Pullback Stock Trading Masterclass by Rayner Teo – Tradingwithrayner

This little-known trading system has generated 1451% over the last 20 years with close to a 70% winning rate. The best part?

You can spot such trading opportunities in less than 5 minutes a day—without paying for a scanner or a subscription service.You can spot such trading opportunities in less than 5 minutes a day—without paying for a scanner or a subscription service.

Here’s how…Here’s how…

The stock market has an average return of 10% a year.The stock market has an average return of 10% a year.

This means the stock market has returned over 1200% since 1990.This means the stock market has returned over 1200% since 1990.

Seems a buy and hold approach isn’t such a bad idea.Seems a buy and hold approach isn’t such a bad idea.

But if you do that, you can expect to lose more than 50% of your money during a recession.But if you do that, you can expect to lose more than 50% of your money during a recession.

(Just ask the folks who went through the Dot Com Bubble and the 2008 Financial Crisis.)(Just ask the folks who went through the Dot Com Bubble and the 2008 Financial Crisis.)

So now you’re wondering…So now you’re wondering…

“How can I achieve market-beating returns without getting killed during a bear market?”“How can I achieve market-beating returns without getting killed during a bear market?”

It’s not rocket science, really.

Here are 3 steps to follow…Here are 3 steps to follow…

1. Identify stocks that are in an uptrendIdentify stocks that are in an uptrend
2. Buy the pullbackBuy the pullback
3. Sell the rallySell the rally

I know it sounds too simple. So let me explain further…I know it sounds too simple. So let me explain further…

#1: Identify stocks that are in an uptrend

The idea is simple.The idea is simple.

Stocks which are in an uptrend are likely to continue moving higher.Stocks which are in an uptrend are likely to continue moving higher.

It could be due to the strong fundamentals, good management, strong earnings report, etc. The exact reason isn’t important.It could be due to the strong fundamentals, good management, strong earnings report, etc. The exact reason isn’t important.

What matters is the price movement of the stock—and you want it to be heading higher.What matters is the price movement of the stock—and you want it to be heading higher.

Next…Next…

The idea is simple.The idea is simple.

#2: Buy the pullback

There are only two ways you can enter a trade, on a pullback or on a breakout.There are only two ways you can enter a trade, on a pullback or on a breakout.

So, let’s go with pullback trading as it has a higher winning rate and is easier to handle for most traders.So, let’s go with pullback trading as it has a higher winning rate and is easier to handle for most traders.

So, how do you enter on a pullback?So, how do you enter on a pullback?

Well, you can use tools like:Well, you can use tools like:

• 10-day low10-day low
• RSI below 30RSI below 30
• X% decline in priceX% decline in price

For example, if the price drops to a 10-day low, then you can enter a trade on the next day open.For example, if the price drops to a 10-day low, then you can enter a trade on the next day open.

Next…Next…

#3 Sell the rally

Now if the price moves higher, then you can look to sell the rally.Now if the price moves higher, then you can look to sell the rally.

In this case, you can use tools like:In this case, you can use tools like:

• Swing highSwing high
• RSI above 60RSI above 60
• A close above the moving averageA close above the moving average

For example, if the RSI crosses above 60, then you’ll exit your trade.For example, if the RSI crosses above 60, then you’ll exit your trade.

Here’s an example of the trading setup (cherry-picked of course)…Here’s an example of the trading setup (cherry-picked of course)…