Learn trading basics -Look at this chart-move mouse

Gents,

Learn trading through basics takes you long way!

See these charts below



simply moove the mouse over the chart

you see new things.
just investigate what these new things are.

What you need to do?
Action plan

PART-A LEARN BY OBSERVATION JUST LIKE A KID BY SEEING EXAMPLES
PART-B APPLY THE THINGS YOU LEARNT
PART-C TEST IN REAL TIME, CONFIRM VALIDITY,SUITABILITY TO YOU.AND YOUR STYLE.
PART-D IF OK, SUCCESS MORE THAN 70%, USE IT.

First see these charts try to spot breakouts,breakdowns,exhaustion,
then take any chart from yahoo for your favourite stocks and try to spot breakouts,breakdowns,exhaustion,and reasonable stoploss levels.

LINK IS http://www.decisionbar.com/html/screen.html#
AND http://www.decisionbar.com/index.html
---------------------------------------

---------------------------------------
Trade positively using three or four simple things.
1.SPOT Breakouts and trade them
2.SPOT Break downs and trade them
FIND OUT WHEN TO BUY-GO LONG, WHEN TO SELL,WHEN TO HOLD,WHERE TO KEEP STOPLOSS

For stoploss see Jim berg formula
REF LINK


==============================
ABOUT "DECISIONBAR"
What Makes DecisionBar® Different

Here are a few of the things that differentiate DecisionBar from other trading software:

DecisionBar places historical trading signals on your chart exactly where they would have occurred in real time, so you can review them and optimize your trades for current market conditions.

Support and resistance (supply and demand) change from minute to minute. DecisionBar automatically charts and adjusts support and resistance levels in real time.
DecisionBar generates trading signals in real time based on supply, demand, and volume, which means...
1)
Whenever the price of a security breaks a support or resistance line (called a Breakdown or Breakout)... fails to break a support or resistance line (called a Failure)... or appears to have run its course (called an Exhaustion)--you can make a decision whether you want to enter a trade or exit a trade you've already made.
2)
What's more, you can use the proprietary risk oscillator at the bottom of the DecisionBar screen for additional confirmation.
3)
You'll also receive secondary reversal warnings to notify you of potential reversals. These warnings allow you to exit trades that don't materialize before you take a loss.

Now, this next one's a "biggie," and I feel it's important to call your attention to it...
----------------------------------------------------------------------
Some trading software adds buy and sell signals after the fact. The signals are delayed. Then, if they happen to be wrong, the software removes the false signals to hide the evidence of the mistake. But not with DecisionBar...
All buy & sell signals are issued in real time and are not removed once they have been issued.
Yes, you read that correctly. You receive accurate buy and sell signals in real time--they are never removed. DecisionBar Trading Software pulls no punches.

Furthermore, you stay in complete control. Only enter or exit a trade if you feel 100% comfortable with your decision.

Eliminate The Stress Of High-Risk Trades
Perhaps you've been stressed to the max and have had trouble focusing during the day and sleeping at night because you're holding a high risk position. Your emotions are almost out of control.

Once you become a DecisionBar member, you too will enjoy what it's like to be in low risk/high potential trades. It's a wonderful feeling compared to the "old way" of picking trades.
The DecisionBar methodology, which is spelled out clearly in the 77-page trading manual that is included with your membership, is low risk. By following my advice, you'll never risk much money on any single trade... but you'll position yourself for big upside movements. Because the DecisionBar methodology is low risk, your whole trading experience is low stress.


===========================
Ramesh151 SAYS this, read and remember,

Trading is of course by chances, but by practice,you learn to maximise your winning chances, and learn to minimise your loosing chances,learn to escape with minimum loss whenever market turns against you.

