Kyle Dennis trades stocks and makes money every month. Here are some of the lessons he preaches to help subscribers in his Fast5 trades and Trade With Kyle stock alerts services.
Kyle Dennis’s programs are more than just stock alerts. He teaches his students how to be real traders and not make the mistakes that many people do when they are starting out trading.
Don’t let Kyle Dennis’s age fool you! He is an expert trader that has turned $15,000 in to $8MM+.
Now he teaches everyone in his alerts services exactly what and what NOT to do as a trader.
Kyle Dennis trades stocks and shares his secrets to his success. In this article, I want to share the 5 mistakes in trading that Kyle avoids and helps him to be profitable!
Disclosure: There are some affiliate links below, but these are all products I highly recommend. I won’t put anything on this page that I haven’t verified and/or personally used. I may get paid a commission if you buy anything through these links, at no extra cost to you.
Kyle Dennis Programs That I Am A Subscribed To
My favorite Kyle Dennis program is called Fast5 Alerts. The best stock alerts service that I have ever joined! Learn more about Fast five alerts and Kyle Dennis’s story in his FREE FAST5 WEBINAR!
Here is my full review article of Kyle’s Fast5 Trades where I show every single trade that he alerts and how I did on the trade.
I also follow Kyle’s most premium service called Trade With Kyle. You can read my Trade With Kyle review here for more information about the service.
The Kyle Dennis strategy relies on different ‘buckets’. Fast5 and Trade With Kyle are one bucket. He also holds stocks longer term in his Sniper Report portfolio and an options trading bucket in his service called Dollar Ace.
Facebook Group – How To Make Money With Stock Alerts Services
Come and join my Facebook group which has many traders that are subscribed to Kyle Dennis’s Trade With Kyle and Fast5 Alerts services. We help each other out!
If you are new to trading stocks, check out this article from my friend Mark. He made 10% on his account in his first month trading by following Fast5 and Trade With Kyle alerts. He is also a member of the Facebook group.
5 Ways Kyle Dennis Trades Stocks and Makes Money
I’ve heard from quite a few of you who are newer to trading, or simply new to the Fast 5 program — so today, let’s talk about a few smart moves you can make to avoid common rookie mistakes, and stack the odds in your favor as you navigate this market environment.
Listen, plenty of other traders have made these mistakes already (yep, including me). There’s really no reason for you to do the same.
Mistake No. 1: Missing Your Exit
Every single Fast 5 Trades pick Kyle Dennis sends out comes complete with a buy zone, profit zone, and stop zone. Kyle identifies all three of these crucial levels before he ever pulls the trigger on the trade.
Otherwise, it’s impossible to calculate your expected risk vs. reward. My general rule of thumb — which has resulted from years of hard-won experience! — is that I want to target profits that are roughly double my stop-losses on any given trade.
I’ll remain profitable if I win on just half of my trades if I keep this “50% rule” consistently in place. In the case of Kyle’s Fast5 Trade alert ($FCEL) this week, here are some initial trade guidelines:
Say that you bought into the stock at $2.25.
You might choose to target 32% profits, or a move up to $2.97.
If so, you’d look to cut losses on a 16% decline to $1.90.
If you’d set your stop a little lower, perhaps to align with recent support at $1.85, that would be about an 18% drop from the hypothetical entry price.
So then you need to ask yourself, can FCEL rally all the way up and above $3.00 per share (and do it during the period I want to hold this trade) to make the expected reward here worth the risk?
Possible chart-based stop zones for FCEL (but entry price plays a role here)
Meanwhile, if you bought higher within the buy zone and therefore set your stop higher, you risked getting shaken out of the position by Tuesday’s low, as what was shaping up to be a bullish continuation pattern on the charts got sidetracked by that fading momentum in QQQ names.
This is all part of the calculation of trade entry, stop zones, and profit zones, and the way these components interact with each other has a major impact on trade outcomes.
In trading, losing positions (and losing streaks, for that matter) are statistically inevitable.
There’s nothing you can do to escape taking the occasional loss, but you can manage your investing capital in a way that limits downside risk and maximizes upside potential.
