how to spot the biggest winning stocks trading the · pdf filehigh probability trades risk:...

1Copyright 2006 Steve Wheeler & NaviTrader Inc

How To Spot The BiggestWinning Stocks

Trading The MegaTrends

How To Spot The BiggestWinning Stocks

Trading The MegaTrends

Steve Wheelerwww.navitrader.com


AgendaAgenda– Principles of Price Behavior

The Most Bullish Pattern

– Find The Path of Least ResistanceThe Most Logical Path To Success

How To Impact Your Returns With Options

– Technical Analysis Of Chart Examples

– Strategy For Compounding

– Question and Answer


Three Elements of Successful InvestingThree Elements of Successful Investing

RULES:High Probability

Trades

RISK:Money

Management

Controlling YourEmotions

Your Trading Business

BROKERBROKER


Principles of Price & Volume BehaviorPrinciples of Price & Volume Behavior

• TrendContinuation

• MomentumPrecedes FurtherMomentum

• Function ofSupply andDemand

• Cycles fromRange Expansionto RangeContraction

• MomentumSlows –Reversals OftenFollow


Show MeShow Me dada MoneyMoney -- Navigator StrategyNavigator Strategy

• Become An Expert AtIdentifying Start of BigTrend

• Find Something That Worksin Any Market & AnyTimeframe


Find Something Stronger Than The MarketFind Something Stronger Than The Market

• Stocks Trend Up And Down In All Markets

• Find Something That Works in Any Market & AnyTimeframe

• Trade Both Sides Of The Market Under Any MarketConditions

• Be Patient…. The More Patient You Are the FasterYou Will Get Where You Want To Go.

• Don’t Feel That You Have To Be Doing SomethingAll of The Time


Can Determine The Path Of Least Resistance?Can Determine The Path Of Least Resistance?

• Find Trades Where Path isClear

• Take Action

• Plan Each Trade

• Trade Both Sides Of TheMarket


Benefits of This PatternBenefits of This Pattern ––

• IdentifiesBeginning OfBig Trends

• Hold Up Wellin All MarketConditions

Highly Reliable

• Use ForOptions orStocks Relative Volume


The Most Bullish Price PatternThe Most Bullish Price Pattern

• Here’s a weeklychart of BTUInternational(BTUI) for 2005

• You can see thatthis stock has norecent priceactivity above theperiod wherepricesconsolidated

• This stock hadno overheadresistance whenit broke out of itsbasing period

Basing Period


–– How To Time Your BuysHow To Time Your Buys

• Trade with the Trend– Probability favors continuance

• The Longer the Base the Better the Move– 6 month to 1 year minimum– All the sellers are gone– Number of Winners continues to Increase

• The bigger the First Move, the Bigger theSecond Move

• Price is a function of Supply & Demand– When there is an Imbalance of Supply and

Demand, Price moves very fast– Imbalances take much longer to correct than

to create – this is what underlies the TREND

Entry

Exit

VOLUME

PRICE

Entry


Chart ExamplesChart Examples -- Navigator StrategyNavigator Strategy

• Become An Expert AtIdentifying Start of BigTrend

• Find Something That Worksin Any Market & AnyTimeframe


American Scientific (ASEI) 08American Scientific (ASEI) 08--1616--07 Daily Chart07 Daily Chart

Entered at $61.21 04-09

Profit Target $72.34 June 65 CallsWere $8.00400% Profit

June $65 Were$2.00 when We Entered Trade


Intuitive Surgical (ISRG) 08Intuitive Surgical (ISRG) 08--1616--07 Daily Chart07 Daily Chart

Entered at $61.21 04-09




Intuitive Surgical (ISRG) 10Intuitive Surgical (ISRG) 10--0808--07 Daily Chart07 Daily Chart

Entered at $61.21 04-09




VMwareVMware. (VMW) 10. (VMW) 10--0808--07 Daily Chart07 Daily Chart

Entered at $61.21 04-09




PharmionPharmion Corp. (PHRM) 08Corp. (PHRM) 08--1616--07 Daily Chart07 Daily Chart

Entered at $61.21 04-09




HokuHoku Scientific (HOKU) 06Scientific (HOKU) 06--2525--07 Daily Chart07 Daily Chart

Entered at $8.01 06-21

July 7.50 Calls Up 600% on 6-22

High Volume on Breakout,Light Volume Pullback,

High Volume Today



Entered at $61.21 04-09





July 7.50 Calls Up 585% Today

July $7.50 Calls were$.30, and are now $2.40



Entered at $61.21 04-09




HokuHoku Scientific (HQFGU) July 7.50 OptionsScientific (HQFGU) July 7.50 Options

15 Times Your Original Investment

July $7.50 Options $.30 to $4.50As of Today 07-06

July $7.50 calls went from30 cents to $4.50, so far


Protein Design Labs (PDLI) Weekly Chart 04Protein Design Labs (PDLI) Weekly Chart 04--1111--0707

Double Bottom

Entered 03-12 $19.21

Double Bottom

Profit Target of $24.49


PDLIPDLI –– Setup 03Setup 03--1212--0707

Profit Target $24.49

Gain27 %!