Nothing wrong if you lost a trade,question is did you make a big loss or not.
If you did not make a big loss,then you are ok,just needs more practice,more paper trading is needed.
iF YOU ARE MAKING BIG LOSSES CONTINUOUSLY,THEN YOU ARE NOT READY FOR THE MARKET, STOP TRADING, GO FOR PAPER TRADING.
just do this simple thing
Take a chart in a time frame you like.
think that the market just opened now at 10am, you close rightside of chart witha paper. and slowly plan your trading action, by moving paper towards rightside slowly,imagine you are getting to know the market price as time is passing.
write down your actions, trade from 10 to 3-30pm using yesterday or past month chart,
remember at 11am, you can see charet only upto 11am. rest is covered and you cant see it.

do this with different charts
analyse your actions
ask yourself can i maximise profit, minimise loss?
if answer is yes then go to real time trading.
Now trade without money
you act asif you are trading with money
record your actions
find out where is your weakness
try and fix it

repeat exercise in real time chart,without money
then you decide
-------------
Happy trading
Ramesh151


Record all your trades real or fictitious,
ask yourself
1 Was it a low risk entry? is the entry near a support for buying and near resistance for short selling?

2.WAS THE REWARD TO RISK RATIO GREATER THAN 1.5?
3.DID i PLAN A STOPLOSS AS i ENTER THE TRADE?
4.DID i IMPLEMENT THE STOPLOSS?
5.DID I USE A POSITION SIZING FORMULA?
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Tradestation add on indicators- Ts-3 NEXGEN

GENTS,

HAVING A GOOD SOFTWARE, having Good Indicators minimises your hard work and struggle.

Tradestation 2000i is one of the best things, with an inbuilt server and a radar screen that picks any changes in trading weather asap.

One of the fastest ways to learn trading through watching videos.

Look at NEXGEN site and guidance area.

http://www.nss-t3.com/guide.htm

Best of the lot is

T-3 ABC plot trends - by James Garza

fOR EXAMPLE

LET ME ASK
"WHAT USE IS THIS VIDEO?" "WHY SHOULD i WATCH?"
lET US SEEYou might have heard of fibonacci areas,levels.
you have seen a past trend and drawn Fibo levels.
nOW THE BIG QUESTION APPEARS,

which of these levels are valid and which are not valid?Watch this video and it tells how to find out which fibo levels are valid,and hold in reality.
Which become support or resistance?
see
SEE LINK --Should a Fibonacci area hold or break?



to continue later

Day trading stocks preparation,training resources

please visit
http://www.geocities.com/daytradingtutor/7-day-trading-steps.htm

http://www.geocities.com/daytradingtutor/money-management.htm

try paper trading with a simulator
http://www.geocities.com/daytradingtutor/currency-day-trading-form.htm
Learn basics first
http://www.geocities.com/daytradingtutor/daytrading-basics.htm
mOST IMPORTANT
hAVE A CLEAR TRESTED STRATEGY
http://www.geocities.com/daytradingtutor/day-trading-strategy.htm

--------------------------------------------------------
General
precaution zone

Trading needs,most importantly, [B]solid preparation[/B],at least the night before.
[B]It is not a 20 minute preparation, much much more.[/B]

A study and plan,visualizing where the leading stocks would move most likely, and a [B]counter perspective,preparatory approach to plan rescue in case it moves exactly opposite way.[/B]

[B]Proper identification of trend is must[/B].

[B]Confidence[/B] is top priority, based on [B]previous testing of strategies that are going to be deployed.[/B]

Weightage? my guess?
preparation=30% trend=25%, confidence=45%

[B]Anything else can help?[/B] [B]Apart from having enough capital,[/B]Tradestation 2000i, with its radar screen,preplanned alerts
Anything else?
[B]POSITION SIZING AND RISK CONTROL[/B]
[B]keep position sizing OPTIMAL,reasonable[/B],(SAY 5% OF TRADING CAPITAL)
[B]Try for good reward/risk ratio [/B]say 1.25, or 1.5 or much more,possible.
Try always for [B]Low risk entries,[/B]PREFERABLY [B]enter close to support zones so that in case of things getting worst,risk is minimal as you escape near support level[/B]

What iS IN A NAME? eVERYTHING cALLED SUCCESS!!!

