Stock Trading Tutorial Trade Slow Stochastic
Posted by admin in Stock Trading on 07 29th, 2010
http://www.guerillastocktrading.com/technical-analysis/use-the-stochastic-oscillator-wrong-and-stay-poor-or-use-it-right-and-become-rich Made by George C. Lane in the late 1950s, the Stochastic Oscillator is a momentum guage that tells us the location of the current close compared to the high/low range over a specific number of periods.
George Lane M.D. (1921 to 2004) was a Medical Doctor, stock trader, author, teacher, and technical analyst. He made and popularized the Stochastic Oscillator, which is one of the main indicators used in the present day amongst technical analysts.
Word on the street from an interview with Lane, the Stochastic Oscillator doesn’t follow price, it doesn’t follow volume or whatever thing like that. It follows the speed or the momentum of price. As a imperative, the momentum changes direction before price. Therefore, the Stochastic Oscillator can be used to detect bullish and bearish divergences to forecast reversals.
I choose to trade the Slow Stochastic for the reason that it’s more smoothed out than the Fast Stochastic making for fewer head fakes.
The variation between Fast Stochastics and Slow Stochastics is just a moving average. When calculating Fast Stochastics using the values of 5 and 5, the first 5 is the raw value for Stochastics, while the second 5 is a 5-period moving average of the first 5. When using Slow Stochastics, the first two 5’s are the same as with the Fast Stochastics, with the third 5 being a moving average of the second 5. No you are not having an acid flashback, you read that right, a moving average of a moving average. Do not think about that too much.
This slows the movement of the indicator, and so the name of Slow Stochastics. By slowing the movement of the indicator down, we will get a smaller number of signals to buy or sell on the chart, but they should be more dependable signals.
The settings I like to use for the Slow Stochastics depends on the market or stock I am looking at. I always get a laugh out of traders who attempt to use a one size fits all tactic. I say use the power of present day computers and more superior charting tools like Market Club that offer a real time java interface that lets you change the settings in real time. Merely take the slider and tweak the settings so that the signals are smoothed out with less head fakes, and that matches your stock trading style (buy and hold, swing trade, day trade, etc).
In addition keep the kind of Stochastic signal you are looking to either buy or sell as flexible as well. For example, you may discover that the signal line breaking above the 20 line is a good buy indicator, and a good sell indicator is the signal line breaking below the %D line. You may possibly discover that for the market you are trading that a cross of the signal line and the %D line is a better buy signal while a reliable sell signal is when the signal line goes above 80 for a day or two and then breaks under the 80 line. You might find that bullish divergences are better trade signals for specific stocks and markets. For example, go long when the stock price makes a big low but the Stochastic plots a shallower low.
Bear in mind, every stock and market has its own behavior at unique times of the year since that behavior is a mirror image of the combined human psychology of the all the traders who are trading that specific market at a specific time of year. Learn to modify your Stochastic to the market you are trading and to your own trading approach, and watch the profits start to pour in.
Duration : 0:5:17
read comments (1)Any one heard about the emini academy? as a day stock trading course / system?
Posted by admin in Stock Trading on 07 28th, 2010They charge like $5000 to $8000 for their course? and what’s strange that there is no even one single question about them on Yahoo Answers.
Any reviews or experience please.
My first couple of weeks with Oscar were pretty good. I was totally thrilled to find somebody to do the heavy lifting for awhile. I didn’t have a futures trading account and much of my trading capital was custodied in such a manner that it could not be moved, nor could I use it for futures trading. I followed along with Oscar’s recommendations using ETFs tied to the S&P 500. I began the process of opening a small account just to trade one lot and see how I felt about it. I went thru all the paperwork, asked everybody in the room how much the trade commissions were -’ ask Oscar’ was the reply. Talked to the staff — ‘ask Oscar’. When Oscar finally showed up in the trading room, I private-messaged him several times and asked — what’s the cost. He never answered me. So I’m a schmuck. Figuring it would ten bucks or so at most, I placed my first trade. The trade confirmation arrived and I nearly fell off my chair. The charge for 1 lot round-trip was $50. When Oscar showed up again in the room (mind you, you could wait around all day before the great man made an appearance), I sent him a private message saying that $50 wasn’t going to fly. He replied ‘k’ and closed the chat window. I kept opening the window back up, telling him we needed to have a conversation before I placed any more trades. He kept giving noncommittal answers and closing the chat window. I wrote that I was willing to pay $10 each leg. He wrote no prob. It’s all good. But you can’t discuss it with other room members. Don’t want a mutiny here. Most of the others pay $50. I didn’t put that in quotes, but it’s pretty close to word for word. I said I wanted an agreement it in writing. He said he had ‘guests in town’. I wrote that I wanted it by the end of the day. It took a boycott on my part of one week (not participating in the trading room) before Oscar contacted me. He was full of excuses as to why it had taken so long to reply. Friends in town, birthday party, etc., etc. He wanted me to let him know when I was ready to ‘rock and roll’. The thing that was missing was a written disclosure of trading charges but – I ‘had his word’ on it.
