Thursday, September 13, 2018

AAPL Trade: Step-by-Step !!

Hey folks !!

Earlier this week, we made a SWEET trade in AAPL and today i wanted to go over HOW and WHY we traded this one... 

So here goes.... 

Ok, so first of all, AAPL made an amazing BIG run up recently but it did get way too hot and needed a pullback... so kept telling AOT members to be patient because we will get a good trade in AAPL sooner or later and the time has come this week in the form on a "HOLY GRAIL" setup !! 

A 'Holy Grail" setup is basically: a setup where a stock that's in a VERY strong trend, in AAPL's case, an UP-TREND, pulls back, tests and holds the 20 day MA.... In my experience, it's best to buy the 1st and/or 2nd TEST of the 20 day MA in a strongly trending stock.... 
Long time AOT members know I've been sharing the the "HOLY GRAIL" setup for YEARS and it's definitely one of my favorite setups! 

When AAPL first tested the 20 day MA... AAPL was already down 4-5 days in a row, which made this pullback INCREDIBLY appealing for a risk/reward point of view and couple that with the fact that i was expecting the market to bounce this week(as i tweeted numerous times and i'll do a separate post on why i expected the market to bounce this week) .... 

This is what AAPL chart(daily chart) looked like when it caught my eyes ..... 

So the first you should notice about the AAPL chart above is the fact that this a stock in a VERY strong uptrend and just pulled back 4-5 days in a row and TESTING the 20 day MA.... Now, once i saw that, i then quickly zoom into the 5 minutes charts and, like a good mechanic, you wanna look "under the hood" .... I'm now looking for "hints" this stock is looking to "bottom" or reverse so i can establish a long position...

Here's the 5 minute chart and what i was thinking thru-out the day while watching this stock: 

Please take your time and really study the chart action as well as the commentary on the chart.... 

We kept raising/trailing the AAPL stop loss every +$1 increment(for example, once AAPL broke thru $219, raised stop to $218... once it broke thru $220, we raised stops to $219 etc etc), reason why i wanted to trial the stop loss so tightly as it kept ramping higher the next day is because AAPL had a product event the next day and didn't want to be holding the shares thru such a thing it could be a volatile hold.... 

Ended up stopping out of at AAPL at $223.00  for a +$5.55 gain in 2 days!!  

Fast forward 2-3 days later and here's what AAPL is looking like now... 

I hope you found this helpful!! 

Happy Trading !!


Monday, September 10, 2018

3 AOT Members Share Their Progress!

Hey folks!

I got these 3 emails from 3 different AOT members recently and I wanted to share their progress with you thus far!! 

So if you've been struggling lately or going thru a frustrating phase or perhaps feeling like you're hitting a "plateau" in your trading career right now.... Please read these 3 letters below!

If they can do it, YOU can do it too! 
No excuses! 

So here you go!! 

Hi stewie,

I've been a Member for around 6 weeks.  I was fed up with taking entries on break outs, following sensible and recognized criteria, then watching the price turn around in the chop and getting stopped out.  So I was particularly looking tor a service that would help teach me swing trading, rather than longer term trend following, to be able to make money in all markets, even choppy markets such as we've experienced over the last few months.  Boy, has Stewie met my expectations and more!

Separating the trading results from the education, the results have been very good - high probability trades with smaller draw-downs on the losers.  I would have made very good money but have been taking modest positions while I build my trust in the service.  Given the great return on risk that I've seen I'm now ready to move up my position size to what I regards as full positions (I'm a cautious chap!).

Turning to the learning, that has been no less impressive.  Stewie seems to be on a mission to share all he knows and educate his Members in all aspects of his craft.  What I especially like is how uses the actual trades along with subject specific emails to get his message across.   I love how simple and straightforward he keeps his teaching.

Since I started trading (rather than investing) last year I've read and heard countless times from greatly respected traders about how essential it is to be patient and wait for the high probability trade in the right market.  I have nodded sagely to myself and then gone on to snatch at whatever has taken my fancy!   However watching how Stewie makes such good money while making fewer trades, waiting not only for the right trade but for the right trade against a backdrop of a favourable market, has hopefully brought home to me the Jesse Livermore statement that:

“After spending many years in Wall Street and after making and losing millions of dollars I want to tell you this:  It never was my thinking that made the big money for me. It always was my sitting. Got that? My sitting tight!”