-----------------------------------------------------------------------------------
gEntlemen,

The letters in your name can work magic and success!!!

One or two examples.
The letters in your name can work magic for your luck!!

A R RAHAMAN has now nitials A R R tHESE GIVE LIFT, super lift to him
Before he had a hindu name called DILIP, somehow it never clicked.
change in name did what?
He had beaten ILLAYARAAJA and made the producers run after himself,Illayaraja went out of business practically. There is no looking back.today he is the king,language no bar.
check others in A R series
ARUNDHATI ROY,ARINDAM CHOWDARY etc

Film star RAJEEV BHATIA had a struggle till he changed name to AKSHAY KUMAR,then no looking back.

look at R K
Rama Krishna
RAJ KAPOOR
RAJ KUMAR
RAJENDRA KUMAR
RAMYA KRISHNA
Some unsuccessful exceptions were there like Raj Kiran,Randheer kapoor

K K
kARSHMA KAPOOR
KAREENA KAPOOR
SINGER K K


N T R

Nandamuri Taraka RAMA RAO
NTR
NAYAN TARA NTR

M B
Mahesh babu
Mahamad Barwani
Mahesh Bhoopathi

L V

L V PRASAD
LAS VEGAS

R R
good
R B Does not work well
Film star rajeev bhatia
film star ramesh babu-failure-even being brother of mahesh babu,being son of star KRISHNA, he turned a flop.

R V works
R venkatraman ex vice president of india.

V V GREAT, IT WORKS

---------------
Moral choose your name initials carefully, if choosen wrong change it before 25 or 30, then prosper!!!!!!!!!!!

Secrets of masters-TRADING GAME

-------------------------------------------------------------------------------------



GentleMen,

Wise men learn from others experiences (or planned scenarios), while fooolish wait for their own experience.

In trading, people make same mistakes over and over, and refuse to learn from mistakes.In this process money is lost.
-----------------------------------------------------------------------------------

http://www.iitm.com/pos-siz-game.htm
CLICK ON LINK at the bottom or use url given above

Here a trading game is given by playing which again and again,people are educated
about position sizing-the game designed by VAN THARP.

----------------------------------------------
People are always looking for the "real" secrets of trading success,

but their mental biases always have them looking in the wrong places and at the wrong things.

Consequently, they search for magical trading systems with 75% accuracy or better or for great entry systems that they think will help them pick the right stock. Picking the right stock has nothing to do with success and neither does the accuracy of your stock picking.

##############################################################################
Practically all Market Wizards agree that the key ingredients to your success are:

(1) the golden rule of trading—"cut your losses short and let your profits run;"

(2) that part of your trading system that tells you how much; and,

(3) the discipline to do both.

When you think about the golden rule of trading, it basically describes exits—how you abort losses and ride winners.

When you think about Position Sizing™, it basically controls how much you risk on any given trade.

Dr. Tharp designed the "Secrets of the Masters™" Trading Game to help you learn the secrets to trading success before you trade the markets.
This game totally de-emphasizes entry or "stock picking" and instead requires that you focus on the most important aspects of trading—Position Sizing™ and letting your profits run. Our new game has ten levels that get progressively more difficult to master. However, once you’ve mastered these principles, you’ll know you’ve mastered some of the key skills to trading success.

Download the game to your computer by clicking on the link above. You will have the opportunity to play levels one through three of the game for FREE.

