Trading News

INTRODUCING NEW TRADING SYSTEM: REBOUND STOCKS

Rebound Stocks uses technical analysis, market timing, and several proprietary systems, to pick stocks that are likely to make a move over the next 1 to 3 trading days. The system trades Stocks and ETFs both Long and Short. When fully invested, Rebound Stocks holds a maximum of 5 open positions. During times when the system is not fully invested, funds are kept in the safety of the money market.

Signals are sent during the evening hours for execution at the open the next trading day. Once the trade is executed, an OCA order (one cancels the other) is placed with a 3% profit target and a predetermined stop loss point. The profit target and stop loss points may be adjusted in the direction of the trade if the stock does not meet its profit objective the day the trade is entered. The likely holding period is 1 to 3 days.

There are 3 ways that a trade may be exited:
1. The stock hits its 3% profit objective.
2. The stock hits its stop loss point.
3. A signal is received to close the position.

The system can be traded effectively with a minimum portfolio size of $10,000 with $2,000 being allocated to each of the five open trade positions. Capital gains are reinvested to take advantage of the compounding effect. Of course, larger sized portfolios can utilize the system even more effectively, since the brokerage commissions will represent an even smaller percentage of each individual trade.