The Stock Earnings system this site uses

Hello everyone. Here is the method that I use for the stock earnings system for the 1045 report.

I basically do two things over and over again:

1. I bounce trade stocks interdaily. At about 1045 in the morning central time (Chicago Time) I decide which way the market is going to go the next day by analyzing the Nasdaq QQQ. Once I decide which way I look at a corresponding up or down list.
If I feel the QQQ is going to rise tomorrow, I will select the most down % list for the current day.
If I feel the QQQ is going to drop tomorrow, I select the most gainers % list f or the current day.

Here is the rationale: Stock are like beach balls floating in the ocean. The Ocean is the Stockmarket itself. When the market pulls back from the shore, the beach ball (stock) takes a ride with it in the direction is flows. Likewise, when the ocean comes into shore, the beach ball rides with it on in. Much like the stockmarket can drag stocks up or down depending if its and up day or down day.

Now: I have gone over in previous posts how we as humans are all wired with greed and fear. These are ancient impluses hardwired into us via evolution in order to help us survive. For example, there are 9 cavemen standing around. Suddenly as a group they all start running away in the same direction. You will have a hard time resisting the urge to start running with them no questions asked. Because if you stand there and look around suddenly you could be eaten by a predator. Run with the herd is a primal response. As is greed, the urge to acquire resources for survival. If you see a group of people rapidly acquiring something that aids in survival, you will have the urge to join them and start acquiring: you don't want to miss out. Greed.

So I work two things with this one. Greed and Fear, and my technical charting of the QQQ. I go through the most up list or the most down list for the day and ID stocks that have irrationally been bought or sold due to fear or greed. Then this is further magnifyied by the direction of the market the following day. So for example. I look at the cubes in the morning and looking at its technicals and what reports are due out and any other upcoming news and decide which way the market is going to go. So lets say I decide that tomorrow the market is going to drop. Here is the concept. The market is going to drop and drag down stocks with it. So I am going to pick the most gainers% list of the day, or stocks that are the most up percentage wise by price for the day and find errors in judgement, or greed by the crowd as a whole. Stocks that went up too high and when people find thier wits about them again the next day, the stock will shrink to its correct valuation as cool heads once again prevail. This drop is FURTHER AIDED BY THE DROPPING STOCK MARKET as it drags the stock down with it IN ADDITION to the stock bouncing back to its correct valuation. Its like a double whammy. Some days I don't see a play. Most days it seems that I do. The trading crowd is like a bunch of lemmings running as a herd left and right and I just go the other way on it.

2. Here is the other thing that I do: Trade the earnings reports. If you got 18 minutes to learn how to do this, this below video is VERY informative. However I admidt the quality of the video is a bit amateurish. Personally, if I was told that the video wasn't too slick but with the information I could make a million dollars over the course of the next year or two with it, you better believe I'd watch it.

Don't watch the above video at work, you will need your full attention. Its 18 minutes long, Get a drink to wake up and see how I do it.

Thats really all I do in a nutshell. I do the above two things over and over again, and it will only end when the markets end or there is an atomic war. I have been doing this for 20 years and my level of expertise is pretty much up there. For example, I'm good at reading candlestick technical charts with popular indicators...that takes practice. There are nuances and specific things I look for that I have trained myself to see along with a gut feeling that backs the logic I use. Can you learn to trade like me? Sure. Piggy back off me or just watch me for a few months and learn my style. For every trade I let you know whats going on inside my head and why the stock and what Im looking for and why I feel the stock is going to do what its going to do.

Thats all for now, tomorrow watch for my bounce trades in the mid morning.

Tradinginsider