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http://www.payscale.com/negotiationguide.asp
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Thursday, March 22, 2007
Wednesday, March 21, 2007
Ten Steps to Building a Winning Trading Plan
http://www.investopedia.com/articles/trading/04/042104.asp
Ten Steps to Building a Winning Trading PlanApril 21, 2004 By Matt Blackman
Ten Steps to Building a Winning Trading PlanApril 21, 2004 By Matt Blackman
There is an old saying in business: "Fail to plan and you plan to fail." It may sound glib, but those who are serious about being successful, including traders, should follow these eight words as if they were written in stone. Ask any trader who makes money on a consistent basis and they will tell you, "You have two choices: you can either methodically follow a written plan, or fail."If you have a written trading or investment plan, congratulations! You are in the minority. While it is still no absolute guarantee of success, you have eliminated one major roadblock. If your plan uses flawed techniques or lacks preparation, your success won't come immediately, but at least you are in a position to chart and modify your course. By documenting the process, you learn what works and how to avoid repeating costly mistakes. Whether or not you have a plan now, here are some ideas to help with the process. Disaster Avoidance 101…Trading is a business, so you have to treat it as such if you want to succeed. Reading some books, buying a charting program, opening a brokerage account and starting to trade is not a business plan - it is a recipe for disaster. "If you don't follow a written trading plan, you court disaster every time you enter the market," says John Novak, an experienced trader and developer of the T-3 Fibs Protrader Program. John and his wife Melinda, who is also his business partner in Nexgen Software Systems, run a number of educational trading chat rooms to help traders learn how to use their software and, more importantly, learn how to trade. In a nutshell, their software identifies Fibonacci areas of support and resistance in multiple time frames and provides traders with specific areas to enter and exit the market. Once a trader knows where the market has the potential to pause or reverse, he or she must then determine which one it will be and act accordingly. "Even with the best program, market data and analysis, odds for consistent success range from slim to none without a written plan," says Novak. The Nexgen website offers examples of trading plans and useful market information for the benefit of both clients and non-clients alike. "Like the markets, a good trading plan evolves and changes, and should improve over time," says Melinda Novak. A plan should be written in stone while you are trading, but subject to re-evaluation once the market has closed. It changes with market conditions and adjusts as the trader's skill level improves. Each trader should write his or her own plan, taking into account personal trading styles and goals. Using someone else's plan does not reflect your trading characteristics.Building the Perfect Master PlanWhat are the components of a good trading plan? Here are 10 essentials that every plan should include.
1. Skill assessment - Are you ready to trade? Have you tested your system by paper trading it and do you have confidence that it works? Can you follow your signals without hesitation? If not, it's a good idea to read Mark Douglas's book, "Trading in the Zone", and do the trading exercises on pages 189–201. This will teach you how to think in terms of probabilities. Trading in the markets is a battle of give and take. The real pros are prepared and they take their profits from the rest of the crowd who, lacking a plan, give their money away through costly mistakes.
2. Mental preparation – How do you feel? Did you get a good night's sleep? Do you feel up to the challenge ahead? If you are not emotionally and psychologically ready to do battle in the markets, it is better to take the day off - otherwise, you risk losing your shirt. This is guaranteed to happen if you are angry, hungover, preoccupied or otherwise distracted from the task at hand. Many traders have a market mantra they repeat before the day begins to get them ready. Create one that puts you in the trading zone.
3. Set risk level – How much of your portfolio should you risk on any one trade? It can range anywhere from around 1% to as much as 5% of your portfolio on a given trading day. That means if you lose that amount at any point in the day, you get out and stay out. This will depend on your trading style and risk tolerance. Better to keep powder dry to fight another day if things aren't going your way.
4. Set goals – Before you enter a trade, set realistic profit targets and risk/reward ratios. What is the minimum risk/reward you will accept? Many traders use will not take a trade unless the potential profit is at least three times greater than the risk. For example, if your stop loss is a dollar loss per share, your goal should be a $3 profit. Set weekly, monthly and annual profit goals in dollars or as a percentage of your portfolio, and re-assess them regularly.
5. Do your homework – Before the market opens, what is going on around the world? Are overseas markets up or down? Are index futures such as the S&P 500 or Nasdaq 100 exchange-traded funds up or down in pre-market? Index futures are a good way of gauging market mood before the market opens. What economic or earnings data is due out and when? Post a list on the wall in front of you and decide whether you want to trade ahead of an important economic report. For most traders, it is better to wait until the report is released than take unnecessary risk. Pros trade based on probabilities. They don't gamble.
6. Trade preparation – Before the trading day, reboot your computer(s) to clear the resident memory (RAM). Whatever trading system and program you use, label major and minor support and resistance levels, set alerts for entry and exit signals and make sure all signals can be easily seen or detected with a clear visual or auditory signal. Your trading area should not offer distractions. Remember, this is a business, and distractions can be costly.
