Wednesday, December 08, 2004

The Key to success is stacking the Deck!

What Trade-Ideas does is allow you to stack the odds in your favor like never before. The idea is simple. In blackjack you are going to bet more aggressively when you think face cards are coming. With Trade-Ideas the key is to line up trends ahead of time so that the triggers you see are already all stacked in your favor. Look at the chart of KCI for December 8, 2004. My alert configuration alerted me to a breakout at 7:57:55 right around the time it was trading at 67.88. While the rest of the market was negative this stock was heading above yesterday's highs. We bought at 68.10 with a tight stop at 67.75. Shorly after that the stock moves right to 69. The reason this happened is because of all the filters that we placed before the alert was visible. We said the stock had to be in the top 10% of yesterday's trading range and has to be up at least 50 cents from the close and at least a 1 cent from the open. All of these filters point to a higher probability of continuation. Here is the set up for those interested.
Stacked Deck

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