The Jason Bond trading strategy relies on 3 simple trading patterns that have helped him make millions of dollars trading penny stocks. Jason Bonds DVD’s stream online and many are 100% free!
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My experience with Jason Bonds trading strategy
New traders are often overwhelmed when they start out learning to trade stocks. There are so many indicators, candlestick patterns and fundamental strategies that people use to make money in the markets.
I have tried most of the stock trading strategies that people use to trade penny stocks (stocks under $5 per share). None of the other strategies I have learned have come close to the famous Jason Bond trading strategy for short-term swing trades. I regularly make 10% to 50% on his stock alerts and patterns.
Who is Jason Bond?
Jason Bond has been trading for over 10 years. He started to teach his 3 simple trading patterns in 2011. He has helped tens of thousands of students to become successful traders (including a few that became millionaires!).
Jason and his wife had over $250,000 of student loan debt. Jason was a teacher in New York, making only about $30,00 per year – he knew that something had to change.
Jason started trading stocks as a way to make some extra money on the side. Little did he know that he would become a multi-millionaire from stock trading! Jason has a lot of energy and drive, so he was able to make rapid progress and left his job to trade stocks full-time.
Jason runs Jason Bond Picks where he teaches people all over the world how to learn the Jason Bond trading strategy and make extra money. His energy is contagious, and he is one of the most transparent and successful traders that I have ever seen.
So if you are tired of working like a slave for breadcrumbs, read on and see if stock trading with Jason Bonds trading strategy might help you to escape and achieve financial freedom!
Why should you listen to what I have to say about Jason Bonds strategy?
I have followed Jason Bond for years and successfully learned and traded his 3 simple trading patterns. I have watched and learned from all of Jason Bonds DVDs and been a member of his chatroom for a long time.
I have also been trading stocks for years and learned stock trading strategies from Kyle Dennis, Paul Scolardi, Jeff Bishop, Timothy Sykes, Davis Martin and many more.
Jason Bond DVDs and Free Webinars
Not everyone likes to read long articles like this one. So if you just want to get the FREE stuff then sign-up for these free masterclasses where Jason talks about his trading strategy and 3 simple chart patterns in detail.
- The Basics of Swing Trading by Jason Bond – HERE
- The 3 simple chart patterns in Jason Bond’s strategy – HERE
You can just listen to these presentations in the background while working on other stuff. This is my preferred way of learning!
If you would like to read about Jason Bonds strategy directly from the man himself, check out his free eBook.
Jason Bond strategy core principles
Jason Bonds strategy is based on 3 simple trading patterns. I am going to walk you through those patterns in this article.
But first, I wanted to go through some of Jason’s other core components to his strategy that I have learned from him. These are the other parts and philosophy of the Jason Bond trading strategy that all contribute to his success in the markets.
- Market conditions matter.
- Always take partial or full profits if you are up 10% – 20% on a stock.
- Chart pattern + catalyst = money!
- The Friday Buy for swing trades.
- Rinse and repeat.
Jason Bond Strategy – market conditions
The Jason Bond trading strategy is focused on his 3 chart patterns and catalysts. But this does not mean that he doesn’t continuously assess the market conditions condition. He watches the major market indices like a hawk and updates his students throughout the day on his thoughts on the environment.
Jason explains that the market environment does influence his trading strategy, but not as much as one might imagine. Let me explain! Jason will ‘trade big’ if the markets are heating up, which means he will trade much more aggressively – bigger position sizes and more frequent trades will be executed in this environment.
If the market is pulling back, Jason will start looking for stocks that are candidates to watch for his oversold patterns. He also looks for the industry leading stocks that are up in price, despite the market being down. These stocks are often great candidates for breakouts when the market starts to stabilize and trend up.
This is what makes trading penny stocks so awesome. The market conditions can be used to guide trades, but you don’t have to worry about what is happening in the world too much.
Jason Bond Strategy – the importance of taking profits
It has been said that in the markets – ‘Pigs get fat, hogs get slaughtered’. Jason Bond encourages people to sell a stock if it is up 10% or more from where they bought it. I agree! Every time I ignore this rule – the stock comes right back down, and my profits vanish. Not a great feeling!
