Dec 22, 2010 | Uncategorized
Stock moves are based on fear and greed. Unfortunately, basing buying decisions on greed and selling decisions on fear leads to bad decisions. Buying greed and selling fear leads to buying high and selling low. It’s not just the execution price that is the problem, however. Being controlled by fear and greed leads to bad money management decisions. Nearly all investors can state a case where they were extremely confident about a stock — and whether it was based on a strong technical or fundamental picture, greed takes over and money management decisions are ignored.
The stock may be at $10 and you are certain that it will hit $20. As a result, you load up on the stock with a large portion of your assets. Unfortunately, before hitting $20 the stock falls to $7. You were right about the move but wrong on the timing. Because you had too much money invested, you couldn’t stomach the drawdown and the stock was sold for a loss.
The lesson to long-term success is proper allocation of your assets. In our example, if the investor had not loaded up on the stock trade, he could have ridden out the short-term decline and enjoyed the benefits of his correct projection.
Many traders lose everything in the markets because they wager an inappropriate percentage of their trading capital on a single position. Unfortunately, that single position invariably turns out to be the worse of all the holdings. When the trade goes badly, the adverse effect is crippling.
Staying power is important in successful trading. While valuation, trend direction, and timing are all important, proper position sizing is the most critical. With proper position sizing you can be wrong and play another day. With bad position sizing, you’ll end up with big losses and little hope of recovery.
Instead of buying from greed, treat every position like it could be a loser. Yes, there is power in positive thinking but overconfidence leads to bad results. Recall that 80% of all motorists think they are above average behind the wheel. Shun your pride and you will make better decisions. Don’t attribute winning positions to smarts and losing positions to bad luck.
Having a positive attitude about your trading system and your longterm goals are important. However, overconfidence in any single trade can cause you to mismanage it by taking on an undue amount of risk. If you believe every trade will be a winner, the need to confirm that belief may cause you to stay too long in a trade that has moved against you.
It may also prompt you to take a position size that is simply too large. Staying in a trade longer than you should or having too much money at risk is the surest road to disaster.
Dec 22, 2010 | Uncategorized
Stocks & Commodities Magazine Traders Tips – December 2010
“Trading Indexes With The Hull Moving Average” by Max Gardner
The full article is at http://www.traders.com/Documentation/FEEDbk_docs/2010/12/Gardner.html
Rich Denning has coded this indicator for AIQ EDS, you can pick up the code from Rich’s website at
http://www.tradersedgesystems.com/aiq/traderstips/traders-tips-december-2010.htm
Dec 21, 2010 | Uncategorized
01/13/2011 4:30 PM Eastern Time, register at http://prowebinars.na5.acrobat.com/modelingsuccess/event/event_info.html
ADRIENNE is considered an expert by her peers in the financial community for coaching traders, brokers, and investors to their next level of success. Her 11books on the psychology of trading have been highly praised by financial magazines. Adrienne’s public seminars and private counseling have achieved a wide level of recognition and popularity, as well as her television appearances and keynote addresses at major industry conferences. Adrienne has coached some of the most success- ful people in the world. What makes these great people unique? What makes them so success- ful? The answers to these and other questions are explored in her seminars, books, CDs, and DVDs, which form the core of Adrienne’s Modeling Excellence work with professionals who want to reach higher levels of success.
Dec 8, 2010 | Uncategorized
AIQ’s unique group/sector ability allows us to create our own groups from tickers in our database. The ability to create your own markets can take your analysis one step further by building a complete breadth data file of any collection of tickers. There are clear advantages to doing this, find out more in this 40 minute FREE webinar http://prowebinars.na5.acrobat.com/p41065877/
Dec 8, 2010 | Uncategorized
AIQ’s unique group/sector ability allows us to create our own groups from tickers in our database. The ability to create your own markets can take your analysis one step further by building a complete breadth data file of any collection of tickers. There are clear advantages to doing this, find out more in this 40 minute FREE webinar http://prowebinars.na5.acrobat.com/p41065877/
Nov 13, 2010 | Uncategorized
Finally it’s happened. After much lobbying from our clients, we’ve been persuaded to release the raw and uncut recordings from 5 of the sessions at the October seminar in Las Vegas.
