Wicked Trade How-to-stock-pick
Wicked Trade How-to-stock-pick
Each week, we use technical analysis to choose two stocks with strong setups that show potential
for at least a 20% gain. We’re extremely selective, only picking stocks with a clear path to this
target. If a major resistance or support level could block the 20% move, or if the price structure
doesn’t support our goal, we skip that stock. We focus solely on setups with a strong chance for a
breakout or continued trend.
• Exit Points: Price targets where you should take profits or close your position.
• Stop-Loss Levels: Price levels that limit risk if the stock moves against you.
We only use weekly charts for our stock picks, as we focus on multi-month price movements. Each
pick is different: some reach their target in 1-2 months, others in 6-12 months, but most hit their
target in 3-5 months.
So, if you trade one of our picks, plan to hold it on average for 3-5 months. In our analysis, we’ll
always tell you if we expect the stock to reach its target in 1-2 months, 3-5 months, or 6-12 months.
Pro tip: Always have a detailed trade plan before entering a trade. Having a trade plan before each
trade is essential to stay disciplined, manage emotions, and make objective decisions. A clear plan
helps you stick to your strategy, increasing your chances of consistent success over time.
1. Entries
Weekly Settlements
Our stock buy and sell signals are grounded in technical analysis, specifically focusing on weekly
settlements. When we select a stock, it’s because it is either testing or trading near a key price
level identified on the charts.
By targeting multi-month price movements, we prioritize waiting for a weekly candle close to
confirm trade setups. This approach helps filter out false signals caused by mid-week volatility,
ensuring more reliable and actionable signals.
Here's how we define clear buy and sell signals:
• For bullish setups: A buy signal is confirmed only if the stock closes at least 1% above the
defined price level on a weekly basis.
Example: If a stock is trading near a channel top, and that channel top is $100.00 for the
week, a buy signal will only occur if the stock closes at or above $101.00 (1% higher than
$100.00).
• For bearish moves - A sell signal is confirmed when a stock closes at least 1% below a
defined price level on a weekly close.
• Example: If a stock is trading near a channel bottom, and that channel bottom is $100.00 for
the week, a sell signal will only occur if the stock closes at or below $99.00 (1% lower than
$100.00)
Tip: Waiting for a close by a 1% margin helps confirm that the price has decisively broken through a
key level, reducing the chance of being misled by minor fluctuations or false breakouts. This adds
an extra layer of confidence to your trade entry or exit.
1. Weekly Settlement (Recommended for All, Especially Beginners): This is the most
reliable method for confirming a buy signal for the longer multi-month move.
- Friday Close Entry: Wait until just before the market closes on Friday, between
12pm-4pm EST.
- Monday Morning Entry: After the buy signal is confirmed on a Friday close, wait for
the market to open on Monday morning to enter. This gives you extra confirmation
that the weekly candle held strong and minimizes last-minute Friday volatility.
- Retest Entry: If the stock closes well above/below a resistance/support level (or you
just miss the initial entry) wait for a pullback to retest the breakout level.
2. Daily Settlement (For Traders with Some Experience, At least 1-2 Years): This option
allows for an earlier entry, giving you a head start before the weekly close. However, it
carries more risk—if the stock doesn’t settle above the required level by the end of the
week, the buy signal is not confirmed, and the trade should be avoided or exited. This
method is better suited for traders who have some experience managing these risks.
3. Breaking the Level Intraday (Highest Risk, for More Advanced Traders): You can enter a
trade when the stock breaks the buy level during the week, before any daily or weekly close
confirmation. This method offers the best possible entry price and a tighter stop-loss, but it
carries the most risk. Entering intraday means the trade is less likely to succeed, as it lacks
the confirmation of a daily or weekly settlement above the level.
If you’re someone who prefers clear instructions, like ‘just tell me what to buy and when,’ or if
you’re still learning, stick to weekly settlements for at least 6 months to build consistent
profitability.
3. Exits
Always use the chart structure to guide your exits, focusing on weekly settlements.
If you bought a stock because it broke above resistance, exit if it closes 1% back below that
resistance level by the end of the week.
If you shorted a stock on a break below support, exit if it closes 1% back above that support level.
Simply put, if the stock closes 1% in the opposite direction of our support or resistance level—the
setup has failed, and it’s time to exit. This approach keeps your trading disciplined and consistent
by focusing on the chart, not your profit and loss.