7. Set exit rules – Most traders make the mistake of concentrating 90% or more of their efforts in looking for buy signals but pay very little attention to when and where to exit. Many traders cannot sell if they are down because they don't want to take a loss. Get over it or you will not make it as a trader. If your stop gets hit, it means you were wrong. Don't take it personally. Professional traders lose more trades than they win, but by managing money and limiting losses, they still end up making profits.Before you enter a trade, you should know where your exits are. There are at least two for every trade. First, what is your stop loss if the trade goes against you? It must be written down. Mental stops don't count. Second, each trade should have a profit target. Once you get there, sell a portion of your position and you can move your stop loss on the rest of your position to break even if you wish. As discussed above in number three, never risk more than a set percentage of your portfolio on any trade.
8. Set entry rules – This comes after the tips for exit rules for a reason: exits are far more important than entries. A typical entry rule could be worded like this: "If signal A fires and there is a minimum target at least three times as great as my stop loss and we are at support, then buy X contracts or shares here." Your system should be complicated enough to be effective, but simple enough to facilitate snap decisions. If you have 20 conditions that must be met and many are subjective, you will find it difficult if not impossible to actually make trades. Computers often make better traders than people, which may explain why nearly 50% of all trades that now occur on the New York Stock Exchange are computer-program generated. Computers don't have to think or feel good to make a trade. If conditions are met, they enter. When the trade goes the wrong way or hits a profit target, they exit. They don't get angry at the market or feel invincible after making a few good trades. Each decision is based on probabilities.
9. Keep excellent records – All good traders are also good record keepers. If they win a trade, they want to know exactly why and how. More importantly, they want to know the same when they lose, so they don't repeat unnecessary mistakes. Write down details such as targets, the entry and exit of each trade, the time, support and resistance levels, daily opening range, market open and close for the day, and record comments about why you made the trade and lessons learned. Also, you should save your trading records so that you can go back and analyze the profit/loss for a particular system, draw-downs (which are amounts lost per trade using a trading system), average time per trade (which is necessary to calculate trade efficiency), and other important factors, and also compare them to a buy-and-hold strategy. Remember, this is a business and you are the accountant.
10. Perform a post-mortem – After each trading day, adding up the profit or loss is secondary to knowing the why and how. Write down your conclusions in your trading journal so that you can reference them again later.
Parting Notes"No one should be trading real money until they have at least 30 to 60 profitable paper trades under their belts in real time in real market conditions before risking real money," says Novak.Successful paper trading does not guarantee that you will have success when you begin trading real money and emotions come into play. But successful paper trading does give the trader confidence that the system he or she is going to use actually works. The exercises in "Trading in the Zone" walk the trader through trading a system based on a simple indicator, entering the market when the indicator gives a buy and exiting when it gives a sell. Deciding on a system is less important than gaining enough skill so that you are able to make trades without second guessing or doubting the decision. There is no way to guarantee that a trade will make money. The trader's chances are based on his or her skill and system of winning and losing. There is no such thing as winning without losing. Professional traders know before they enter a trade that the odds are in their favor or they wouldn't be there. By letting his or her profits ride and cutting losses short, a trader may lose some battles, but he or she will win the war. Most traders and investors do the opposite, which is why they never make money. Traders who win consistently treat trading as a business. While it's not a guarantee that you will make money, having a plan is crucial if you want to become consistently successful and survive in the trading game.
By Matt Blackman
http://www.investopedia.com/articles/trading/04/042104.asp
Ten Steps to Building a Winning Trading PlanApril 21, 2004 By Matt Blackman
Ten Steps to Building a Winning Trading PlanApril 21, 2004 By Matt Blackman
There is an old saying in business: "Fail to plan and you plan to fail." It may sound glib, but those who are serious about being successful, including traders, should follow these eight words as if they were written in stone. Ask any trader who makes money on a consistent basis and they will tell you, "You have two choices: you can either methodically follow a written plan, or fail."If you have a written trading or investment plan, congratulations! You are in the minority. While it is still no absolute guarantee of success, you have eliminated one major roadblock. If your plan uses flawed techniques or lacks preparation, your success won't come immediately, but at least you are in a position to chart and modify your course. By documenting the process, you learn what works and how to avoid repeating costly mistakes. Whether or not you have a plan now, here are some ideas to help with the process. Disaster Avoidance 101…Trading is a business, so you have to treat it as such if you want to succeed. Reading some books, buying a charting program, opening a brokerage account and starting to trade is not a business plan - it is a recipe for disaster. "If you don't follow a written trading plan, you court disaster every time you enter the market," says John Novak, an experienced trader and developer of the T-3 Fibs Protrader Program. John and his wife Melinda, who is also his business partner in Nexgen Software Systems, run a number of educational trading chat rooms to help traders learn how to use their software and, more importantly, learn how to trade. In a nutshell, their software identifies Fibonacci areas of support and resistance in multiple time frames and provides traders with specific areas to enter and exit the market. Once a trader knows where the market has the potential to pause or reverse, he or she must then determine which one it will be and act accordingly. "Even with the best program, market data and analysis, odds for consistent success range from slim to none without a written plan," says Novak. The Nexgen website offers examples of trading plans and useful market information for the benefit of both clients and non-clients alike. "Like the markets, a good trading plan evolves and changes, and should improve over time," says Melinda Novak. A plan should be written in stone while you are trading, but subject to re-evaluation once the market has closed. It changes with market conditions and adjusts as the trader's skill level improves. Each trader should write his or her own plan, taking into account personal trading styles and goals. Using someone else's plan does not reflect your trading characteristics.Building the Perfect Master PlanWhat are the components of a good trading plan? Here are 10 essentials that every plan should include.
