Stock Trader’s Corner — The Magnetic Trading Workshop

In today’s Money Weekend…71% jump in three days…I have tripled my account…a final suggestion before I wrap up…and more…

Over the last couple of months, I’ve been giving you a crash course on a new way of analysing price action.

If you’ve been paying attention I’m hoping you are starting to see the logic behind the ideas and are getting excited to know more.

The information I’m giving you is not in any course or book you’re going to find. It is a method for trading markets that has been built from the ground up since I walked onto the Sydney Futures Exchange trading floor nearly three decades ago.

How to Limit Your Risks While Trading Volatile Stocks. Learn more.

It’s all well and good to talk about theory but the most important thing to find out is whether or not it actually works in real life.

I’m going to give you the chance to find that out from Monday to Thursday next week in the Magnetic Trading Workshop.

You should know enough by now to follow along as we dive much deeper into my trading model. You’re going to see me explain live trades in my trading service Pivot Trader.

You’ll see everything.

The logic behind the trade entry. Where we took part profits and why. Where the stop-losses were set and why. Where the breakeven stop-loss was and why that level is incredibly important for the overall trade results.

I’m going to take you through a detailed analysis of my trading results since inception.

To give you a taste of what they are, we have done 44 stock trades in Pivot Trader since inception in late 2018. These numbers don’t include hedge trades in the indices.

There have been 10 losers, 15 breakeven trades, and 19 winners.

So, the percentage of losers to total trades is 23%. That means 77% of trades have either been winners or breakeven.

If you just look at winners versus losers, there has been a 66% strike rate at a risk/reward of nearly 3:1. The average gain across winners has been 56% and the average loss 19%.

If you know anything about trading statistics you should know that they are very compelling numbers. And remember that includes the crash. That’s why there are so many breakeven trades.

But that alone describes the power of the system. Rather than losing initial capital in the crash we were being stopped out of lots of trades at breakeven. There were even trades we were stopped out of with a win.

All of this will be explained in detail in the video presentation next Thursday. Be sure to check it out.

Now I want to show you a shortened version of a video I sent out last Monday, 30 November, to every customer of ours, so you can see my analysis in action.

Paying customers receive a complimentary newsletter called The Insider and I put together a video each Monday where I analyse various stocks that I think are worth looking into.

Last Monday I had a look at Blue Energy Ltd [ASX:BLU], saying that it was time to start putting a few of them in the bottom drawer because they would blast off at some point.

The stock was trading at 5.5 cents at the time and it closed on Thursday at 8.8 cents having reached a high of 9.4 cents during the day. That’s a 71% rally in three days from the point when I sent out the video.

In the interests of full disclosure, members of Pivot Trader (my trading service) are long the stock.

In fact, I sent them the official alert Thursday morning to buy the stock at 6.8 cents with an initial target of 9 cents. We reached that target by the afternoon. So, a 32% move for us on the day and we have already taken part profits.

I waited until after the Monday video because I thought there was a chance the stock price would weaken a bit further and I wanted members of Pivot Trader in at the best possible price, but then an announcement hit the boards and the price started to move, so it forced my hand.

Just click on the picture below and watch the brief (four-minute) video shot on Monday, 30 November, that explains my reasoning for thinking that BLU was a buy.

71% jump in three days

 

What you should notice in the video is that nearly everything I said has already been explained to you in the Trader’s Corner articles. There are a few additional points that you may not have known and that are important to the theory, so if you want to learn a bit more you should watch the whole video.

I hope you will join me from Monday to Thursday next week as I explain my approach to making money in the markets while having a close eye on protecting capital.

If you wanted to know what members of my service think about it then have a read of this comment by Peter D. If you don’t know who the man with the infamous golden beads is, it’s Rene Rivkin who was a famous broker from the ’80s and ’90s.

I have tripled my account


Port Phillip Publishing

Source: Pivot Trader customer survey

[Click to open in a new window]

A final suggestion before I wrap up…

This is a good time to look back and take stock at what’s happened in the markets this year…so we can formulate a smart trading strategy for 2021.

What worked? What didn’t? And what has a good chance of working for investors and traders in the year ahead?

One thing that worked for many investors and traders in 2021 were stocks with exposure to clean energy.

Indices around the world head renewable stocks right up there among the biggest gainers. It happened here on the ASX, too, but to a lesser degree.

That’s about to change in 2021, according to this new investment report from the blokes at Exponential Stock Investor. If you’re interested in stock recommendations that are plays on what happens NEXT in the global clean energy revolution, I suggest you read it this weekend.

An $11 trillion tsunami is about to pour into clean energy.

According to Ryan Dinse and his team, if you pick the ‘second-order effects’ of this — and the stocks poised to exploit them — the potential profits are huge.

Even if you’re a climate sceptic, the investment case here is pretty compelling.

Click here to see which stocks they’re putting buys on.

Regards,

Murray Dawes Signature

Murray Dawes,
For Money Weekend

PS: Make Profitable Trades, More Often — Trading expert Murray Dawes reveals his unique trading strategy designed to help you clock up steady gains in any market, while limiting your downside risks. Click here to learn more. 


Murray Dawes is the Editor of Pivot Trader and contributing Editor at Money Morning. He was one of five, from 5,000 applicants, chosen for a graduate position with the Swiss Banking Corporation — now part of banking giant UBS. The bosses quickly cottoned on to his potential and pushed him up the ranks as a futures broker on the floors of the Sydney Futures Exchange. Murray later broke out on his own and developed custom trading systems to trade leveraged financial instruments like futures. Due to his success, Murray became the ‘hired gun’ trader for Australia’s rich and famous. Today, Murray runs a trading service through Fat Tail Investment Research to help everyday Aussie investors use his advanced trading methods.

Money Morning Australia