Summary of "Qullamaggie Swing Trading School"

Qullamaggie Swing Trading School

Key Finance-Specific Content Summary

Market Context & Macroeconomic Environment

The presenter emphasizes trading in momentum markets, primarily focusing on NASDAQ stocks, which make up about 90% of his trading universe.
A momentum market is defined when the 10-day moving average (MA) is above the 20-day MA, and both are sloping upwards.
Sideways or downtrending markets have high failure rates for breakouts; patience is key to wait for strong momentum phases.
Swing trading works best in strong bull markets where multiple stocks show momentum and tight consolidation patterns.

Trading Universe & Instruments

Focus on large-cap, highly liquid U.S. stocks, especially those with high Average Daily Range (ADR) — typically 5-6% or higher.
Avoid slow, low-volatility stocks (e.g., Apple, Amazon, Google, Facebook) due to low ADR (~2-3%) and limited upside for swing trading.
Trading also includes ETFs, biotech stocks, COVID-19 related stocks, and occasionally crypto (Bitcoin, Ethereum).
Specific tickers mentioned with setups or trades include: ACMR, ARCT, BLNK, CAR, CBAY, CDE, CLSK, CODEX, CARVANA, FASTLY, FIVERR, HL, IDXX, LEONG, MARA, MRNA, OPK, PRTS, SRN, TTD, TSLA, UAL, VSLR, VXRT, W, WORK, XBI, ZM, among others.
Crypto setups discussed for Bitcoin and Ethereum, highlighting similar stair-step price action and moving average support.

Methodology & Trading Framework

Key Setup Pattern (Swing Trading Setup)

Identify stocks in the top 1-7% of performers over 1, 3, or 6 months using scans with filters for volume ($5M-$80M+) and ADR (5-6%+).
Look for stocks that have made a big move and then pull back or go sideways.
The stock should find support on one or more moving averages: 10-day, 20-day, or 50-day (mostly 10 and 20).
The consolidation should get “tight” (narrow range candles, building higher lows).
Buy on breakout above the tight range, preferably at the opening range highs (1, 5, or 60-minute candles).
Sell rules:
- Sell 1/3 to 1/2 of the position after 3-5 days to lock in profits.
- Move stop loss to breakeven.
- Use the 10-day moving average close as a trailing stop for the remaining shares.
- Exit fully on first close below the 10-day MA.

Additional Guidelines

Avoid buying within 2-3 days of earnings to reduce volatility risk.
Use Average True Range (ATR) to size stops; stops should generally not exceed 1x ATR.
Avoid low ADR stocks regardless of chart pattern quality.
Position sizing: never allocate more than 25% of your account to a single stock.
No need to scale in; buy full position at breakout, scale out as price moves.
Avoid overtrading in bad market environments; sometimes sitting in cash is best.
Swing trading is favored over day trading/scalping for less stress and better risk/reward.
Build a personal database of setups (e.g., screenshots, Evernote) to recognize patterns.
Use simple moving averages and price action; avoid complex indicators or intraday level 2 data.

Performance Metrics & Risk Management

Typical win rate is about 20-30%, but large winners offset small losses.
The presenter has achieved average annual returns of approximately 200-270% over multiple years.
Example given of a $5 million short position on Tesla, highlighting risk and size management.
Shared a fat-fingered trade resulting in a large loss (~$400k-$1 million), emphasizing the importance of risk controls and accepting losses.
Advocates patience and discipline over constant trading.

Specific Recommendations & Cautions

Avoid trading low ADR or thinly traded stocks.
Do not trade stocks near earnings announcements.
Focus on stocks with strong relative strength and momentum.
Use trailing stops based on the 10-day MA to capture large moves and limit losses.
Avoid putting more than 25% of capital in one stock.
Be patient and wait for favorable market environments.
Avoid day trading/scalping unless very experienced.
Avoid chasing setups that don’t fit the moving average support and tight consolidation pattern.
Use scans for 1-month, 3-month, and 6-month gainers with volume and ADR filters to find candidates.
Study historical charts to recognize timeless price patterns.

Tools & Platforms

Uses TC2000 (Platinum version) for charting and scanning.
Uses Interactive Brokers for trading.
Uses Evernote or similar for storing setup screenshots.
Adds earnings dates and ATR to charts for better trade management.

Disclaimers

This content is not financial advice; the presenter shares personal trading experience. Trading is risky and not suitable for everyone. The fat-finger trade example serves as a cautionary tale.

Notable Instruments & Sectors Mentioned

Individual Stocks: TSLA, MARA, MRNA, CARVANA, FASTLY, FIVERR, TTD, SRN, VXRT, AP, LEONG, etc.
ETFs: XBI (biotech), HQ (silver triple leveraged ETF), CHOG, NUGT (gold miners).
Sectors: Technology, Biotech, COVID-19 related stocks, Airlines, Cruise Lines, Silver/Gold miners.
Crypto: Bitcoin (BTC), Ethereum (ETH), GBTC.

Step-by-Step Swing Trading Framework (Summary)

Scan for top gainers over 1, 3, and 6 months with filters:
- Volume: $5M+ (adjusted for account size)
- ADR: 5-6%+
- Rank: top 90-95% performers
Identify setups where:
- Stock made a big move
- Pullback or sideways consolidation near 10, 20, or 50-day moving average
- Tight range with higher lows
Entry: Buy breakout above tight range, ideally at opening range highs.
Exit:
- Sell 1/3 to 1/2 after 3-5 days
- Move stop to breakeven
- Trail stop using 10-day MA close
- Exit fully on first close below 10-day MA
Risk management:
- Use ATR for stop placement (stop size ≤ 1x ATR)
- Position size ≤ 25% of account
- Avoid trading near earnings
- Avoid low ADR or slow stocks
Additional: Build a personal database of setups, be patient, and wait for favorable market conditions.

Presenters / Sources

The video is presented by Qullamaggie, a professional swing trader known for his practical, no-nonsense approach to momentum trading.
Mentions mentors and influences such as Dan Shapiro and Pradeep (a successful swing trader).
Uses Twitter and MarketSmith for research and news.

Overall, this video provides a comprehensive guide to a disciplined, rule-based swing trading approach focusing on momentum stocks with high volatility. It emphasizes using simple moving averages for entries and exits, patience, risk management, and pattern recognition over complex indicators or high-frequency trading.