I specialize in building accounts and portfolios with an emphasis on growth through profit taking and reinvestment, a concept using stocks with trading patterns.  Some of the most well-known companies, ETFs create these patterns in their price trends called a "Channeling" or "Trading" pattern.

Let's say for example you make a good buy on a stock with a trading range between 10 and 15 and you buy in close to 10, and your target maybe is 14.   I would recommend a sell on the position and take the profit as it would be a 40% gross profit.  We wouldn't want to leave it there, not sell and only to have it fall back to 10 soon after.  If we had taken the profit the first time it gave us the opportunity, we would potentially be able to buy it back again a 2nd time if we choose to.   If we had not sold, we would have ended up at the same price we purchased and with no profit.  Isn't that any easy concept to understand? (buy low sell higher)

Your typical "advisor" may cookie cut your portfolio with mutual funds, ETFs and a handful of large cap stocks that are purchased without regard of their historical pricing and then you'll potentially hold forever.  The "advisor" collects his "management" fee regardless if the account is up, down or sideways! There is a much better way!

My introductory plan is simple and straightforward: we focus on building a dynamic and opportunistic portfolio by investing in a mix of stocks, ETFs, and possibly longer-term options.  We look to buy these positions when they are at historical lows, trading/channel pattern lows or within favorable trending patterns, aiming to capitalize on their growth potential. As the positions reach our target levels, we take profits and then reallocate the proceeds into similar opportunities, keeping the portfolio active and responsive to market conditions.

Per your best interest, your client account objectives and goals, any security recommended will be in keeping with your risk tolerances as well, please see risks on product page.  For every trade, I receive your prior authorization and record all buy and sell confirmations on a recorded line.  Of course, you will receive all trade confirmations and statements.  You will also have access to your account balances and positions/realized gains and losses through the web platform or your HilltopSecurities Momentum mobile app.

Disclosure: This hypothetical information is for educational purposes only, the projections or other information generated by this scenario regarding the likelihood of various investment outcomes are hypothetical in nature, do not reflect actual investment results and are not guarantees for future results.

Trading Channel Stock Patterns

A channeling stock pattern is a technical analysis concept where a stock's price moves within two parallel lines, forming a channel.  The upper line serves as a resistance level, while the lower line acts as a support level.  This pattern indicates a relatively stable trend, allowing traders to anticipate potential breakout points.
 

Building Portfolios with Channeling Stocks with Upside Potential 

Creating a portfolio of channeling stocks involves selecting stocks that trade within stable parallel channels, identifying potential support and resistance levels.  By focusing on stocks that are currently near their 52-week lows, you can potentially capitalize on an upward movement.  Company fundamentals are also important.  Some of these could have low earnings per share ratios, high year over year growth or be a leader in a relevant sector, such as AI, quantum computing, nuclear, etc...  The upside for these stocks could be significant depending on the range of the price channel, offering attractive returns while maintaining a lower risk profile, as we are looking to buy in the lower range of the stocks historical price.   

Income with Trading Channel Upside

We can create a portfolio of higher dividend paying stock positions that usually have lower volatility but can still offer upside in a trading channel to take profits on if the opportunity arises.

Dividend income comes from stocks that regularly pay out a portion of their earnings to shareholders, usually in the form of cash payments.  When you combine this with trading channel stocks, which move within a specific price range over time, you can potentially enjoy steady dividend income while also benefitting from price fluctuations with that channel.  It's a nice combination of growth and income!  

Of course, we would want to sell the stock and take the larger profit when it moves higher in the channel.  Later we can come back in and buy that same dividend stock at a lower price if it gives us the opportunity.  I look for higher paying dividend positions such as REITS, stocks etc.  Buying them in their lower historical price points pays the shareholder a higher dividend yield vs. making a purchase at a higher price.