Jason preaches that his students need to take profits above about 10%. Do not get greedy! If you consistently make 10% – 20% profits and keep your losses small, you will build your trading account extremely quickly.
What separates a profitable trader from a losing one is money management. There can be a very thin line between making money and losing money trading stocks. Jason Bonds strategy has been refined to give you best possible chance of success.
Great trading is an art, you can learn as much of the patterns etc. as you like, but at the end of the day you need to develop that ‘feel’ for entries and exits. Jason Bond can be a great mentor to help you develop this.
Combining chart patterns and catalysts for maximum profits
Jason Bonds strategy is extremely effective because he finds some of the highest probability charts that also have an upcoming catalyst event. This is a truly killer combination.
Jason looks for events that could increase the price of a stock because they are so positive. Things like new product announcements, increased institutional holdings and good earning reports all act as catalysts for small cap stocks.
Friday buying for swing trades
When I first joined Jason Bond Picks, I noticed that almost every Friday Jason would buy lots of stocks. Many of these were stocks that he would buy and profit from over and over again. The idea was that small cap companies often have press releases on a Monday morning, and it can be very profitable to hold a good stock over the weekend so that you are positioned for any news on Monday.
I had never really tried this strategy before, so I was skeptical – but it works! Many times I have followed Jason’s alert on a Friday to wake up to profits on Monday. Amazingly simple but it works more times than you would imagine!
Rinse and Repeat
Jason finds several stocks that he learns their price action patterns intimately. He watches them daily until they setup into one of his predictable chart patterns. Then he trades them. He usually makes 10%+ profit and then waits for another entry point. He just keeps doing this!
Here are a few of the stocks that Jason trades on a regular basis and has made thousands of dollars of profit on:
1. APRN
2. WATT
3. LQMT
You will see all of the 3 simple trading patterns from Jason Bonds strategy occur over and over again in these stocks.
The 3 simple trading patterns that Jason Bond teaches
Jason Bond’s trading strategy is based on 3 simple trading patterns that appear over and over again. These patterns were not invented by Jason, they are well-known technical trading patterns. Jason has perfected how to trade them, and he is an expert at making them work for him.
So what are these 3 simple trading patterns? Well, Jason amusingly calls them after objects! Here they are:
- The Rocket
- The Flag
- The Fish Hook
The Rocket: Breakout Pattern
When the market is strong (Russell 2000 Index ETF is going up) Jason often trades the breakout pattern.
He calls it the Rocket pattern because the price can increase rapidly like a rocket taking off! A good example was a trade I made earlier in the year (Jason alerted it to his subscribers).
The chart for BOXL is shown below.
Check out how the price of BOXL is hitting the blue line (resistance) where sellers overwhelm the price action and cause the price to decrease again. This was happening around $2 per share, first on the 3rd then on the 14th of January. You can see that the red line is where buyers would step in to support the stock price.
However, on the 22nd of January, the price of BOXL rocketed through the blue resistance line on the chart. The volume of the shares traded also dramatically increased on this day. When you see a level of resistance being surpassed with incoming buying volume, you could be looking at a potential breakout.
Jason’s extensive trading experience alerted him to the possibility of a pending breakout a few days before it happened. How did he know? Well, he saw the level of support trending upwards (higher lows). He knew from past experience that when this pattern forms and is rejected from the resistance line twice, the chances are extremely high that a third surge upwards will break through the resistance line.
I traded BOXL and made about 20% over night! I love the Rocket pattern and Jason is a master at trading it.
The Flag Pattern (Continuation Pattern)
So what does Jason Bond do after a breakout has occurred? Well, there is often a chance to make more money from it – even if you missed the original breakout!
The flag pattern has been called ‘the highest probability bullish setup’. Basically, the flag pattern forms after a stock has had a big move upwards in price (e.g. a breakout). The stock price ‘rests’ for a while and then often continues back upwards in price.
A good example of the bull flag pattern is show in the APRN chart below. APRN is a gold mine for Jason and his subscribers! We have played it over and over again this year. All three of Jason’s patterns repeatedly show up in the APRN chart.