The attendees who joined us this year all agreed; this year’s seminar was one of the best ever. With these recorded sessions, you hear the speaker and see the presentation or live charts the speaker showed the attendees.
This is the raw and uncut recordings, no editing, it is what it is. Check out the speakers and topic below, then at the bottom of the page, you’ll see the price. Attendees for the 2-day seminar paid up to $996 for 2 full days of sessions, so I think you’ll agree you’re getting a good deal.
Intermarket analysis – Profitable trading strategies for commodities, stocks, bonds and currencies.
I’m exhausted – How to identify when a ticker has exhausted a move up or down and what to do next.
Around the world in 80 minutes – Global equity investment opportunities to capitalize on future trends.
The relationship between commodities and currencies in the context of the MACDI divergence strategy.
The Band wagon – AIQ Bands, Bollinger Bands, Keltner Bands; Effective use of Bands in trading decisions.
More info on speakers and topics at http://aiqsystems.com/vegas2010webinarrecord.htm
5 SESSIONS BUNDLED PACKAGE
Delivered streaming from our high speed server.
Watch them as often as you want, as many times as you want.
ONLY $279
or call 1-800-332-2999
Oct 23, 2010 | Uncategorized
Steve Palmquist
Author of ‘The Timely Trades Letter’ and ‘How to Take Money from the Markets’
During 20 years of active trading experience I have researched, tested, and analyzed a number of trading systems and techniques. Some have shown promising results, some do not. I add tools to my trading toolbox based on their effectiveness. Trading systems are not effective because Aunt Millie or uncle Bob told you about them, they are effective because they work. One way to know if a trading technique works is through testing to see how different time periods, market conditions and parameters effect trading pattern results.
Making money in the stock market requires knowledge of what to trade, when to trade, and a variety of trading tools designed for different market conditions. Just as a carpenter will use several different tools when building a house, traders will use different tools to build their account. Using the same trading tool in all situations is like trying to build a house with just a hammer. Carpenters have tools designed for specific jobs, and so should traders.
The successful trader has a tool box with a variety of trading tools for use in different market conditions. The trader, like the carpenter, must go beyond just acquiring the tools. Traders must understand which tool to use for a specific task, and have a clear understanding of how the tool works, and what can and cannot be done with it.
Some tools, like a screwdriver, are fairly easy to learn how to use. Other tools, like a table saw, require a lot more training and experience to get the most out of. Most carpenters serve an apprentice period where they work with, and learn from, someone with years of experience. It is amazing how many people will just start trading their hard earned money without ‘learning the trade’ first. Understanding how to trade requires the ability to recognize basic trading patterns, and also knowledge of the market environments in which they work best.
There are no perfect trading systems, no matter what those slick brochures we all get in the mail say. Trading is a statistical business where it is important to manage risk. Every trading system has a certain percentage of winners and losers. Examples of six complete trading systems and how they perform in different market conditions is covered in ‘How to Take Money from the Markets’
There is no magic to trading. It is about putting the odds on your side and not trading unless they are. This sounds simple, but it takes…
a few years to get good at it. And like most things, while you are learning it is best to work with someone. The learning time is long because traders have to see how things behave in different markets, and learn to trade the odds and not their feelings. See www.daisydogger.com for more information on my trading experiences.
The market will not adapt to us, we must adapt to it. Active trading in a narrow range presents higher than average risk. Traders can compensate for higher risk market conditions by trading fewer positions and using smaller position sizes. Failure to do this can be costly.
I cannot control what the market does, so I have a plan for whichever path it picks and then trade the plan.
Successful trading is not about predicting what the market is going to do. It is about knowing how to react to whatever it does.
