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Market Lab Report - 3 effective ways to fast profits in stocks while keeping risk under 2-3%

We are always looking for ways to profit while keeping risk to a minimum in the ever-changing stock markets. Two strategies continue to yield excellent reward:risk ratios of at least 3:1 though often significantly higher since our buy points have sell stops typically within 2-3% from where we buy.

Markets have a natural rhythm to them, an ebb and flow if you will. When markets have even a minor correction, many leading stocks go down two to three times as much as the general markets. Stocks will often undercut prior major support points then turn back up. When this happens, you buy. Leading stocks typically rebound the quickest, thus the undercut below prior support typically is only a couple percent which means the entry point as the stock crosses back above the low of its prior support level often only carries minimal risk, using the low of the undercut as your stop. For example, read one of our reports here that shows how YEXT went on to score nearly 10% in just 3 trading days while risk was kept to 1.3 to 3%. More recently on 7-11-17, we sent an email to members bringing attention to the volume dry-up action in YEXT up through 7-11-17 which made it actionable. The very next day, YEXT issued a second buy point in the form of a pocket pivot. It has since moved higher by more than 10% as of this writing. 

This process has been repeated over and over again throughout the last couple of years. Indeed, quantitative easing has distorted many tried-and-true indicators, thus we strive to stay ahead of the curve with our unique but profitable trading strategies. We have long advocated:

1) Buying on constructive weakness using our time-tested techniques which include undercut & rally, volume dry-up, and Wyckoff retests. 

2) Selling into strength should the stock price get ahead of itself. Numerous examples can be viewed in our report archives here: https://www.virtueofselfishinvesting.com/reports 

Three important themes arise:

•The closer one buys a stock as it pulls back to a logical area of support, the less risk since one's sell stop is well defined.

•The stronger the prior price move in the stock, the greater the odds of the stock continuing to exhibit such price strength when it launches again.

•When a stock's price gets too far ahead of its 10-day moving average, it typically corrects or trades sideways to digest gains.

In selecting our stocks, we run our screens throughout the trading day in search of such stocks with the best risk/reward profiles. 

As a few of many examples, see our Focus Lists, Voodoo Reports, Weekend Reviews, and individual stocks that can be searched by ticker symbol in the report archives here. Note that there is at least a 1 month time delay for non-members on our time-stamped reports.

Some members also use our Focus List to add to their own personal watch list.

If you have any questions, feel free to contact us.

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This information is provided by MoKa Investors, LLC DBA Virtue of Selfish Investing (VoSI) is issued solely for informational purposes and does not constitute an offer to sell or a solicitation of an offer to buy securities. Information contained herein is based on sources which we believe to be reliable but is not guaranteed by us as being accurate and does not purport to be a complete statement or summary of available data. VoSI reports are intended to alert VoSI members to technical developments in certain securities that may or may not be actionable, only, and are not intended as recommendations. Past performance is not a guarantee, nor is it necessarily indicative, of future results. Opinions expressed herein are statements of our judgment as of the publication date and are subject to change without notice. Entities including but not limited to VoSI, its members, officers, directors, employees, customers, agents, and affiliates may have a position, long or short, in the securities referred to herein, and/or other related securities, and may increase or decrease such position or take a contra position. Additional information is available upon written request. This publication is for clients of Virtue of Selfish Investing. Reproduction without written permission is strictly prohibited and will be prosecuted to the full extent of the law. ©2024 MoKa Investors, LLC DBA Virtue of Selfish Investing. All rights reserved.
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