Stock Trading

3 TIMELESS setups that have made me TENS OF MILLIONS!

Posted by Kristjan Kullamägi
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I have made tens of millions the past few years trading 3 simple, timeless setups. These setups occured last year, 10 years ago, 50 years ago and 100+ years ago. They occur over and over again. They occur in the Japanese market, they occur in the Swedish market, they occur in the Indian market. The U.S. stock markets are the biggest and baddest of them all and therefore the best hunting grounds if you have a setup with an edge.

These 3 setups are:

Before I go into detail about where to buy, lock in profits, position sizing and stopping out of a losing trade, I want to talk a little about position sizing and risk.

I don’t believe you should ever have more than 30% of your account over night in any stock or ETF. Intraday you can do more since you don’t have to deal with potential over night gaps.
Most of my positions are 10-20% of account size.
My risk on most trades is usually 0.25-1%. I rarely risk more than 1% of my account on any trade.
When my accounts were small, less than a few million, I risked more, maybe 0.5-1.5%.
At the very beginning I risked more still, but honestly I had not a great grasp of the concept risk and position sizing in the beginning.

Okay, let’s get to the setups!

Breakouts

If you study thousands of the biggest winning stocks over the past 100 years they tend to move in stair steps. Meaning they will make a 20-50%+ move, pull back and go sideways for a while, then make another move. This is how most leading stocks act.
This pattern is something we as traders can use to our advantage, to get an edge.
How to find these setups?
Scan for the 1 or 2% of stocks that are up the most over these 3 timeframes
1-month
3-month
6-month
This is how you find the stocks that are leading right now.

There are 3 steps to this setup:

  1. A big move higher sometime in the past 1-3 months. This move can be anywhere from 30-100%+ and usually lasts a few days to a few weeks.
  2. An orderly pullback and consolidation with higher lows and tightening range in the consolidation phase.
  3. A range expansion (breakout) out of that consolidation. The consolidation phase is usually 2 weeks to 2 months. During the consolidation the stock price “surfs” the rising 10- and 20-day. and sometimes toe 50-day moving average.

How do you trade this setup?

  1. Identify the setups. You need to have a watchlist ready before the market open. You should also probably have alerts set, and know how many shares you want to buy.
  2. Enter on the opening range highs. The opening range highs can be the highs of the first 1-minute candle, the 5-minute candle or the 60-minute candle (on the 60-minute timeframe the first candle is always only 30 minutes, 9.30-10 AM). You can use whatever timeframe or a combination of them. You don’t even have to use any intraday chart, just look at the daily chart and enter when the stock is starting to break out.
    This method can also be traded by anticipating the breakout but I don’t find it as effective and more skill and experience is needed.
  3. Stop is always lows of the day and stop should not be wider than the ATR or ADR of the stock, to prevent the risk/reward mechanics getting out of whack. So if the ADR of the stock is 5%, your stop shouldn’t be wider than 5%. If the ATR if 50c, then stop should not be wider than 50c.
  4. You should sell 1/3 to 1/2 of the position after 3-5 days, and then move the stop to break even. The rest of the position should be trailed with the 10- or the 20-day moving average. Depends on how fast the stock is. If a beginner stick to the 10-day. You wait for the first CLOSE below the 10- day.

In a bullish market it is very common to get moves that are 10-20x+ your initial risk if you are good at setup selection.

There are variations of this setup but the premise stays the same.
I am a swing trader and use the daily chart to find these setups, but this setups also works on the weekly chart and the intraday (1- and 5-minute) charts. On the intraday timeframe this setup is called Holy Grail by some on the daily it can be called a hight tight flags sometimes. It’s pretty much flat channels, symmertrical and descending triangles. I’ve even drawn the lines to illustrate this on 2 of the examples below.
I am providing 3 examples of breakout setups with 5-10 years between them.

$TSLA from 2020 before and after:

$MNKD from 2013, before and after:

 

$AAXN ($TASR) from 2004), before and after:

 

If you look closely, there are additional setups on these stocks.

Episodic Pivot (EP)

When unexpected good news hits a stock, especially if that stock is neglected, that can trigger multi-month, and multi-year moves.

There are many types of EPs:
Earnings and earnings guidance
Government regulations, political stuff
Biotech related like drug trial results or FDA decisions
Macro and political related
…and many more!

The main ones I focus on are earnings and earnings guidance. When a stock reports unexpected good earnings and guidance, that is often a catalyst for a big and prolonged move.

Let’s take a look at $NVDA from 2016 and 2017.
Look at what happened at the leftmost red arrow. The stock gapped up on big earnings numbers and a big beat to analyst expectations. A big surprise. Look at the volume, it ended up having several times average volume that day. Look at the move it made over the next few months.
Now the middle red arrow, the stock gapped up slightly but sold off. This is not an EP. The earnings were big, the analyst beat was big but this didn’t matter.
An EP needs to be a gap of 10%+ and big volume should be there, if not in pre-market then the first 5-10 minutes after the open.
Look at the last red arrow. The stock had essentially been going sidewats for 4 months and had another huge quarter, with EPS and Revenues growing 126% and 48% respectively. Another big beat with EPS of 85c vs analyst expectations of 67c.
Scroll down to see what happened next.

$NVDA in 2016 and 2017:

That earnings report started a move that lasted 6 months and where the stock almost doubled.

The next one is $FSLR in 2007. I don’t have the exact numbers on that earnings report as I did the work on it 10 years after it happened but the earnings and revenue were close to triple-digit, if not triple-digit. Look at that gap up and volume.

Same thing with $BB ($BBRY) in 2004.

Learn this setup, it takes 4-8 earnings seasons (1-2 years) to get good at this setup and understand it.
Once you learn it, you need to do very little work to find these. You literally let them come to you.
Create your own sell rules. You can trail these with the 20- or 50-day moving average, or whatever you find to work the best.

