Quick Trade Service
In addition to my regular investment portfolios, I also offer a more active trading service that utilizes my trend methodology to identify stocks that have undergone a consolidation phase or correction and are signalling a break-out or reversal upwards. This service does not have a portfolio because the objective is to show subscribers how to identify good trade set-ups in real-time. Once per week, I provide an updated watch-list and charts of the most promising trade set-ups and discuss possible buy and sell scenarios as the trade develops. The idea here is to try to illustrate how a trade might be managed as it unfolds. Trading with this methodology can result in some large percentage gains (5-100%) on a per trade basis and can potentially build up a trading account quickly.
The methodology for these trades is the exact same as the trend methodology used in the Natural Selection portfolios but it operates on the daily time-frame rather than the weekly time-frame, meaning that trades vary in length from a few days to a few weeks. As is the case with the slower portfolios, the objective is to catch as much of the trend as possible, however, these trades typically focus more on emerging trends than established trends and attempt to lock-in gains a little more quickly. That means that I am less likely to hold through a correction and more likely to sell into strength or into a price reversal. The idea here is to benefit from the initial large percentage gains that stocks often exhibit when they break out of consolidation and then repeat the process again and again. An example (actual) trade is shown below to illustrate how a trade could play with the quick-trade service.
The trade shown here is was part of a larger theme that played out in the second half of 2018, as the TSX began a classic topping pattern and eventually broke down into year end. The security here (HXD.TO) behaves inversely to the TSX 60, which means that as the TSX was topping and starting to break down, this instrument was building a base and getting ready to break out. By the time this trade had occurred, my two regular portfolios had mostly moved to cash as many long-term trends where breaking down and the market overall was showing incredible weakness across most sectors.
As mentioned above, the same features that I have described in detail in the Natural Selection methodology appear the same on this daily chart. We have the bowl shaped 50 dma, a break across the 50 dma and successful test. Note that the time elapsed between the buy zone and the sell zones, is really only two or three weeks and would allow a trader to make anywhere between 10-20% on this particular trade, depending on where the sell occurred. This is just an example of the kind of trades that I make in my Quick Trade accounts. Some examples of closed trades and the types of gains that can be made are shown below.