3 Ways To Handle Losing Trades That Doom Us (From The Inside Out)
Posted by admin in Stock Trading on 07 26th, 2010
http://www.guerillastocktrading.com/stock-trading/shocking-confession-i-see-traders-murdered-because-they-cant-take-a-loss Whilst we’ve been kept awake at night wetting our sushi pajamas for horror of losing trades and jumping off our abode, nearly all losing trades come from misconceptions born inside our brains.
This is how the majority of losing trades go down:
1 – Double down. Whatever moron came up with this idea had to be a chap with a lot of money. The earliest hypothesis of doubling down must have come from some intoxicated well-off chap in Las Vegas playing at the MGM Grand Hotel and Casino. The hypothesis of doubling down is straightforward, if a stock you are hanging on to falls 20% in value, acquire double what you first bought. Over time, as poverty-stricken common folk got their hands on the theory, it changed into averaging down, meaning purchasing any extra amount of a stock that you are hanging on to when it drops 15 % or more.
Villainous stock trader Nick Leeson perfected the skill of averaging down into losing trades, or so he thought. This double down stock trading mastermind caused the collapse of Barings Bank, United Kingdom’s oldest investment bank, for which he was sent to jail.
Never fling good money after bad. Never risk more than you are seeking to gain.
2 – Value investing. This strategy must be the brain spawn of wicked institutional traders who hope the stupid common folk will help them in dumping their longs in a down trending stock market. The idea of value investing is straightforward, look at the P/E ratio. If the average P/E ratio for a sector, such as Tech, is 18 and you find a company with a P/E of 12, then you are buying this business at a deep markdown, a genuine valuation pearl, right? Not!
There is a reason a company has a P/E less than a industry arithmetic mean, institutional investors don’t like it as much as they are fond of other companies within the sector.
Nearly all valuation entry points involve buying a company that is within a downtrend. As a result, the majority of value investors buy low and sell even lower.
Never buy a business that is within a downtrend no matter how low the P/E ratio is.
3 – Cling to a losing stock trade until it eventually comes back. This is the intellectual retard strategy. People that do this have no business trading stocks. Their similar to that monkey that grabs the fruit and then the trap closes on the arm. If the monkey would let go of the fruit, he could run away from the trap. But the monkey just can’t let go.
Time is value, it is the material life is made of. Way back in March of 2000 the Nasdaq traded at 5,000. Today it trades at less than half that at 2186. So for the last 10 years, you are still waiting for the market to come back. These are 10 years you could have been investing and making money, eternally consumed. At only 10% a year, you could have doubled your money. But it’s worse than that.
The majority of retards that use this stratagem can’t do arithmetic. Let’s say the Nasdaq dropped from 5,000 down to 2,500 or 50%. The majority of monkey retards believe if the market goes up by 50% they’ll get back to break even. Not so. The stock market would have to go up 100% to get back to 5,000.
Never use buy and hold on a losing stock trade. Get rid of your losses as quickly as possible.
In the episode below I chat a little about the ridiculousness that is value investing.
Duration : 0:6:25
How do I get into a really good stock and/or trade system?
Posted by admin in Stock Trading on 07 24th, 2010I prefer a system that works even on small investments.
you get into a really good stock by performing some due diligence or research. Also, watch CNBC.
Then again, if you are looking to get into a stock as a trade, there are penny promoters that spread news about stocks, and you can take a look to see how the stock is fairiing for a quick trade.
http://twitter.com/bullseyestox
Etrade.com
www.bullseyestox.com
Trading Pro Online Stock Shares Investments Guide System. Live Software & Technical Analysis Tools
Posted by admin in Stock Trading on 07 21st, 2010
Go To: http://moveto.ws/subceii3c – Very lucrative business. Over 24 hours of training video’s looking over the shoulder of one of the best stock traders in market. Learn how to make money everyday in the stock market.
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Duration : 0:7:24
Stock trading systems resources and information.
Posted by admin in Stock Trading on 07 15th, 2010
http://www.tradingsystemssite.com Stock trading strategies are vital for success in the markets. Visit http://www.tradingsystemssite.com for more details on trading tips, tools, and techniques.
Duration : 0:1:44