The steps to this setup are:

  1. Gap up 10%+
  2. Big volume. If the volume is not there in premarket, it needs to come in at the open. Many times the best ones have traded their average daily volume in the first 15-30 minutes after the open.
  3. If an earnings or earnings guidance related EP, there has to be big growth numbers, preferably mid/high or even triple digit EPS and revenue growth and a significant beat to analyst expectations. Many times the smaller stocks don’t have analyst coverage, you just have to trust the numbers and volume.
  4. It’s best if the stock has not rallied over the past 3-6 months. If the stock has already made a big, multi month move into the gap-up, is it really a surprise to the market? It’s your job to figure it out!
    Happy hunting!

How do you trade this setup?

  1. Identify the setup, this can usually be done in after-hours or pre-market as we are looking for stocks gapping up on news/earnings.
  2. Enter opening range highs. ORH can be the highs of the first 1-, 5-, or 60-minute candle. The stop is at the lows of the day.
  3. Trail your stop with the 10- or 20-day moving average once they surpass your initial stop.

The Parabolic Short (or long)

Think of stocks as rubber bands, if they get really stretched short term, they can have powerful snapbacks. This is by far the riskiest setup if done wrong or if you have issues with not obeying your stops.
Most of these are short setups, but sometimes there are also good long setups but they don’t occur as often.

These are the steps for this setup:

  1. A stock up 50-100%+ in a few days or weeks (if larger cap) or 300-1000%+ (if smaller cap).
  2. The stock should be up 3-5+ days in a row. Many times you have examples where a stock trends higher for weeks or months and then starts speeding up, some just explode from nowhere.

How do you trade this setup?

  1. When you think you have identified a candidate you can short on the opening range lows (1-minute, 5-minute candles). You can wait for the first red 5-minute candle in case the stock goes straight up from the open. You can wait for the stock to have the first crack, bounce back into VWAP (the only intraday indicator I really use) and if it fails at VWAP you can enter (or add). The fail could be the first red 1- or 5-minute candle into the VWAP. The stop is highs of the day or if VWAP fail, a reclaim of the VWAP. The key is to get relatively tight and defined stops.
  2. The target area is the 10- and 20-day moving averages, that’s where these stocks usually bounce.
  3. Don’t be too early. WAIT for the right setup. Let the amateur shorts get run over, that’s where your edge comes in.
  4. This setups is not like the Breakout or the EP where you can sometimes get a 30-50x+ risk reward on your trade. This setup is more like 5-10x risk reward, but if you wait for the perfect setups your win rate is probably going to be higher.

$LAZR in 2020, daily and 5-min intraday:

 

 

 

$AIG in 2009, daily and 5-min intraday:

$AMTD in 1999 daily and 5-min intraday:

Let’s take a look at a parabolic long setup. These are not very common but any time a successful parabolic short goes down 50-60%+ in a few days, that’s the premise for the long setup. Entry is opening range highs or the first green 5-minute candle or any range break to the upside if the stock doesn’t rally out of the gate, which they usually do. These things can bounce 50-100% in a few days.

$GBTC in 2017, daily and 5-min intraday:

All of my setups are about finding low risk entries on fast moving stocks. It’s all about finding tight, high probability areas to enter, so you can have high risk/reward on your trades. It’s all about making 5-20+ times your initial risk. You can be wildly profitable with having just a 25-30% winrate, it’s all about having small losses and big winners.

I have an Evernote database I worked on for 7-8 years where I track these setups and I have a collection of thousands of them. Most of these charts are from my Evernote database. I have probably spent 1000+ hours building it and went back decades on thousands of stocks to find these setups.
Be creative, there are at least a couple of other setups I can think of that you can trade with great success but I have chosen these three for myself.
You need to look at every stock in the US stock markets as far back as you can and look for reoccurring patterns. I personally have also checked the biggest stocks in every international stock market.

If you want to become financially independent and change your life, if you want to be filthy rich or just want the security and the freedom that comes with it – you have to put in the work!
Good luck!

“There is nothing new on Wall Street or in stock speculation. What has happened in the past will happen again, and again, and again. – Jesse Livermore

136 thoughts on “3 TIMELESS setups that have made me TENS OF MILLIONS!

  1. jackgreen

    Absolutely amazing, thank you for sharing your knowledge with us!!. this is top quality stuff. Simple and easy to understand unlike many trading books or guides out there that make things very complicated or just trying hard to sound smart.

    I have been following your stream and in your discord for a few months which has accelerate my ability and knowledge faster than any trading course or chat room (paid or not) out there. I love you Bro! we all love you!

    1. Kristjan Kullamägi

      Thank you, appreciate it!

  2. Brandi Love's sister

    Thanks a lot for your commitment and transparency! You’re a really good role model for new aspiring traders (like myself). I wish you all the best!

    1. Kristjan Kullamägi

      Thank you!

  3. pokerfacerr5

    This page should go into the hall of fame. Thanks for everything you do!

    1. Kristjan Kullamägi

      Thanks, it’s one of my best blog posts!

  4. theredbeard

    I have been trading roughly 4 years now. I have tried everything in stock market. And lost 17k over all.

    I found you when you lost $1.5 million on KODK, then started to follow you. And after your series of 20 tweets I watch all of your swing trading school videos and watch you on the stream. I started trading like you since last month and I am already up 30% on my account. And now my overall p&l is positive by +10k. Happened only in 1 month.

    I love the setups, stress free, profitable trading, finally!

    Thank you! Your twitch streams are really enjoyable and educational!

    1. Kristjan Kullamägi

      Thank you, but there is no such thing as stress free trading most of the time 🙂

    2. David

      This post is from January. Are you still profitable? Can you talk about your journey? Im also loosing trader :/ Im here for 3-4 years. Now I am more break even and profitable but comissions killin me. Still ahve to put some work.

