Do you think these 5 stocks are ready to move?

Video from INO.com

"Take a look at this video and I’ll explain why these stocks fall into the category of upward trending stocks."

http://www.ino.com/info/292/CD3393/&dp=0&l=0&campaignid=3

Video: InformedTrades on Flags and Penants

Example: Second Trade on GBPUSD using Fibonacci

This trade was more based on that from the INO.com video,
http://www.ino.com/info/285/CD3393/&dp=0&l=0&campaignid=3
along with some added rules. Keep in mind these setups work good when they work but don't work all the time.

1. I drew my fib retracement from point A to point B which is a larger swing than the first trade. We have a swing high at point A and a swing low at point B. I used the 50 SMA to help gauge where I would draw my line that is I looked for a swing high above the 50sma and a swing low below. I could have used any moving average to do that. Please note that Jeff Manson uses that technique to identify the swings and there is more to his trading rules which I am not using.
2. I waited to see if price will retrace to the 50% fib level and give signs that resistance is met there. It did. In fact the green bar with the wick on top indicated that there is selling pressure or resistance. This is my setup bar.
3. I placed a sell stop at the low of the previous green bar. The sell stop could had been at the low of the setup bar but I was chicken and wanted to be a little more conservative.
4. My stop was a little above the 50% level (about 20pips from entry) and my target was near the 161.8% level. The risk/reward ratio was way more than 3:1
5. Sell order triggered at 1.4358. I took first exit 10 pips away and moved stop to break even.
6. Price eventually reversed and I got stopped out at break even.

Overall that was two nice trades because they were executed as planned. What I've learnt from these two trades is WHEN FOLLOWING TRADING RULES BE PATIENT AND WAIT FOR THE SETUP.

Example: GBPUSD trade based on Fibonacci Retracement

After making two posts on Fibonacci trading rules,

http://www.ino.com/info/285/CD3393/&dp=0&l=0&campaignid=3

http://forex-strategies-revealed.com/fibonacci-system

I decided to place two Forex trades based on the setups and post them here. The time frame is 5 mins.




1. From point B price retraced to the 38.2% line and also touched the 5WMA. This was the setup bar.
2. I placed sell order when next bar closed below 5WMA with initial stop at 61.8% fib level. Target is the the 161.8% level.
3. Being this is a short time frame I like to take quick profits usually in the order of 10pips. So, the first exit was 10pips and the stop was moved to break even. They call that a "free trade" from there on.
4. The target was hit and the down move started to reverse.

Price Action Analysis

A good website to learn about price action, candle patterns, etc is "Your Trading Coach" or YTE.
Here is a youtube video from YTE on Price action analysis:

Another Fibonacci Trading Strategy

This is another intraday Fibonacci trading strategy found on ForexStrategies Revealed website. It's similar to the one previously posted from INO.com (http://www.ino.com/info/285/CD3393/&dp=0&l=0&campaignid=3), but with more defined rules including stops and exits.

Click here to see strategy:

http://forex-strategies-revealed.com/fibonacci-system

Using Fibonacci on Intraday Charts Video

The Fibonacci tool is very powerful and more times than none very accurate. It can used to make low risk high reward trades in any type of market. See this video on one method of using Fibonacci retracement tool for intraday trading.

Click link below:
http://www.ino.com/info/285/CD3393/&dp=0&l=0&campaignid=3

Happy Trading

"To be a successful trader you need consistant low risk/high reward trades with proper money management" ~ Nigel

Video: “Fundamentals vs Technicals”

Please let me know if you like these INO.com videos. I think they are cool.

http://www.ino.com/info/282/CD3393/&dp=0&l=0&campaignid=3

Every once in a while, I like to flip the TV channels and watch Jim Cramer on CNBC. It’s not that I think that Jim Cramer is a spectacular trader, I just think he is a talented and amusing guy. The last time I tuned on the tube, CNBC’s Jim Cramer was naming his top five picks to get you through these recessionary times.

So with pencil in hand, I quickly scribbled down his top five stock picks on a piece of paper and shoved it into my pocket. I actually forgot about Mr. Cramer’s picks until today when I found this crumpled piece of paper with my handwriting on it. This paper listed the five stocks that Mr. Cramer picked on the close of business on January 8.

So here are Mr Cramer’s top 5 picks and where they closed on 1/08/09:

Caterpillar: (NYSE_CAT) - Closed @ 44.08
Home Depot: (NYSE_HD) - Closed @ 24.38
Johnson and Johnson: (NYSE_JNJ ) - Closed @ 59.02
Hewlett - Packard Company: (NYSE_HPQ) - Closed @ 37.61
Verizon Communications: (NYSE_VZ) - Closed @ 32.42

So I decided to put MarketClub’s “Trade Triangle” technology right next to Jim Cramer’s picks to compare how we both have done for the past few weeks. The one thing that struck me as odd with Mr. Cramer’s trading, is that he never seems to implement a stop loss technique. He talks about money management, but never about the use of stops. He just seems to let his positions run. For example, in the case of Caterpillar (NYSE_CAT), Mr Cramer’s first pick is down 25% from the date it was recommended. I don’t know about you, but a 25% loss in any market is enough to give me the heebie jeebies.

http://www.ino.com/info/282/CD3393/&dp=0&l=0&campaignid=3

Admittedly that’s extreme, but if your only looking for a 25% upmove and the stock is down 25% you really have to make 50% just to get back to even. It’s the type of trading I just don’t understand. I learned a long time ago that trying to pick bottoms and tops in the markets is a loser’s game and a futile exercise that can be very expensive.

So, if Mr. Cramer is long all the stocks listed above, what positions is MarketClub’s “Trade Triangle” technology suggesting for those stocks … are we long or are we short? Well, it turns out we are short all of the above stocks and we see the trend in those stocks as still being negative.

So what’s an investor to do? You can be entertained by Jim Cramer or you can use the “Trade Triangles” to scientifically make money in the markets. The great thing about MarketClub’s “Trade Triangle” technology is that there is no emotion in the signals, it is purely a mathematical algorithm that keeps you on the side with the better odds.

A systematic market proven program approach has flaws like anything else. However, if one follows an approach like this you will make money over time. It also allows you to sleep much better at night when using a systematic program to buy and sell stocks, futures, precious metals and the forex markets.

So while Mr. Cramer is enormously popular and entertaining, I’m not sure that I would want to put my money with this type of approach. I would much rather approach the market in a systematic, scientific way knowing that the odds are in my favor.
We will follow up on these trades when we receive a buy signal or an exit-short position signal and we’ll see exactly how our “Trade Triangle” technology is working vis-a-vis Mr. Cramer.

http://www.ino.com/info/282/CD3393/&dp=0&l=0&campaignid=3

Please feel free to make comments on this post and if Mr. Cramer decides to cover his positions and you hear about it first let us know and we will make any adjustments necessary. Thanks.
I look forward to hearing from you.

Every success in the markets,

Adam HewisonPresident,
INO.comCo-creator, MarketClub