through the micro-lessons and apply it in your own trading. Once again, it’s my goal to help you train your eye to what a profitable setup looks like through my process.This is something I do every night and I just want to share one facet of my trading strategy as I feel my ability to locate bullish setups will be valuable to your own success.

How do I get these trade ideas right now?

If this sounds like something you’re interested in then, then great! Follow these instructions:

  1. Sign up using the paypal link at the beginning of this post.
  2. Once payment is made –  request to follow tradewithZEN twitter account.
  3. You’re all set to receive updates & I’d like to personally welcome you aboard!

 

To your trading prosperity,
Jeff

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  13 comments for “Buying Momentum Stocks Safely

  1. Kurt Juergens
    March 28, 2013 at 8:33 pm

    Jeff,

    I’ve read your entire site and I’m definitely interested. I do have a few questions for you. When you add something to your watch list, does that mean calling a buy on it? Also, do you share your actual trades or just tell your subscribers to watch “x” stock?

    I usually set a pretty tight stop loss when I get in (no more than 100.00 for a loss), so I’m not overly concerned about you sharing your actual trade buy’s and sell’s but am curious.

    Finally, just for clarification, when a stock goes on your list, do you usually buy it that day or do you watch it for the day and then buy at the open of the next?

    Reply whenever you are able. Thanks for your time,

    Kurt

    • admin
      March 28, 2013 at 9:35 pm

      FAQ Collected from posts and emails.

      1. When you add something to your watch list, does that mean calling a buy on it?

      It means that I’m interested in buying it per my timing methods I teach inside the membership. I only trade this stocks personally. Here is a screenshot of all the stocks I own right now and everyone of these were added to the watchlist before I bought them. I also sold TGT today for 3.5% gain and HIMX yesterday for 20% gain.

      2. Do you share your actual trades or just tell your subscribers to watch “x” stock?

      Since June I have started documenting and posting live trades. I used to share which stocks I bought at the end of the day, but I decided it would be more transparent if I did it this way. Here is the link for the spreadsheet to see all closed trades since June.

      3. When a stock goes on your list, do you usually buy it that day or do you watch it for the day and then buy at the open of the next?

      I use 4 different time frames. Sometimes the stock continues higher the first day and I don’t want to chase. Sometimes it takes a few days or a few weeks to get a proper entry. Sometimes it never gives a signal per my timing entries. But you may have a current trading style that you can adapt and use it on these stocks.

      4. Would a new subscriber get the complete list of stocks on your watch list?

      Absolutely. They get immediate access to our current focus list. If you wanted to know of every stock we ever added you could just scroll through the past tweets and see them. That’s what is great about twitter is absolute transparency.

      5. I just wanted to find out before i register, when you give your picks do you also consider if company is coming up with earning in next 2 weeks or so, and also if insider are selling it in last 30 days or so.

      The short answer is earnings play a big role in my whole strategy. Generally some sort of catalyst (earnings, new product/news announcement) that acts as a “game changer” gets a stock on my list first. Almost never is a stock added before earnings, in fact I can’t even think of a time when I have but I don’t want to say never. Sometimes one slips by, but as I said it’s very rare.

      Now once on my list, I pay attention the next earnings period for that stock to very specific pattern to play where I’ll potentially play a bounce. So earnings before a stock is on the list will disqualify it from making the list, but once on the next couple earnings dates are key. And even then I’ll sometimes remove it before the next earnings date depending on what it has done for the last 3 months.

      6. After a couple of months of hand holding from you, are members able to apply your methods independently? Do you teach members reasons behind your watchlist and reasons for buying?

      You could absolutely go do your own thing with the information I provides. I provide rationale and buy points/sell areas. Advantages to staying are you don’t have to do nightly research as you can rely on my watchlist. I tweet out trade ideas as they are happening when I see them. You’ll be able to access market timing and special sector reports. I also have a log in site with a forum in the works where members can communicate and bounce trade ideas off of each other if they want.

      7. Is there a particular software required for your scans? Or does any charting platform suffice?

      I don’t provide the actual scan criteria but you could replicate your own once you start to see the indicators I use and other requirements. I’ve recreated my scans on StrategyDesk and Think or Swim on Ameritrade and Finviz.

      8. Do you feel confident in your system to let me pay for your service from my profits from your trade signals? I have absolute confidence in my signals, however it is possible for me to tell you exactly when to trade and you could still botch the trade up by not holding on when you should or possibly selling too soon, or even holding onto a loser because you think it’s going to come back. In addition, if you can’t spare $20 month to invest in yourself then you shouldn’t be trading. I provide so much value with tradewithZEN it’s almost an insult to ask me to give it to you for free and then you pay me out of your profits.