    3. Uchendu Korieocha

      Hi, thanks for this post. I trade intra-day breakout with huge volume using 1-5 Min chart.. which you called the “holy grail”. I trade mostly small caps and 90-95% of the stocks have long term down trend, I’ve found some success but I miss so many opportunities because of my day job. Have you tried to trade breakouts intra-day on stocks with long term down trend? Thanks

  5. al_shamrock

    As a newbie trader, id like to take the opportunity to thank you for sharing your insights with us here and also on your twitch account every trading day. It is greatly appreciated.

    1. Kristjan Kullamägi

      Thank you!

  6. schmegma

    I’m addicted to learning everything you know about the market.
    Blew up my account doing OPTIONS and decided to look for people to learn from. I found out that Twitch had a Stocks & Bonds category and went in without realizing how much it would impact my life.
    Found your stream and you were the FIRST guy to offer help and information, without asking me to cough up money.
    Every since then I’m been tuning everyday to learn everything you know.
    Trading can be a lonely job, but not when you’re streaming and screaming at David.

    Thank you for everything, and I hope you always a Milfy Christmas!

    1. Kristjan Kullamägi

      Thank you! Is it okay I quote you on Twitter but leave your nickname out, since, you know… schmegma lol 🙂

  7. Chris M.

    YOU ARE THE MAN.

  8. Brandi Love

    You’re a better trader than my great grandfather!

    1. Kristjan Kullamägi

      lol

  9. Pedram

    Thanks for all that you have done!

  10. Carl

    I have learned more from you during the last six months than I did on my own during the last 20 years. I also have multiplied my account within these six months.

    You are transforming lives. Thank you for making the world a better place.

  11. Joe

    Love what you’re doing and agree 1000% with previous comments. I did find you on YouTube, so grateful for that and everything you’re doing for the community.

  12. Manu

    Thank you so much Kris for this great article and the time you take for helping the rest of us! Even though I’ve been investing in the stock market since more than 10 years, with quite some luck, in retrospect I’ve been extremely amateur-ish. Learning from you since few months, things are going so much better already!

    There is something I don’t understand in the first part of the article, about not holding more than 30% of the account overnight. This I understand for day traders, but swing traders, per definition, are taking positions for multiple days/months. The money in my trading account is money I want to be invested, and for the medium/long term (otherwise I would leave it at the bank on a savings account). So I don’t get the point of having 70% cash overnight. Looking at your videos, the day is starting with 20+ positions already (from the previous days), so at 10-20% max each, that’s about 100%, isn’t it?

    Also, how do you define the max risk (1%)? Is it relative to the configured stop loss (which might not get filled at the desired price in case of extreme crash)?

    Again, and foremost, thank you so much for everything you are sharing to make us smarter with our money! Money management should be teached at school, like maths…

    1. MirMor

      Manu, I’m not Kris but hopefully it can help:

      1. 30% is for each stock. Meaning you can have 10k, with 3k in 3 stocks and 1k in another. But not any single position is more than 30% of your total account.

      2. The max risk you calculate it per share risk, then from there you calculate the number of total shares you to trade, capping it with your over-the-top rule (of never more than 30%).

      So again supposing you’ve a 10k account, risking 1% per trade (100$), it means if you enter in a stock at 10$, and your stop is 9.50$ (50c), then you can risk (RISK/PER SHARE RISK)=100/0.5= 200shares at 10$ = 2k position

      If your stop would be only 20cents instead, following these rules, you wouldn’t take 500 shares position, because it would be 5k and 50% of your account it (unless for some reasons you’re extremely confident about it etc and can stomach the risks). But you would cap it to 300 shares = 3k = 30% of account

      Hope it clarifies it!

      1. Manu

        Oh MirMor thanks so much for clarifying! The 30% is for each stock, got it now, thanks! Makes super sense now.
        And the risk calculation, crystal clear as well! Thanks for the examples! This is something I’ve probably been overlooking (but was investing more conservatively).

  13. dean

    dude everything i know about trading big caps i learned from you. if i hadnt met you, i would still just be shorting smallcaps to this day. So thanks for sharing your knowledge it has helped me in a big way.

  14. Kalle

    Thanks for everything you are doing. Truly incredible to have this opportunity to learn from a master.

  15. Brett

    Great post Kris — enjoy following you on the stream!

    Do you recommend your newer students get “TC2000 Platinum” (which apparently has real-time information). Or stick with “TC2000 Gold” which I believe is a touch delayed? Is real-time data worth the extra cash in swing trading?

  16. ronak nathwani

    excellent kris

  17. Dave

    Thanks very much for the wisdom Kristjan – I had a few questions:

    a) The setups you trade appear to be generally breakout setups I think?

    b) I “invest” in microcap stocks – although price action (and smooth momentum) is the most important thing for me, I generally try to avoid “bad companies” – focus is on micro/small cap, low liquidity stocks to hold for months to a year (albeit some of the stocks I may hold past a year) – probably closer to “momentum investing” with growth stocks and no stock would be more than 5% of my portfolio so heavily diversified; for technicals, more than anything else I need the stock to be above the 100SMA rather than the faster moving averages (so slow trading or investing perhaps) and will sell a stock if after a quarter, I will sell if it is below 100sma – since I focus globally, many of the stocks are also “value” I suppose – for example, many good stocks in places like Turkey and South Korea which are rising AND have great fundamentals/growth and are cheap. For this portfolio, I don’t have stop losses and don’t touch a stock for 3 months after buying it (to avoid me “reacting” and transacting unnecessarily). I suppose that comes with the expectation that I will suffer market drawdowns, albeit I will switch into stronger relative strength if some stocks aren’t performing, albeit slowly, so perhaps it *may* be less than the market drawdown

    c) I saw in one of your posts that you like fast growing stocks to trade – so can I assume you’re still looking at the fundamentals to some extent? What about “concept” stocks which have a nice chart pattern, launching off a flat long base for months, but zero revenues (e.g. some of the lithium stocks these days?)