Always be thinking about taking and protecting profits.
You do not need to trade every day. Let the setups come to you and take the best ones. When the market is moving there lots of good setups to trade. If there are few setups, or most are failing, then listen to the message of the market.
Never enter a position without a plan for exiting.
Steve Palmquist a full time trader who invests his own money in the market every day. He has shared trading techniques and systems at seminars across the country; presented at the Traders Expo, and published articles in Stocks & Commodities, Traders-Journal, The Opening Bell, and Working Money.
Steve is the author of two trading books: “Money-Making Candlestick Patterns, Backtested for Proven Results’, in which he shares backtesting research on popular candlestick patterns and shows what actually works, and what does not.
“How to Take Money From the Markets, Creating Profitable Trading Strategies” in which he uses the results of extensive backtesting techniques to smash trading myths and get to the truth of what has worked and what has not. The book provides six fully analyzed and tested trading systems and shows how they have performed in different market conditions.
Steve is the publisher of the, ‘Timely Trades Letter’ in which he shares his market analysis and specific trading setups for stocks and ETFs. To receive a sample of the ‘Timely Trades Letter’ send an email to sample@daisydogger.com. Steve’s website:www.daisydogger.com provides additional trading information and market adaptive trading techniques.
Oct 23, 2010 | Uncategorized
Steve Palmquist
Author of ‘The Timely Trades Letter’ and ‘How to Take Money from the Markets’
During 20 years of active trading experience I have researched, tested, and analyzed a number of trading systems and techniques. Some have shown promising results, some do not. I add tools to my trading toolbox based on their effectiveness. Trading systems are not effective because Aunt Millie or uncle Bob told you about them, they are effective because they work. One way to know if a trading technique works is through testing to see how different time periods, market conditions and parameters effect trading pattern results.
Making money in the stock market requires knowledge of what to trade, when to trade, and a variety of trading tools designed for different market conditions. Just as a carpenter will use several different tools when building a house, traders will use different tools to build their account. Using the same trading tool in all situations is like trying to build a house with just a hammer. Carpenters have tools designed for specific jobs, and so should traders.
The successful trader has a tool box with a variety of trading tools for use in different market conditions. The trader, like the carpenter, must go beyond just acquiring the tools. Traders must understand which tool to use for a specific task, and have a clear understanding of how the tool works, and what can and cannot be done with it.
Some tools, like a screwdriver, are fairly easy to learn how to use. Other tools, like a table saw, require a lot more training and experience to get the most out of. Most carpenters serve an apprentice period where they work with, and learn from, someone with years of experience. It is amazing how many people will just start trading their hard earned money without ‘learning the trade’ first. Understanding how to trade requires the ability to recognize basic trading patterns, and also knowledge of the market environments in which they work best.
There are no perfect trading systems, no matter what those slick brochures we all get in the mail say. Trading is a statistical business where it is important to manage risk. Every trading system has a certain percentage of winners and losers. Examples of six complete trading systems and how they perform in different market conditions is covered in ‘How to Take Money from the Markets’
There is no magic to trading. It is about putting the odds on your side and not trading unless they are. This sounds simple, but it takes…
a few years to get good at it. And like most things, while you are learning it is best to work with someone. The learning time is long because traders have to see how things behave in different markets, and learn to trade the odds and not their feelings. See www.daisydogger.com for more information on my trading experiences.
The market will not adapt to us, we must adapt to it. Active trading in a narrow range presents higher than average risk. Traders can compensate for higher risk market conditions by trading fewer positions and using smaller position sizes. Failure to do this can be costly.
I cannot control what the market does, so I have a plan for whichever path it picks and then trade the plan.
Successful trading is not about predicting what the market is going to do. It is about knowing how to react to whatever it does.
Always be thinking about taking and protecting profits.
You do not need to trade every day. Let the setups come to you and take the best ones. When the market is moving there lots of good setups to trade. If there are few setups, or most are failing, then listen to the message of the market.