If you choose to purchase the Secrets of the Masters™" Trading Game, which includes unlimited access to levels 4-10, all you'll have to do is order on line or call IITM at 1-800-385-4486. The entire game is $195. Once you order the game we will give you a personal access code that will allow you to play all levels of the Secrets of the Masters™" Trading Game.
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OPINION

"I have found the game to very helpful, and I’ve played it over and over again with different money management programs. It’s one thing to read about the mind traps that traders create regarding probabilities and the gambler’s fallacy, or to read that random number series can contain protracted winning and losing streaks, but playing a simulation that feels like trading really drives home the lessons about disciple, systems, and expectancy. Playing the game over time helps reinforce the idea that you get the same probability distributions as everyone else, and that your trading plan will need to address this fact through money management, position sizing, trading rules etc.
"I have found that it also helps you change the way you frame the activity of trading, because the game focuses on systems results and strips away entries, setups and the other false control illusions that traders inevitably get wrapped up in. At first it didn’t feel like trading, because it didn’t focus on the things that I did when I traded, but gradually it

"It dawned on me that I might not be focusing on the right areas. The opportunity to view a trading system as the random distribution of hundreds or thousands of independent trials changed my view about my ability to "change the markets", and focusing on maximizing system outcomes has given me a fresh perspective on trading, systems development, and risk." —Alan Stevens, Boulder CO



*********************************************************************************
Just Play the Gameby Melita Hunt

Most of you know that we have a downloadable trading simulation game called Secrets of the Masters, which is designed to help you learn position sizing more effectively.

All in all, it is just a game, yet I am astounded at the number of people that call in trying to “get it right,” analyzing it and wanting to “learn what to do properly” versus just playing the game.
The game is designed to be experiential,

which basically means

that you just play it over and over again (without costing any real money) until you get an internal feeling or understanding of the various things that can happen to you in the markets and how your decisions about position sizing affect the random scenarios that you find yourself in. The more you have the experience, the more you learn.

Yet there are so many detailed folks out there who are so intent on getting down into the nuances of how it works, what it should/shouldn’t be doing and trying their best to determine the statistics, numbers and algorithms and what it is likely to do next, that they lose the enjoyment and experience of just playing the game.

I wonder how many people do this with the markets?

Are you a chronic “predictor” trying to get the markets right? Wanting to work out or know what they will do next?
==========================================================
Well I’ve got some bad news for you, the market doesn’t know or care when you enter or exit it. It just does what it does and the answers aren’t going to come until after the fact.
==========================================================
But don’t get me wrong, I absolutely encourage learning as much as you can about trading, but it’s like swimming or riding a bike. The real experience comes when you jump in the pool or take off those training wheels.
And if it’s not trading, then where else is it in your life that you haven’t been willing to just jump in and play the game?

You can contact Melita at mel@iitm.com
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Trading basics
Position sizing, Money management,Trend,entry-exit rules,confidence(state of your mind)

Money Management- A must for trading-Hints

-------------------------------------------------------
Gentlemen,

### First thing first, Education


please read articles at link given here.

http://www.traders.com/Reprints/ArticleList.html

http://www.traders.com/Reprints/PDF_reprints/TC_FINE.PDF



### Second thing:
What is most important for trading?

Preparation:
If you are going to trade tomorrow,prepare tonight.

Next
Money Management is top priority.
MM means how much loss to take, how many shares or futures to buy,how much to invest and how to calculate all that etc
read link

======================================================
Proper trade size=No of shares/futures contracts to buy

FORMULA
Proper trade size= (Risk amount- commission)/(Difference between Entry price and Stop loss price)

Remember, commission=brokerage and taxes
Putting in figures, (500-80)/1.5=280 shares
1.5= difference between entry price and stoploss level, 500 is the risk amount, 80 is the commission

Example
Max risk=2% of TRADING ACCOUNT SIZE,ie, capital per trade
Account size=25000
Risk amount=2% of 25000=500
stock=MSFT
Entry price=60 Initial stoploss=58.5
Difference between entry and stoploss=1.5
Commission per round trip,ie,for buying plus selling=80
MAXIMUM TRADESIZE= 280 shares by calculation
-----------
Summary

we invested in only so many shares,if loss comes it wont exceed 500,our max risk amount.