      9. I am not a day trader because I have a full time job. Would your service work for someone that has a full time job and can only check the market a couple of times a day? Yes. This is not a service that has a high volume of trades. In addition, I teach you the methods that I personally use to enter and exit stocks on our watchlist so you don’t have to rely on me if you don’t want too. I post all my trades live and also point out setups in advance so you can prepare your trades.

      10. $25 a month for the service, is that just an automatic recurring payment via paypal? If so, how can I cancel payments if I’d like to leave the service? I’ve never done a recurring paypal payment before so I’m not knowledgable about this. Yes, recurring and you can cancel anytime 2 ways. Inside your paypal you go to 1. profile 2. my money 3. preapproved payments to cancel. here is a screenshot. you can also call them and they’ll help you – great customer support.

      11. Will your service cover option strategies or stock only? I only trade stocks but many use these same strategies with options. I just don’t like options because not only do you have to judge the direction, but you have to do it in a certain timeframe.

  2. Nathan
    May 19, 2013 at 5:07 am

    Hi Jeff:

    2 quick questions:

    1. After a couple of months of hand holding from you, are members able to apply your methods independently? Do you teach members reasons behind your watchlist and reasons for buying?

    2. Is there a particular software required for your scans? Or does any charting platform suffice?

    Thank you

    • admin
      May 19, 2013 at 6:26 am

      After a couple of months of hand holding from you, are members able to apply your methods independently? Do you teach members reasons behind your watchlist and reasons for buying?

      You could absolutely go do your own thing with the information I provides. I provide rationale and buy points/sell areas. Advantages to staying are you don’t have to do nightly research as you can rely on my watchlist. I tweet out trade ideas as they are happening when I see them. You’ll be able to access market timing and special sector reports. I also have a log in site with a forum in the works where members can communicate and bounce trade ideas off of each other if they want.

      2. Is there a particular software required for your scans? Or does any charting platform suffice? I don’t provide the actual scan criteria but you could replicate your own once you start to see the indicators I use and other requirements. I’ve recreated my scans on StrategyDesk and Think or Swim on Ameritrade and Finviz.

  3. Patrick OConnell
    June 11, 2013 at 12:43 am

    I sold puts on PPC & OVTI today (061013). Hoping for a profitable trade on these. I am in for the longer time frame. Love your service. Any thoughts on PPC? I know oyu took it off your list- it popped up pretty high on Friday, 060713). Great service! Patrick

    • admin
      June 11, 2013 at 1:03 am

      PPC could easily fall back to $12.75 and potentially further. It’s not that I think it will, it’s just that for me to want to open any new positions this needs to pull back some and digest these gains. Considering we added it to our watchlist on 5.03 when it was trading at 10.38 (closed today at 13.75) it’s had a quick 35% run in a month. When this pulls back to a level I think is a safe buy I will tweet it out.

  4. Etf
    August 10, 2013 at 7:21 am

    Hi,

    Most of the subscription service offers a free 30 day trail, can you also offer a free trail to try your service live?

    -Thanks

    • admin
      August 10, 2013 at 8:40 am

      I cannot because part of what you’re paying for is access to my trading strategy. Once you have that you have it so giving it away isn’t fair to me. If it was just access to the buys/sells that would be one thing. Honestly, $25/month is so little compared to others I figure a free trial isn’t necessary.

  5. gary
    November 29, 2013 at 8:13 pm

    i paid with paypal what is the next step?

  6. admin
    November 29, 2013 at 8:18 pm

    Check your email as I just sent you a welcome email.

  7. Ron Rayburn
    April 3, 2014 at 5:03 pm

    Jeff,
    Ron Rayburn A member, would you send me your instruction list of your various watch list and stock placement in that list and its purpose parameters.

    Any help would be appreciated. Ron Rayburn ronrayburn@gmail.com, so I am better able to follow along.

    Thanks Ron

  8. Penny Smith
    July 22, 2014 at 4:53 pm

    Hi
    I am already trading but am really interested in the astrological side. I am currently studying astrology so would be interested in combining this with my technical analysis

    • admin
      July 22, 2014 at 5:35 pm

      Penny, if you’re interested in Astrology & Technical Analysis you would be interested in another service I’m involved in called Astrology Traders. You can learn more here – and if you have any question email me at tradewithzen@gmail.com or Karen Starich as karen.starich@gmail.com She is the one who does the astrology and I do TA.

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