Key Takeaways from this week’s TML Talk with Ross & Nick

1. The First Pullback to the 50-Day

When a leading stock pulls back to its 50-day moving average for the first time after a major run, Ross uses an intraday entry method:

• Switch to 3-minute charts to time the entry
• Wait for a U-turn pattern off the 50-day
• Use the intraday low as your stop
• Keep stops tight to allow multiple attempts

This approach is essentially “day trading your way into a position trade” — using short-term precision to establish a longer-term position.

2. Wait for the Close

One of the most impactful improvements both Nick & Ross made was learning to wait until late in the day before making sell decisions if you can:

• Try to avoid selling in the first hour
• Watch if buyers step up in the final hour
• Exception: Honor your stops if they’re hit
• Never move original stops lower to “wait for the close”

Nick emphasized: “Any time I sell in the first hour, it’s almost always the wrong decision.”

3. Moving Average Framework

Both Nick & Ross use a two-tier moving average system, though the specific averages differ:

Shorter-term MA (10-week/21-day)

• Indicates momentum when price rides above it
• Break below signals momentum loss
• Use for managing newer positions

Longer-term MA (30-week/50-day)

• Major support level
• Break below means position is broken
• Give big winners room to pull back to this level

4. Focus on Leaders, Not Laggards

A critical mistake traders make is avoiding leaders because they “look extended” while focusing on laggards with “more upside potential.”

The numbers tell the story: Over 10 years, NVIDIA is up 45,000% while “catch-up candidate” MU up only 300%.

• Leaders trade smoother with less volatility
• Institutions prefer liquid leaders
• Leaders surprise to the upside
• Better to “cheat into a leader than get perfect entry in a laggard”

5. Using Weekly Lows

Nick’s approach for sneaking into positions uses weekly lows as pivot points:

• Buy when price bounces off the weekly low
• Use that weekly low as your stop
• If next week doesn’t undercut it, you have confirmation
• Works best when aligned with key moving averages

The key insight: Once a stock starts trending, it rarely undercuts the prior week’s low. This provides a way to keep risk tight.

6. Price Tightness + Low Volume

Ross uses RMV (Relative Measured Volatility) to identify these setups, marking charts with X’s when volatility contracts into the 0-5 range.

7. Stop Management Rules

• Never move original stops lower
• Better to get stopped 2-3 times and re-enter
• Use the two-close rule for moving averages
• Exception: Dramatic breaks require immediate action