We understand you may have many questions about our trading service, and why you should choose us over others. We have tried to address them, but if we have missed anything please do not hesitate to contact us.
What type of stocks do you trade?
We focus on disruptive small caps for explosive growth.
Everyone always trades the usual suspects of $AAPL, $NVDA, $AMZN, etcetera. Truth is, most of these provide steady gains, but not the parabolic returns that we achieve with small caps. We focus on stocks in the $5 to $50 range, although at times we may stray outside that if the setup is of interest.
We are the only swing trading service dedicated to small caps.
Are small caps not riskier?
Traders like us love volatility, which is what small caps provide us with. It gives us the upside we seek, but you are right in asking whether this applies to the downside as well. It does, but this is where risk management comes into play.
What risk management principles do you apply?
Proper risk management is the key determinant to growing your account on the longer term.
We seek stocks that perform well against the broader market, with technical setups that have been tried and tested by us. We do not possess a crystal ball, but it does provide us with higher probability setups. It is how we skew the odds in our favour.
However, we do not enter a trade unless we can achieve at least a 1:2 risk / reward ratio. This allows us to cut our losers early, whilst letting our winners run so they can achieve their maximum profit potential.
What is your trading style?
A lot of people day trade small caps due to their volatility. We found a way to swing trade them, as we believe this method is best suited to a trading service. After all, most of us have a busy life as it is and cannot afford to be glued to a charting platform for eight hours a day. We do that for you.
We only trade setups that we find and match our very strict entry criteria. We are not like some trading services where they latch onto top gainers, or find hype and meme-worthy stocks on fintwit, and hope for the best.
As we focus on swing trading, our holding period is typically 1 to 4 weeks, although it could be less if a stock significantly breaks out very quickly and we feel that profit taking is warranted.
Do you trade options or equity?
Most of our trade ideas can be executed with options, but not all small caps will have weekly options, and for some the bid / ask spread will be too wide to make it worthwhile.
Therefore, the core focus of our services is geared towards trading equity, as it also makes it accessible to more people and fits with our purpose of helping people become financially independent. Another benefit of equity is that your entry does not exactly have to match ours, you have a bit more leeway if you're stuck in a meeting, or life holds you up in other ways.
Having said that, if you trade options you can use our trade ideas and find your own options strategies against them.
How do you deliver your trades?
Every Sunday we publish our top 3 trade ideas for the week on this site, and they are also send out via our news letter. These take the form of a long format, where we in detail explain our reasoning for why we feel this setup is attractive. The aim is help you understand our approach, so in time you can mimic it on your own trades and become self-sufficient.
Throughout the week we may publish additional trade ideas like these, if we see stocks on our watch list move in such a way that an attractive setup has materialised. Trade ideas will generally be also published on Twitter, but often with one or two days delay, so the best way to keep abreast is to register here.
Typically, you can expect 3 - 5 trade actionable ideas a week.
What are your results?
We publish all our trades. Every single one. Warts and all. In fact, we can only fulfil our purpose of helping you become a trader yourself if you see the mistakes, and have the ability to learn from them.
The best investment manager in history, Renaissance Technologies, is only right just over 50%. It's a fact of life that when you trade, you will have losers. What matters is how you handle the losers through risk management.
Do you guarantee results?
No. At the end of the day, trading is a high risk activity. We skew the odds in our favour through our structured approach, but even the best setup can go awry due to lots of unforeseen circumstances.
However, we are fully transparent with our performance - the good and the bad - and we help you with clearly specified entry, exit and profit levels, as well as risk/reward ratios. Besides that, we are happy to help with any questions you may have around risk management and position sizing.
What is your method of technical analysis?
Most beginning traders have tons of indicators, and can't see the forest for the trees. Indicators also have a lagging nature, and thus do not tell you the right story. Instead, we rely on volume, price and time. Those are the three things that drive a stock's movements. All that matters is price action.
We prefer to trade either breakouts or reversals. Not only are they the patterns that we have specialised in ourselves, they also tend to give the most upside. However, timing them is very difficult, which is why we use supporting evidence like relative strength, darkpool prints and options flow.
After all, often stocks don't move, but someone moves them. We find those hidden bread-crumbs that smart money leaves behind, in order to help us time our entries. Ideally, we also enter stocks with a high % of short float, as they'll "short squeeze" when they break and hold, and in doing so give us the parabolic returns that we seek.
Nevertheless, some of the magic is baked in our market intuition. Given our prior trade experience we can "feel" whether a trade is good or bad where other people may fail to see it. This cannot be taught, but only learnt through experience.
How much does your service cost?
For the moment, all our content is free, as we are seeking to build this trading community with you, and with your input. We are open to ideas on how we can improve our service in order to make you more successful.
Eventually, certain content will be accessible only to paying subscribers.
$DMYD is taking Genius public, which is aiming to turn into the data backbone of this booming sports betting market. It has an attractive setup and a breakout looks imminent in the run up to its merger.