    c) Am I correct that you like to buy the breakout rather than the anticipation (i.e before the breakout) – I’m assuming you use BUY stop/limit orders (if that’s the correct term) so as to buy when price breaks out? I am in the UK and the choice of “order execution” is so poor on standard brokers but I do have access to IBKR

    d) I am much more comfortable not “reacting” and watching stocks – that is why I gravitated towards “momentum investing” and its been working well. However, I have also recently started a portfolio with concept stocks that have excellent patterns (thematic trading I suppose) – currently lithium, solar, marijuana, gaming etc. (since there are no earnings, I need the pattern to be pristine whereas I may be a little more forgiving with a “noisy” good company) – I don’t necessarily have stop losses on them as no position takes up more than 10-15% so I rely on diversification as risk management (albeit I have a tighter leash with these stocks vs momentum investing portfolio so if they do not respect their 50 dma, I’ll get out, although by that time I may be 20% down on that stock, which in my entire account should not be more than a 1% loss since I’m so heavily diversified) – now I am looking to adopt a third approach, inspired by yours and primarily to increase my return (but with lower risk) which is making larger bet sizes but with much tighter stop losses (always keeping risk at 1% or lower) around. I really don’t want to be “actively” watching the screen an am happy to transact at the close; do you think this is a workable approach to only transact at the close or weekly close even? Also considering that the microcaps (the ones I have traded/invested in at least) can move 5-10% in a day or gap even more? I guess what appeals to me is that a “faster” approach such as this would be different/complementary to my momentum investing portfolio (where I don’t have stop losses and my entry doesn’t have to be precise as I am holding for months) but similar to my concept stocks trading (where I might be holding only for weeks and have wide mental stops) but with much tighter stop losses – I understand that most of the edge is in risk management and this portfolio would be lower risk thus……?

    e) Do you look at the market at all or only the stocks – that is, do you consider market breadth, sentiment etc. in terms of whether to enter individual stock setups or maybe for position sizing or total exposure or the risk (stop loss magnitude?)

    Thank you again

    1. Kristjan Kullamägi

      Sorry for late answer, Dave!

      a) in bullish markets yes
      b) sounds like trend following/position trading
      c1) momentum is #1 important thing and many times the fast growers have lots of momentum. Just gives me a ltitle bit more conviction knowing the growth is there vs trading something random.
      Lithium stocks are trading off future expected growth, and just knowing the theme can add conviction to the trade. Many moves in this market are pure theme/story
      c2) Yes. I use market orders mostly. Limit orders are for people who want to miss a good breakout 🙂
      d) not sure what the question is
      e) yes but individual/group stock action trumps all

      Thank you!

  18. artek338

    Hi Kristjan, I’ve been trying to find a way to emotionally disconnect from P&L for a very long time, which is damn frustrating and mentally debilitating. Could you share some tips to get the emotions under control?

    1. Kristjan Kullamägi

      Decrease size until you get confidence in your setups and sell rules

  19. LooseFrank

    Great content! Hands down

  20. Justin

    Hi Kris, If you missed a breakout by 1 day, do you buy the retrace to the breakout area? Or do you look for the next breakout? Thanks!

    1. Kristjan Kullamägi

      Sometimes I buy the retrace

  21. Dave

    Hi Kris – some more questions from me; also listened to your podcast so thank you for that excellent material:

    a) How far should earnings be for you to consider entry e.g. “won’t enter a new trade in XYZ if earnings are due in the next [5] days”
    b) Once in the position, say for a few weeks (which would imply you have a profit cushion) and earnings are imminent, do you sell whole/part of the position simply because earnings are due (even if stop has not been hit)?
    c) Noted that your stop is low of the day for new trade entry – I often find that for new trades, where I put close of day on entry day, my stops gets hit intra-day at low of the day and then the stock reverses and this happens pretty early in the day. Not sure what to do here? I could put the stop such that the CLOSE HAS TO BE below low of day instead, of course with the risk that the close may actually be below the low. I know for my position trading, if I act on the close, rather than intra-day, it prevents many fake stops. I know that for profitable positions you use the close below 10/20 DMA, but for new entries, I often find this problem arise intraday
    d) Have you found that your breakout setup works much better when VIX/volatility is low?

    Many thanks,

    Dave

    1. Niko

      I have got the same question as it is stated in C point.
      I would highly appreciate clarification regarding stops.

      Thanks in advance,

      1. Niko

        I think i found the answer for that question!
        The main thesis of breakouts is that it should work right away! It shouldnt hit the lows of the day after breakout showing weakness! That is why it is better to have hard stop at low of the day to protect from failed breakouts.
        If stock stops me out at the day of breakout, so I dont want to be in that stock! Simple.
        Of course, there could be moments when stock stops you out and rips higher, but probability of these types of move is much lower than all day fading action after stopping out!

  22. Willingtoworkforit

    Hello,

    In one of your videos you mentioned Stockbee membership site. Is that website still active to this day? Feb 3, 2021 I’m new and would love to learn swing trading properly. Do you provide a course or is Stockbee’s website sufficient in learning the basics? Thank you!

    1. Kristjan Kullamägi

      Stockbee is sufficient, and my content is sufficient too. Check this link https://chartsandstories.com/start-here/

  23. Tylo

    Hi kris – awesome finding out that a technical trader has had so much success in the market. I’ve been trading for a couple years, swearing by TA as well. I’ve blown up a few accounts in my starting years but am starting to turn a leaf, more than doubling my account so far in 2021. I use a lot of the same entry and exit conditions as you, but I’ve been taught to trade options premium (by my dad, who has had relatively successful swing trading career and swears by options trading) as an instrument with higher reward and defined risk. What are your thoughts on options trading as an instrument instead of stock?

    1. Kristjan Kullamägi

      I think options much more complex and adding more complexity into an already incredibly difficult profession is not optimal. Also, for every successful options trader I know or have read about/heard of there are 50 stock traders, so for me avoiding options is a no brainer. But do what works for you. There are no absolutes in trading. Good luck.!

