High-Percentage Trading

High-Percentage Trading is the concept where EVERY trade is made deliberately, thoughtfully and following their trading plan 100%. Traders who follow high-percentage trading concepts are patient and wait for only the best stock chart setups, passing up thousands of OK or good trade setups. High-Percentage trading is methodical and deliberate and keeps a trader from many losing trades. A disciplined trader who follows high-percentage trading principles will trade much less and have a higher win/loss % and profit factor as they eliminate some bad trades as they focus on sharpe ratio, profit factor and max drawdown. We all know there will be losses but a high-percentage trader is more focused on their trading numbers than their account balances.

Trend Following

Thousands of studies done over the past 50 years consistently show the past performance of a stock has a large impact on the future performance of a stock. In these studies, it shows stocks with the best performance in the past tend to have the best performance in the future while the worst performing stocks tend to stay weak into the future. In this session, we go through several of these studies to show the fastest and easiest way to get an edge in your trading is to use past performance to identify and trade the “best” symbols.

Technical Indicator Myths

Secondary Indicators are mathematical formulas that people have created to determine trends and movement in an underlying stock. They are often based on price, volume and momentum. How the formula is constructed will determine how the data is reported. Some technical indicators work best in trending markets, but fail in other market conditions, while other indicators work better during those times. When people study many technical indicator myths, the data doesn’t stand up to scrutiny and many technical indicator myths cause traders to get into bad situations. Watch the video and see if you still believe in any of these technical indicator myths.

In this class, we discuss the shortcomings of secondary indicators and some of the misconceptions that traders have of technical indicators and technical indicators failing. Any technical indicator fails in a certain market environment. Knowing what these environments are is essential if you want to still believe your technical indicator myths.

Holding Winning Trades

One of the most difficult concepts a stock or option trader must learn is how to not cut winners aka winning trades or position management. At Maverick, we have a saying “the best way to know if you are in a winning position is if you are profitable”. And, the best way to know you are in a losing trade is if you are not profitable. Trading is being on the right side of supply and demand and having a profitable trade is proof you are at least on the right side of the trade at the moment and that you should hold this winning trade as long as possible. If you are down on the trade, it’s an indication you are on the wrong side of supply and demand and you should hold that trade as short as possible. This trading psychology concept is difficult to learn, which is why new traders cut winning trades way too soon and hold losing trades way too long.

In this video, one of our professional traders covers the psychology of holding a winning trade and why position management can be difficult for the new trader. Then, they cover how to hold a winning trade as long as possible with several strategies that will hold the winning trade as long as possible. Position management is the key to profitable stock and option trading

Moving Average Ribbons

In this class we teach you how to use moving average ribbons. It is important to understand the difference in using these across different time periods. The long-term ribbons will answer the question of whether you are in a bull or bear market in the stock. The short-term ribbons will answer the question of whether you are in a bullish or bearish short-term trend.

We detail how to customize your charts to see the moving average ribbons. You can use these on stockcharts.com, tradingview or charts at your broker. This is designed for technical traders who want to see the “rate” of advance or decline and whether that trend is sustainable. The market gave an early warning sign by moving parabolic in 2021 after a 14-year bull market. Understanding that it was unsustainable and a bearish warning was important to both investors and traders. Enjoy the video!