1. Skill assessment - Are you ready to trade? Have you tested your system by paper trading it and do you have confidence that it works? Can you follow your signals without hesitation? If not, it's a good idea to read Mark Douglas's book, "Trading in the Zone", and do the trading exercises on pages 189–201. This will teach you how to think in terms of probabilities. Trading in the markets is a battle of give and take. The real pros are prepared and they take their profits from the rest of the crowd who, lacking a plan, give their money away through costly mistakes.
2. Mental preparation – How do you feel? Did you get a good night's sleep? Do you feel up to the challenge ahead? If you are not emotionally and psychologically ready to do battle in the markets, it is better to take the day off - otherwise, you risk losing your shirt. This is guaranteed to happen if you are angry, hungover, preoccupied or otherwise distracted from the task at hand. Many traders have a market mantra they repeat before the day begins to get them ready. Create one that puts you in the trading zone.
3. Set risk level – How much of your portfolio should you risk on any one trade? It can range anywhere from around 1% to as much as 5% of your portfolio on a given trading day. That means if you lose that amount at any point in the day, you get out and stay out. This will depend on your trading style and risk tolerance. Better to keep powder dry to fight another day if things aren't going your way.
4. Set goals – Before you enter a trade, set realistic profit targets and risk/reward ratios. What is the minimum risk/reward you will accept? Many traders use will not take a trade unless the potential profit is at least three times greater than the risk. For example, if your stop loss is a dollar loss per share, your goal should be a $3 profit. Set weekly, monthly and annual profit goals in dollars or as a percentage of your portfolio, and re-assess them regularly.
5. Do your homework – Before the market opens, what is going on around the world? Are overseas markets up or down? Are index futures such as the S&P 500 or Nasdaq 100 exchange-traded funds up or down in pre-market? Index futures are a good way of gauging market mood before the market opens. What economic or earnings data is due out and when? Post a list on the wall in front of you and decide whether you want to trade ahead of an important economic report. For most traders, it is better to wait until the report is released than take unnecessary risk. Pros trade based on probabilities. They don't gamble.
6. Trade preparation – Before the trading day, reboot your computer(s) to clear the resident memory (RAM). Whatever trading system and program you use, label major and minor support and resistance levels, set alerts for entry and exit signals and make sure all signals can be easily seen or detected with a clear visual or auditory signal. Your trading area should not offer distractions. Remember, this is a business, and distractions can be costly.
7. Set exit rules – Most traders make the mistake of concentrating 90% or more of their efforts in looking for buy signals but pay very little attention to when and where to exit. Many traders cannot sell if they are down because they don't want to take a loss. Get over it or you will not make it as a trader. If your stop gets hit, it means you were wrong. Don't take it personally. Professional traders lose more trades than they win, but by managing money and limiting losses, they still end up making profits.Before you enter a trade, you should know where your exits are. There are at least two for every trade. First, what is your stop loss if the trade goes against you? It must be written down. Mental stops don't count. Second, each trade should have a profit target. Once you get there, sell a portion of your position and you can move your stop loss on the rest of your position to break even if you wish. As discussed above in number three, never risk more than a set percentage of your portfolio on any trade.
8. Set entry rules – This comes after the tips for exit rules for a reason: exits are far more important than entries. A typical entry rule could be worded like this: "If signal A fires and there is a minimum target at least three times as great as my stop loss and we are at support, then buy X contracts or shares here." Your system should be complicated enough to be effective, but simple enough to facilitate snap decisions. If you have 20 conditions that must be met and many are subjective, you will find it difficult if not impossible to actually make trades. Computers often make better traders than people, which may explain why nearly 50% of all trades that now occur on the New York Stock Exchange are computer-program generated. Computers don't have to think or feel good to make a trade. If conditions are met, they enter. When the trade goes the wrong way or hits a profit target, they exit. They don't get angry at the market or feel invincible after making a few good trades. Each decision is based on probabilities.
9. Keep excellent records – All good traders are also good record keepers. If they win a trade, they want to know exactly why and how. More importantly, they want to know the same when they lose, so they don't repeat unnecessary mistakes. Write down details such as targets, the entry and exit of each trade, the time, support and resistance levels, daily opening range, market open and close for the day, and record comments about why you made the trade and lessons learned. Also, you should save your trading records so that you can go back and analyze the profit/loss for a particular system, draw-downs (which are amounts lost per trade using a trading system), average time per trade (which is necessary to calculate trade efficiency), and other important factors, and also compare them to a buy-and-hold strategy. Remember, this is a business and you are the accountant.
