Note: If you are trading the US market that day, we recommend viewing
after 9 am in case an update has been posted.
Note: On some active market days, we may change our number intraday. I
recommend while waiting an alert price or time entry or even a day or position
trade, especially in the afternoon, it often pays to check our webpage just
before entering a trade to see if we have adjusted our numbers slightly up
or down.
The two most useful data indicators we are currently offering are our astrological calendar and Daily SP position number and risk to both long/short trading positions . Our calendar highlights key dates from an astrological perspective when either market turns are likely, or key support and resistance prices are likely to be tested. Our SP position number (1-3) indicates the strength of our call. Should you own position be contrary to our view and our call is a 3, this represents maximum danger to your position. Similarly, a High risk position should be watched carefully and have a sufficient potential reward to warrant the risk involved.
TIME
If an intraday time is given, this is usually safe for the given trade.
Otherwise a time entry is +/- one time unit; a date entry +/- one day.
PRICE
Exact numbers usually need to be touched, much like gaps need to be fulfilled.
Target range numbers are approximate, and just the zone reached to justify
entering or exiting a trade.
Note: (X,Y) = We would consider buying at X or better,
and selling or shorting at Y or better. (X,Y,Z) = We would consider
buying at X or better, selling at Y or better and shorting at Z or better.
We view Stops as primarily decision points about whether you are wrong about the market as much as money management. The main point of any stop is TO STOP AND ASK THE QUESTION: Would I buy this stock NOW?
Most stops given in our trading area are end of day. However, as I am watching a trading screen continuously, we may over-ride a stop point if we feel market action and forecoming astrological influences so justify.
The use of stops varies with each trader and investor. Just as you
should have a trading and investing plan for each purchase IN ADVANCE, so
too should you have a defined EXIT strategy.
Because I am usually staring at market screen from 8:30 to 4:15 pm, stops
are mostly WARNINGS points for me to question my trade. I re-ask "would
I buy this position NOW?" If yes I hold, if no, I exit or closely stop
depending on my "feel" of the day's market activity.
FLUID VS FIXED STOPS: Mine are fluid, this is the time I begin to
worry about my position.
EOD VS INTRADAY: My stops are usually end of day. They can be
executed intraday if I project the EOD position to be more costly than a current
exit.
SYSTEMATIC VS DISCRETIONARY: I am primarily a discretionary player,
and can overide a stop one time period (overnight) if my projection for
the next stay is STRONGLY in the direction of my trade.
Since most options player lose money, they should be bought sparingly. We find OEX options are best for day trading and occasional overnight holdings, while longer time moves, it is best to use STOCK options, where there is less time decay. We do not recommend using options on days with positions of 1, and are most likely to make money on P3 days.
Ideally, option trading is a combination of focusing on options that:
1) Have a HIGH profit potential
2) Low Risk
3) Short Time frame
They are usually most profitable if bought when at P1 if in the direction
of the trend or P3 positions ahead of a forecasted trend reversal.
1. Cadbury number using the cash S & P 500 - SPX.
2. Stops given are intraday, not end of day.
3. Short Term: under two weeks, Intermediate Term: 2-8 weeks,
Long Term: Over 8 weeks.
4. Christopher Cadbury uses sentiment, momentum, relative strength,
and trading characteristic indicators. Chief among the sentiment indicators
is the option premium ratio and the equity put-call volume ratio. Several
dozen other indicators are used, too.
5. For sample reports see Cadbury or subscribe at
Cadbury Subscriptions
BEFORE YOU ENTER INTO ANY TRADE, DETERMINE IN ADVANCE:
1. HOW MUCH MONEY YOU ARE WILLING TO RISK LOSING
2. WHAT TIME FRAME YOU ARE TRADING
3 YOUR PROFIT TARGET
4. WHETHER THE RISK/REWARD AND PROBABILITY IS ACCEPTABLE
A. TRADING RULE ONE: NEVER PLAY AGAINST YOUR SELF! Use WSNW Alerts as
a second opinion or signal confirmation of your trading system.
Note 1: If you break Rule A, do it only for one day ( and night), unless
the trend is your friend.
Note 2: If you believe our views are counter trend, don't play or play only
P2 and/or P3 positions to reduce risk of loss. Similarly, buy options only
at P2 or P3, while futures or stock buying and selling can be done at P1 using
appropriate risk/reward parameters and money management.
B. PLAN AND IMPLEMENT PRECISE ENTRANCE AND EXIT STRATEGIES
Note: I may personally recommend a position long term like Korea (KF) and
hold it in our UIT, while simultaneously selling Korea or the KF at a trading
top in our Global Opportunity Hedge fund. We may advise a day trader to exit
put options, while suggesting an intermediate term trader add to his/her short
positions.
C. Break rule 2 ONLY when market conditions justify it, and ONLY if you can afford the additional possible losses.
Q: In your "Daily Market commentary you refer to the DJIA and SPX.
How do you trade these indexes? Are you trading options on them? How does
it work? Up to this point I have only been trading stocks.
A: I personally like to trade future contracts (indexes) over most
options. Something like 90% of all options expire worthless. So unless
a major linear move, I prefer cash. As a Series 3 CTA (Commodity Trading
Advisor), I trade a variety of instruments depending on the client.
However, I cannot stress too strongly the need to practice, practice, practice
any market extensively BEFORE committing REAL money. Your synastry
with futures may or may not be good. Find out BEFORE you lose money.
When I give SPU as well as DJIA markets in our commentary, this can be one
broad general signal to buy or sell whatever instrument you are using.
If you are interested in the high risk/high return world of futures trading, the best place to start is to open a "virtual" account at CME Online live simulated Trading Program. This starts you with $50,000 play money. For $24.95 to $34.95 a month, you get Real-time prices, Real time accounts status and EXPERIENCE.
Q: Desperately looking for where any stop instructions were noted....
A: We don't give them. That is up to you as we have all types of traders
using our material.
Stops points depends on whether you are a day or positional trader, whether
hedging or speculation, whether this trade agrees with your trading system
or is contrary and most important, what instrument you are using: Options,
Futures or Cash. If you are trading say options, are they stock and
index options, in the money and out of the money, near and far out options
- all have different time and price decay.
If you do not yet have an established trading system that you double or
triple screen with our work, I would suggest initially using the standard
3-1 R/R, that way even if you are right only 1/2 the time you make money.
READER: You said: "If you do not yet have an established trading system
that you double or triple screen with our work, I would suggest initially
using the standard 3-1 R/R, that way even if you are right only 1/2 the
time you make money."
R/R is risk/reward, but what is the standard 3-1 you refer to?
HW: If you have a profit target of 6, use a stop of 2 (1/3 of 6). With a
profit target of 300, then use a stop of 100 (1/3 of 100) etc. Because
I am constantly watching a screen, I use "end of day" stops.
If your stop is too tight and could be hit without invalidating the trade,
you should not enter into the trade UNLESS the probability of success if
very high.
READER: In the daily market commentary under the Market watch section,
Do your #'s refer typically to: a week ahead, a month ahead..? For instance,
the resistance levels for the NASDAQ of 2800, 2940 and 3000, are they within
next week or next 30 days etc?
HW: The next trading period, often a week, but can be one day or two weeks
or more. There are reviewed daily as you may note.
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