The pattern starts with a rapid and dramatic increase in the stock price. This move forms what is called the flag pole of the chart. Stocks never just go straight up in price forever, so a pullback is expected and normal.
It can be difficult to catch that initial flag pole move, but if you are patient you can time a buy at the end of the resting phase (flag).
The beauty of the flag pattern is that you essentially get a second change to play a great stock. You can wait for the pull back in price and then ride the wave if it continues upwards.
Jason and I both made money from this particular trade with an entry around $1 per share after the flag pattern completed. A solid gain of about 45% was made just a week later!
What if the flag pattern is really just the start of a downtrend ? Well, I have had success waiting until the flag pattern is finished – the price starts to continue back up. You want to make totally sure that the flag pattern has finished trending downwards before making a purchase. You can then set a stop loss close to the price established at the end of the flag formation.
It has been estimated that the flag pattern has a 70% chance of continuing upwards in price. This makes it one of the highest probability chart patterns out there.
The Fish Hook Oversold Chart Pattern
Jason Bond and other traders at RagingBull (the company that Jason Bond founded to teach trading) seem to love this chart pattern! I am a momentum trader at heart, so it has taken me a bit of time to get use to behaving like a bottom feeder.
However, purchasing stocks that have fallen from grace very quickly has become quite lucrative for me, thanks to Jason Bonds mentoring. Jason loves to buy stocks that have decreased in priced dramatically. If the stock us undervalued, it will pop-up on Jason’s scans.
Oversold charts usually appear due to an overreaction to a perceived negative event or news announcement. People get scared and start a panic selling frenzy that drives the price of the stock down to below its intrinsic value.
Here is the fish hook pattern that I learned from Jason Bond. Check it out below!
It can be scary buying a fish hook pattern too early. By its very nature, the pattern starts with a horrendous down trend. Do not purchase the stock until it has started to stabilize, consolidate and move back upwards in price.
The psychology of the fish hook pattern is quite simple. People panic and sell but as the price decreases, other traders start to see the opportunity to get the stock for a bargain. Eventually, buyers overwhelm sellers and the price temporarily bounces back up in the short term.
It sounds simple right?
Timing is everything with the fish hook pattern. Jason taught me to use the Relative Strength Index (RSI) combined with the candle charts to time an entrance.
Jason teaches his students to time their entry by looking for the RSI to be curving up out of the oversold regime (less than 30). If the MACD crosses over around the same time and some volume increase is observed, the odds are good that the stock price is starting to curve upwards into the final stages of the fish hook.
Jason Bond scans for stocks that are in this oversold regime to watch for potential trades. He uses free online tools like Finviz.com to filter out stocks. These tools allow you to find lists of stocks that have an RSI below 30 that might be great candidates for the fish hook pattern.
The fish hook pattern appears over and over again!
Check out a fish hook trade I made earlier last year. In the chart below, you can see that SWKS formed the fish hook pattern back in August/September in 2018. The fish hook pattern that I traded is on the right, but you can see that there was another textbook example earlier in the year (May)
This is important, because a stock often trades the same way as it has in the past. A history of dramatic price bounces increases the chances of a similar bounce occurring again. This is why you will see traders like Jason Bond repeatedly trading the same stocks over and over again!
I purchased SWKS as the fishhook formed and the RSI started to curl up out of the oversold regime. A couple of days later I sold for a 5% profit, which admittedly was not the best trade that I have ever made….but profit is profit!
Jason Bond is much better at timing his entries and exists than I am. This is why learning from someone like him can be a huge help when it comes to trading these types of patterns. If you have not done it yet:
Sign-up to this FREE WEBINAR to learn how Jason trades these patterns that we have discussed in this article!
In the webinar, he explains how he finds areas of value to get the best possible entries into stocks that are forming the 3 simple patterns we discussed here.
Jason Bond trading strategy – Conclusions
Jason has spent over a decade perfecting his ability to find and trade these 3 simple trading patterns. He is one of the best traders and teachers in the world. If you want to learn how to swing trade small cap stocks where you can make 20% profits in 1-4 days, then I highly recommend learning Jason Bonds trading strategy.
Good luck,
Wesley
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The Jason Bond trading strategy works extremely well if you trade the 3 simple trading patterns with discipline.
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