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What Do All Great Trades Have in Common?

The easiest trades to manage are the ones that work immediately.

After all, if your position is always in the green, there’s no panic. 

You’re not stressed. And your account balance is growing.

But how do you know whether to sell or hold on to what could be a big winner?

As always, nothing is foolproof. But there are signs that a stock has more room to run.

So if you’re looking for home-run stocks, it pays to know what they all have in common…

Follow-through after a breakout

A strong breakout day is a very good way to start a trade.

But if the price keeps climbing for several days, that is an ever better sign.

More up days than down days

This one is simple…

Count the number of days the stock is up versus the number of days when the stock is down.

If you’re swing trading, count up weeks versus down weeks.

More volume on up days than down days

Watch the volume, too…

You want to see high volume on up days, as it shows big participation on the buy side and lower volume on the down days.

Again, if you are swing trading, compare volume on up versus down weeks.

Tennis ball action

Any time a stock pulls back (which is natural, by the way), I watch the stock’s reaction.

Is it acting like a tennis ball or an egg?

Tennis ball action will result in a quick bounce back to back to recent highs.

An egg, on the other hand, will “splat” and fail to rebound.

Strong closes

I give a lot more weight to where a stock closes the day than where it opens.

You want to see the stock closing the day or week in the upper half of the candle.

This is a signal that bulls are winning the battle and a big winner could just be getting started.

Watch Josh Trade Live This Morning

These five metrics should help you determine whether or not you are holding a winning stock.

I hope you have some of them in your portfolio… 

But if you are not seeing most of these metrics, you may want to consider taking profits early.

Now, no one knows more about what makes a great trade than my colleague and expert analyst Josh Martinez.

He’s a multi-year veteran trader who has mastered the futures market. And this morning at 8:30 a.m. ET, he is going to do something a little different…

He’s going to go into the live market in front of a live class and trade with a live account at the US market open.

Get ready for an exciting event. I’ll be there in the trading room with Josh, and I’m personally inviting you to join us!

He’s developed not only an indicator but an entire strategy around his brand-new Chandelier Trader system.

We’re going to watch live as Josh demonstrates it in real time. That’s right… Totally LIVE!

I know it’s a bit early, but I invite you to join us right here at 8:30 a.m. ET for coffee as we look at the pre-market and wait for Josh to walk us through his US market open strategy execution.

I look forward to seeing you bright and early!

Embrace the surge,

Ross Givens
Editor, Stock Surge Daily

Ross Givens
Ross Givens

I bought my first stock when I was 12 years old. It was Microsoft. I’ve been a registered financial advisor. I’ve worked as a stock broker. I ran a managed fund. I was a Vice President at JP Morgan with Series 7, Series 66 and Series 3 securities licenses. I’ve been featured on Fox Business, CNBC, Bloomberg, and a bunch of other networks. The only thing I enjoy more than making money, is helping YOU make money.

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