Jeff Williams knows how to grow a small account. His Small Account Challenge – which he’s successfully completed a few times – shows traders how to build up a small trading account.

Jeff does this by training through his live room, as well as, sharing his trades to his members in real-time.

Over the last few weeks, he’s turned $500 into about $9,000. 

And he’s set to do it again with another Small Account Challenge coming up. 

I caught up with Jeff and here’s just a snippet of the topics we discussed;

  • How to profit in crazy markets
  • Why these crappy markets provide the best opportunity to start trading
  • How to start trading with zero risk using “paper trading”
  • Why trading  “penny” stocks are less impacted by recent market moves
  • How Jeff masters small trading accounts, and why they’re perfect for these market conditions!

Jeff believes that there is no better time than right now to start trading, and to make great use of any additional time while stuck at home.

Join me and Jeff, and look out for Jeff’s forthcoming Small Account Challenge!

 

Author: Ben Sturgill

Ben leads two services at RagingBull. IPO Payday can help you pinpoint, position, and profit from IPOs. In Daily Profit Machine Ben guides day and swing traders to profit by trading the SPY Index. Ben hosts the RagingBull.com weekly podcast WealthWise where he shares thoughts on wealth and success with traders, businesspeople, entrepreneurs, and experts to uncover and share the wisdom needed to live a wealthy life.

With so much uncertainty in the job market amid COVID-19 concerns, I expect to see a surge of new traders enter the market. 

Interactive Investor, a broker out of the UK, said it saw a 119% increase in the number of accounts opened between February 18 and the end of March. 

Many of them are in for a rude awakening. 

You see, without the right training to give them an edge – they are simply gambling! 

Mastering the necessary skills to become a profitable trader is difficult—without any guidance. 

So that’s why I got involved with Daily Deposits – as a way to teach others how to be disciplined and trade the financial markets like a pro!

Which is why my Trade of the Day focuses on one trade on the same symbol every day!  

Here’s just a glimpse into the kind of daily returns I’m pulling down in these wild markets recently.

 

In March I went 20/22 on My SPY Trade of The Day

 

How did I do it?

Well…I put together a game plan every day before the market opens that lets me identify opportunities like this.  

This plan details everything I need to be successful, such as levels of support/resistance, entry and exit targets, which contract and strike I want to trade, etc. 

And you know what?

I’m going to explain to you how it works… 

Show you exactly how I went 20 for 22 on my one trade of the day in March.

And how you can start to develop your trading plan. 

 

Daily Deposits

 

The core of Daily Deposits is based on determining the strength of the markets using premarket momentum analysis.

Daily Deposits is broken down into 3 main parts:

  1. US and global premarket analysis
  2. Identification of supporting trade information
  3. Executing the trade

These premarket indicators are then combined with other indicators that produce some of the most accurate trading signals!

Each of those three main parts is critical to the success of Daily Deposits!  They are like the legs of a triangle… by removing any one of those key pieces of information, you risk collapsing the entire system!

And it all starts with figuring out what’s going on around the world in the premarket trading session.

 

Global Outlook

 

I always start by reviewing the global outlook of the markets and news that is coming out from the overnight trading sessions.

I do this to determine the trend coming into the US market open and what to expect for the day ahead.

The importance of reviewing global markets is that there is a high chance the trends that are going on around the world will bleed over into the US markets.  

The global economy will make markets influence each other and that’s why I make sure to catch up on what to expect every morning.

 

 

Prior to the open every day I review what to expect from the global markets.   Analyzing premarket conditions is critical as a momentum trader in order to position yourself on the right side of the trade at all times.  

But just looking at the chart above doesn’t do much more than giving me an indication of what the global market has done.  

In order to know what the US markets are thinking and finding a trade, it’s best to dig into the charts to find out more.  

Next…

 

Premarket Momentum Indicators

 

Now that the global markets are reviewed for the day ahead, it’s time to turn to what the markets are thinking using technical analysis.

There are two sets of analysis tools that are used at Daily Deposit – the trend and price action signals.

The two premarket trend signals are:

  1. The overall trend is positive or negative
  2. The moving averages support the direction of the trend

The two premarket price action signals are:

  1. Bollinger Band support and resistance levels
  2. A “squeeze” in price action

When looking at the SPY in the premarket session, there are 4 key determining factors to picking a trend going into the day.  Let’s take a look at them on a chart of the SPY.

 

Source: Thinkorswim

 

As you can see by combining trend and price action signals, you can quickly put together a viewpoint of the day to come at after the bell.

When analyzing the SPYs before the market opens, there are 3 different ways to identify the market trend…

In a strong market – it is common to see both an upward overall short and long term trend and bullish moving averages.  

In a weak market – it is common to see both a downward overall short and long term market and bearish moving averages.

And in a mixed market – it is common to see differences in short and long term trends and mixed moving averages.

 

Technical Analysis

 

Technical analysis is extremely important in finding out trading levels that are both actionable and profitable for a day trader.

