How To Identify Low Risk Buy Points In A Strong Uptrend

 

A runaway bull market?

With the NASDAQ in a raging bull market and trading at fresh all-time highs, you may be tempted to chase the price of leading stocks in fear of missing out on the next monster gainer.

At one time or another, you probably have paid up to buy a hot stock that “can’t miss” and promises to deliver a 20-40% gain in just a day or two.

It’s okay; I have occasionally been guilty of this too.

Once in a while, buying at seemingly “overbought” levels actually works, even for new traders operating in their first bull market (ignorance is bliss).

However, I have learned from nearly two decades of trading experience that undisciplined buy entries will eventually be punished, and you will quickly be put into place by the trading gods.

Although all momentum traders should know better, chasing the price action of surging stocks is a major issue that continues to dog the performance of traders’ portfolios.

What you really need is… a low-risk method of buying leading stocks in a nosebleed bull market.

Fortunately, I have a simple and effective solution for this dilemma that I’m excited to share with you here.

If you’re a short to intermediate-term swing trader of stocks, keep reading for juicy details that will put you on the path to greater trading profits with less risk.

Also, be sure to read all the way to the end, where I analyze the charts of two fiery stocks now setting up for potential buy entry.


Discipline Pays Dividends

yoda-is-disciplined

Lose your ego and get disciplined, you must!

Although it may seem obvious, you must realize personal discipline and patience are key ingredients to my delicious recipe for buying leading stocks while the market keeps rallying to new highs.

If you are a new trader, simply following the rule-based approach of our proven trading system can immediately stack the odds in your favor, while also improving your chart reading skills.

If you’re an intermediate to advanced trader who is struggling with discipline, you may need to check your ego at the door in order to quickly improve and return back to good form.

As a trader, you must learn to deal with the unknown in order to be a successful stock market speculator.

But dealing with the unknown means many elements of stock trading are beyond your control.

As such, you must therefore focus on what you can control, which is your buy entry point.


Start With The “Big Picture” View

When I was a new trader, I made the mistake of spending too much time focusing on the daily and intraday chart time frames.

It seemed logical because those 15-minute, 60-minute, and daily charts clearly showed me where the action was.

However, I eventually realized that longer-term weekly charts did the crucial job of smoothing out day to day price volatility and presenting an objective “big picture” of the dominant trend.

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Disclaimer: Past results are not necessarily indicative of future results. There is a high degree of risk for substantial losses in trading securities. All data and material on this website and/or ...

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