10. Perform a post-mortem – After each trading day, adding up the profit or loss is secondary to knowing the why and how. Write down your conclusions in your trading journal so that you can reference them again later.
Parting Notes"No one should be trading real money until they have at least 30 to 60 profitable paper trades under their belts in real time in real market conditions before risking real money," says Novak.Successful paper trading does not guarantee that you will have success when you begin trading real money and emotions come into play. But successful paper trading does give the trader confidence that the system he or she is going to use actually works. The exercises in "Trading in the Zone" walk the trader through trading a system based on a simple indicator, entering the market when the indicator gives a buy and exiting when it gives a sell. Deciding on a system is less important than gaining enough skill so that you are able to make trades without second guessing or doubting the decision. There is no way to guarantee that a trade will make money. The trader's chances are based on his or her skill and system of winning and losing. There is no such thing as winning without losing. Professional traders know before they enter a trade that the odds are in their favor or they wouldn't be there. By letting his or her profits ride and cutting losses short, a trader may lose some battles, but he or she will win the war. Most traders and investors do the opposite, which is why they never make money. Traders who win consistently treat trading as a business. While it's not a guarantee that you will make money, having a plan is crucial if you want to become consistently successful and survive in the trading game.
By Matt Blackman
Introduction to SaxoTrader 2
Introduction to SaxoTrader 2
About
SaxoTrader 2 offers a wealth of new features, trading modules and information to professional traders, to help them trade ever-more effectively and make successful trading decisions. It includes advanced analytical and charting modules, live streaming news, customisable workspace and much more.
Using SaxoTrader 2 is quick and easy. Following are the basic steps involved.
Basic steps
Follow the basic steps to get a quick introduction:
Create your own view. From the View menu select Add View.
Open your trading tools. From the Tools menu select Instrument Explorer, Prices and Trade and Charts.
Locate an instrument in the Instrument Explorer, right-click and select Prices and Trade.
Trade from the columns of Prices and Trade or the Trade panel.
Monitor your account by clicking on the account summary tab.
Movies
Following quick guide movies are available for your convenience. Click on one of the following links to view a quick guide movie.
Forex Spot
Forex Order
Forex Forward Outright
Forex Options
CFDs
CFD orders
Stocks
Futures
Charts - getting started
Charts - working with charts
Charts - analysing charts
Workspace - using views
Workspace - displaying modules
Workspace - docking modules
About
SaxoTrader 2 offers a wealth of new features, trading modules and information to professional traders, to help them trade ever-more effectively and make successful trading decisions. It includes advanced analytical and charting modules, live streaming news, customisable workspace and much more.
Using SaxoTrader 2 is quick and easy. Following are the basic steps involved.
Basic steps
Follow the basic steps to get a quick introduction:
Create your own view. From the View menu select Add View.
Open your trading tools. From the Tools menu select Instrument Explorer, Prices and Trade and Charts.
Locate an instrument in the Instrument Explorer, right-click and select Prices and Trade.
Trade from the columns of Prices and Trade or the Trade panel.
Monitor your account by clicking on the account summary tab.
Movies
Following quick guide movies are available for your convenience. Click on one of the following links to view a quick guide movie.
Forex Spot
Forex Order
Forex Forward Outright
Forex Options
CFDs
CFD orders
Stocks
Futures
Charts - getting started
Charts - working with charts
Charts - analysing charts
Workspace - using views
Workspace - displaying modules
Workspace - docking modules
Free Trading Tools - Saxo Details
http://futures.fxstreet.com/Futures/content/101150/content.asp?menu=knowledge
Downloading SaxoTrader Demo
The download should start automatically. If it does not, click here to download now.
Welcome Femi K..xxxxxxxx---1584494 xxxxxx--- jypulagi
https://www.saxobank.com/Default.aspx?id=1533&mode=v2&newsignup=1
Important Stock Trading Links
Investopedia
http://www.investopedia.com/articles/optioninvestor/
It is ChartAdvisor's pleasure to present to you this free report, "Five Chart Patterns You Need to Know." The report details five chart patterns that anyone serious about making money in today's stock market needs to know. Best Of All It's Absolutely FREE!
http://www.chartadvisor.com/freereport/report_index.aspx
http://www.investopedia.com/articles/optioninvestor/
It is ChartAdvisor's pleasure to present to you this free report, "Five Chart Patterns You Need to Know." The report details five chart patterns that anyone serious about making money in today's stock market needs to know. Best Of All It's Absolutely FREE!
http://www.chartadvisor.com/freereport/report_index.aspx
Important Stock Trading Q & A (First Hour Trading Tips)
Important Stock Trading Q & A
How much profit can I expect to generate by leveraging ‘First Hour’?
SolutionFirst of all, please note that Past Results are no guarantee of future performance.
Our Past Results since 2004 show an average daily gain of 0.84% or $176.53 a day on a $25,000 account (as on January 22nd, 2006). This last figure reflects earnings AFTER broker commissions. No compound interest is considered. If it were considered, the $ gain would be mugh higher. There are days in which we execute no trades at all (thus, no gains are achieved), and others that allow us to lock-in up to 3% returns.
