Finding PhoenixIdentifying the Best in Breed

With Danielle Shay

Director of Options

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My Five Step, Stock Picking Process

Key Industry Groups I’m focused on

How to identify picks on a social level

How to identify picks on a technical level

How to put this all together, and trade it, with

stocks and/or options

I know it’s possible to teach others to pick out

winners. I do it every day, live in our chat room.

What You’ll Learn Today:

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I used to be an elementary school teacher. I lived on

the beach. And I made $2 an hour. I rode my bike to

work, and bought fresh fish directly from the ocean for

dinner, and lived off of cehiche and love.

‘Tomorrow’ wasn’t something I worried about.

Until this guy came along….

I wanted a more stable future for us. So, I learned

how to trade. Turns out, my teaching experience

proved helpful when I fell into this profession.

Why I Do It

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I’m Here to Teach You -- Because I’ve Always Been a Teacher

Seven Years Ago Now

Teaching elementary school

Talking Phoenix Stocks at

Nasdaq Marketsite, on Trade

Talks with Jill Malandrino

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Why Do You Want to Learn This Skill?

Maybe you want to:

● Learn how to stock pick

● Learn how to trade options

● Learn how to manage your own retirement account

● Trade for a living

● Work on a life skill

What is your inspiration?

In all of these scenarios, knowing how to identify strong,

relative strength names, and hot industry groups, is an

incredibly beneficial skill, that will help you, for years to

come.

So, let’s talk about how to do that….the first step, is using

the Phoenix Folio.

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I always start with the Phoenix Folio...the individual stock picking lists. From

there, it’s about identifying high probability, trading setups.

1) Distinct Moments in Time - Taking Advantage of Phoenix

a) The Squeeze

b) Fibonacci

2) Trading Your Edge

a) Stock Picking

b) The Leverage of Options

For now, let’s look at the Folio.

My Trading Process

The Phoenix Folio

My Hand-picked Stock Picking Baskets

Let’s check out these High Flying Industry Groups

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The Legend of the Phoenix

Phoenix - At the end of its life-cycle

the phoenix builds itself a nest of

cinnamon twigs that it then ignites;

both nest and bird burn fiercely and

are reduced to ashes, from which a

new, young phoenix arises.

The bird was also said to regenerate

when hurt or wounded by a foe, thus

being almost immortal and invincible

-- a symbol of fire and divinity.

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Finding Phoenix

Like the legend of the

Phoenix, Phoenix stocks

(or sectors) are the ones

that rise the fastest after

a pullback in the market.

These are the ones you

want to jump on - when

everyone else is fearful.

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When the market is falling - everyone wants to know

- WHEN should I buy stock at a discount?

When the market is rising - everyone wants to know

- when should I take my profits?

To identify these, you must compare the strength in

the trend, in similar stocks.

How?

You can make money if you pick the fastest

horse before it becomes obvious what the

fastest horse is

Identifying Turning Points - Both Up and Down

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Stock Picking 101 - Finding Phoenix

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What if Your Watchlist Only Had Strong Stocks?

Searching for a setup starts within my hand-selected watchlists.

Sure, anybody can find a hunk of gold if they try hard enough. But wouldn’t

searching take forever, if you didn’t know where to look?

If somebody tells you where the gold mine is, it makes it a WHOLE lot easier.

My Favorite Mines:

What does your watchlist

have on it?

Grandma Loves It Cloud Computing Millennials Buy It

Debt Bubble Cyber Security

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Phoenix Folio Part I: Grandma Loves it

You know when you’re at Thanksgiving dinner, and

one of your relatives starts talking about how you

should invest in (insert well-known company here).

Now, they may not be wrong. The FAANGs and so-

called ‘Super Bowl’ stocks are well known for a reason.

But, that doesn’t mean that we can’t compare them

and pick the best of the bunch.

I look for Phoenix first, here. I also use this list to give

me an overall view of market sentiment.

P.S. I say this with so

much love for my

grandma, who is 88 years

old and stock picking is

one of her hobbies.

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Watch for the Market Leaders to Lead - Which Way Are they Going?

This list contains the ‘Market Leaders’ - the movement in

these stocks, is critical to determining strength and direction in

the market.

When these key stocks are up - or down, the market usually

follows. Why? Simply by weighting & visibility alone, they

cause reactions in the market.