When your stop level is triggered, the smart move is to cut losses and move on. Yes, the stock might snap back shortly after — but it might tank even lower. Remember, you set that stop zone for a reason.
And similarly, when a stock runs up to your target profit, take the green. Don’t get greedy and chase that extra point or two, because you just might find yourself caught up in a nasty reversal. Speaking of which…
Mistake No. 2: Buying Too High
We all know the old adage is “buy low, sell high,” but that’s easier said than done when emotions enter the picture — and especially when the FOMO hits on a stock that’s ripping higher without you.
Broadly, be aware that buying stocks as they surge higher not only severely curbs your upside potential… it also puts you at risk of buying shares just ahead of a reversal.
Mistake No. 3: Taking On Too Much Size
When you find yourself getting stressed, furrowing your brow, wiping the sweat off your palms, and with your stomach in knots as you track each tick of a stock on the charts… guess what?
You’ve got too much capital tied up in the trade.
You should always be comfortable with your position size, and ideally you should have some consistent rules you follow to take the guesswork (and — yep! — the emotion) out of the equation.
For example, maybe your standard allocation is to commit no more than 5% of your trading capital to any one position. And for riskier, more speculative trades, perhaps you start at 2% and gradually scale up to full size.
In any case, you should never play the stock market with “scared” money — i.e., money that you need to pay the mortgage, your electricity bill, or your prop bets on how many Brady-to-Gronk touchdowns Bucs fans will see this year.
Mistake No. 4: Overtrading
Overtrading usually means exactly what it sounds like — you’re putting on too many trades. More broadly, new traders sometimes also make the mistake of chasing too many setups, or attempting to master too many strategies at once.
We all know the famous advice, right? Keep it simple, stupid. There’s no need to master options trading your first week in the market — and there’s no reason to jump into biotech speculation with both feet if you’re more of a blue-chip investor at heart.
Find a niche that feels comfortable, and establish your rhythm there. Maybe you like trading bull flags on small-cap stocks, or maybe you just so happen to have a knack for selling put spreads on FAANG names.
Gaps are a chart pattern I know & love to trade.
Whatever your comfort zone, that’s where you should look to find your footing as a trader. Start with one setup, one trade, or even just one stock, and attempt to master it.
Once you’ve built up a level of ease and skill within your niche, then you can begin to ramp up the trade volume a bit, or think about branching out into other areas of the market that might have piqued your interest.
Mistake No. 5: Skipping the Postmortem
It’s not particularly glamorous or exciting, and it’s easy to overlook, but it’s extremely important to journal your trades — especially when you’re starting out as a trader. Whether you win, lose, or draw, take note of some key elements:
What drew you to the trade? Did you find it on a scanner, or hear about the stock on a message board or chat room, or read about a big news story in the headlines?
How did the chart look? Maybe there was a trendline break, or a deeply oversold or overbought reading, or some type of chart pattern taking shape that drew your eye.
Was there a news catalyst? You can certainly play the follow-through move in a stock after news breaks, but you also might look to trade the run-up (or decline) into the event.
What was your profit target and stop-loss? It’s often interesting, after a trade is “in the books,” to see how your ultimate exit point relates to your initial targets.
Finally, how did the trade play out? Did chart patterns develop and resolve as expected? Were there any headline shocks that threw your setup off-course? What was your profit or loss?
Keeping a detailed journal of your trades can help you to identify patterns in your trading — whether it’s something you do particularly well, or a weak spot you can stand to improve upon.
This work might seem a little extra, but it’s absolutely essential to finding your own individual trading style and growing as a trader.
Your journaling style might shift and change along with your trading approach as you learn, and that’s fine… but in the beginning, don’t skip this homework.
When you join a Kyle Dennis program, you get way more than just stock picks and alerts. You get a whole education from him via email updates and video lessons.
Even in the lowest cost Kyle Dennis program (Fast5) Kyle often sends out premium content for subscribers to learn from and avoid the mistakes that many new traders make.
P.S I run a Facebook group called How To Make Money Trading Stock Alerts that brings together people that use stock alerts services. It’s a great place to share what works and what doesn’t! We welcome anyone and it is FREE to join.
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