Art & Science of Active Trend Trading May 27

May 27, 2018

Good Day Traders,

Last week’s selloff on news of the meeting with N. Korea being called off tells the tale of an unhealthy market.  Each of the Tracking Indexes remain in an uptrend, with signs of waning directional momentum.  Eventually direction will resolve but while waiting a higher drift may take place, but none of the Indexes are in a position for taking large positions in either direction.  Timing favors the shorter term Swing Trades from the floor to the ceiling and back.

Trend Trading Tips:  Do You Have a Trading Routine? (New Section)

This new section will highlight various aspects of trading that many traders struggle with.  Today’s topic – Trading Routines.

Over the past few weeks I’ve been thinking about personal behavior that sets successful traders apart from less successful traders.  One behavior or skill that successful traders have is the ability to form and then follow a weekly and daily routine for their trading.  It seems this skill is present or developed at the beginning of their trading journey and even applied while learning the basics of trading.  The ability to develop and follow a set trading routine can be learned and practiced.  Unfortunately many trader try to jump from wanting to trade to trading without a routine.  This is the course many traders choose and it leads to consistently poor and even devastating performance.  Establishing a winning routine requires both discipline and motivation to established the desired successful behavior.  It is a huge trap to think there is any other way to master trading–Don’t Be Fooled!

The following provides some additional reasons why routines are important.  Exerts from Personal Development Productivity by Tri

Provides structure

Colin Powell once gave a powerful TED Talk on the importance of instilling structure in children.  It is the same with adults.  Routine provides a sense of structure and familiarity.  Structure is a way of organizing your life so that it makes sense to you.  You wake up with a sense of ownership, order, and organization of your life.

One of the more convenient reasons why structure is important is because it negates the need to regularly schedule your days ahead of time.  You already know what you are doing each and every day.  Once you are finished with a task, you already know what is next on your schedule.  This structure provides direction in your life, enabling you to act instead of standing still because of a lack of direction or decision paralysis (not doing anything because you don’t know what to do).

Builds good habits

We are creatures of habits.  And Benjamin once said that “your net worth to the world is usually determined by what remains after your bad habits are subtracted from your good ones.”  Actively and consciously building a daily routine for yourself instills plenty of good habits.  When we consciously decide what we want to do with every day of our lives, we generally want to do what makes us happy or what gives us the most utility.  As such, we build tons of good habits along the way by actively participating in our daily lives.

Increases efficiency

A routine is something that you do over and over again, eventually making it a habit.  Once it is a habit, you do not need to think about it to act.  The act of automation increases efficiency in your life, by enabling you to do things without consciously thinking about it.  You will automatically get things done, without having to remind yourself to get things done.  In this manner, you do not let anything slip and you save time by not having to decide what to do with your day.

Negates the need for willpower and motivation

A routine negates the act of having to will or motivate yourself to do something.  Willpower is finite and motivation is not constant.  That is why relying on routine to accomplish tasks is a lot easier than relying on willpower and motivation.  Yes, when establishing a routine, you do have to will and motivate yourself to get stick the the routine.  But once the routine is set, it is on autopilot and the need for constant willpower and motivation is no longer necessary.

Builds momentum

Routinely doing something every day, even if it is just a little bit, builds big momentum in the long run.  There is a quote that goes “little by little, a little becomes a lot.”  And I find that to be true for almost everything in life.  Although the benefits of doing something every day are small, the payoff is huge after awhile.  Saving $10 by cooking your lunch means you save an extra $3,650 a year.  Running a mile a day means you will have ran 365 miles in a year, the distance of almost 14 marathons.  Reading 20 pages a day means you will have read 7,300 pages in a year, close to 30 books.

It helps you become good at things

Developing a routine will help you become faster and more adept at what you do each and every day.  If you are constantly writing each and every day, you will become a better writer.  If you are constantly programming, you will become a better programmer.  If you are constantly practicing martial arts, you will become a better martial artist.

Saves work on the back end

Routinely doing something will help save tons of hassles and work later on when it piles up.  For instance, if you spend 10 minutes per day cleaning your house, you will save the headache of spending a whole day a couple of months down the line just dedicated to cleaning.

If you need ideas on developing your trading routine drop me a note at:


Bounce Zones for Premium Members: If you are a premium member some very powerful conditional order setup information will soon be available to complement the “Go-No Go” Table each week. Chart showing zones where traders can expect prices to bounce due to supply and demand pressures. What does this mean for Premium members? Charts of our ETFs and Core Stocks with define Bounce Zones will empower you to place conditional orders around these areas for both entry and planned exits. This will be one more way Active Trend Trading will help Premium Traders with limit time for market analysis. Stay tuned for more on this beneficial feature!

Remember to register for the After Market Monday and Making Money Trading Stocks and ETFs each week. In these webinars I will provide 10-12 stock set ups per year. All Levels of ATTS members will receive these trade email alerts. The NEW Composite Watch List provides a sort of all stocks that appeared on multiple Premium IBD Watch Lists this week. Often appearing on multiple list is a sign of strength and identifies a strong long term candidate. New Composite List Provided Below!

Register here to not miss the BONUS Trades or the ATTS Webinar Invitation list:

Running List, Strongest Fundamental stocks on the IBD 50 and the NEW Composite List of Stocks showing up on multiple IBD Watch List on May 4th.

Running List: 130 stocks are on the 2018 Running list. Major swap out this week. Find the list here: Running 5-25

When the new IBD 50 list comes out twice per week I conduct a fundamental sort which results in the top fundamental IBD 50 stocks being identified. The top fundamental stocks for this week are: VNOM, SEDG, IBKR, GRUB, ABMD & SIVB This sort is provided at:  5-25 Sorted

A new addition to the weekly watch lists for Active Trend Traders is a Composite List of IPOs and Growth Stocks appearing on multiple IBD watch list each weekend. When a stock appears on multiple Premium Lists it can potentially be an indication of excellent strength. The stocks on the weekly Composite List may not be at a sound trigger point but may be worth watching for future entries. I will do an analysis of the list looking for price near potential triggers. Stocks near potential triggers will be highlighted. The top stocks appearing on more than one IBD watch list last week are shown in the table below. The Composite List for this week: Composite 5-25