Note that these stocks are representative of their individual

sectors - the list is meant to represent the top stocks in each

sector. As you may notice, some right now are weaker than

others - representing the fact that that sector is weaker than

the others.

Grandma Loves It List:

I.E. Market Leaders

Microsoft (MSFT)

Adobe (ADBE)

Netflix (NFLX)

Amazon (AMZN)

John Deere (DE)

United Healthcare (UNH)

Eli Lilly (LLY)

Paypal (PYPL)

Nike (NKE)

Costco (COST)

Proctor and Gamble (PG)

Mastercard (MA)

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Phoenix Folio Part II: Millennials Buy It(Industries that Millennials Have Poured Money Into)

It’s no secret that new generations and their likes and

dislikes create fundamental shifts in industries.

Is your portfolio protected?

Even more than that, are you setup to benefit from

the likes of the younger generations?

Millennials spend money on entertainment, online

shopping, travel, coffee, used vehicles, and more.

What does that mean? Well, you can see it in the

charts if you know where to look.

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Phoenix Folio Part II: Millennials Buy It(Industries that Millennials Have Poured Money Into)

Millennials spend money on (on average):

● Airline tickets

● Uber

● Payment Processors (Paypal i.e. Venmo)

● Credit Cards (MA, V)

● Online Shopping (AMZN which then feeds

into UPS, FDX, etc)

● Used cars

This is shown in the charts. Let me show you

how to find them, and how the Phoenix shows

you where to focus.

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The ‘Millenials Buy it’ list

These are up and coming companies, that will benefit from generational shifts over time.

They have shown growth, continue to show strength, and most importantly, have a ton

of interest from younger generations. This idea is backed up by trends and relative

strength. This list could also be known as, places Danielle spends money...

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Phoenix Folio Part III: Phoenix FlyersRisky, but Worth It (Usually :) )

Everybody wants to be:

The person that bought TSLA for $35 in

2013 (now currently worth $221 per share)

OR

The person who bought AAPL For $7.49

per share back in 2005 (that was my dad,

yes I know, trained by the best)

How do they do that? STOCK PICKING!!

Me trading with Father Stevie

(where it all began)

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Flyers - The Stocks for Exponential Growth

The identification of relative strength is the combination of technicals

and fundamentals. But, not ALL of them are Phoenixes! In fact, not

even most of them are. But, this is where we start our search.

Some of my favorite hot topic industries right now:

● Cloud Kings

● Semiconductors

These stock picks are based on companies that are fundamentally

AND technically sound. But -- which to trade?

● Data Center Infrastructure Providers

● Cyber Security

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Phoenix Folio Part III: Cloud KingsHigh Flying Tech Industry Segment with YOY Growth and Long Term Potential

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Phoenix Folio Part IV: CC Companies, Payment Processors(Industries that Millennials Have Poured Money Into)

In the age of e-commerce, and record high levels

of consumer debt, you have to think about who is

making money off of this…

● Payment Processors (Paypal i.e. Venmo)

● Credit Cards (MA, V)

● Online banks

This is shown in the charts. Let me show you

how to find them, and how the Phoenix shows

you where to focus.

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The Phoenix Folio is Just the Start...

Successful trading starts with proper research, and

watchlists.

Then, you must look for setups.

What is a setup?

A high probability, entry and exit point - where you have an

edge.

The world is your oyster….

Identifying Setups

Using the Phoenix Folio to Identify Pullbacks in the Market as Buying Opportunities

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I start with the lists - that of course have been hand-picked.

Then I look for technical setups - entry points on shorter term time frames - for entries and, eventually, the

exit.

I’d compare the strength in the trend, across multiple stocks and industry groups. But, of course this took

forever. So, I created a tool so that I could see the strength of the trend across multiple stocks, on the

same time frame, all in one glace.

That allows me to pick the strongest (or weakest) of the group.

I Used to Do This Process Manually...

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The Folio in and of itself is a great start.

But, from there, it’s all about comparing these names against each other - to truly find the best trading

opportunities.

I used to compare it manually. But now, I use my Phoenix finder.

This is my tool that I have created, that allows me to compare the strength of the trend, and the relative

strength of the stock -- when comparing it against it’s peers.

Let’s take a look.

The Key -- Picking the Strongest in the Bunch

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Stock Picking 101 - Finding Phoenix

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Stock Picking 101 - Finding Phoenix

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Stock Picking 101 - Finding Phoenix

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Phoenix shows you all of the above, without guesswork.

