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.

Here’s how…

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

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

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.

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

So now you’re wondering…

“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…

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

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

#1: Identify stocks that are in an uptrend

The idea is simple.

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.

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

Next…

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.

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?

Well, you can use tools like:

• 10-day low
• RSI below 30
• X% 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.

Next…

#3 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:

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

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)…