If this takes hold in my trading then everything else I learn from Stewie will be a bonus!

Thanks for all you do and your generosity in sharing what you know.


Hi Stew,

Hope all is well! My apologies in advance for this lengthy email! Pls read when you find time.

I wanted to take a moment and thank/update you for all the fantastic trades this month. In spite of the chop, staying patient and taking the best setups has helped me tremendously this month. 

In a nutshell, I'm up $5,000 this month in profitsI cashed out 3K out of this account after taking this snapshot below. This is the highest payout I've received from the market ever and am very grateful I'm having a good month.

Over the past 4 months, I was literally in a CHOP in terms of performance. Had some great trades here and there, but losing in commissions overall and no real gains overall. Kept giving them gains back. There were 2 main reasons. 
1) I was taking WAY TOO many day trades (not per plan/no setup/getting stopped or wiggled out of positions).
2) Expecting a huge % win in a short period of time, and holding trades longer than needed. 
Risk was defined, so I didnt blow any accounts, but definitely didnt make any money net.

I have learnt a TON over the past few months from AoT compared to what I've learnt in past 6  years of trading struggle. To put this to use finally without giving up, I added some trial capital into Robinhood to execute my options trades. No commissions and max 3 day trades in 5 days helps my case. 

My equity curve looks like this since I started trading here on August 1st. Initial capital: 2,000 (trial). Today its at $7000 (I have withdrawn $1500 over the past 7 days as I was seeing gains, $1500 after this snapshot). So account is literally up 250% (dont mind the % in snapshot, its basically a bug). This is not the usual for me and I don't want to get greedy, so I did take cash out to keep myself humble.

I played all of AoT recommendations as well as small positions in many charts that you posted but didnt play (GOOGL, PYPL, NFLX etc.). 85% of these were 2-3 day swing trades. Robinhood has made it difficult for me to journal since it has to be manually, but I'll show you the journal based performance stats once I have it ready!

Things I will do moving forward:
1) No setup = No trade
2) No revenge, chase or overtrading
3) Reduce expectations - more singles than home runs ( i see home runs will come with some of your best setups automatically!)
4) No need to grow account to actually make money from the market
5) Reduce day trades as much as possible since I cant monitor the markets (this is NOT my time frame)
5) Stay humble, keep greed in check and rinse-repeat 1-6

A HUGEEEE THANK YOU to you for getting me back on the right track. You are an fantastic trader, excellent mentor, great entertainer (cooking + soccer + trading + handling the trolls lol) and more importantly, a good trading buddy :). 

Will keep you posted.


Hi Stewie,

Just wanted to give you a quick update on my progress now that I’ve completed 3 months at AOT.

First, want to share the reason why I’m doing this: 

This is my granddaughter Alanna(not going to share Amy's picture of her granddaughter of course!). She’s almost 3. I lost my job in April and have been agonizing over whether or not to take another time consuming, travel-intensive job. I’ve made the decision to spend these next couple of years with her instead with trading for income. I’m excited and a bit terrified but my gut tells me that this is the right decision.

So, onto the progress! What I’m most happy about is that I’ve increased my trading skills, pattern recognition, and discipline. I still make some stupid mistakes but they are getting fewer and with less disastrous results.

I don’t keep track of percentage wins because I’m trying not to focus on P/L but rather focus on the skills learned. The money will come as a result of good, consistent trading. For the past three months, I’ve been able to wire cash out to my bank account an average of $3500 each month. Still not where I want to be but I know that will come if I execute the trades correctly and gradually increase my risk as I gain confidence.

I can’t thank you enough. Your guidance has not only helped me improve my performance but more importantly, it’s given me the gift of time with my granddaughter. That is incredibly precious and I humbly thank you.

You rock! If you’re ever on the East Coast, I owe you a huge hug!!


Hope these 3 letters have fired you up and motivated!!! 

Happy Trading!! 

Blog Archive