How To Spot The Biggest Winning Stocks Trading The MegaTrends Steve Wheeler www.navitrader.com 1
Agenda Principles of Price Behavior The Most Bullish Pattern Find The Path of Least Resistance The Most Logical Path To Success How To Impact Your Returns With Options Technical Analysis Of Chart Examples Strategy For Compounding Question and Answer 2
Three Elements of Successful Investing Controlling Your Emotions Your Trading Business BROKER RULES: High Probability Trades RISK: Money Management BROKER 3
Principles of Price & Volume Behavior Trend Continuation Momentum Precedes Further Momentum Function of Supply and Demand Cycles from Range Expansion to Range Contraction Momentum Slows Reversals Often Follow 4
Show Me da Money - Navigator Strategy Become An Expert At Identifying Start of Big Trend Find Something That Works in Any Market & Any Timeframe 5
Find Something Stronger Than The Market Stocks Trend Up And Down In All Markets Find Something That Works in Any Market & Any Timeframe Trade Both Sides Of The Market Under Any Market Conditions Be Patient. The More Patient You Are the Faster You Will Get Where You Want To Go. Don t Feel That You Have To Be Doing Something All of The Time 6
Can Determine The Path Of Least Resistance? Find Trades Where Path is Clear Take Action Plan Each Trade Trade Both Sides Of The Market 7
Benefits of This Pattern Identifies Beginning Of Big Trends Hold Up Well in All Market Conditions Highly Reliable Use For Options or Stocks Relative Volume 8
The Most Bullish Price Pattern Here s a weekly chart of BTU International (BTUI) for 2005 You can see that this stock has no recent price activity above the period where prices consolidated This stock had no overhead resistance when it broke out of its basing period Basing Period 9
How 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 the Second 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 PRICE Exit Entry Entry VOLUME 10
Chart Examples - Navigator Strategy Become An Expert At Identifying Start of Big Trend Find Something That Works in Any Market & Any Timeframe 11
American Scientific (ASEI) 08-16 16-07 Daily Chart Profit Target $72.34 June 65 Calls Were $8.00 400% Profit Entered at $61.21 04-09 June $65 Were $2.00 when We Entered Trade 12
Intuitive Surgical (ISRG) 08-16 16-07 Daily Chart Profit Target $72.34 June 65 Calls Were $8.00 400% Profit Entered at $61.21 04-09 June $65 Were $2.00 when We Entered Trade 13
Intuitive Surgical (ISRG) 10-08 08-0707 Daily Chart Profit Target $72.34 June 65 Calls Were $8.00 400% Profit Entered at $61.21 04-09 June $65 Were $2.00 when We Entered Trade 14
VMware.. (VMW) 10-08 08-0707 Daily Chart Profit Target $72.34 June 65 Calls Were $8.00 400% Profit Entered at $61.21 04-09 June $65 Were $2.00 when We Entered Trade 15
Pharmion Corp. (PHRM) 08-16 16-07 Daily Chart Profit Target $72.34 June 65 Calls Were $8.00 400% Profit Entered at $61.21 04-09 June $65 Were $2.00 when We Entered Trade 16
Hoku Scientific (HOKU) 06-25 25-07 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 17
Hoku Scientific (HOKU) 06-13 13-07 Daily Chart Profit Target $72.34 June 65 Calls Were $8.00 400% Profit Entered at $61.21 04-09 June $65 Were $2.00 when We Entered Trade 18
Hoku Scientific (HOKU) 06-14 14-07 Daily Chart Profit Target $72.34 June 65 Calls Were $8.00 400% Profit Entered at $61.21 04-09 June $65 Were $2.00 when We Entered Trade 19
Hoku Scientific (HOKU) 06-15 15-07 Daily Chart Profit Target $72.34 June 65 Calls Were $8.00 400% Profit Entered at $61.21 04-09 June $65 Were $2.00 when We Entered Trade 20
Hoku Scientific (HOKU) 06-18 18-07 Daily Chart Profit Target $72.34 June 65 Calls Were $8.00 400% Profit Entered at $61.21 04-09 June $65 Were $2.00 when We Entered Trade 21
