My Proven 30-Year Stock Trading Strategy: Insider Tips for Consistent Success

How I Identify High-Probability Trades Using Weekly Charts, Structure, and Risk Control

Proven stock trading strategy

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This guide explains the trading strategy I’ve refined and used for decades, focusing on medium-term breakout and swing trades. You’ll learn how I identify trending stocks, why I rely on weekly charts, how I time entries using consolidation and volume, and how risk management underpins every decision. This is not a “signal system,” but a structured framework designed to produce consistent, repeatable results over time.

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Introduction

In the above video and accompanying article, I share the theory and real-world application behind the trading strategy I’ve used for many years the same approach detailed in our popular Financial Wisdom Strategy E-Book:

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FW Trading Strategy E-Book

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Some traders would label this style swing trading, others breakout trading. The label doesn’t matter. What matters is the process: timing, structure, risk control, and disciplined execution, the same principles legendary traders have relied on for decades.

This article focuses specifically on trade entry logic. Trade management deserves its own deep dive and will be covered separately.

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Understanding Price Action: Why Trends Move in Stages

Structured stop losses

Medium- to long-term price movement rarely happens in a straight line. Instead, markets move in stages advance, pause, advance again.

Think of price action as a staircase:

• Impulsive moves upward

• Periods of consolidation

• Follow-through when demand returns

  
  

The trader’s job is not to predict tops or bottoms, but to enter early in a new upward phase, with a clearly defined point where the trade is proven wrong.

That’s where structure-based stop losses come in. If the structure that justified the trade fails, the position is exited, no emotion, no negotiation.

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Step One: Finding the Right Stocks (Trend Qualification)

Selection Criteria of Successful Traders

Every successful trader starts with selection.

• Mark Minervini uses a trend template

• William O’Neil used CAN SLIM

• Jesse Livermore relied on price behaviour

My approach blends technical structure and fundamental quality to identify stocks already moving in the right direction.

This step is non-negotiable. You cannot force trades in non-trending stocks and expect consistent results.

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Why Weekly Charts Are the Foundation

All of my screening, analysis, and execution is built on weekly charts.

Why weekly timeframes matter:

• They remove daily noise and false signals

• They align better with earnings, fundamentals, and institutional positioning

• They slow decision-making, reducing emotional errors

• They allow cleaner structural stop placement

Daily vs Weekly

Because entries are taken on weekly charts, exits must also be evaluated on weekly charts. Mixing timeframes introduces inconsistency and psychological stress.

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Indicators: Tools, Not Crutches

I use very few indicators, all on weekly charts:

• 20-week moving average

• MACD (default settings)

These are not predictive tools. They help:

• Confirm trend direction

• Identify momentum deterioration

• Avoid trading against broader market conditions

More indicators do not mean more edge. They usually mean more confusion.

I arrived at these settings through years of trial and error, not optimisation. They work for my timeframe and style, and that’s the key lesson, your strategy must fit you.

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Market Direction Matters

After extensive research, we incorporated 10- and 20-EMA market filters to assess broader market health. Crossover video below:

EMA Crossover Strategy

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When the broader market is trending:

• Breakouts work better

• Follow-through improves

• Risk-reward expands

When the market is weak:

• Position size is reduced

• Selectivity increases

• Capital preservation becomes the priority

This research alone materially improved consistency.

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The Role of the Breakout Scanner

To make this process repeatable, I built a bespoke breakout scanner, now used by members of our group.

Stock Scanner

The scanner:

• Filters stocks based on trend, structure, momentum, and quality

• Ranks candidates objectively

• Displays all key data in one place

• Saves time and removes emotional bias

It doesn’t replace judgment, it focuses attention where it matters.

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Fundamentals: Supporting the Trend

Strong technical setups are often supported by improving fundamentals.

I apply basic quality filters, not restrictive value screens:

• Consistent revenue growth (4–8 quarters)

• Acceptable balance sheets

• Evidence of earnings continuation

The goal is not perfection, but avoiding weak businesses that cannot sustain institutional demand.

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The Breakout Setup: Consolidation + Volume

Breakouts with volume

My preferred entry is a breakout from tight consolidation in an existing uptrend.

Key characteristics:

• Prior advance

• Sideways consolidation lasting multiple weeks

• Tight price range

• Reduced volatility

• Breakout on expanding volume

This combination suggests supply exhaustion and renewed demand.

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Case Study: NVIDIA

NVIDIA appeared in my scanner in early 2024 after:

• A 5× advance from 2022 lows

• Seven weeks of tight consolidation

• Clear volume contraction

Nvidia Stock Chart

Entry: ~$51Stop: ~$45 (structure-based)Risk: ~$6

The stock reached ~$140 within six months.

The trade exited later on confirmed momentum loss around ~$110, delivering roughly 10× reward-to-risk.

Risk to Reward

Exiting before the absolute peak is not a mistake, it’s the cost of discipline and longevity.

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Case Study: GEO Group

Another recent example:

• Breakout at ~$7.70

• Stop at ~$6.94 (11% risk)

• Clean consolidation structure

• Strong follow-through

GEO Group Chart

The stock more than doubled over eight months.

Even with a conservative exit, the trade produced a 6.5× reward-to-risk, exactly what this framework is designed to deliver.

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Why Letting Profits Run Matters

Most traders fail not because of entries, but because they:

• Exit winners too early

• Protect open profits emotionally

• Fear giving back gains

This strategy accepts that:

• Some profit will always be given back

• Not every trade captures the top

• Consistency matters more than perfection

A great video on the concept can be seen here:

Trade Management

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Final Thoughts

This article outlines the entry logic behind my trading approach:

• Weekly charts

• Trend qualification

• Tight consolidation

• Structure-based stops

• Volume confirmation

Trade management deserves its own dedicated discussion and will be covered separately.

For those looking to go deeper, our membership includes:

• Full strategy breakdown

• The breakout scanner

• Weekly trade reviews

• A disciplined, supportive trading community

A summary of my trading approach can be seen in this video:

FW Trading Strategy

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Frequently Asked Questions (FAQs)

Is this a swing trading or breakout strategy? It’s a medium-term breakout strategy often classified as swing trading. The label is irrelevant—the structure and risk control are what matter.

Why not use daily charts? Daily charts introduce noise and emotional decision-making. Weekly charts provide cleaner signals and better alignment with fundamentals.

Do I need the scanner to trade this strategy? No, but it significantly speeds up the process and improves consistency by filtering objectively.

What win rate does this strategy have? Win rate is secondary. The strategy is designed around positive expectancy, where winners are multiple times larger than losers.

Why not exit at the top? Because tops are only visible in hindsight. The goal is capturing the meat of the move, not perfection.

Is this suitable for beginners? Yes,provided risk is kept small and expectations are realistic.

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Related Reading

• Inside the Financial Wisdom Weekly Consolidation Breakout Framework

• Risk Management in Trading: The Foundation of Long-Term Profitability

• Trading Psychology & Realistic Expectations

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Published by FinancialWisdomTV.com Rules-Based Breakout Trading | Probability-Driven Execution | Long-Term Market Education

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