      1. Tylo

        Thanks for the quick response!! Can you clarify one thing… if you enter on opening 1-min candle, what would you consider your “intraday low”?

  24. Nathan

    First off, super big thanks for all the info you provide. Question here: Did the stocks you researched include delisted stocks in your stock history database? I’m curious, since only looking at non-delisted stocks is survivorship bias (but still could be profitable, just not ideal).

  25. simplifyleading

    Kris, I follow you on Twitch every morning, and always appreciate your insights. I remember you mentioned that there are great books to read, I am already reading “Reminiscence of a Stock Operator” but what are the others that you recommend?

    1. Kristjan Kullamägi

      Check the About page on this blog

      1. Bobby O

        Hi there, I am so onto the information you are posting but discovered no book references on the about page.

  26. simplifyleading

    Kris, a few questions if you don’t mind.

    1. I know you’re looking at 30 day, 60 day jumps for scans, but in TC2000, there are like 10 different scans for 30 day and 60 day jumps. Which specific ones are you using for scans?

    2. When you say in your videos, “It’s too thin” are you referring to the volume being low?

    3. You make several notes on your charts on stocks that have jumps and drops, some of them with a number and a backward slash or forward slash. What are those numbers?

    Thanks again for your time. I get up early in Southern California to watch you every morning life on Twitch.

    1. Kristjan Kullamägi

      1) check the link in my tiwtter bio for scans
      2) Yes dollar volume
      3) Earnings and revenue grwoth YoY in %

      Thanks!

  27. Charlie

    Hi Kristjan, I’m inspired by your story. I really liked your interview with chat with traders.

    I am a 1.5 years losing trader but starting to see light at the end of the tunnel by focusing on 1 hour & 30 min chart. Still struggling with overtrading and analysis and paralysis sometimes. I need to build my account up so I can swing trade – really love the way you have outlined your strategies. Currently don’t have enough to risk to account for loses during non market hours as swings could be a lot. I have 2 simple questions since I also heard you switched from day trading to swing once you built up your account. 1) can one have success by only focusing on 1 hr and 30 min chart as a day trader? I am tired of trying to use 1 min, 2 min, 5 min – I keep getting chopped up even 1.5 years later 2) what is the one thing that helped you build up your day trading account – what was that one factor that changed everything? Im sure you are a very busy person so I would be grateful if you can spare few mins to respond. If you cannot, no worries. I’ll continue to go through your material on YouTube and keep learning. Big thanks for listening.

    1. Kristjan Kullamägi

      Yes you can daytrade using only 30/60 min. You need to educate yourself how stocks move then whatever you use will become easy. Education education

  28. flow

    Thank you Kris!

  29. simplifyleading

    Kris, after reading through every blog you’ve written, and watching every YouTube video you’ve made, and watching you live on Twitch, I’m surprised nobody has asked this question yet:

    What are the 8 to 10 factors you look at before purchasing a stock in order of importance, before pulling the trigger?
    For example:

    1. Huge move and riding the 10/20/30 day MA
    2. ADR %
    3. Volume
    4. Liquidity
    5. Earnings quarter over quarter
    6. Momentum over last few months

  30. Kristjan Kullamägi

    4
    1 and 6
    2
    3 and 5

  31. Daisy Hallett

    Hi Kristjan

    I love your cat Loke! So, so beautiful. I had a ragdoll previously and she would constantly try to jump onto my computer!

    Thank you so much for all the inspiration and educational material you provide. You really are a key character in the hero’s journey of developing traders, which includes me. Late last year, I left an unfulfilling corporate career (not in finance) to pursue what seemed like a very distant dream of trading full time. After listening to your interview on Chat With Traders, I finally feel like I have some solid guidance for what I need to do to educate myself, and the journey is becoming a bit more clear.

    Wishing you all the very best. A thousand thank yous for your generosity of content, time and spirit.

    1. Kristjan Kullamägi

      Thank you very much! Appreciate it:)

      1. daisyhallett

        you’re welcome – and sorry, this is my first time using wordpress and I accidentally posted that comment twice!

        1. Kristjan Kullamägi

          I barely know how to use it either 🤣

  32. daisyhallett

    G’day Kristjan

    I love your cat Loke! Cats are the best aren’t they? I had a ragdoll and she would persistently try to jump on my keyboard!

    Thank you for all the inspiration and educational material that you provide. I’m sure many would agree that you are a central character in the hero’s journey of the developing trader, of which I am one. I left an unfulfilling corporate career (not in finance) at the end of last year, with the crazy dream of pursuing full-time trading (with almost no experience). After listening to your interview on Chat with Traders, the path to that goal seems a bit clearer, based on your clear and thoughtful guidance.

    Wishing you all the very best. A thousand thank yous for your generosity of time, content and spirit.

    1. Kristjan Kullamägi

      Thank you!

  33. Daniel

    Hey Kristjan! Thanks for the great content!
    A)Could you provide more details regarding your process for creating your evernote project? What sort of info are you including with the setups in that database?
    B) I’ve noticed that you don’t disqualify stocks just because they are below the 200ma (contrary to O’neil and Minervini), any particular reason for that?

    1. Kristjan Kullamägi

      a) whatever info you feel is relevant
      b) doesn’t matter much

  34. Joey

    Hi Kristjan,

    I have seen lots of your videos and listened to your interview online….very inspiring. I wish I could be a quarter as successful as you have been and one day I will get there.

    My question is, since your techniques are more sufficient during bull markets, what are you mostly doing during a lull in the markets (like now) or during pullback/bear markets? Sitting back and waiting for things to turn around? What is the strategy in regards to your positioning or technique?

    Thanks!!