Phoenix Helps Me Identify the Strongest - Then I Look to the Chart

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1) Phoenix Folio

2) Identify the Flyer

3) Check your Technicals for a Setup

4) Trade it!

I run through this process daily in our trading room in our Simpler Options Gold

subscription, weekly in my service, Simpler Foundation, and I teach the process

in its entirety in my classes.

Here are some examples -

Four Steps to Success

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Notifications, Anyone?

Where are they now?

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Why Does Phoenix Work?

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Let Me Show You Some!

Here are some of my favorite

Phoenix Setups -

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Trade It

A. Stocks

B. ETFs

C. Options

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1) Finding Phoenix - This is a reversal strategy, in which I look to

identify the strongest (or weakest) tickers in the bunch, so I can

jump on reversals - when they happen.

2) The Squeeze - This is a high probability moment in time where

you have an edge, on a directional momentum trade.

3) Fibonacci - This is a high probability moment in time where you

have an edge, on a directional trade.

And, there is always a trade setup somewhere. You just have to know

how to find them and how to trade them - and what time frame you’re

wanting to use.

I Use Several Distinct Trading Setups - Here are My Favorites

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The Squeeze - A High Probability Moment in Time

What is the Squeeze?

My favorite trading tool/indicator

The Squeeze notifies traders of ‘distinct moments in

time’ where a ticker is setting up for a greater than

expected move.

The Squeeze enables us to get in moves BEFORE they

take off.

To make money in the options market, you must buy

options timed with greater than expected moves.

Here is how I do it.

Fibonacci Analysis

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1) Markets ebb and flow. They don’t go

straight up or straight down. However, we

can quantify the ebbs and flows.

2) The ebbs and flows can be measured, with a

reasonable probability of accuracy. This is done

through Fibonacci and technical analysis.

3) Low risk options strategies meant for volatile

market conditions are put into place at the right

moments in time.

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It’s all about the Highest Level of Confluence

The Squeeze, Fibonacci levels, and fundamental

analysis are all excellent trading strategies.

But together, they are even stronger.

It’s the combination that brings them from good to

great.

This confluence leads me to setups that are the

best of the best.

I call this my Five Star Setup.

Ways to Trade

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1) Stocks - I add several stocks to my stock

portfolio, per month, as they fit my Phoenix or

Five Star criteria.

2) Options - When I identify an entry on a

Five Star, or Phoenix stock, I like to trade them

generally with delta .70 call options, butterflies

or put credit spreads.

3) ETFs - I also like to buy the ETF itself, or

an ETF based on the industry group I’m

looking at. I also buy options on ETFs.

What You Should Know To Trade Each Asset Class

Options vs. Stocks Comparison:

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After Finding the Setup? Trade it!

What are the

best setups for

bigger moves?

What option strategy

best takes advantage

of the setup?

How do I

consistently get the

best price entry?

What risk management

strategies won’t shake me

out of normal moves but

keep losses small?

How do I calculate the

highest probability profit

target and when do I let it

run for more?

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Never forget: “The expert in anything, was once a beginner.”

I Wasn’t Always a Trader

Me, Learning to TradeNow, I’m an expert commentator

and contributing author

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I’ve Always Been a Teacher...I can Teach You to Trade

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In addition to my daily live analysis in the Simpler Options Gold room, and

weekly analysis at Simpler Foundation, I’ve taught the following classes, which

you can find in our Simpler Trading store.

● Ready, Aim Freedom - Your guide to trading trend-following setups in the

options market

● Futures Freedom - Your introduction to trading index futures

● Five Star Options Income - Trading directional setups with spreads for

income generation

● Phoenix Finder - Identifying relative strength for high probability stock

picks

● Pillars of Options - Directional trading for beginners

Coming soon in July 2019 - Stacked Profits. The complete guide to butterflies.

Where to Find Me:

Free Newsletter:

www.fivestartrader.com

Classes:

www.simplertrading.com/store/danielle

Memberships:

Head of Simpler Foundation

www.SimplerFoundation.com

Director of Options at Simpler Trading

www.SimplerTrading.com

@traderDanielle on TWTR

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Where to Connect with Me

www.Facebook.com/traderDanielle

www.Twitter.com/traderDanielle

www.Youtube.com/Simplertrading

One of our Simpler Trading

live events in Austin, TX

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Let’s Connect!

Learn more about Options and receive a free copy of today’s presentation

SimplerTrading.com/danielle