Entered on A Buy Stop @ 19.21

PDLPDL BioPharmaBioPharma (PDLI) Daily Chart 04(PDLI) Daily Chart 04--1717


PDLIPDLI –– Setup 03Setup 03--1212--0707

Profit Target $24.49

27% Gain on Stock!

Entered on A Buy Stop @ 19.21

PDLPDL BioPharmaBioPharma (PDLI) Daily Chart 04(PDLI) Daily Chart 04--1717

800% Profit in April 22.50Call Options

$.25 to over $2.00


Protein Design Labs (PDLI) Broker Screen 04Protein Design Labs (PDLI) Broker Screen 04--1111--0707

Stock Up 6.53% TodayOption Up 450% Today

Entered 03-12 $19.21

April $22.50 Calls Went from $.15 to $1.45April $22.50 Calls Went from $.15 to $1.45


American AirlinesAmerican Airlines Symbol:AMRSymbol:AMR

• Sold Options at $.95 on 09-13

Bought $22.50 Options For $.10 on 09-11

9 X Initial Investment

Price as of 10-20-06


DendreonDendreon Inc. (DNDN) Daily Chart 04Inc. (DNDN) Daily Chart 04--0505--0707

•Profit Target of $22.79

May 20 Options are $.45 Now$3.00 at Profit Target 600% Profit

After 1 day - $17.80 on 04-05-07 (Up 18.3%)In One Day

April 15 Calls up 223% On 04-05 (In One Day)



•

Now At $23.65 on 04-09-07 (Up 58%)In Two Days

April 15 Calls up 800+% On 04-09 (In Two Days)



•At $24.85 on 04-10-07

Exited Trade with 37.2% profit

Entered on 4-5 at $18.11Exited ½ Trade with 37.2% profit, and

balance on Trailing Stop


NovatelNovatel Wireless (NVTL) Daily Chart 05Wireless (NVTL) Daily Chart 05--2323--0707

•

Entered on 4/27 at $18.21 and Exited ½Position on 5/22 at $21.74 for 19.4% Profit


NovatelNovatel (NVTL) Daily Chart 06(NVTL) Daily Chart 06--0505--0707

•

Entered 4/27 at $18.21, Up 37.5%,Sold ½ Position after Up > 20%

June $22.50 Options went from$.60 to $2.65 in One Week



•

Entered 4/27 at $18.21, Up 37.5%,Sold ½ Position after Up > 20%

Now Up By 39% on 6-25



•

Entered 4/27 at $18.21,Sold ½ Position after Up > 20%

Now Up By 41.2% on 6-27


Benefits of Using This Strategy With OptionsBenefits of Using This Strategy With Options

• Anyone can do this strategy even starting with very little capital.

• Risk is very limited with unlimited upside potential

• No Day Trading Required

• Extremely high % gains from the power of options leverage

• Ability to Compound Your Capital Quickly

• Works In Up, Down, Or Sideways Markets

• Risk Can Be Controlled Without Using Stops– Options are one of the few trading vehicles where you can

GUARANTEE that you will never have a big loss


How We Help You WinHow We Help You Win

• Each night - “Plan Your Trades” email for the next day• NaviTrader.com provides everything you need to

succeed– Which stock(s) to buy or short– Price to set your Buy Stop Order (Trade with the Trend)– Price to get out with a small loss (Cut Your Losses)– Price to Take Profits (Don’t let Winners turn into losers)– HOW MANY SHARES TO BUY (NEVER, EVER, RISK TOO

MUCH!)• You then simply print your Autoplan containing all your

orders to enter into your direct access broker• No need to monitor the market the next day –

Everything is Planned!• Join our Membership Today and begin a new chapter in

your investing - Confident and Profitable

Start Compounding Your Profits TodayStart Compounding Your Profits Today


What Previous Attendees Have Said aboutWhat Previous Attendees Have Said aboutour Training Courses..our Training Courses..

• Awesome! This really gives me a great head start• In trading these markets.

– A. Ramis– Atlanta, GA

• Excellent!


What members are saying aboutWhat members are saying aboutour Service..our Service..

• Awesome! I have paid for my first year of NaviTraderon my First Trade

– Laura T.

• Excellent!


Set Goals For Your Trading & InvestingSet Goals For Your Trading & Investing

• Desired Objective of Trading

• What Kind of Returns Are You Wanting?

• What Do You Need To Do To Accomplish?– Preparation, Education, Etc.

• Write Down Your Goals– Visualize Yourself Achieving These Goals

• Review Your Goals Frequently– Are You “On Course” ?

• Take Corrective Action Where Necessary


Contact InformationContact Information

• NaviTrader

– www.navitrader.com

– [email protected]

–800-987-6269

• Other Services Available

• Educational Seminars Available on CD and Live

– Call 800-987-6269 for Details

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