    1. Kristjan Kullamägi

      Fewer or no trades

  35. Kev

    I usually keep it all to myself but had to reply since it feels like you are one of very few public traders out there that shows your full hand with many important nuances that other traders dont talk about. and im very thankful for it.

    1. Kristjan Kullamägi

      Thank you!

    2. Kristjan Kullamägi

      Thanks!

  36. Cornel M. Mancas

    Hello,
    In your Swing Trading School YouTube video said you going to post the ADR code in the blog. Looked everywhere (i think so) but cant find it. Would you mind post the code please. Seems like an important piece of the puzzle 🙂
    Thanks for sharing your work.
    Cornel.

    1. Kristjan Kullamägi

      It is in the about me page

  37. Karl

    Hi Kristjan,

    Very impressed with the sharing mate.

    Thank you for all your hard work and honesty!

    Questions (and for the group):
    Can Tradingview.com scanner (or other) be used instead of TC2000, if so what are good settings for same or similar results. I intend to use TC2000 but can’t for now.

    I aim to trade for a while before potentially using margin, have you any advise pointers on using margin please?

    Cheers,

    Karl 😀

    1. Kristjan Kullamägi

      Not sure.

      Margin, if you have to ask you don’t get to use it.

  38. Meta

    Kris!

    Your blog update is amazing! Your stream is THEE most informative finance source out there. Your mission to help others is god tier <3

    Keep up all the great work,
    @FlywMeta

    1. Kristjan Kullamägi

      Thanks!

  39. Burhan

    The trading community can be a dog eat dog world with a lot of “gurus” selling a dream. Sorry you lost 1.5mill on KODK but im so glad you did because thats how I came across your twitter. Within minutes of looking into your page I knew you were the real deal. Ive been trading for 4 years and I’ve had a similar journey to yours and tried different methods and am now a swing trader. I really hope people realize what youre offering is better then gold and you are one of a kind brother. A stand up dude who cuts all the bullshit and offers years of hard work for free. Wish you continued success Kris. Thank You!

    (p.s. please dont ever stop streaming or ill be a lonely trader again 🙁 lol)

    1. Kristjan Kullamägi

      Thanks!

  40. Rupert

    Hi,

    Just wanted to leave a message saying thank you very much for all the content and education you provide and its for free!!!

    I found you via your chatwithtraders interview and you also introduced me to stockbee. You’re a real life legend.

    Thanks a million

    1. Kristjan Kullamägi

      Thanks!

  41. Tkaj

    Hi Kristjan! – I have a question for you

    Do you think that a trader who has studied a lot can be successful right of the bat; or that no matter the level of preparation, “living” on the market and on the charts for a certain time, failing and winning, is necessary for success?

    Thank you!

    1. Kristjan Kullamägi

      No idea. Probably not

  42. GURPREET SINGH

    Hey Bro

    Gurpreet from India

    I have seen people on youtube making 100$ hardly and after that, they start insisting on their followers to buy the paid course, but hats off! to you man. I spend hours and hours on your website and on youtube watching videos but have never come across an advertisement so far.

    A HINDI LINE I WANT TO WRITE,YOU CAN GET IT Translated
    ‘Dil Se salam’

    1. Kristjan Kullamägi

      No. But many are delisted since

  43. dayu

    is 1month, 3month, 6months are calculated to month end to other month close or monthly to till date basis?

  44. dayu

    how returns are calculated in 1,3,6month from last month closing to this month closing or monthly to till date?

  45. Love

    Hi Kristjan,

    Thank you so much for sharing your experience & knowledge. I am trading in ASX market. Could you please explain the exact scanning criteria?
    Should I Scan for the stocks which are up 1 -2% over these 3 timeframes –
    1-month & 3-month & 6-month? Or something else.Thanks.

  46. david

    Whats a stock?

  47. ABEN

    Kris – Thanks for all the knowledge you have put out for us. Just one question:

    How do you manage stocks that show up in momentum scans but then move out of scans during consolidation or correction? Do track them separately? For example: BILI.

    1. Kristjan Kullamägi

      Focus on scans

  48. apk download

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  49. Love

    Hi Kris, I am so great full to find you. You are doing a great service to society. Thanks.

    1. Kristjan Kullamägi

      Thank you!

  50. Reilly

    Hey there – great post and thanks for the content.

    In bullet #4 of how to trade breakouts, you reference that beginners should stop out after a close below the 10ma. Is the implication here just that as a beginner you should have tighter risk rules but once you are more experienced you can have more discretion to let things ride longer (ie maybe use the 20ma instead)?

    1. Kristjan Kullamägi

      Yes, exactly right!

  51. Daniel Kim

    Amazing info. Kristjan helping us little guys to fight against Kenny boy.

    Thanks man, you don’t know how much this means to me.

    1. Kristjan Kullamägi

      Thanks!

  52. Sam

    Hey Kris,

    Many thanks for sharing your experience and knowledge with us. I have been following your guides for the last 2 months and I am still studying and trading and following you.
    But I have a challenge and that is the timezone. I am from Australia and US market opens at 11:30 PM Sydney Time, and I need to get up early in the morning. So, what I have been doing in the last 1.5 months is to only trade the first 1 to 3 hours when the US market opens.
    Do you think/suggest:
    1- That this approach would work out if I only trade the first 2-3 hours and then set a “stop-loss” on all my shares that I have and go to sleep? (That’s what I have been doing – PnL rate +10% so far)
    2- Should I do day trading and trade as much as I can in the first 2-3 hours of the open? (I know you are not a fan of day trading, but it might feel less risky if I sell all my shares before I sleep overnight)
    3- Should I use half of my account for Day Trading and a half for Swing Trading? (or any other portion)
    4- Should I trade Cryptocurrency as the timing is 24hr?
    5- Should I try other biggest markets after the US, like Japan and London, as the timing is better for the Australian timezone and I can watch the market the whole time (mostly).

    If you think the first option would be the best for me, I know I would miss out on the stocks that break out midday, do you think that would be a big miss on a daily basis?

