How $TZA Can Be A Great Trade

TZA was trending big on StockTwits today. It makes a great day-trade and swing trade in a down market. If you watch a few key indicators, you can ride it up as the market is going down. And right now, there is tremendous upside potential for TZA to fill in the gap: 

When I trade TZA, I watch 4 indicators. First, TZA is leveraged at -300% the daily movement of the Russell 2000. I keep that market on my screen. Second, I watch other markets like the DOW, the S & P 500 and the Nasdaq. These markets provide indicators of the strength of the overall market and are helpful predictors of where it is headed. Third, I watch for major players in the market that influence the direction of the market like GOOG and AAPL. Often when they move together, the market follows. 

Finally, I watch the stochastics on the 2 min and 5 min chart to give me a good entry price. Go back and analyze how TZA has moved with those stochastics. See how your trade would play out if you had invested when the stochastic bottomed out and sold when the stochastic rolled over the top: 

Of course, these aren't the ONLY indicators. Among other things, politicians can make this stock really spike! Potential good news out of Washington can send it plummeting. 

You get a high volume stock when you trade this ETF. As a day-trader, you can get in and out pretty quickly if you use a good platform. If you want to make money trading as the market goes down without shorting anything, take a look at this affordably priced and quickly moving ETF.

If you want to learn from an experienced day-trader, join us at mojodaytrading.com. You can follow along in the trading room as Mike makes calls and explains his strategy. You can gain a feel for the market and understand how to put a large amount of knowledge to work for you very quickly. It's great for experienced traders as well as novices. We trade TZA quite often and those looking to advance their skills in that stock as well as many others can learn from what happens there. Take a look at mojo's spreadsheet since the beginning of the month. Good luck with your trades.