This is a 'semi-passive' strategy, so it's really a form of 'technical investing' where the trick is to be passive when the market is trending and active when it’s turning. Our entry and exit decisions are based on clearly defined signals, rather than company financials or macro-economics. Institutions and large money managers like to use strategies like this.

Introduced in Way of the Trader, this continues to be one of my most profitable strategies. It can be applied to any large international equity market and best of all, there is no scanning for stocks because we trade the same instrument repeatedly. Videos covering live trades in the US from August 2017 to January 2021 have been added to the Online Trading Course.

A medium-term ‘Weekly Trend Following’ Strategy (the most profitable trading style) which uses market breadth analysis to identify a shift in the balance of power between bullish and bearish stocks. It's a pure play on the US equity market (the world's largest and most liquid) which means it's suitable for part-time traders and investors all over the world.

One of my favorite strategies was inspired by a line from Oscar Wilde, ‘We are all in the gutter but some of us are looking at the stars’. We are looking for high flying stocks who have fallen out of favor and ended up in the gutter. Once we are in a position, we stay with it until the trend ends by using a trailing stop to manage our risk and get us out with our profits intact.

Trend Following is particularly suited to beginners, as open orders need only be adjusted on the weekends. This allows us to get away from the screen and concentrate on our day job. To trade this style, we need to understand trend structure and patiently wait for each weekly bar (or candle) to form without jumping in or anticipating where it might go.

This swing trading strategy can be applied to any instrument in any market using any trading platform. A workspace for this strategy which includes a screening tool for TradeStation® RadarScreen® is offered in the Store. Videos which offer an introduction to the strategy and cover live trades between June and July 2021 are in the Online Trading Course.