    The main problem I have is where to put my stop loss, imagine I buy at a breakout on the first 1-minute candle, and the stock is going straight up, but slowly, and not making any lows in the first 2 hours (not lower than what I have bought), where should I set the stop loss before I go to sleep? There are no lows of the day yet.

    Many many thanks for helping me in this,
    Sam

  53. Nikk

    Hi Kris!

    Thanks for laying out your process so clearly. It has been really helpful.

    In addition to above, can I ask how frequently do you run your 1 month, 3 month and 6 month scans? Do you have a definite frequency (like weekly) or you do this at the end of a bull leg?

    1. Kristjan Kullamägi

      Weekly

  54. Sam

    Hey Kris,

    Many thanks for sharing your experience and knowledge with us. I have been following your guides for the last 2 months and I am still studying and trading and following you.
    But I have a challenge and that is the timezone. I am from Australia and the US market opens at 11:30 PM Sydney Time, and I need to get up early in the morning. So, what I have been doing in the last 1.5 months is to only trade the first 1 to 3 hours when the US market opens.
    Do you think/suggest:
    1- That this approach would work out if I only trade the first 2-3 hours and then set a “stop-loss” on all my shares that I have and go to sleep? (That’s what I have been doing – PnL rate +10% so far)
    2- Should I do day trading and trade as much as I can in the first 2-3 hours of the open? (I know you are not a fan of day trading, but it might feel less risky if I sell all my shares before I sleep overnight)
    3- Should I use half of my account for Day Trading and a half for Swing Trading? (or any other portion)
    4- Should I trade Cryptocurrency as the timing is 24hr?
    5- Should I try other biggest markets after the US, like Japan and London, as the timing is better for the Australian timezone and I can watch the market the whole time (mostly).

    If you think the first option would be the best for me, I know I would miss out on the stocks that break out midday, do you think that would be a big miss on a daily basis?

    The main problem I have is where to put my stop loss, imagine I buy at a breakout on the first 1-minute candle, and the stock is going straight up, but slowly, and not making any lows in the first 2 hours (not lower than what I have bought), where should I set the stop loss before I go to sleep? There are no lows of the day yet.

    Many many thanks for helping me in this,
    Sam

    1. Kristjan Kullamägi

      I can literally not answer any of these questions. It’s all up to you

  55. Rahul

    Hi Kris ,
    Great content .. really appreciate it ..
    1.When we are trailing stop loss with 10 MA , what signs to look for reversal from 10 MA . Price sometime whipsaws around 10 MA after retracement ..
    2. What criteria do u use do judge 10 MA or 20 MA as stop loss ?? like 30% in 3-5 days go for 10 MA ?? and if slow moving go for 20 MA .. ?
    Thanks a lot for doing this ..

  56. Dariusz

    Hello,
    You run a great blog, you can learn a lot from it. Your strategies are clearly and nicely described, however I don’t know English well. I cannot understand the entry into the episodic pivot strategy.
    1 I enter after the gap appears for the first, for example, 60 minutes candle or
    2 I enter the breakout of the top of a closed candle with a gap.

    Thank you very much for your answer.

    You have a nice cat, mine also lies in front of the monitors when I work.
    greetings

    1. Kristjan Kullamägi

      If it goes up after open you can buy

  57. Pedro

    HI, Kristjan
    First thanks for your web and share your experience.

    I use prorealtime and I am trying to do a screener daily in Prorealtime to locate the stocks that you look for but I have some doubts.

    Volume>1.500000 ???
    ADR[20]>3.5??? Period daily 20 or which???
    Price > SMA20 and SMA50 OR only SMA20 OR WITHOUT this conditions
    And all conditions ordered for growing price in 1 month or 1 last three month or last six months???
    Some other condition more???

    Thanks

  58. Samuel

    Hi Kristjan
    Good summer to you and thanks for extraordinary help!

    I want to ask you two questions:
    -Do you ever care about how big free float a company have?
    -Do you know where to find how big free-float companies have in sweden?

    Best Regards
    Sam

    1. Kristjan Kullamägi

      Not really and no

  59. Tom

    Hi Kris,

    I first heard about you from the Chat With Traders podcast. Your story is mind blowing and offers so much inspiration. Thank you.

    I hope you don’t mind me asking a question, but the main problem I am having with trying to learn your approach is when to take profits. Your entries are quite systematic, but is there a rule of thumb for getting out of winners too? I seem to go onside quite often and end up giving back most of the gains and scratching the trade when i have a trailing stop.
    Thanks

    1. Kristjan Kullamägi

      May just have been the market conditions

  60. Charles

    Excellent blog. Will go back and backtest these just to “get” the feel and recognition-factor. thx & peace…

    1. Kristjan Kullamägi

      Thanks!

  61. Michael

    hi kristjan, hope your enjoying the summer. is it possible to remove the age-verification from your swing trading school video? or can I find this video on twitch or your own youtube channel? thx mate! https://youtu.be/xx8GvtAxilk

  62. Thomas

    Thanks very much for all you do for the trading community!

    One quick question about the entry. Do you have to trade off the opening range breakout on an intraday chart? Or do you ever leave an order to buy above a breakout level on a daily chart with a stop loss at the low of the previous day?

    Sometimes for people with day jobs it is hard to be able to trade that first 5 minutes or so and to have your orders in before the start of the day is easier. That’s probably not as good, but wondered if it still worked.

    Thanks

    1. Curtis

      In my experience, when trading the opening range breakout intraday, it can be very choppy and can stop you out prematurely if a stop is set. As long as the previous day isn’t too far away from a risk perspective, that’s probably ok. You could try a weekly/quarterly AVWAP as a stop, but you’ll probably have to do the backtesting on this. I think that’s why Kris watches the opening as it’s easier to watch the market and set a stop based on how it is acting. I follow another trader, Brian Shannon, that sets his stop after the market gets going. This might work for you as that’s what I do. I put in my orders before the open, then at my first break I will check on them and set/adjust stops. Once the swing trade is going, it can be managed daily or when you have the chance.

