How to Use our Services and FAQ (Frequently Asked Questions)

[ Introduction ] . [ FAQ ]

INTRODUCTION

First and foremost, recognize that this is an educational service.  No one has a lock on being able to see the future in the stock market, so don't let any of the newsletter writers and prognosticators fool you.  There is no magic to trading the stock market, just a lot of perseverance, diligence and nerves of steel.

I am a trader.  If you want to call me during the day, as a paid subscriber you may do so.  But, please recognize that I am trading and may have to cut conversation short at times.  I am also an educator.  I like to teach people what I have learned about the stock markets and about Technical Analysis.  But, that doesn't mean that I have any secrets that will guarantee you to make profits, or even keep you from making losses in the markets.  Please read the disclaimer carefully.  The reason for this site is education—nothing else. 

I also love to write books to help beginning traders--and even intermediate traders. So far, I have written five (5). They are:

• "Trading 101-How to Trade Like a Pro"
• "Trading 102-Getting Down to Business"
• "Electronic Day Trading 101"
• "Getting Started in Trading"
• "TradeStation Made Easy!"
• and I'm working on "Grading the Gurus"

What you don't know can hurt you.  You are better armed when you know more about the tools the professionals use.  As a trader, you are competing against seasoned and educated traders who have been doing this for many years and know how to take your money.  The more education you afford yourself, the better.

I write my views on the markets at night.  That way I have time to digest and ruminate about the day's price action.  You can generally expect to be able to loging by 9:30pmPST Monday thru Thursday.  Friday's I don't make any commentary about the markets: I wait until Sunday night to discuss the previous week's behavior and consider what the technical picture might be for the next trading day.  Again, you should be able to login by about 9:30pmPST. 

If you do not receive a password for any reason, please email me by 6:30amPST the next trading day and I will be happy to re-send the email.  I usually simply forward the one froSm the previous evening so you can have proof that it went out, with the time stamp.  (I send myself a copy of the email as a check that all systems are working.)

FREQUENTLY ASKED QUESTIONS

20021204:  Great Trade!  I am a trial subscriber.  What are the Sunny_Bands that you mentioned yesterday as a pivot point to go short or long?  Thanks.

Sunny_Bands is an indicator I developed around my Dynamic Average indicator.  The Dynamic Average alone costs $795.  Sunny_Bands adds an upper and lower band 1.5 times the Average True Range to the DMA and draws these bands on either side of the DMA.  Price rarely goes more than 1.5 times its ATR beyond the moving average, so when we do get outside of that range, we know we have a powerful move.  And, when it comes back into the range of the bands and touches the DMA, it’s a good place to take profits.  This indicator also costs $795, but it includes the DMA, which precludes your having to buy both.  It’s kind of a two for one deal.  I use it for stop placement and profit capturing all the time.

Please clarify something for me.  I've been reading your alerts, specifically today, in which you say that you're "shorting" or contemplating "shorting" if the downtrend continues.  When I review Sunday's weekly picks, it looks as though you're long all of those positions.  How, then, are you "shorting?"  Please explain.  -Renee

Good question, Renee.  So I am sharing the answer with all.  The Weekend Stock Picks are intended for long positions only, if the stock breaks out above the "trigger" that is shown in the table.  These long trades are for investors--those who stay in a trade for a "long" period of time.

The trades that I take during the week, and especially intraday, are all done on the QQQs.  I use a mechanical reversal system, so I go long and short in sequence, on a 15-minute chart of the QQQs.  I might hold a trade overnight, I might trade two or three times during the day--it all depends on the signals given by my model.

How do I interpret what you say in your Email Alerts?

My responsibility is to educate, yours is to interpret and trade, or take whatever action you choose.  You may choose not to trade, to fade my trades, to follow the ones you agree with, or a variety of other choices.
     I can't be with you as closely as real-time.  If you need that kind of service, I do accept managed money, with a minimum account size of $250,000.
     Yes, it is the subscriber's responsibility to watch the market and determine whether they see prices moving up or down.  When I say something like "there's an Attractor at 27.44 on the QQQs and I'm not going to short unless price moves below it" it becomes your responsibility to watch and see if the QQQ moves below that price.
     I often don't send another alert, saying that I did what I said I was going to do.  I think it's enough to say what I am going to do and you can make your choices from that education.

How do you trade the Weekend Stock Picks?

On Sunday nights I filter through over 600 stock charts to find the setup patterns that I'm looking for.  This narrows the field down to about 50 stocks, which I then view and hand pick the ten that I list as potential breakouts.  In the first column I list the breakout number.  If the stock breaks out above that number, that signals me to buy 1000 shares of the stock.  When I buy, I always buy in round lots like that.  If the stock drops below the stop loss number, I get out and take the loss.  If the stock moves up, I hold until it (a) reaches the goal number, or (b) Friday afternoon I close the position, or (c) shows a good profit but begins to pull back.

The charts are so small I can't see the detail.

Simply click (or double-click on some computers) on the chart you wish to view.  It will enlarge to full size.

What is an Attractor?

I have found that there are price zones that tend to act magnetically, pushing and pulling on the markets.  These zones generally have more than one thing going for them.  That's why I call them Attractors, because of the "magnetic" attraction.  Usually an Attractor will have been support and resistance both at some time in the fairly recent past.  Often an Attractor will have moving averages that pass near or through the zone several times.  I also find that Attractors are places where Fibonacci numbers or Gann numbers "live."  Especially strong Attractors will also have a trendline that zeros in on that zone, or two trendlines that crossover in that zone.

What if price passes through the Attractor you have stated in the previous commentary, but doesn't close there?

I use closing prices only when determining whether an event happened.  If we are looking at an intraday 15-minute chart, for me to say that a price went above (or below) an Attractor it must close above (or below) that price on the 15-minute bar.  If the bar goes above (or below) during its formation, and doesn't close above (or below) it might not hold there, so I don't "jump the gun" on those bars.  It's hard sometimes to be patient, but I have found that in the long run it is better to "wait for the print" as the professionals call it.