How It Works:
• Buy Signal Example: If a stock gets a buy signal by closing at least 1% above a key level
(e.g., $101.00 above a $100.00 channel top), you should stay in the trade as long as it holds.
If the stock later closes 1% or more below the $100.00 channel top on a weekly settlement
(at or below $99.00), the buy setup is invalid, and you exit using a market order to ensure a
timely exit.
Example:
- In the example image above. The blue line is the channel top. The green line is 1% above
the channel top. The red line is 1% below the channel top. Buy on a close above the green
line. Your stop loss is a close below the red line.
• Sell Signal Example: If a stock gets a sell signal by closing at least 1% below a key level
(e.g., $99.00 below a $100.00 channel bottom), stay in the trade. If the stock later closes 1%
or more above the $100.00 channel bottom on a weekly settlement (at or above $101.00),
the sell setup fails, and you exit using a market order.
-In the image above the blue line is the channel bottom. The red line is 1% below the channel
bottom. The green line is 1% above the channel bottom. Sell the stock (go short) on a close below
the red line. Your stop loss is a close above the green line.
While your primary stop should use a market order based on weekly chart levels, you should set a
failsafe stop-loss order. This secondary stop-loss order should be placed below the key chart
level as a safety net, protecting against sudden, sharp declines before a weekly close occurs.
For risk management, never risk more than 1%-3% of your total portfolio per trade. For example,
with a $10,000 portfolio, limit your maximum loss per trade to $100-$300.
This means that if the market unexpectedly drops, your failsafe stop-loss will automatically exit the
trade at your predetermined risk level (e.g., -$200), ensuring your losses stay within your risk
tolerance.
Remember: Each of our stock picks provides clear entry and stop loss levels for every trade.
4. Profit Targets
In our stock pick videos, we always outline ultimate price objectives, aiming for at least a 20%
increase in the stock. These targets are based on strong setups designed to maximize profit
potential. Once you enter a trade, it’s crucial to stick to your plan: hold until your stop loss is
triggered, or your price objective is reached. This disciplined approach prevents premature exits
and helps eliminate the unpredictability of emotional decision-making.
Scaling Out of a Position Scaling out involves selling portions of your position at predetermined
price points as the stock moves in your favor, before the final target. This method helps manage risk
and secure profits incrementally, while still allowing you to capture the full potential of the trade.
Our videos include profit targets and key levels for scaling out, like short-term resistance levels for
bullish moves and short-term support levels for bearish moves.
Traders often debate whether it's better to hold your full position until it reaches the target or to
scale out gradually along the way.
Holding your full position can maximize profits if the trade reaches your target, but it also exposes
you to greater risk if the market reverses before then. Scaling out, on the other hand, allows you to
lock in partial gains and reduce exposure, providing a balance between profit and safety. However,
it may limit the potential upside if the trade continues to move in your favor.
Most of our stock picks have a single price target, so you have just one target to watch for.
We recommend scaling out 25% to 50% of your position once the first target is reached. This locks
in partial gains while allowing you to hold the remaining 50% to 75% for the ultimate objective.
• Near-Term Traders: Those that are targeting a move anywhere from 1-2 months out to 3-5
months.
• Position Traders: Those that are aiming for longer moves that take at least 6-12 months.
Some picks hit our targets quickly in 1-2 months, while others progress over 3-5 months, and a few
take up to 6-12 months. On average, expect our stock picks to reach their targets within 3-5 months.
If you prefer simple guidance—like "just tell me what to buy and when"—stick exclusively to weekly
charts for clarity and discipline.
Can Swing Traders Use Our Stock Picks? Yes! Although our analysis focuses on multi-month
setups, swing traders can benefit from our weekly levels.
What is Swing Trading? It’s a style of trading that aims to capture short- to medium-term gains over
a few days to several weeks. This approach differs from the longer-term strategies we emphasize,
but our levels can be effectively used for swing trades.
• Focus on Weekly Levels: Use our weekly chart levels to guide your swing trades.
Understand the broader trend on the weekly chart before refining entries on the daily chart.
• Set Up Your Chart: Since our levels are based on weekly charts, you can either replicate
these formations on your own daily chart or draw horizontal lines at key weekly levels. This
way, you’ll have consistent reference points throughout the week.
• Choosing Your Trade Setup: For swing trades, consider either buying shares with the intent
to sell within 1-2 weeks or choosing short-dated options (expiring within 1-5 weeks) based
on your risk tolerance.