Which stocks do you target and focus on for the ‘First Hour’ Day Trading System?
SolutionAmong the dozens of stock that gap up and down during pre-market hours, less than half of them reverse at some point in the bull trap. A small fraction of these stocks will reverse in a predictable manner, making them qualified candidates for that day’s trading activity. As a result, we’ll divert all our attention to those specific stocks, and make them the focal point of our trading efforts for that particular day.
How do you determine & know when to enter and exit a trade?
SolutionWe have developed a proprietary analysis tool that empowers us to predict the precise moment at which the targeted stock is going to reverse, with an 83% accuracy rate. This is the moment in which we want to enter a position. As a First Hour member, you would receive an Instant Message from Manuel informing you at which moment & price to enter a position for that stock, ultimately giving you the opportunity to secure that stock in the same timely fashion.
Unlike many other day trading systems, you will also receive an Instant Message from Manuel detailing the exact minute at which you are to exit the position, thus maximizing your profits.
What tools and/or resources must I have access to in order to leverage the First Hour Day Trading Alert Service?
SolutionIn order to effectively leverage First Hour, you will need the following:
Hardware:
A reliable computer with a high-speed internet connection.
Software:
We use TC2000 ( www.tc2000.com ) and Power Etrade Pro, as well as real-time quotes & charting software from www.Money.net.
Discount Broker:
We suggest to use a discount broker such as www.etrade.com or www.interactivebrokers.com.
Recommendation:
We suggest that you gain access to Level II quotes and learn how to read them, as they will give you greater trading insight.
21 Mar 2007
Support Center » Knowledgebase » FirstHourTrading.com » What news source do you use to you conduct your analysis?
What news source do you use to you conduct your analysis?
SolutionWe prefer www.briefing.com and www.marketwatch.com, as they provide granular insight into the day’s public announcements & corresponding market activity.
In relation to First Hour, how do you determine when to exit the final position?
SolutionOur strategy for the first half of the stock is to exit when we’ve achieved net gains of 1% or more. Once this is accomplished, we will exit the second half of the stock based upon its momentum. Typically, the stocks that we target will trade within a fixed range during the first 10-15 minutes, but later break support/resistance levels and spike in our favor. We’ll exit and take the profits from the second half of the position when the stock starts to lose momentum.
Which orders do you recommend – market or limit?
SolutionWe recommend that you always use a limit order. When you use market orders, there is a high probability that your broker will provide you with the least favorable fill.
Is the 1% stop loss based on our fill, or your entry point?
SolutionThe datum for your exit/entry should be your fill, so the 1% stop loss is based on that.
What is the most effective way(s) to leverage your ‘First Hour’ Day Trading Alert Service?
SolutionAll our members tend to open positions within the first 2 minutes of trading based on the Instant Message that we distribute during pre-market hours. However, our more experienced members will leverage our pre-market alert to determine exactly which stocks to focus on, but rely upon their own personal trading intuition to enter a position well in advance of receiving our actual trade alert.
The majority of our other members attempt to enter a position as fast as possible immediately after receiving our alert. They pre-fill their trading windows with the stock symbol and number of shares well in advance, ultimately allowing them to make the trade in an efficient & streamlined manner. With minor practice, it shouldn’t take you any more than 15 seconds to execute.
How should we set our limit order upon entering a position?
SolutionTo ensure that your order is filled, you should set a limit order within 5-10 cents of the suggested entry price. If the stock has moved against us during the time in which you place your limit order, your fill will be more favorable than ours. If the stock moves in our direction by a few cents, then your order will still contain some slippage. Therefore, there will be times in which you will lock-in better fills than us, and visa versa. Overall, the slippage should average out.
Why do you use mental stops/targets?
SolutionWe prefer to use a mental stop or mental target because they provide a greater level of flexibility. By using them, our positions will not seize automatically if the stock reaches the stop price for a brief moment before bouncing back. If we witness the stock reach our mental stop and determined that it’s indeed not a "fake" move, then we’ll close the position immediately.
However, it’s important to note that this requires a great amount of discipline, and may not be suitable for you is you are just starting out. If this is the case, then we recommend that you use ‘hard’ stops instead.
Do ‘shorts’ have greater accuracy & profit potential than ‘longs’?
SolutionOur time-tested and profitable trading experience has led us to believe that shorts are slightly more accurate than longs. This is the reason why approximately 70% of our stock picks are shorts.
Why do you sometimes skip stocks that you previously highlighted in your ‘watch’ list?
SolutionBelow are a few reasons why we may skip one of the stocks mentioned in our ‘watch’ list.
1) There is a large spread between the bid and ask price (i.e. a $15.50 stock may have a bid price of $15.50 and an ask price of 15.65).
2) If the stock breaks through support/resistance levels within the first couple of minutes of trading, then we’re forced to set a new entry price - which many times the stock never reaches. As a result, we end up missing the trade.
3) There are times in which we are overly focused on one particular trade, ultimately causing us to bypass the other stock candidate.