Never enter a position without a plan for exiting.
Steve Palmquist a full time trader who invests his own money in the market every day. He has shared trading techniques and systems at seminars across the country; presented at the Traders Expo, and published articles in Stocks & Commodities, Traders-Journal, The Opening Bell, and Working Money.
Steve is the author of two trading books: “Money-Making Candlestick Patterns, Backtested for Proven Results’, in which he shares backtesting research on popular candlestick patterns and shows what actually works, and what does not.
“How to Take Money From the Markets, Creating Profitable Trading Strategies” in which he uses the results of extensive backtesting techniques to smash trading myths and get to the truth of what has worked and what has not. The book provides six fully analyzed and tested trading systems and shows how they have performed in different market conditions.
Steve is the publisher of the, ‘Timely Trades Letter’ in which he shares his market analysis and specific trading setups for stocks and ETFs. To receive a sample of the ‘Timely Trades Letter’ send an email to sample@daisydogger.com. Steve’s website:www.daisydogger.com provides additional trading information and market adaptive trading techniques.
Oct 20, 2010 | Uncategorized
The VIX is the CBOE Volatility index and is a measure of the implied volatility of the SP500 stocks. Much is mentioned in the financial media on high levels of the VIX during steep down turns in the market. Question is can we make this into an indicator.
a quick overlay of the VIX on the SPY reveals some visual correlations with the VIX. Peaks in the VIX often correlate with bottoms in the SPYand vice verse.
To make use of the VIX as an indicator requires building an indicator using the closing price of the VIX. The EDS code to do this can be downloaded from
http://aiqsystems.com/VIXSPY-spread_lasvegas.EDS save this file to c:wintes32EDS Strategies.
To add a custom indicator in AIQ Charts, open Charts and go to Charts, Settings, Indicator Library, EDS Indicators. Clickk on Add, locate the EDS file VIXSPY-spread_lasvegas.EDS in your c:wintes32EDS Strategies folder.
For Plot Type select Histogram with Plotted Line and click next.
For Description I chose VIX with 10-day av.
UDF to Plot is Close_VIX
UDF for line is VIX_10day
Click Finish and then Done.
The indicator VIX with 10-day av will now be available at the bottom of the indicator control panel.
I chose a 10-day average to help smooth out the fluctuations, a 21-day average may also work.
Here’s what it looks like
The arrows on the chart show an interpretation that works well for timing the bottoms of the SPY. I’m looking for theVIX histogram to be 3 or more consecutive spikes above the 10 day average, followed by Change in direction from up to down of the 10 day average. Check it out for yourself and see what you think.
Oct 6, 2010 | Uncategorized
Intermarket analysis – Profitable trading strategies for commodities, stocks, bonds and currencies. Donald Dony
Did you know that; Gold leads the commodities (CRB index)? The US dollar usually trends in the opposite direction of the CRB index and Gold? All markets are interrelated and none move in isolation? Bond prices normally move in the opposite direction to stocks (inflationary environment)? All of these and many more inter market relationships will be revealed in Donald’s session. Best of all their are ETFs to trade all of them.
Learn more
Around the world in 80 mins – Global equity investment opportunities to capitalize on future trends. Richard Muller
During his presentation Richard will reveal where the best markets are to be trading and why, and the best values in each segment based on his extensive global equity research. Richard’s pedigree is unmatched in global equity analysis. Prior to joining Reuters and presenting his own TV show, Richard taught technical analysis to many investors and traders throughout Europe.
Learn more
The relationship between commodities and currencies in the context of the MACDI divergence strategy. Dale Wheatley
Dale has used the special relationship between currencies and commodities to his advantage by trading options on the ETFS. Whether it is the OIl Index, Gold Index, US Dollar index, SPY or others, correlations and leading and lagging factors all play in to finding the right time to be in the right option. Dale uses his unique MACD divergence strategy as the timing mechanism to enter option trades.
Learn more
English