Hoku Scientific (HOKU) 06-19 19-07 Daily Chart Profit Target $72.34 June 65 Calls Were $8.00 400% Profit Entered at $61.21 04-09 June $65 Were $2.00 when We Entered Trade 22
Hoku Scientific (HOKU) 06-20 20-0707 Daily Chart Profit Target $72.34 June 65 Calls Were $8.00 400% Profit Entered at $61.21 04-09 June $65 Were $2.00 when We Entered Trade 23
Hoku Scientific (HOKU) 06-21 21-07 Daily Chart Profit Target $72.34 June 65 Calls Were $8.00 400% Profit Entered at $61.21 04-09 June $65 Were $2.00 when We Entered Trade 24
Hoku Scientific (HOKU) 06-21 21-07 Daily Chart July 7.50 Calls Up 585% Today July $7.50 Calls were $.30, and are now $2.40 25
Hoku Scientific (HOKU) 06-22 22-07 Daily Chart Profit Target $72.34 June 65 Calls Were $8.00 400% Profit Entered at $61.21 04-09 June $65 Were $2.00 when We Entered Trade 26
Hoku Scientific (HOKU) 06-25 25-07 Daily Chart Profit Target $72.34 June 65 Calls Were $8.00 400% Profit Entered at $61.21 04-09 June $65 Were $2.00 when We Entered Trade 27
Hoku Scientific (HOKU) 06-26 26-07 Daily Chart Profit Target $72.34 June 65 Calls Were $8.00 400% Profit Entered at $61.21 04-09 June $65 Were $2.00 when We Entered Trade 28
Hoku Scientific (HOKU) 06-27 27-07 Daily Chart Profit Target $72.34 June 65 Calls Were $8.00 400% Profit Entered at $61.21 04-09 June $65 Were $2.00 when We Entered Trade 29
Hoku Scientific (HOKU) 07-06 06-0707 Daily Chart Profit Target $72.34 June 65 Calls Were $8.00 400% Profit Entered at $61.21 04-09 June $65 Were $2.00 when We Entered Trade 30
Hoku Scientific (HQFGU) July 7.50 Options July $7.50 Options $.30 to $4.50 As of Today 07-06 15 Times Your Original Investment July $7.50 calls went from 30 cents to $4.50, so far 31
Protein Design Labs (PDLI) Weekly Chart 04-11 11-07 Profit Target of $24.49 Entered 03-12 $19.21 Double Bottom Double Bottom 32
PDL BioPharma (PDLI) Daily Chart 04-17 Profit Target $24.49 Gain27 %! Entered on A Buy Stop @ 19.21 PDLI Setup 03-12 12-07 33
PDL BioPharma (PDLI) Daily Chart 04-17 Profit Target $24.49 27% Gain on Stock! 800% Profit in April 22.50 Call Options $.25 to over $2.00 Entered on A Buy Stop @ 19.21 PDLI Setup 03-12 12-07 34
Protein Design Labs (PDLI) Broker Screen 04-11 11-07 April $22.50 Calls Went from $.15 to $1.45 Entered 03-12 $19.21 Stock Up 6.53% Today Option Up 450% Today 35
American Airlines Symbol:AMR Sold Options at $.95 on 09-13 Price as of 10-20-06 Bought $22.50 Options For $.10 on 09-11 9 X Initial Investment 36
Dendreon Inc. (DNDN) Daily Chart 04-05 05-0707 After 1 day - $17.80 on 04-05-07 (Up 18.3%) In One Day Profit Target of $22.79 April 15 Calls up 223% On 04-05 (In One Day) May 20 Options are $.45 Now $3.00 at Profit Target 600% Profit 37
Dendreon Inc. (DNDN) Daily Chart 04-09 09-0707 Now At $23.65 on 04-09-07 (Up 58%) In Two Days April 15 Calls up 800+% On 04-09 (In Two Days) 38
Dendreon Inc. (DNDN) Daily Chart 04-09 09-0707 At $24.85 on 04-10-07 Exited Trade with 37.2% profit Entered on 4-5 at $18.11 Exited ½ Trade with 37.2% profit, and balance on Trailing Stop 39
Novatel Wireless (NVTL) Daily Chart 05-23 23-07 Entered on 4/27 at $18.21 and Exited ½ Position on 5/22 at $21.74 for 19.4% Profit 40
Novatel (NVTL) Daily Chart 06-05 05-0707 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 41
Novatel (NVTL) Daily Chart 06-25 25-07 Entered 4/27 at $18.21, Up 37.5%, Sold ½ Position after Up > 20% Now Up By 39% on 6-25 42
Novatel (NVTL) Daily Chart 06-27 27-07 Entered 4/27 at $18.21, Sold ½ Position after Up > 20% Now Up By 41.2% on 6-27 43
Benefits 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 44
How 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 45 Start Compounding Your Profits Today
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Set 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 48
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