What factors do you take into consideration when selecting a stock?
SolutionWe consider the following factors:
1) The reasons for the price increase/decrease. Two stocks gap up, one because of an upgrade and the second because the company has received a buy-out offer - the first case is better for our purposes.
2) The % of increase/decrease of the stock during pre-market hours. We identify & focus on stocks that gap up/down anywhere between 5% and 20% during pre-market activity. Stocks fluctuating beyond this range are less reliable.
3) Average daily volume. If the stock has a low average volume (i.e. less than 500,000 shares per day), then we pass on it. The reason being it will likely have a larger spread.
4) Charts and technical analysis are the last set of filters. It is during this phase that we determine which 2 stocks (of the original 20-30 pre-selected) will pass our rigorous screening procedures and be our focus for that given day’s trading activity.
The ‘First Hour’ Day Trading Alert Service is a time-tested system based on extensive in-house research and proprietary analytical tools. The service consists of two phases:
1) Stock Selection Process:
After scanning the markets, we identify and select a series of stocks that are likely to be overbought/oversold at the opening bell. Using our proprietary analytical tools we run this list through yet another filtration process to further narrow the selections. Manuel identifies the two stocks that exemplify the most promise and profit potential. An alert is then posted in the Trading Chat Room between 9:15 am and 9:25 am EST. This message will disclose the name of the 2 selected stocks, as well as rate them on a scale of 1 to 10 based upon their eligibility.
2) Day Trading Activity
The goal here is to choose an appropriate time to buy/short-sell, and then sell/cover when you’ve locked-in at least a 1% gain. Let the other half ride until you’ve secured a return of 2-4%. If the position should unfavorably move against you by 1%, then be sure to close it out immediately.
In most cases, Manuel will enter the positions within the first 2 minutes of trading, as the targeted stocks tend to reach their peak (for short-selling) or bottom (for longs) during this period. He will exit these positions typically between 9:35 am and 9:50 am EST.
First Hour’s trade performance has yielded positive gains 83% of the time since its inception in early 2004. Our goal is to gain at least 1% of our trading funds per session, but some days we surpass that mark and lock-in returns of over 3%.
The ‘First Hour’ Day Trading Alert Service is a time-tested system based on extensive in-house research and proprietary analytical tools. The service consists of two phases:
1) Stock Selection Process:
After scanning the markets, we identify and select a series of stocks that are likely to be overbought/oversold at the opening bell. Using our proprietary analytical tools we run this list through yet another filtration process to further narrow the selections. Manuel identifies the two stocks that exemplify the most promise and profit potential. An alert is then posted in the Trading Chat Room between 9:15 am and 9:25 am EST. This message will disclose the name of the 2 selected stocks, as well as rate them on a scale of 1 to 10 based upon their eligibility.
2) Day Trading Activity
The goal here is to choose an appropriate time to buy/short-sell, and then sell/cover when you’ve locked-in at least a 1% gain. Let the other half ride until you’ve secured a return of 2-4%. If the position should unfavorably move against you by 1%, then be sure to close it out immediately.
In most cases, Manuel will enter the positions within the first 2 minutes of trading, as the targeted stocks tend to reach their peak (for short-selling) or bottom (for longs) during this period. He will exit these positions typically between 9:35 am and 9:50 am EST.
First Hour’s trade performance has yielded positive gains 83% of the time since its inception in early 2004. Our goal is to gain at least 1% of our trading funds per session, but some days we surpass that mark and lock-in returns of over 3%.
A couple of years ago, we set a goal of developing a day-trading system with a high and consistent success rate. This was to meet the incessant demand by clients who wanted a competent day trading system - one that they could use along with Portfolio Crafter Model Portfolio - that required less time at the computer, and one that would produce even more profits.
Between 9:15 am and 9:25 am EST, an Instant Message (IM) is sent with the name of 2 stocks and a rating from 1 to 10, based on the eligibility of the stock. 95% of the time, we enter the positions within the first 2 minutes of trading. It has been seen that these kind of stocks reach their peak (in the case of short sales) or reach its bottom (for longs) right in the beginning. The exit time, is usually between 9:35 am and 9:50 am. A second window of opportunity generally opens between 9:45 am and 10:00 am.
We aim to gain at least 1% of our trading money per session. Some good days have also yielded over 3% overall gains.
Which stocks do you target and focus on for the ‘First Hour’ Day Trading System?
SolutionAmong the dozens of stock that gap up and down during pre-market hours, less than half of them reverse at some point in the bull trap. A small fraction of these stocks will reverse in a predictable manner, making them qualified candidates for that day’s trading activity. As a result, we’ll divert all our attention to those specific stocks, and make them the focal point of our trading efforts for that particular day.
How much profit can I expect to generate by leveraging ‘First Hour’?
SolutionFirst of all, please note that Past Results are no guarantee of future performance.
Our Past Results since 2004 show an average daily gain of 0.84% or $176.53 a day on a $25,000 account (as on January 22nd, 2006). This last figure reflects earnings AFTER broker commissions. No compound interest is considered. If it were considered, the $ gain would be mugh higher. There are days in which we execute no trades at all (thus, no gains are achieved), and others that allow us to lock-in up to 3% returns.