And without technical analysis, you may be left behind with what the market is actually thinking in the middle of analysis 

So let’s take a look at how these two components signaled a great trade Friday.

 

Support and Resistance Levels

 

One overlooked aspect of trading is locating areas of support and resistance.

The reason a trader would want to locate support and resistance levels is to identify excellent levels to place trades based on their risk levels.  

So let’s take a look at how premarket resistance levels are pivotal trading levels for the day coming up.  

 

Source: Thinkorswim

 

Bollinger Bands

 

There are many additional ways a trader can identify areas of support and resistance while trading. One that I use is the Bollinger Bands.

Let’s take a look at how they look at the chart and how to read them.

 

Source: Thinkorswim

 

As you can see in the highlighted section is the only time the SPY has closed above the Bollinger Bands.

 

TTM Squeeze

 

Another indicator that’s used to identify momentum building up and then a breakout of the SPY is the TTM Squeeze.  

The TTM Squeeze was designed to identify the areas of low volatility in the markets and when they are going to “explode” for huge profits.

Here’s what I mean…

 

Source: Thinkorswim

 

So now let’s see what happens when you combine trend analysis with price action signals.

 

Combining Indicators

 

As you can see, each indicator used by itself is quite strong… but when used together they are almost unstoppable.

And that’s exactly what happened on the SPYs!

The two indicators:

  • Support and resistance levels 
  • Bollinger Bands

Let’s take a look at the SPY charts to see how it works.

 

Source: Thinkorswim

 

Here’s what I saw in the SPY’s.

  • The SPY is trading right up into the premarket ceiling created from the overnight markets.
  • There is a squeeze near the open bell cursing us to remain neutral on the packages.

 

Trade of the Day

 

Once I analyze the premarket momentum I determine what direction I want to trade the markets and layout what my stops are going to be in advance.  

Here’s what members of Daily Deposits had alerted in the premarket trading session.

 

 

And when you combine pre-market momentum indicators with strong technical analysis tools, you can see how the stock price reacts.

So if you were able to time the markets and enter the trades at those levels, let’s take a look at the profit potential you may have had with this trading strategy.

 

Source: Thinkorswim

 

Wrapping up

 

Remember, a single indicator alone cannot predict the markets!

Once you combine multiple indicators and trade signals…you can generate strong trade setups.

And when it comes to the TTM Squeeze and Bollinger Bands, you can get yourself on the right side of the trade more often than not.

Here is a recap of the momentum strategy

  1. Premarket support or resistance levels to know where to set stops and look for trades.
  2. TTM squeeze to know when stocks are “coiled up” and ready to move when volatility picks up.
  3. Price to be above/below Bollinger Bands that act as additional levels of support and resistance.
Author: Ben Sturgill

Ben leads two services at RagingBull. IPO Payday can help you pinpoint, position, and profit from IPOs. In Daily Profit Machine Ben guides day and swing traders to profit by trading the SPY Index. Ben hosts the RagingBull.com weekly podcast WealthWise where he shares thoughts on wealth and success with traders, businesspeople, entrepreneurs, and experts to uncover and share the wisdom needed to live a wealthy life.

Remember the days when medical marijuana was entering the mainstream as states all across the nation were just beginning to legalize?

Tiny pot companies were going public and literally exploding overnight. I’m talking thousands of percentage points in just a very short period of time. 

Like Tilray. This pot company went public in July 2018 at $17 and skyrocketed to $300 by September, only to come crashing down to just below its initial offering price. 

But there were countless others, and cannabis investing minted a whole new generation of millionaires.

Investors literally lined their pockets off the excitement of people all throughout the U.S. and Canada— seniors especially — who were looking for more holistic solutions for pain relief over those provided by Big Pharma. 

But if you think you missed out on explosive gains on companies going public and literally upending the healthcare system as we know it, I’ve got news for you.

The pot stock “green rush” may have already come and gone, but psychedelic medicines are the next big thing

Now, this may sound a bit far fetched to you. But I want to take some time today to give you the inside scoop on this budding industry, as you could be among the first round of investors to ride this brand new wave. 

Already, two psychedelic companies, MindMed (OTCMKTS: MMEDF, NEO: MMED) and Champignon Brands (CNSX: SHRM) have gone public in Canada. 

I’m anticipating many more of these companies, including Field Trip Health, to follow and as legislation supporting the medical potential of psychedelic medicines opens up in the months and years to come. 

Believe it or not, 2020 is already believed by some to be the landmark year for psychedelic stocks.

Frankly, I wouldn’t be surprised if some of the already successful cannabis companies scramble to get a piece of this action quite soon as well.

By joining IPO Payday, you’ll be among the first to find out about how I’m potentially making moves on any of these psychedelic stocks as they arise. 

So without further ado, let’s take a closer look at this dizzying new industry, a few of the front runners, and where I think the profit potential is the years, even mere months, ahead.

