Are you ready to turn a few thousand dollars into a few million in a matter of months, weeks, possibly days?
If so, then stop reading.
Don’t get me wrong, I can make you a better and more consistent trader. However, it’s not going to happen overnight. Also, it is going to require you put in some effort.
But if you can level your expectations and apply what I teach– together, we’ll achieve amazing results.
Thanks for teaching us how to take a comprehensive look at the markets so we are prepared for our trading week. Since joining with you, I see the markets & trading through a whole new lens. – Edye
Petra, I’m so impressed with your weekend updates! There so very important for me as a 40-year veteran trader. Trading with an exit is the key to profitability and you teach it well, I would encourage all traders to follow your wisdom in these markets, thank you – Kevin
When I joined your service I did not expect this in-depth level of training. I am so appreciative of you taking the time that you do to share your expertise with your members. You are very consistent. Thank you! – Teri
If you notice, none of the above testimonials are focused on how fast or how much money these clients made. In fact, one of the first things I teach my new clients is to stop thinking in $ terms and start thinking in relative terms.
The strategies I’m going to teach you are scalable.
In other words, you can trade them if you have a $5k or a $5M trading account (and yes, I have clients who trade significantly large accounts).
You see, I believe in process over profits, and that’s why I always talk to you in percentage terms and never $ terms.
(STC stands for sold to close, you’ll never get alerts from me bragging about how much money I make on trade)
What should you focus on instead?
First, develop an understanding of how the markets work. I’ve developed several video lessons to help you get started, click here to see My Top 10 Trading Tips.
Furthermore, I want the emphasis to always be on risk management. You see, trading isn’t easy and we’re all capable of making mistakes. However, if you can learn to manage risk properly, it will give staying power, enough time to figure out what works and doesn’t.
I want you to stay calm and embrace this as a journey and not a get-rich-quick scheme.
So what’s my trading style is about?
Well, I believe in keeping things simple.
That said, I’m somewhat of a “chart junkie” who relies on technical analysis to generate trade ideas. However, I’ll never ask you to buy any special charting software. In fact, the indicators I use, are free, and readily available on your brokerage platform.
I’ll teach how you to interpret charts so you can trade U.S. stocks, Canadian stocks, and even options.
But that’s not all I’m going to teach you. Also, you’ll learn how to:
- Stay disciplined and not chase trades
- Manage risk- cut losers and let winners ride (I usually risk 2% on a trade)
- Focus on making contact- aim for singles and doubles
- Stay balanced- trading isn’t everything
- Slowly build wealth over time
On top of all that, I’ll be with you every step of the way. It’s not uncommon for me to pick up the phone and call a client up to see how they’re doing and if there are any ways I can further assist their trading.
That said, it’s time to roll up your sleeves and get to work. I want to show you two of my best trade setups right now. Also, share with you, an “accidental home run” trade I had in an oil and gas stock. Read on…
I primarily make my trading decisions based on technical analysis. If you don’t know what technical analysis is, we’re basically looking at chart patterns and indicators to let us know when we should enter and exit a trade. Using chart patterns allows us to follow a rules-based approach… and it’s something you could learn more about in my 10 Must-Have Trading Tips.
Keep in mind, technical analysis is an art-form… not a science. Basically, just because you see a bullish pattern, it doesn’t mean the stock will go up automatically. There’s a lot that goes into spotting the patterns that work – that’s what I’m here for… showing you how to make money in the markets using my battle-tested patterns.
You see, anyone can just read an old book about technical analysis… but that’s not what it’s about. Heck, I’ve read tons of books about trading – and I realized a lot of the people writing those books don’t have market experience. Not only that, they’re not there to hold your hand and walk you through trades.
I’m not promising you that you’ll make a million dollars from trading in a year. However, what I will promise you is that I’ll try my best to show you how to trade… show you how I’m able to consistently generate high returns while remaining risk averse… I’ll also answer any questions you have about trading – literally making videos for clients if something is unclear.
Now, I’ll be teaching you how to:
- Identify breakout patterns – and how to look for confirmation in stock moves. In this very post, I’ll be showing you one of my favorite setups, and a checklist I used to trade.
- Develop a trading plan, time your entries and exits, while being risk averse (not risking too much on any trade).
- For example, I find that using checklists allow me to properly plan my trade. Not only that, I generally only risk 2% on any single trade.
- Remained disciplined and generate consistent returns.
- Techniques to risk manage your positions.
Check Out One of My Maple Syrup Setups
Let me show you how one of my patterns work and how I use them to make money trading the markets.
First, I need to tell you a little about some of the indicators I look at.
For example, what I look to look at are moving averages. If you don’t already know, moving averages help smoothen price action – giving you a clear idea of what the overall trend is for a specific time period.
Now, there are two types of moving averages – exponential moving average (EMA) and simple moving average (SMA). All you really need to know is that EMAs place a greater weight on most recent price action… while simple moving averages place equal weights on prices.
It’s not about learning the math and how to calculate these moving averages… any basic charting platform will do all that for you and plot them on the price chart for you. The only thing that matters in the trading world is understanding how to use these to spot patterns and trends that make money… and I’m going to show you how to use them along the way… so don’t worry if this all looks confusing at first – I just want you to get familiar with what I do.
Before we get into a case study of one of my setups… here’s a look at what just knowing this one pattern can do for you.
Apr 12, 8:39 AM
J.B. : out APC 30%
Apr 12, 8:40 AM
J.R. : Out APC 32% Thank you Petra!!
“Thank you Petra. In two days thanks to you I made 6600 USD. APC 6000 and 600 in GSKY. Tnak you you are the best.” – H.C.
