Investing successfully in growth stocks requires more than intuition—it demands a systematic approach. That’s where the Trade Gauntlet, one of my favorite trading tools, comes into play. In this blog, I’ll walk you through how to use this tool to make informed, data-driven trading decisions. If you’re juggling trading with a busy schedule, this streamlined process can help you focus on high-quality opportunities.
Ready to level up your stock selection game? Let’s dive in!
What Is the Trade Gauntlet?
The Trade Gauntlet, available under ‘Tools’ in the menu above, is an advanced yet user-friendly stock analysis tool. Think of it as a checklist on steroids. Instead of simply ticking boxes, the Gauntlet uses a weighted average system to rank stocks based on your selected criteria.
This approach helps solve a common problem: what to do when multiple stocks meet your checklist requirements. With the Trade Gauntlet, you get a final score that identifies which stocks align best with your strategy.
Key Features of the Trade Gauntlet
Here are some highlights of what the Trade Gauntlet evaluates:
- Fundamental Factors
- Earnings and sales growth.
- Fund ownership trends.
- Management stake in the company.
- Game-changing attributes, such as disruptive technologies or favorable industry dynamics.
- Technical Analysis
- Chart patterns, like bases and flags.
- Reward-to-risk ratios.
- Support and resistance levels.
- Relative strength compared to peers and the broader market.
- Market Context
- Is the stock leading its industry?
- How does it perform in the current market environment?
- Is it part of a broader sector trend?
- Custom Scoring
- Every stock receives a weighted score based on these factors.
- Higher scores indicate stronger alignment with your trading criteria.
Using the Trade Gauntlet: A Real-World Example
Let’s put the Trade Gauntlet into action with a real stock, Li Auto (LI), which recently caught my attention.
Step 1: Setting Entry, Stop Loss, and Target
For this trade, we set the following parameters:
- Entry Price: $38.90
- Stop Loss: $36.95
- Target Price: $50
This setup reflects a high-tight flag pattern, a strong bullish signal.
Step 2: Input Criteria into the Gauntlet
As I evaluated Li Auto, I focused on several key aspects:
- Fundamentals:
- Strong earnings and sales growth (above 25% for the last three quarters).
- Management ownership of 50%—a clear vote of confidence.
- Increasing fund ownership quarter-over-quarter.
- Technical Patterns:
- A well-formed high-tight flag on the daily chart.
- Additional confluences from Fibonacci levels, anchored VWAPs, and moving averages.
- Market Environment:
- Li Auto was outperforming its peers and setting new relative strength highs.
Step 3: Analyze the Score
The Trade Gauntlet generated a score of 7.26 for Li Auto. Based on my trading strategy, I only consider stocks with a score of 7 or higher. This systematic scoring process filters out weaker ideas and ensures I focus on high-quality trades.
Why the Trade Gauntlet Works
The Trade Gauntlet doesn’t just help with individual trades—it’s also an excellent journaling and analysis tool. By reviewing past trades and their scores, you can identify patterns in your success and refine your approach.
For example, I found that my best trades consistently had scores above 7, leading me to adjust my strategy to prioritize only top-tier setups.
Streamlining Your Trading Process
Here’s why you should integrate the Trade Gauntlet into your routine:
- Time Efficiency: Quickly compare multiple stocks and identify the best opportunities.
- Emotional Discipline: Rely on data rather than gut feelings to make decisions.
- Improved Accuracy: Systematically analyze both fundamental and technical factors.
Get Started Today
The Trade Gauntlet is a game-changer for traders who want to make smarter decisions with less guesswork. If you have any questions about the tool or need help integrating it into your workflow, feel free to reach out to me or my team at mike@marawealth.com
Ready to see the Trade Gauntlet in action? Watch the video embedded above for a detailed walkthrough.
Final Thoughts
By combining a structured scoring system with your personal expertise, the Trade Gauntlet helps take the guesswork out of trading. Whether you’re an experienced trader or just getting started, this tool is designed to make your process more efficient and your results more consistent.
What are you waiting for? Give it a try and let us know what you think!
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📈 Trading Coach & Author of “The Trading Mindwheel”
🥇 Helped coach a top 10 finisher at USIC
🌟 Specializing in process, skill development & mindset