Which stocks do you target and focus on for the ‘First Hour’ Day Trading System?
SolutionAmong the dozens of stock that gap up and down during pre-market hours, less than half of them reverse at some point in the bull trap. A small fraction of these stocks will reverse in a predictable manner, making them qualified candidates for that day’s trading activity. As a result, we’ll divert all our attention to those specific stocks, and make them the focal point of our trading efforts for that particular day.
How do you determine & know when to enter and exit a trade?
SolutionWe have developed a proprietary analysis tool that empowers us to predict the precise moment at which the targeted stock is going to reverse, with an 83% accuracy rate. This is the moment in which we want to enter a position. As a First Hour member, you would receive an Instant Message from Manuel informing you at which moment & price to enter a position for that stock, ultimately giving you the opportunity to secure that stock in the same timely fashion.
Unlike many other day trading systems, you will also receive an Instant Message from Manuel detailing the exact minute at which you are to exit the position, thus maximizing your profits.
What tools and/or resources must I have access to in order to leverage the First Hour Day Trading Alert Service?
SolutionIn order to effectively leverage First Hour, you will need the following:
Hardware:
A reliable computer with a high-speed internet connection.
Software:
We use TC2000 ( www.tc2000.com ) and Power Etrade Pro, as well as real-time quotes & charting software from www.Money.net.
Discount Broker:
We suggest to use a discount broker such as www.etrade.com or www.interactivebrokers.com.
Recommendation:
We suggest that you gain access to Level II quotes and learn how to read them, as they will give you greater trading insight.
21 Mar 2007
Support Center » Knowledgebase » FirstHourTrading.com » What news source do you use to you conduct your analysis?
What news source do you use to you conduct your analysis?
SolutionWe prefer www.briefing.com and www.marketwatch.com, as they provide granular insight into the day’s public announcements & corresponding market activity.
In relation to First Hour, how do you determine when to exit the final position?
SolutionOur strategy for the first half of the stock is to exit when we’ve achieved net gains of 1% or more. Once this is accomplished, we will exit the second half of the stock based upon its momentum. Typically, the stocks that we target will trade within a fixed range during the first 10-15 minutes, but later break support/resistance levels and spike in our favor. We’ll exit and take the profits from the second half of the position when the stock starts to lose momentum.
Which orders do you recommend – market or limit?
SolutionWe recommend that you always use a limit order. When you use market orders, there is a high probability that your broker will provide you with the least favorable fill.
Is the 1% stop loss based on our fill, or your entry point?
SolutionThe datum for your exit/entry should be your fill, so the 1% stop loss is based on that.
What is the most effective way(s) to leverage your ‘First Hour’ Day Trading Alert Service?
SolutionAll our members tend to open positions within the first 2 minutes of trading based on the Instant Message that we distribute during pre-market hours. However, our more experienced members will leverage our pre-market alert to determine exactly which stocks to focus on, but rely upon their own personal trading intuition to enter a position well in advance of receiving our actual trade alert.
The majority of our other members attempt to enter a position as fast as possible immediately after receiving our alert. They pre-fill their trading windows with the stock symbol and number of shares well in advance, ultimately allowing them to make the trade in an efficient & streamlined manner. With minor practice, it shouldn’t take you any more than 15 seconds to execute.
How should we set our limit order upon entering a position?
SolutionTo ensure that your order is filled, you should set a limit order within 5-10 cents of the suggested entry price. If the stock has moved against us during the time in which you place your limit order, your fill will be more favorable than ours. If the stock moves in our direction by a few cents, then your order will still contain some slippage. Therefore, there will be times in which you will lock-in better fills than us, and visa versa. Overall, the slippage should average out.
Why do you use mental stops/targets?
SolutionWe prefer to use a mental stop or mental target because they provide a greater level of flexibility. By using them, our positions will not seize automatically if the stock reaches the stop price for a brief moment before bouncing back. If we witness the stock reach our mental stop and determined that it’s indeed not a "fake" move, then we’ll close the position immediately.
However, it’s important to note that this requires a great amount of discipline, and may not be suitable for you is you are just starting out. If this is the case, then we recommend that you use ‘hard’ stops instead.
Do ‘shorts’ have greater accuracy & profit potential than ‘longs’?
SolutionOur time-tested and profitable trading experience has led us to believe that shorts are slightly more accurate than longs. This is the reason why approximately 70% of our stock picks are shorts.
Why do you sometimes skip stocks that you previously highlighted in your ‘watch’ list?
SolutionBelow are a few reasons why we may skip one of the stocks mentioned in our ‘watch’ list.
1) There is a large spread between the bid and ask price (i.e. a $15.50 stock may have a bid price of $15.50 and an ask price of 15.65).
2) If the stock breaks through support/resistance levels within the first couple of minutes of trading, then we’re forced to set a new entry price - which many times the stock never reaches. As a result, we end up missing the trade.
