3309 Drysdale Ct
Edwardsville, IL 62025
Hi guys, as you know Steve and I put out a lot of trade ideas,
and I'd say a good 70% - 90% of them work out since we put out
great ideas. However it's clear that a lot of you are not
either doing them, or you have tried and failed. I want you
to succeed here and make money, and this video discussed a
methodical and systematic approach that you can employ to help
define and limit your losses, and be consistently profitable in the
long term. A lot of this is very simply, T.A. 101, however a
lot of you are probably not employing this simple method, and by
doing so you will become a consistently profitable winning
to watch this important video. Also
I'm going to be placing this into the Education Section
here's some examples using a risk of 500 and 250.
Again whatever your risk tolerance is, or the amount that you
feel comfortable losing on a trade, use that to calculate the
'PROPER' number of shares you should be buying based on the
difference between your entry and initial stop
Great video Matt! Educational. You know what your
clients need and you provide it!
Good education - thanks Matt. I use a variation of this
whereby rather than have a fixed risk amount I use a percent of my
portfolio size as my risk amount. This way my risk amount
stays appropriate for the size of my portfolio. - Matt.
Thank you very much! Very helpful.
Appreciate this basic review of lessons you've repeatedly stated
over the years. Easy to follow examples.
here's that old post from 2018, I made it sticky again. I
will look to add that to the education section
Thanks Matt. The video and methods really help.
Thanks Matt. Been a member for just over a year and have
only really traded your systems, not the individual trade ideas,
because I didn't know where to put the stops so I could size the
trade. Having suggested stops added to the trade idea charts
is a *huge* help!
For the systems (Paint Dry, SPY Pro), how do we come up with an
initial $risk/share so we can size our position and what are some
strategies for moving those stops up over time?
Isn't there a mistake in the viedo? DRNA target should be 1 buck
higher in my opinion.
here's some examples using a risk of 500 and 250. Again
whatever your risk tolerance is, or the amount that you feel
comfortable losing on a trade, use that to calculate the 'PROPER'
number of shares you should be buying based on the difference
between your entry and initial stop
Great video Matt. For us that don’t always have time
to watch the whole news letter could just the spreadsheet get
posted for new trade ideas - using the $500 risk example. I
don’t want to put you out if it is a hassle. Just a
suggestion if you think your membership would get value out of
By the way thanks for all the new information and trade ideas
format with the target, triggers and stop levels. It will help your
members a lot. Thanks matt
Do you have a limited amount of stock to trade at any given
time? For example is not the same that you risk 1% in 6 stocks for
a maximum 6% risk than risk1% in 12 stocks for a maximun risk of
12%. Do you take that into consideration?
Thanks Matt - The target and stop information are great
guys just for clarification, some comments were sent to me via
p.m. regarding the setups I showed, some didn't have a 1:3 risk
reward ratio etc (however many of them did I just set very
conservative targets and it wasn't about that anyway). The
video was not about cherry picking setups, it was about how to
calculate your proper position size based on your personal risk
tolerance from your initial stop and entry point for the trade
setups so that you can be consistent, it wasn't about finding the
perfect setups. Again mistakes I've done in the past, we all
have, placing too much capital into some positions losers, and not
enough capital in other positions winners, when really for the most
part we should try to be consistent for standard trade setups so
that winners make up for losers and over time we make make
Thanks Matt for displaying the video. It really helps newbies
like myself. Would appreciate the initial stop and entry points in
the future. You and Steve are the best! Keep it up.
yeah I mean I'll try to add that to some of the trade ideas,
probably not all of them, it's actually a lot of work. Also you
will need to convince Steve to do that which may be
again obviously trades are not the same for everyone so it's
just a guide for a general swing trade approach. Quite simply
I'll use the last higher low a stop, or just below a trendline, or
a moving average like the 9 EMA or 20 SMA. Or if there's a
solid up candle I'll use 50% of that range. Also patterns like
tight coils and falling wedge patterns, even flags will have tight
stops on daily charts by their nature. However horizontal breakout
plays have higher risk because many times those important support
areas are far away and your stop has to be too wide, which is also
why I suggest looking at 60 min charts and seeing if you can get a
tighter entry and stop from that.
I may try to add some of those stop and target areas to specific
patterns but not others like horizontal breakouts
The video you provided is a good guide. Placing stops and
targets depends on the trader and their plan.
that would be super great Matt, and would add a lot of benefit
to us swing traders till we get the hang of it. esp your coil
patterns that i will be looking and learning to do!
Stops and targets should be defined by each individual based
upon their style - most importantly DEFINE YOUR STYLE and your
answer will come as a result. PRTS was one of my original
fundamental plays when the stock was trading around a $1.00.
Position traders were greatly rewarded following the
management change. Too many traders bounce around from idea
to idea without having any PLAN in place. That's like a team
going into a game without any practice or plan and simply winging
it on game day - end result is most will ultimately fail with that
Stops and targets will vary greatly depending upon YOUR APPROACH
which should be enacted PRIOR to trading. Novice traders
want to start with targets without any plan in place and as a
result most will simply rely upon others and never become
Give a man a fish and you feed him for a day; teach a man to
fish and you feed him for a lifetime.
We are TRADERS not FORECASTERS - focus on what's in front of you
first and foremost. Forecasters don't put money to work like
traders. They want to tell you what's going to happen and
more often then not are wrong.