Now, here’s a look at how I set up my charts.
Now, if you look at the chart above on Anadarko Petroleum Corp. (APC)… you’ll notice a blue straight line. This is known as a downtrend. In other words, the stock has been falling over that period.
However, you can see that the price is just starting to break above the blue line. Not only that, there are some moving averages shown on the chart. The orange line is the 200 day SMA, the gold line is the 50 day SMA, navy blue line is the 20 day SMA, and the pink line is the 8 day EMA.
Don’t worry if this is all unclear to you… I’m going to show you how it works and how I make money using it…
Let’s continue with the same chart.
If you look at the chart above, again, the stock has been in a downtrend. Moreover, the moving averages confirmed the downtrend.
We had the 8 EMA, 20 SMA, 50 SMA sloping downwards… and the 200 SMA is above all the shorter-term moving averages (8 EMA, 20 SMA, 50 SMA). Keep in mind, the shorter the moving average… the closer it follows the price action. For example, the 8 EMA follows the price action more closely than the 200 SMA.
However, we’re seeing some stalling price action. That means the stock’s price is starting to slow its downtrend and it’s trading between a range. Not only that, we’re seeing the moving averages confirm the price action.
The Rounded Bottom Breakout (RBB) Pattern
Moving on, here’s a look at the chart again, and the pattern we’re looking at.
We’re starting to see a rounded bottom form. Basically, with a rounded bottom, the pattern is formed when the stock falls… finds a bottom… trades in a tight range… and the price starts to turn higher.
Now, this is where you need to pay attention if you’re looking to use this pattern. We’re seeing the price rise, and the 8 EMA (pink line) is starting to cross above the 20 SMA (the navy blue line).
Here’s a closer look at the daily chart on APC.
Again, price is rising, 8 EMA is above the 20 SMA… and the price is continuing above the 8 EMA (pink line). Not only that, the price closes above the 50 SMA (the gold line).
With this chart, the moving averages were confirming the price action we wanted to see. The price is above the 50 SMA, 8 EMA is above the 20 SMA, and the 20 SMA is above the SMA. Now, with this pattern, our target exit is the 200 SMA (the orange line).
All you’re really looking for here is for a few lines to cross… and the shape of a bowl to form. Thereafter, you use the orange line as your target.
Now, I actually let Petra Picks clients know that I was watching the RBB setup in APC.
Not only that, I let them know where I bought shares.
Here’s a look at what the stock did just a week after that alert.
I even let Petra Picks clients know about my sell.
Now, if this pattern is unclear to you… that’s okay. It takes a bit of time, some practice, and someone to hold your hand and walk you through the setups.
I actually put together a checklist for you for this specific setup.
Here’s what I look at for a rounded bottom breakout (RBB) trade:
____ 1. Down Trending Price Action – Lower lows and Lower highs
____ 2. Moving Averages Confirming Downtrend – 8EMA, 20 SMA and 50 SMA are sloped downward and are almost parallel to each other. The 200 SMA is somewhere above the 8 EMA, 20 SMA, and 50 SMA.
____3. Stalling Price Action – Price starts to slow its descent and may move within a small range for a while (in a box-like pattern).
____4. Price Rising and the 8 EMA Crossing Above the 20 SMA – Pay Attention
____5. “The Switch” – The 8 EMA is now Above the 20 SMA. Price continues above the 8 EMA.
____6. Breakout – Price closes above the 50 SMA.
____7. Moving Averages Confirming the Breakout – Price is above the 50 SMA. 8 EMA is above the 20 SMA, and 20 SMA is above the 50 SMA.
____8. Target exit is the 200 SMA
Now, here’s a look at one of my clients who understands the power of the rounded bottom breakout pattern…
Over the years I have suffered big losses following other services. I’ve finally decided to say “enough is enough.” I’ve spent the past two months watching your videos and studying charts. A lightbulb moment came to me early April. I think I finally understood what was considered a good chart.
On April 9th, I entered APC at 46.47. I had to pick only one between APC and CPE. I liked APC’s chart a little better. I’m happy or ashamed to say that this was the first time I entered a trade with a crystal clear idea of why. It was also the first time I started on my trading journal. APC was the first entry on my journal. I wrote down my profit target and stop loss price. When APC was up above 47, I wasn’t tempted to sell at all. That was my sin in the past – take tiny profits while holding big losses. I wasn’t stressed when it fell below 46 briefly.
Imagine my surprise this morning when I saw your text premarket!!! My execution was poor. I sold premarket at 61.44. My previous biotech experiences taught me to always sell premarket if I could. They tended to fade fast when the market opened. Oh well, I’m not going to complain about the 30+% gain.
I don’t expect such big profits all the time moving forward, but I do take it as a good omen that I might be finally on the right track. I can’t wait to report my progress and learning journey with you in the future. Thanks for everything you do, Petra!
When you aim for base hits all the time, you condition yourself to focus on the setup. Once you gain a bit of experience using this setup… sometimes, all you need is a bit of luck to hit home runs.
Take note, it’s not just about spotting the patterns… it’s also about managing your risk properly and knowing when to take profits. If this was all unclear to you… I suggest you watch my free 10 Must-Have Trading Tips videos – in which I detail how I use charts to trade, and risk manage positions… and how to put the odds in your favor (video lesson 6)… as well as things I wish someone told me when I first started trading (video lesson 1).
If you haven’t watched those video lessons yet, here’s how to sign up to get access to them. If you have seen them, and are ready to give my service a try, welcome aboard, can’t wait to help and learn more about you.