The Method

 

The 1-2-3-trade

This is a Daily chart of MO. The lines showed are indicators that are propriatary but will be used a lot and explained in detail in TSC Premium. 

The 1-2-3 trade is one of the best methods I have experienced. There is not many trading setups that can enjoy these advantages:

- A step by step capital allocation method

- A low risk profile

- A methodology that makes one comfortable

This trading technique meets the requirements and regularly produces reasonable profits. I will explain to you how it works:

In this educational review I use a fictive amount of 900, in your own currency.

In March 2024 the stock moves into a positive Weekly signal. I highlight the cross-area in my Trading platform TC 2000 and wait for a Daily crossover, in the Daily time frame.

If you want to trade a stock you have to become familiar with the time frames. Daily, Weekly, Monthly.

Why? Because they all signal different amount of underlying power. Daily is the weakest. 

When the new Daily signals I buy the first time with 1/3 of the 900.

Thereafter comes some waiting to see if the Weekly signal holds up. In this case the stock falls down again to break its Daily pattern. BUT no need to worry, because the Weekly is still intact.

When the price turns from the lows of this correction I buy a second time with 1/3 of the 900.

I am now invested 600 of the set amount for this stock.

A new Daily within the Weekly appears once again and I buy my last 1/3 with the remaining cash.

Then I wait. The stock is moving up in price and I monitor it regularly to see if the Daily holds up.

When the Daily fails. I sell 1/3 for a gain. Keeping 2/3 invested.

When a new Daily comes, I buy back 1/3 to be fully invested again in that particular stock.

Now I hold until a negative Weekly crossover and right there I sell all shares.

This trade is very favourable and by doing it this way I limit my early exposure and potential losses and I protect the trade all the way up, until Exit.

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