3) There are times in which we are overly focused on one particular trade, ultimately causing us to bypass the other stock candidate.
What factors do you take into consideration when selecting a stock?
SolutionWe consider the following factors:
1) The reasons for the price increase/decrease. Two stocks gap up, one because of an upgrade and the second because the company has received a buy-out offer - the first case is better for our purposes.
2) The % of increase/decrease of the stock during pre-market hours. We identify & focus on stocks that gap up/down anywhere between 5% and 20% during pre-market activity. Stocks fluctuating beyond this range are less reliable.
3) Average daily volume. If the stock has a low average volume (i.e. less than 500,000 shares per day), then we pass on it. The reason being it will likely have a larger spread.
4) Charts and technical analysis are the last set of filters. It is during this phase that we determine which 2 stocks (of the original 20-30 pre-selected) will pass our rigorous screening procedures and be our focus for that given day’s trading activity.
The ‘First Hour’ Day Trading Alert Service is a time-tested system based on extensive in-house research and proprietary analytical tools. The service consists of two phases:
1) Stock Selection Process:
After scanning the markets, we identify and select a series of stocks that are likely to be overbought/oversold at the opening bell. Using our proprietary analytical tools we run this list through yet another filtration process to further narrow the selections. Manuel identifies the two stocks that exemplify the most promise and profit potential. An alert is then posted in the Trading Chat Room between 9:15 am and 9:25 am EST. This message will disclose the name of the 2 selected stocks, as well as rate them on a scale of 1 to 10 based upon their eligibility.
2) Day Trading Activity
The goal here is to choose an appropriate time to buy/short-sell, and then sell/cover when you’ve locked-in at least a 1% gain. Let the other half ride until you’ve secured a return of 2-4%. If the position should unfavorably move against you by 1%, then be sure to close it out immediately.
In most cases, Manuel will enter the positions within the first 2 minutes of trading, as the targeted stocks tend to reach their peak (for short-selling) or bottom (for longs) during this period. He will exit these positions typically between 9:35 am and 9:50 am EST.
First Hour’s trade performance has yielded positive gains 83% of the time since its inception in early 2004. Our goal is to gain at least 1% of our trading funds per session, but some days we surpass that mark and lock-in returns of over 3%.
The ‘First Hour’ Day Trading Alert Service is a time-tested system based on extensive in-house research and proprietary analytical tools. The service consists of two phases:
1) Stock Selection Process:
After scanning the markets, we identify and select a series of stocks that are likely to be overbought/oversold at the opening bell. Using our proprietary analytical tools we run this list through yet another filtration process to further narrow the selections. Manuel identifies the two stocks that exemplify the most promise and profit potential. An alert is then posted in the Trading Chat Room between 9:15 am and 9:25 am EST. This message will disclose the name of the 2 selected stocks, as well as rate them on a scale of 1 to 10 based upon their eligibility.
2) Day Trading Activity
The goal here is to choose an appropriate time to buy/short-sell, and then sell/cover when you’ve locked-in at least a 1% gain. Let the other half ride until you’ve secured a return of 2-4%. If the position should unfavorably move against you by 1%, then be sure to close it out immediately.
In most cases, Manuel will enter the positions within the first 2 minutes of trading, as the targeted stocks tend to reach their peak (for short-selling) or bottom (for longs) during this period. He will exit these positions typically between 9:35 am and 9:50 am EST.
First Hour’s trade performance has yielded positive gains 83% of the time since its inception in early 2004. Our goal is to gain at least 1% of our trading funds per session, but some days we surpass that mark and lock-in returns of over 3%.
A couple of years ago, we set a goal of developing a day-trading system with a high and consistent success rate. This was to meet the incessant demand by clients who wanted a competent day trading system - one that they could use along with Portfolio Crafter Model Portfolio - that required less time at the computer, and one that would produce even more profits.
Between 9:15 am and 9:25 am EST, an Instant Message (IM) is sent with the name of 2 stocks and a rating from 1 to 10, based on the eligibility of the stock. 95% of the time, we enter the positions within the first 2 minutes of trading. It has been seen that these kind of stocks reach their peak (in the case of short sales) or reach its bottom (for longs) right in the beginning. The exit time, is usually between 9:35 am and 9:50 am. A second window of opportunity generally opens between 9:45 am and 10:00 am.
We aim to gain at least 1% of our trading money per session. Some good days have also yielded over 3% overall gains.
Which stocks do you target and focus on for the ‘First Hour’ Day Trading System?
SolutionAmong the dozens of stock that gap up and down during pre-market hours, less than half of them reverse at some point in the bull trap. A small fraction of these stocks will reverse in a predictable manner, making them qualified candidates for that day’s trading activity. As a result, we’ll divert all our attention to those specific stocks, and make them the focal point of our trading efforts for that particular day.
Tuesday, March 20, 2007
Monday, March 19, 2007
In the Begining
Well... Welcome to Femi Ks blog.. I really do not know what to post now as it is exactly 11:53pm and I just feel this is task I must have completed this evening before going to sleep. Now I am done. See you tommorow.
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