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RSOTC Trade Ideas Explained

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RSOTC Trade Ideas Explained

A received a question from a relatively new member to the site today inquiring about where to find the trade ideas on RSOTC & figured that I would share my reply for all to see as there are multiple ways to access both the official & unofficial trade ideas shared on the site, not to mention those shared by members within the trading room:

There are two types of trade ideas shared on the site, official & unofficial.

Official trades are typically those that I have the highest degree of confidence in & they also meet the criteria of either a swing trade or a long-term (trend) trade (or a Growth & Income trade, which is a sub-category of the latter). Official trades will always list explicit entry triggers or levels, price target(s), suggested stop(s) and beta-adjusted position size, which increases or reduces the position from a typical position size to account for expected above or below average risk or volatility on the trade. All official trades are also followed up with front page posts, usually when a profit target(s) or the stop is hit, as well as any other significant developments, such as a pullback to support that offers another objective entry or add-on to the trade.

For every one official trade posted on the home page (aka- front page), I easily post 20 or more unofficial trade ideas, not including the trade ideas that might come from the chart opinion requests from other members that I post in the trading room. Some of the unofficial trades are very short-term swing trades, day trades, very aggressive/speculative trades or futures trades, which typically don't fit the criteria of the official swing trades that will mesh with the majority of traders' preferred type of trades. E.g- Official trade ideas are always individual stocks, ETFs or ETNs, never futures or options, as many traders don't have access to either of the latter.

For the past several months, due to the extremely high volatility as well as the very rapidly changing outlook for the market & various sectors, the official trade ideas have been unusually light. I've actually shared quite a few unofficial trade ideas that really stood out as compelling via the sector analysis videos on posted on the front page & for the most part, any trade ideas that make it to the front page, whether official or unofficial, wouldn't be there if I didn't think they were compelling. The primary issue that prevents me from sharing more of those unofficial trade as official trade is the time & effort required to annotate the charts, identify the specific price targets & stops, and then post an update on all the official trade ideas. As such, I will usually just do a video on a sector that stands out, highlighting which ETF can be traded for that sector as well as my favorite individual stocks within the sector.

Here are the two most recent sector trade idea videos: CUT & WOOD (timber & forestry sector) Dec 31st: https://rightsideofthechart.com/timber-forestry-sector-trade-ideas-video/   and the  Internet Content & Information Sector, Jan 8th: https://rightsideofthechart.com/internet-sector-analysis-trade-ideas/

I should have added above that there is also a category called 'Unofficial Trade-Ideas' which is a sub-category accessible under Trade Ideas on the top menu of the site. Both of the videos above were assigned to that category so that's a quick way to reference the unofficial trade ideas that were posted on the front page (but not those in the trading room).

Regarding the unofficial trade ideas in the trading room, the most efficient way to access those would be to join any or all of the Groups within the trading room & then subscribe to receive email notifications whenever a new post, comment or reply is made to any or all of the Groups that you have joined.

You can elect from emails with the Group posts to be sent immediately, as a daily digest or a weekly digest (or no emails). Different settings are allowed for each group. Here's a video on how to most effectively use the trading room, including the trading room groups & notification options.  https://youtu.be/77kY_gzF9cA

BTW: There are 3 active long swing trades (official trades) right now: PPLT, ITB & KRE plus one active Long-term Trade on GLD. If you go to the top menu on the site & click or hover on Trade Idea, you can then select from the various sub-categories:

Swing Trades (trade with expected holding periods typically from a few weeks to a few months): Which are sorted by Long or Short and also by whether they are Trade Setups, Active Trades or Completed Trades. If you click on any trade category, a description of that category (or sub-category) can be found at the top of the page. Note: The categories are not mutually exclusive as a trade that has hit the first target but not the final target would be assigned as both an Active & Completed Trade.

Long-term Trades (i.e.-Trend trades or trades with expected holding periods of roughly 6 months or longer).

Growth & Income Trades (a sub-category of Long-term Trade with stocks or ETFs that pay a decent dividend & should benefit from both price appreciation plus the dividend income).

Completed Trades (official trades which have hit one or more of their price targets or the max. suggested stop). All official trade ideas on posted on RSOTC since the service was launched on January 1, 2012, successful or unsuccessful, are moved the Completed Trades category upon completion to be archived indefinitely for future reference. The Completed Trades are also released for public viewing (unless that trade is still active as well, i.e.- hit one or more targets but the final target or stop hasn’t been hit yet).

I find this to be a good source to reference how a particular stock or chart pattern has acted in the past as well as a way to view the performance of the official trade ideas on the site. You can also get a feel for the historic number of official trade ideas in the past, which will ebb & flow with market conditions.

Unofficial Trades (explained above & also sub-categorized by long or short).

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2019-01-11T10:58:42+00:00Jan 11, 2019 10:58am|Categories: Using RSOTC|0 Comments

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