The Marder Report, which has been read in 113 countries, is a twice-weekly service started in 1993 that provides long and short stock ideas to swing and position traders. Underpinning the reports are Kevin Marder’s 29 years of experience trading the momentum style popularized by William O’Neil, the legendary founder of Investor’s Business Daily, and Kevin’s own research.
Most trade ideas are for leading stocks setting up in chart patterns that indicate a price breakout to a new high is imminent. The position trader will use these pattern setups to hold winning positions for several weeks to several months. Losses on positions will be limited to 5%-7% (or less), or about 3% if a junior-sized starter position (half normal size) is used.
Swing traders will capitalize on the momentum of these breakouts to hold a position for one to two weeks. Each idea includes a suggested entry price and sell stop.
In addition, the service includes a limited number of pullback setups for swing traders, with an occasional reversal setup. The logic behind these setups/strategies/systems is considered proprietary, and confidential. They are the product of an estimated 5,000+ hours that Kevin Marder spent over a several-year period beginning in 2009, researching, developing, acquiring, backtesting, forward testing, demo trading, and/or live trading over 100 short-term strategies for day trading and swing trading.
All pullback and reversal ideas will include entry, stop, and initial profit target.
Position traders will find these pullback setups to be a useful means of a) entering a starter position ahead of the completion of a base, i.e. as a “cheater entrance,” b) entering a position in an issue whose breakout they missed, or c) adding to a position they previously entered on a breakout.
Most cheater entries will be either on a pullback or above a short-term high in the base. The standard practice of using a diagonal trendline drawn above the tops of a base, while valid, is not preferred.
Two money management methods are especially effective with short-term trades: 1) Swing traders can use these pullback setups to target a 1:1 reward-to-risk ratio by exiting a position at 1R in profit (R = initial risk), and 2) The first half of a position is exited at +1R, the stop on the second half is then moved up to breakeven, and is then trailed if price continues higher.
The first target (T1) can be used by scalpers and by those exiting the first half of their position. From time to time, a profit of 10R or more is made on these second-half positions. (If the report was published daily and not twice weekly, the second target (T2) would be updated throughout the life of the trade idea. In the meantime, then, the T2 levels will not be included.)
As part of the service, nightly videos discussing Watch List names in a briskly-paced format will be furnished. Based on subscriber feedback on the Testimonials page, the videos are popular as a means of furthering subscribers’ education.
As well, for the first time, Kevin Marder will be sharing his personal watch list with subscribers. The Marder Watch List will be included in a downloadable Excel file on the site. This file will be updated a few times weekly, and will contain a time/date stamp for subscribers’ convenience. The Watch List usually consists of 40 to 90 names, depending on the health of the general market. For more on how the Watch List is created, click here.
The Focus List is included in the Watch List file. It is comprised of those Watch List names considered actionable, i.e. they have a suggested entry level. Generally, the Focus list contains 5 to 16 names, depending on the health of the general market.
The universe for swing trader setups will primarily include aggressive growth titles, but may also encompass the S&P 500.