Again guys please watch the video, I really want all of you to
become consistently profitable traders and be able to utilize our
trade ideas to do that. Some of you struggle with this and
that's why I made the video. Steve and I both want you to
Also going forward I plan to add initial stop suggestions and
targets to most of my trade ideas so that you can utilize the
formula I discussed in my video in order to set your PROPER
position size, and defined risk that is based on YOUR personal risk
tolerance (which I discuss in the video). If you guys do
this, you will become profitable traders over time. Here's a
few new ideas where I have added stops and targets so that you can
calculate your proper trade size based on your personal risk
tolerance. I would also like to ask Steve to add these to his
watchlist trade ideas when possible. It takes us longer to do
that but in the end it's worth it because we want you to succeed
and I think this will help. Also realize that not every trade
idea will have stops and targets listed because there are times
when the setup is trickier and needs to be played by ear, however I
will do so when I can.
Thanks Matt appreciate the video. I like the idea of going
forward having the targets and stops on the charts for easy
reference. I know I need to get more mechanical with my trades for
Once again, the above video link provides an overview
referencing current stock market conditions relative to similar
past readings. This would be most relevant for position
investors (such as retirement accounts) to monitor on a weekly
This is NOT a
forecast just data points at this time. Continue to keep an
open mind and respect the message of the market.
Markets are fluid and subject to change as we all know - key is
to establish a methodology that fits with your beliefs. You
can also incorporate a hybrid approach with your portfolio by
position investing certain funds for longer term (accepting
volatility until EVIDENCE changes) and dedicating other funds to
short term trading. Those are decisions for each individual.
If you have yet to formalize an investing/trading approach
please take some time to formalize a template - you can always
adjust but it's best to have something in place. From there,
you should formulate a PLAN that entails your objectives.
Once a plan is in place, then you can refine down to which
specific securities you want to invest and/or trade. This is
a TOP DOWN approach that should be enacted PRIOR to looking for
trades. Just like a Football team(or any sports team) - the
General manager has a vision/approach on how he/she wants to build
a team. Then he/she hires a coach to devise a scheme around those
players to maximize their talents. Next, the coach puts
into place a weekly game plan (making necessary adjustments) before
finally selecting specific plays.
How does BPT come into this picture? Think of BPT like a
consultant/assistant coach who helps to make your job easier
along the way. We provide daily analysis of several markets
which helps to provide some guidance as to how we see things.
We also spend a considerable amount of time providing tips
and educational examples to help execute you plan. Think of
the DVT approach for swing trades and the nightly discussion of
charts involving patterns and candlesticks, etc. We
also scan for and offer trade suggestions (ideas) that we believe
are valid setups and we take time to review the triggered setups in
the following days. Partake in only the ideas that fit into
your plan and simply ignore ones that don't. Finally, we
spend time posting relevant comments and numerous charts every day
in the trading community relating to what transpiring during that
trading session and updating trade ideas.
Hi Matt/steve, is today highly likely to be a trend day?
Stockcharts.comdown I'm opening up
Zoom feel free to join in. I may comment on some stuff go over some
things I did in the webarin
Join Zoom Meeting
sent out email I'm on the Zoom now will be on for about 30 min
to discuss a few items
Was the Zoom discussion recorded?
Zoom room link? I can't find it.
It's the 3rd sticky from the stop? it's condensed so you
click on the title and it expands. make sure you hard
refereshed the blog, click the Chronological button or
I must be missing something. Screen snapshot of the full thread.
No link. Sorry.
I have the Zoom room open back. I was on all night and
this morning, it cuts off after 24 hrs, so I re started it. I
won't be on there, much but have those charts open with the ribbons
and cycles if you want to monitor them intra day
Matt, where is the link to Zoom room?
I replied to the sticky, same one
ADSK - Chart Link- did my best to find tight
patterns so stops can be tight
IGV - Chart Link-
BEN - Chart Link-
ABM - Chart Link-
HPE - Chart Link-
HFC - Chart Link-
LAZ - Chart Link-
SC - Chart Link-
here's the image of the QQQ's with the same indicators I use for
you can see the DVT's, the MA pinch a few days ago, and cycle
buys a few days ago as well, also a cycle buy appeared
here's some intra day examples on AAPL someone asked me about:
So using a 5 min, 3 min, 1 min look for BPT MA deluxe to pinch into
the ribbons, then get your cycle buy on 1 min or 3 min - easy
trades day trades. 3 trade setups intra day one in morning, mid
day, and afternoon
here's an image, the DVT triggerd a buy in late March dotted
white line, and kep you in whole time, every time the BPT MA pulled
into the ribbons gave you additional buy opportunities. A couple
days ago you had a low risk buy from the cycle 195 min 1/2 day
I showed it on the Zoom webinar earlier via my system charts,
gave a nice buy signal a few days ago from the MA pinch and
CANE - Chart Link-
GBTC - Chart Link
Nice move on CODX
imelhoe - my plan was to fade the open (after big gaps value
tends to be on the downside which was supported by negative breadth
from the onset). Intraday you simply have to respect
triggers on the time frame you trade. I'm a TRADER not a
FORECASTER - forecasters are worthless. Trade some individual
names instead of the indices which tend to be simpler. I suggest
you spend time every night preparing a plan of action in
conjunction with YOUR approach to trading. Then focus on
those setups during the trading sessions.
CODX - Chart Link
$SPX - Chart Link- IWM laggard (leading down
$SPX - Chart Link
Negative divergence on intraday SPX charts and steady fade from
open - weak internals from the onset
yes the auto refresh may not catch those new stickies. That
sticky was from yesterday not today so it's not new but the auto
refresh isn't perfect and may not catch those for some reason. Once
in a while click that Chronological button at the top to hard
Guys - get in the habit of manually refreshing the blog during
the trading session (several times) Simply click on the Community
image of that
in the sticky post 3rd from top? how you guys not see
that? click the title to expand
ADT - Chart Link-
ROKU - Chart Link
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