  63. David

    I am learning so much from you Kristjan, it has been the best thing that happened to my trading was found your way of trading stocks.
    I am still learning and making mistakes specially in the last weeks I have been messing up a bit in not scaling back down when i was having losses in a row, but I am confident that I will reach the top.

    I have started to make my own chart database selecting already more than 800 stocks to check and building form their and seeing all stocks from the streams available.

    I appreciate your kindness to share your wisdom and knowledge!

    Greetings from Portugal

  64. DAWOOD

    Hi Kristjan,

    Thanks for all your good work.

    May I ask: Sometimes a stock breaks out (esp if its an EP), 10-20%, sometimes that is a gap, sometimes it is not. In your experience, is it still better to get into such big one-day moves on day 1 or rather, wait for a (potential – may not happen) pullback to 10DMA – I guess the question is, do very large price moves in 1 day have a higher probability of mean reverting, or rather perhaps the opposite may be true: very large, intimidating to enter price moves should in fact be entered on day 1!?

  65. Matilda

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  66. tariq

    you are the education !
    can i please have your notes

  67. Surya

    Hi

    What is the short setup ? When do you Short and how to scan for short setup

  68. Emil

    What advice do you have for people with a fulltime job who cannot be in front of the computer at the market open, and can only trade in the evenings?

  69. Roberto

    I enjoy, result in I discovered exactly what I used
    to be having a look for. You have ended my 4 day long hunt!
    God Bless you man. Have a great day. Bye

  70. Ollie

    When doing the parabolic short, how do you minimize risk? I’ve not done shorts before, but from what I’ve read they are very risky because they have no upper limit.

  71. Alois

    Hi and thanks,

    when you say that you rarely risk 1% of your account, do you mean you get out of a trade if its loss equals 1% of your TOTAL account, or 1% of that specific trade?

  72. Brother of Kristjan Kullamägi

    Low of that first 1 min candle itself.

  73. Dave

    Hi Kris – hope all is OK. You’re really an inspiration.

    In your “mock interview” – I know you didn’t write it and some of it is out of context, one thing that intrigued me a little was the point (which I imagine you have made at some point?) that you buy all at once when it all looks good and then just sit tight and here’s the key part: you don’t add to winners/increase average price. If a stock you’re in, sets up again after a few weeks with a tight flag, weeks of consolidation, nice clean breakout, above 50sma etc., would you not consider that a new breakout trade and enter it then? Grateful for your thoughts.

  74. Spas Simonov

    Kristjan, you are only the second trader that have not asked for any money…and it speaks a lot! I never understood why successful traders should ask for subscription fees and shit like this, when they (as they claim) make millions of dollars. I wouldn’t do it, it makes no sense. I am thrilled to have come up upon your site and can’t wait to get to the live stream!

  75. Babak Khazaeli

    THis is what you expect from an EU citizen. No American version of self promoting instead of talking. No non-sence. No B.S ! No selling dreams with Bullshit stories and fancy cars. Pure knowledge.
    I appreciate your dedication !!! we all love u for what you are doing …

  76. FinanceRazor

    Awesome content – very inspiring! Ive been trading for awhile but not really focused improving my own strategy yet, but now I feel the time is getting right. Of course, there´s a ´´ but´´ – how do I backtest trading ideas and strategies, for instance by using excel? Is there a smooth way to do it?

    Thanks in advance!

    /bigfan

  77. Zaiyi wong

    Hi kristjan i recent came across you and i read through everything in this blog and start to catch up on all your past streams and stuff.However i would like to ask on how do you study past winners?

  78. Zaiyi wong

    find and study*

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  80. andrea lorenzini

    i m a beginner.
    i feel more confident in waiting for the close of the day (cash session) before buying a breakout. this leads you to have a wider stop than ATR but skims out a lot of fake breaks.
    what do you think about it?

  81. How to master a setup: Episodic Pivots - Qullamaggie

    […] How do you master a setup? I will take Episodic Pivots as an example in this post, a setup I learned from Pradeep Bonde (Stockbee), that has rewarded me several tens of millions in profits over the past couple of years alone. We are also approaching the juicy part of the earnings season and there will be a proliferation of these setups over the next 2-3 weeks so I thought it appropriate to go through this setup a little bit. I have also written previously about EP here. […]

  82. Losha Nazarov

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  83. Daniel Andersson

    Hello Kristjan

    I wonder how your working days look like? Do you always work at least until US close? I`m from Sweden like you and really impressed and interested in your way of trading. I understand the benefits with the US markets but see some problems with working hours due to time difference for my self (and my family). Have you heard of any traders using this trading style on any European market and how they are doing? Germany and/or Great Britain perhaps?

    Vänliga Hälsningar Daniel Andersson

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  85. Episodic Pivot / Power Earnings Gap / Buyable Gap Up Explained - Cazy Boy Tech

    […] know these events by a few different names. Perhaps you’ve heard of Stockbee and Qullamaggie’s Episodic Pivots? Or you’ve seen @traderstewie refer to his Power Earnings Gap (PEG) plays. If […]

  86. Episodic Pivot / Power Earnings Gap / Buyable Gap Up Explained – THE MIRROR OF MEDIA

    […] know these events by a few different names. Perhaps you’ve heard of Stockbee and Qullamaggie’s Episodic Pivots? Or you’ve seen @traderstewie refer to his Power Earnings Gap (PEG) plays. If […]

  87. Episodic Pivot / Power Earnings Gap / Buyable Gap Up Explained | NewsLogged

    […] these occasions by a couple of completely different names. Maybe you’ve heard of Stockbee and Qullamaggie’s Episodic Pivots? Otherwise you’ve seen @traderstewie discuss with his Energy Earnings Hole (PEG) […]

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