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Deron Wagner is the founder and portfolio manager of Morpheus Trading Group. His daily focus is managing and trading the Morpheus Capital Hedge Fund, which he founded in April of 2004. He also teaches his swing trading strategy with The Wagner Daily newsletter, which provides exact entry, exit,... More
My company:
Morpheus Trading Group
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Morpheus Trading Group - swing trading blog
My book:
Advanced Technical Analysis of ETFs
  • How To Build A Position In A Winning Stock Trade (And Let Profits Run) 0 comments
    Feb 14, 2014 11:15 AM | about stocks: SCTY

    On December 19, we bought SolarCity ($SCTY), one of the top stocks on our watchlist, then added to the position as the stock surged higher.

    Two weeks after our second buy entry, we locked in a solid gain of 25.8% by selling partial share size into strength of a powerful rally.

    Now, we still remain long the original position we bought in The Wagner Daily newsletter nearly two months ago (presently showing an unrealized price gain of approximately 36%).

    In this new 5-minute video, we walk you step-by-step through the trade, explaining the rationale behind each entry point (as well as the first exit point).

    We also share with you the exact technical criteria that prompted us to buy $SCTY in the first place.

    View the YouTube video by clicking the link below. For best viewing quality, view in full-screen mode by clicking the icon on bottom right side of the video player window:

    Trading Strategy Video - How To Build A Position In A Winning Stock

    To recap the trade entries and exits from the above video in text format, here's how this high momentum stock trade went down...

    $SCTY was already one of the top stocks on our internal watchlist. We monitored the price action of $SCTY as it pulled back to support of its 50-day moving average.

    The stock subsequently bounced, held support of both its 20 and 50-day moving averages, and the trading range tightened up.

    After a shallow pullback on light volume (which is bullish), we bought $SCTY at $53.94 on December 19 (above the prior day's high). Strong volume confirmed that day's momentum-fueled breakout.

    Following up that surge by forming the handle portion of a cup and handle pattern on light volume, we bought additional shares of $SCTY at $57.88 on January 2 (again, above the prior day's high).

    The stock then gapped to new highs on strong volume, traded sideways again, rallied higher on increasing volume, then pulled back on lighter volume (touching near-term support of its 20-day exponential moving average).

    We then sold the shares from our January 2 buy entry at $72.84, locking in a gain of 25.8% from our $57.88 entry point.

    We remain long the original shares (from December 19 entry), which are currently showing an unrealized gain of roughly 36% (as of February 13).

    Want to make sure you profit from our next winning stock pick? Subscribe now to our nightly swing trader newsletter (as low as $2 per day with annual subscription).

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    Original Article Source

    DISCLAIMER: There is a risk for substantial losses trading securities and commodities. This material is for information purposes only and should not be construed as an offer or solicitation of an offer to buy or sell any securities. Morpheus Trading, LLC (hereinafter "The Company") is not a licensed broker, broker-dealer, market maker, investment banker, investment advisor, analyst or underwriter. This discussion contains forward-looking statements that involve risks and uncertainties. A stock's actual results could differ materially from descriptions given. The companies discussed in this report have not approved any statements made by The Company. Please consult a broker or financial planner before purchasing or selling any securities discussed in The Wagner Daily (hereinafter "The Newsletter"). The Company has not been compensated by any of the companies listed herein, or by their affiliates, agents, officers or employees for the preparation and distribution of any materials in The Newsletter. The Company and/or its affiliates, officers, directors and employees may or may not buy, sell or have positions in the securities discussed in The Newsletter and may profit in the event the shares of the companies discussed in The Newsletter rise or fall in value. Past performance never guarantees future results.

    © 2002-2013 Morpheus Trading, LLC
    Reproduction without permission is strictly prohibited.

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