Hit and Run 2.0 Home Study Program
+ 30 Days of the Hit and Run Newsletter for Just $129!

I've spent the last 36 years as a full-time trader discovering the patterns that have consistently generated higher levels of income. I've traded for myself and generated ideas for hedge funds. Jim Cramer and his wife Karen were subscribers for years. That's why he graciously wrote the foreword to my first book, HIT AND RUN TRADING. He saw first-hand the power of my ideas.

A low-risk, potentially high reward strategy used for continuation plays. The Lizard is useful for buying strongly trending stocks going through temporary weakness.

This strategy works because the setup is an exhaustion setup. This means that the last buyers or sellers push the stock to extremes before the smart money moves in. Because these markets are making short term highs and lows, the reversals tend to be fast and furious.

We can't buy every new high so we need to qualify each one. I have found that the most explosive breakouts have an expansion in range when reaching a very specific level.

This pattern sets up from a little-known expansion point discovered in the early 1940's. These plays have shown to have the most consistent profits over a one-to-five-day time frame.

One of the toughest predicaments you'll face is deciding when to enter runaway stocks. (An extremely strong trend and parabolic momentum). Most of us have identified times where we've identified a stock where we wanted to go long (or short), but because the stock was moving so quickly, we never got the chance.

The 123 PB is my antidote for this problem. Strongly trending stocks must take a breather now and again. I've discovered that not all "pauses" are created equal. The most powerful trades rest for a certain amount of days before resuming their underlying trend.

Once the big buyers get active again, the stock quickly races to new levels. Identifying these trades before the explosion is my specialty.

Pullbacks in strongly trending stocks tend to gravitate to the same moving average with scary consistency. Once this particular moving average is kissed, a reversal back in the direction of the prevailing trend gives you an easy trade to understand and execute.

This Holy Grail pattern works because it is a self-fulfilling prophecy. There are billions of dollars in momentum-based mutual funds that look to "buy the dip" in strongly trending stocks. It's our job to capitalize when the big money needs to be allocated!

A trade for the real world... This pattern helps us initiate positions in strongly trending stocks that don't have a picture-perfect setup.

Many times after the stock market has opened, stocks bleed back into the prior day's trading range. The ORB identifies entries when the trend continues. This is the only reliable pattern that identifies trend days.

Trend days are defined as large red or green candlesticks. When you spot one of these, hold on... these are the days that pay your mortgage.

Gaps are exciting trades, but not all gaps offer the same reward potential. Knowing which gaps to trade makes you a wealthy trader. My research has found that gaps with closes at or near session highs or lows do a good job of identifying short-term exhaustion.

But we don't want good trade ideas. We want great, so I decided to dig deeper. My trading revealed an unexpected chart level that best forecasts when a gap is likely to continue or reverse. Once I isolated the elements of price action that best forecast reversals, I began stalking these explosive plays with a vengeance.

If you've ever bought a positive earnings announcement only to see the stock crumble after your entry, you understand how fast these trade can move. Learn this play and earnings season takes on a whole new meaning for you.

This pattern is one of the easiest to identify, and with a little practice, you will find it without my help. A key to short-term trading is identifying one day reversals. These cash flow trades can be used as day trades, but I often carry these trades overnight if they are in sync with a 60 day high or low.

Reversals at this level can be explosive. No reason to book profits on the close when the profit potential screams for more. I am constantly looking for strong stocks that are pausing. The one-eighty is the perfect trade for quick cash. This pattern has a history of closing on the extreme of the range, AND traps players from the day before.

This trap gives extra momentum because those on the wrong side of the trade are forced to exit. Sit up in your chair when you see a one-eighty in your email.

The best time to be in a trade is before the crowd notices the play. The ELROD is an expansion in range that often precedes a volatile move in price. The beauty of this trade is that it occurs anywhere in a trend. You can earn cash flow even if the market is slow. It's a quick, very defined two day trade.

A huge benefit of the trade is speed. You will know if it's working or if it's not - quickly. You exit for a small loss or you hold for a defined profit. Easiest risk/reward scenario and simplest trade management you can get.

They say there are only two cycles you need to know in any market condition. Learn them and you will never be a skinny trader. The NR Seven is one of those cycles. Range contraction always leads to range expansion. In other words, I am handing you a trade with low risk (small range) and high reward.

Capturing explosive moves doesn't need to be challenging, you simply need focus and patience for the setup. Like the ELROD, you don't need a trend, and the trades unfold over two days. What's interesting about the NR Seven is that we are looking for an explosion, but not calling a direction. It's a very unique trade - one you will have fun trading.

This trade helps you capitalize on situations when trend followers push their luck. Imagine a bearish trend that has reached new lows and has seemingly no support in sight. Stocks reach a point where the probability for profit has diminished. You can be absolutely correct on the trend, but have horrible reward potential.

You only want to accept risk when the reward potential justifies the risk. This pattern identifies a unique scenario of highs or lows with at least four days of "separation" between the lows.When trend followers miss the setup, there is "No Soup" and often marks the beginning of a new trend. As with all trades we wait for price action to confirm the pattern. This helps us keep your risk low, but positions you in a golden situation for a new trend.

** If the trend is down, you will often hear these types of trades as "short covering rallies." They are fast, explosive and very profitable.