• Entering And Exiting: You will follow the same entry and exit tips above. Entering on a
weekly close, a daily close, or a intraday break is up to you. Exit the trade once the setup has
failed. A weekly close, daily close, or intraday break in the opposite direction.
• Opportunities for Swing Traders: Our stock picks aim for 20% moves in the stock, but
you’ll frequently see stocks rally 5-10% after breaking through our weekly levels. These
smaller moves can be ideal for swing traders, especially those using short-term options.
• Check for Adjustments: We regularly update trade plans as market conditions evolve. This
may involve changes to entry points, profit targets, or stop-loss levels.
• Stay Engaged: Keep a close watch on your trades, particularly during key events like
earnings reports, major news, or spikes in market volatility, as these can affect your
position.
7. Execution and Discipline
Successful trading requires discipline and patience. Stick to the trade plan and avoid making
emotional decisions. Resist the temptation to enter trades too early or to hold onto losing positions
beyond the recommended stop-loss points. Consistency is key to long-term profitability.
Signal Status
In the "My Analysis" tab under the Stock Picks section, you'll find a column labeled Signal Status.
This feature is designed to help you quickly filter and prioritize stocks based on their current signal
status.
Pending – No signal is currently active, but the stock is approaching a key level. Keep this stock on
your radar for potential opportunities.
Active - Recent – The stock has recently triggered a buy signal and remains within the optimal buy
zone. Consider taking action.
Active - Extended – The stock remains in a buy signal but has moved significantly beyond the
recommended entry point. If you're not in the trade, it may be best to wait for a potential
retracement. If you're already in the trade, consider holding until the targeted objective is reached.
Target Reached – The stock has hit its objective, and the trade has successfully played out.
Stopped Out – The trade should have exited at the predefined stop-loss level.
Off Watchlist – The setup no longer meets the criteria for an A+ opportunity. No further action is
recommended for this stock.
Scaling Out If you scale out of a position – make sure you hold a portion of your position until the
ultimate price objective. Doing so allows you to capitalize on larger moves in the stock and
maximize your gains over the long term.
Successful Trading Is Boring The most profitable traders aren't living gamblers chasing the next
rush—they're methodical professionals following a repeatable process.
Your daily trading shouldn't feel like a casino rush. Instead, it should feel like:
• Following your pre-market checklist, every single day
• Managing risk with the same position sizing, time after time
Those massive winning trades? They're not targets—they're byproducts of perfect execution. When
you consistently play the odds correctly, these bigger wins naturally occur,
Less Is More In Trading In trading, quality over quantity is very important. Elite traders understand
that trading isn't about volume—it's about precision. Think of yourself as a sniper, not a machine
gunner. Your A+ setup is your perfect shot, and you should have the patience and discipline to wait
for it.
• Stay patient and disciplined while waiting for your perfect trade
• Accept that some days might only offer 1-2 quality opportunities (or none)
• Protect your capital and mindset: After 1-2 winning trades, walk away while you're ahead
• Honor your stop: If you take 1-2 losses, step back and return fresh tomorrow
Remember: The goal isn't to trade often, but to trade well. The most profitable traders aren't the
ones who trade the most—they're the ones who trade the best. Your account grows through
consistent, smart executions, not through forcing trades to feel productive.
Master One Strategy The path to consistency in trading isn't about knowing every strategy—it's
about executing one strategy flawlessly. Think of it like a master chef who perfects a signature dish
before expanding their menu. In bullish markets, this might mean exclusively trading descending
channel top breakouts until you can spot them in your sleep. In bearish markets, focusing solely on
ascending channel bottom breakouts until they become second nature.
• Learn the subtle nuances that separate winning trades from losses
Losing Trades Are Natural Our strategy maintains a 72% win rate, meaning expect 2 losses out of
every 8 monthly picks. No strategy wins 100% of the time—it's about managing those losses
intelligently. Before every trade, frame it like this: "If I lose, my predetermined stop limits my risk to
$100. If I win and reach my target, I'll make $300. This 3:1 reward-to-risk ratio makes this trade
worth taking." The key is simple: keep losses small with strict stops, and let winners run to their
targets.
The Best Traders Embrace Losses The profitable trader you aspire to be loses trades too. The
difference isn't in avoiding losses—it's in how to handle them. Top traders:
This maintains both their capital and mindset, letting them stay focused on the process where real
results happen.