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TQQQ Trading Strategy: How To Win Using Stock Market Cycles

Updated: Jun 27

Market Commentary/Forecast for June 26, 2024

The primary reason we use cycles to time our trades is their proven ability to optimize profits while mitigating the downside risk within our portfolio. By strategically entering and exiting positions, especially during long and intermediate cycle advances, we can regularly capture significant gains while at the same time, safeguard those profits from adverse market movements.

This approach is crucial for both maximizing portfolio growth and managing overall risk. Using the TQQQ as an example, the following chart shows how quickly gains can accumulate when we "ride the rallies and skip the dips," as I like to refer to it:

TQQQ Stock Trading Chart
TQQQ Stock Trading Chart: 947% Trading Strategy vs Buy & Hold

The arrows on the chart highlight periods where intermediate and long-term cycles have surged or waned. These are not historical trades but demonstrate the potential benefits of moving to cash at the onset of a decline and re-entering long positions near the lows, as opposed to holding through major market fluctuations.

The green area on the chart (trading strategy) shows a 947% gain on the TQQQ since 2023, compared to the yellow area (buy and hold strategy), which shows a very modest 74% gain over the same period.

Understanding TQQQ Trading Strategy

The TQQQ is a leveraged ETF that seeks to provide three times the daily performance of the Nasdaq-100 Index. This means it is designed to amplify the gains (and losses) of the underlying index, making it a powerful tool for traders who can time the market effectively.

Benefits of the TQQQ Trading Strategy

  1. Maximizing Gains: Leveraged ETFs like TQQQ can significantly boost returns when market timing is executed correctly.

  2. Risk Management: By moving to cash during market declines, traders can protect their profits from downturns.

  3. Capitalizing on Market Cycles: Understanding and leveraging market cycles allows traders to enter and exit positions strategically, optimizing gains and minimizing risks.

Implementing the Strategy

  1. Identify Market Cycles: Use tools like the Visualizer chart to identify long-term and intermediate market cycles. Look for indicators of market surges and declines.

  2. Move to Cash During Declines: Exit long positions and move to cash at the onset of a decline, as highlighted by market cycles.

  3. Re-enter Near Lows: Re-enter long positions when cycles indicate a rising trend, ensuring positions are taken at or near market lows.

Example of TQQQ Trading Strategy in Action

The chart below repeated from above illustrates the effectiveness of the TQQQ trading strategy. The green area represents the gains achieved by moving to cash during declines and re-entering during surges, while the yellow area shows the gains from a simple buy and hold strategy.

TQQQ Swing Trading Strategy
TQQQ Swing Trading Strategy

This approach demonstrates the significant difference in gains when actively managing positions based on market cycles versus holding through market fluctuations.

Why We Use This Strategy

  1. Risk Mitigation: Reduces exposure to market downturns by moving to cash during declines.

  2. Profit Optimization: Captures maximum gains by entering positions at the start of market surges.

  3. Market Agility: Allows for quick adaptation to changing market conditions, ensuring positions align with current trends.

How Long Should You Hold TQQQ?

Holding periods for TQQQ can vary based on market cycles. For maximum gains, it's crucial to hold through uptrends and move to cash during downturns. This strategy ensures that you capture significant market gains while avoiding substantial losses.

What is the Downside of TQQQ?

While TQQQ offers amplified gains, it also comes with increased risks. The leveraged nature of TQQQ means that losses can also be magnified, especially during market downturns. Therefore, it's essential to employ a robust risk management strategy, including the use of stop-loss orders and moving to cash during anticipated declines.

What is the TQQQ Stop Loss Strategy?

Implementing a stop-loss strategy is crucial when trading TQQQ. Setting stop-loss orders below key support levels or moving averages helps protect against significant losses. It's also important to adjust stop-loss levels as the market moves to lock in profits and minimize risks.

Can You Swing Trade TQQQ?

Yes, swing trading TQQQ is a popular strategy due to its leveraged nature. Swing trading involves holding positions for a few days to several weeks to capture short-term market movements. By using technical indicators and market cycle analysis, traders can identify optimal entry and exit points for swing trading TQQQ.

TQQQ Trading Strategy Chart

A TQQQ trading strategy chart can provide valuable insights into market trends and cycles. By analyzing historical price movements and technical indicators, traders can develop a comprehensive trading plan that maximizes gains and minimizes risks. Resolving Common Trading Problems

One of the key advantages of the Market Turning Points service is its ability to ensure that traders are never left holding losing positions. By using advanced cycle analysis, we can predict market movements days or even weeks in advance. This predictive capability allows us to set strategic stops that protect your investments from significant downturns. As a result, our subscribers can confidently navigate the market, knowing that their positions are safeguarded by data-driven insights.

Join Market Turning Points

To stay ahead in your trading journey, consider subscribing to Market Turning Points. Our service is designed for traders who want actionable insights, timely market analysis, and strategic guidance to navigate market cycles effectively.

With Market Turning Points, you will receive daily market commentary and forecast to keep you updated with the latest trends and predictions. Our daily forecast charts and AI-projected price charts on over 60 index ETFs provide precise market predictions, while automated buy/sell signals give you real-time alerts to make timely trading decisions.


We offer expert advice on recommended positions on ETFs, weekly live webinars with Q&A, and custom indicators for Tradingview. Our support team is available via email and phone for assistance and guidance, and our quick instructional videos help you learn new strategies swiftly. Additionally, join our members-only VIP private Facebook group to network with like-minded traders.

Trust our high-accuracy system, which boasts up to 96% precision, to improve your trading outcomes. This TQQQ trading strategy will change your trading game. To start enjoying gains like the 947% shared in today's post, consider joining Market Turning Points today. Stop the guesswork and trade with confidence for profit by predicting tomorrow's market today. The next big move is already appearing on the system's radar... don't miss out!

For more details and to subscribe, visit our homepage.


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