Long Strategies for Beginners

Long Strategies for Beginners

Long Strategies for Beginners 1024 546 Steven Dux
What's up and welcome back to

This week's lesson.

Today I want to cover what kind of long strategies I would focus on, especially for smaller accounts, because many of you are interested in this topic.

FIRST STRATEGY:

OTC Multi-Breakout

Over the years, I’ve only found 3-4 long strategies, and the first one I want to go over is OTC multi breakout because this strategy keeps stocks consistently trending with increasing volume. If you’re buying at the breakout level, it can take several days before you see a percent increase between 30-60%, sometimes even 100%. This OTC sector doesn’t exist anymore, but we see about ten tickers a year with the same hype. These tickers bring many sympathy plays and multi-month breakouts, like Bitcoin in 2016, for example.

FIRST STRATEGY:

OTC Multi-Breakout

Over the years, I’ve only found 3-4 long strategies, and the first one I want to go over is OTC multi breakout because this strategy keeps stocks consistently trending with increasing volume. If you’re buying at the breakout level, it can take several days before you see a percent increase between 30-60%, sometimes even 100%. This OTC sector doesn’t exist anymore, but we see about ten tickers a year with the same hype. These tickers bring many sympathy plays and multi-month breakouts, like Bitcoin in 2016, for example.

SECOND STRATEGY:

DIP-BUYING

The second strategy will be dip-buying large market cap stock with an instant pull of about 30-50%, and we see this happen again, about ten times a year. Prime examples of this pattern will be $IGC and $NBEV, and I think this pattern’s stability creates favorable opportunities for those who have small accounts. You’re going to want to find solid support or the area that’s consolidating the most and dip from there, and typically, you’ll have a bounce of 20-30% in a short amount of time.

LAST STRATEGY:

CROWDED TRADES

The last strategy for going long will be crowded trades, a pattern we have been talking about a lot lately because more and more people are getting into the sector. Every month we see volume across fifty tickers going above 50 million shares. So, if you have 90% of these people going long with a stock that’s continuously gaining volume, the short side will get overwhelmed. If you see a ticker with no warrants, concrete news, and is an uptrend that just broke out of consolidation, then you are presented with an excellent opportunity to take a partial long.

LAST STRATEGY:

CROWDED TRADES

The last strategy for going long will be crowded trades, a pattern we have been talking about a lot lately because more and more people are getting into the sector. Every month we see volume across fifty tickers going above 50 million shares. So, if you have 90% of these people going long with a stock that’s continuously gaining volume, the short side will get overwhelmed. If you see a ticker with no warrants, concrete news, and is an uptrend that just broke out of consolidation, then you are presented with an excellent opportunity to take a partial long.

Another scenario to look at would be a crowded stock with spikes for the first several hours before pulling back in the afternoon to either dump or make an offering.

A LOOK AT BOTH SIDES:

LONG VS. SHORT

Either dumping or making an offering can lead to a reliable next morning with a 20-30% spike that allows for gains in that range.

Short-sells frequently think about how they can lose over 100% of their position, but those who choose to go long think about losing over 100% of their investment, so it’s all about risk management. If you find yourself with a bias, it’s better to learn both sides because that knowledge can be beneficial to your strategies. If you are going long but know the short side, you better understand where your entry should be. If you are going short but understand what it takes to go long, you can plan which price will hit and cause long-buyers to panic.

Leave a Reply

    APPLY TO THE FREEDOM CHALLENGE.

    Insert your name and email address to apply now!

    FREEDOM CHALLENGE

    FREEDOM CHALLENGE.

    If you’re new to all of this and have limited knowledge as to how the stock market works, I highly recommend you invest in The Freedom Challenge.

    APPLY NOW!

    x