 

Here’s What Psychedelic Medicines Are… And Why You Should Care

 

While psychedelics may have been known for centuries by people in indigenous cultures from their profound healing effects, the medical mainstream is only just waking up to their true potential. 

They’ve come a long way really, ever since radical Harvard psychologists Timothy Leary and Richard Alpert initially started experimenting with them way back in the day. 

Some of the psychedelic substances attracting interest from the scientific community include psilocybin (the chemical in psychedelic mushrooms), lysergic acid diethylamide (LSD), methylenedioxymethamphetamine (MDMA), and ketamine. 

These substances have the potential to treat a range of conditions, including anxiety, depression, addiction, and post-traumatic stress disorder (PTSD).

While the use of psychedelics is not yet recreationally legal in North America, progressive states like California, Colorado, Vermont, and Washington D.C. are currently making headway to decriminalize them. 

These efforts to decriminalize psychedelics are following the exact same footprints laid out by the pot industry just a few years ago. 

And while efforts to legally recreation the substances may still be a work in progress, organizations are already legally permitted to do research on them. 

You may be aware that Johns Hopkins opened the Center for Psychedelic and Consciousness Research in September 2019, thanks to $17 million in private donations. 

You can’t make money by the truckload by investing in Johns Hopkins now or ever, but a handful of private and public companies are currently offering that possibility. 

What’s interesting about some of these companies as well is that their medicines may be non-hallucinatory. 

Just as CBD’s have become a medical resource for those people seeking relief but not looking to get high, many of these psychedelic medicines may provide some of the same benefits without the “trip.”

 

MindMed: Psychedelic Inspired Medicines 

 

According to its website, MindMed “discovers, develops, and deploys psychedelic inspired medicines to alleviate suffering and improve health.” 

The company has been conducting clinical trials in a couple of different areas. 

They are currently in the middle of phase II clinical trials in non-hallucinogenic micro-doses of LSD to treat ADHD, as well as an FDA clinical trial of 18-MC (from Ibogaine) to treat opioid addiction.

The founder and co-chief executive, JR Rahn, said recently, “Our ambition is to be one of the first publicly listed neuro-pharmaceutical companies developing psychedelic medicines.” 

Just this past month, they accomplished that. MindMed officially IPOed on Canada’s NEO exchange in March under the ticket MMED. 

The company is not yet generating revenue but has a valuation of around $50 million. 

Notable figures in this enterprise include Bruce Linton of a medical marijuana company, Canopy Growth Corp, who will serve as MindMed’s director, as well as Shark Tank star Kevin O’Leary who’s already a key investor.  

 

Champignon: Medicinal Mushrooms in Your Coffee and Tea

 

Champignon is a medicinal mushrooms company that focuses its efforts on developing and distributing medical mushrooms and consumer packaged goods. 

It’s line of specialty products include organic and non-genetically modified mushroom formulations such as “Vitality Superteas.”

The company even partnered with Drip Coffee Social Ltd. to infuse their mushroom extracts into cold brew coffee products. 

More recently, the company plans to venture into psilocybin mushrooms research in quarter 3 of 2020 through clinical trials. 

The company is already scaling up the production of its pharmaceutical-grade psilocybin in order to complete these clinical trials. 

So far, Roardman Investors Corp. is the most notable investor in this new psychedelic brand. 

Champignon Brands recently conducted its IPO under the ticker symbol SHRM on the Canadian Stock Exchange (CNSX).

It offered 18 million common shares at $0.15 per share to acquire proceeds of more than $2.8 million.

 

Field Trip Health: Psychedelic Therapies that Bring You to Life

 

Looking ahead, Field Trip Health, while not yet public, is hot on the psychedelic IPO trail. 

This company aims to provide legal psychedelic therapies that heal depression and has health centers that provide patients with a comfortable and safe environment for treatments. 

Patents at these health centers have the opportunity to work with a team of medical professionals that will guide them through treatments developed by some of the world’s leading psychiatrists, physicians, and therapists. 

Treatments include ketamine-enhanced therapy sessions, which help bring about transpersonal experiences that help break thought patterns and old habits. 

Field Trip Health just successfully closed on private placement on February 6 for $8.5 million. 

This series A financing was led by the company’s founders, Singhal Health Foundation, and some Silicon Valley investors. 

I’ll certainly be keeping an eye out for Field Trip Health in the months ahead, as it’s a strong contender to become one of the first psychedelic companies to IPO in the U.S. 

If it does IPO and I decide to hop on board, my IPO Payday subscribers will be the first to know.

Author: Ben Sturgill

Ben leads two services at RagingBull. IPO Payday can help you pinpoint, position, and profit from IPOs. In Daily Profit Machine Ben guides day and swing traders to profit by trading the SPY Index. Ben hosts the RagingBull.com weekly podcast WealthWise where he shares thoughts on wealth and success with traders, businesspeople, entrepreneurs, and experts to uncover and share the wisdom needed to live a wealthy life.

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