Amount invested=280shares at 60=16800
See the beauty THOUGH WE HAD 25000 AVAILABLE, WE HAVE CHOSEN TO INVEST ONLY 16800

------------------------
LIMITING RISK TO X% ON EACH TRADE IS THE KEY TO SURVIVAL.LIMITING MAX RISK TO
2% OF TRADING ACCOUNT SIZE IS THE KEY TO SURVIVAL.
wHY X% ON EACH TRADE? bECAUSE IT IS FLEXIBLE,BASED ON SCRIP AVERAGE TRUE RANGE, WE SET THIS X%.

Good luck

Investing tips in India -A Survey by me

Gents,

Agency providing paid investing tips & their validity/reliability

CAPITAFOLIO
Too late-by the time you get the tips the stock is already up -you need to look at sky helpless

Tradersedgeindia NOT WORTH

Indianstocks Under study

Tips4trade Reliable-they say what they mean


Portfolio management schemes PMS

SHAREKHAN PMS TOP CLASS RESEARCH-HIGH RELIABILITY-HIGH QUALITY
RELIGARE PMS RETURNS ARE GOOD-FEEDBACK LIMITED-DEPENDABLE
INDIAINFOLINE RESEARCH IS OK-50% ALRIGHT
ICICI DIRECT I DONT KNOW-ONLY THING I KNOW COSTLY PEOPLE- EXPENSIVE
BROKERS.

100% Return on your trading investments in India

=====================================================================================
Do you get worried about where to invest your funds in short term or long term in stockmarkets?

Here is the perfect answer.

Tips4Trade Google Group

Three steps 1. Join the group 2. Read the tips,note down 3. Implement.

Hello Customers / Members / Traders / Investors / Brokers / Sub-brokers and Operators


10 th OCTOBER 2007

The markets are on a new high.......and sensex crossed mark of 18000 as per our prediction about market........and thanks for your overwhelming response to Tips4Trade......
.our google group crossed mark of 10,000 people in simply last 1 year strong>

Earning profit in stock market is a combination of 3 things



Right Information + Right time + Right Stock = Good profit



We have always tried to help our investors in
picking right stocks
at the right time so
that they can earn good profit and

keeping that in mind we are now planning to revamp our website to guide our customers & Members to get good returns on their investment.


Looking forward to the same response from u in coming future............. :)



Join our google group –tips4trade immediately to get free stock market tips - Intraday call, Delivery Call, Super Call, Swing Trading and Future and Options for Indian Stock Market.
: http://groups.google.com/group/Tips4Trade

You can send Post/Query/General on indian share market too (email us : tips4trade@gmail.com )

Big volume comes first, Big price move follows next

gENTS,


pLEASE visit www.bigtrends.com

see this beautiful video with nice charts.

Did you miss the online seminar
with Bob Lang last week?

You can watch it now!
Simply click on this link to view the video and find out how Bob makes big wins in the GrandSlam portfolio:

http://bigtrends.acrobat.com/p63058608/





MACD and volume spikes can give you an alert of big price moves to come.



good luck

Tradestation 2000i Installation problems-solutions

Gents,


=================================================================================

Tradestation2000i is available at 75 to 100 dollars.(platinum edition in INDIA).

problem-1
INSTALLATION PROBLEMS
During installation, one faces problems,specially during Sp4update and Sp5update.The installation stops after going about 90% complete.

An alarm appears like "% s decompression failed.There is not enough space in TEMP directory"
----------------------------------------------
solution
go to
RUN
type
%TEMP%
then
enter,
you see the hidden Ts files in TEMP, delete all of them ,after careful check,so as not to delete any system files.
now restart pc, install your update pack SP4, it goes zoom.
----------------------------------------------------
Unless the sp4 and sp5 packs are installed, global version is not updated to version 822.
Unless Global server is of 822 version,you canot import real time data for trading from ESIGNAL .

ESIGNAL vesrion 8 is only compatible with tradestation 2000i, so dont install Esignal version 10. and you need an Esignal plugin utility which you can get online or get from esignal people.

Global server
While installing setup, just select server named DBC SUBSERVER, otherwise you cant import data from ESIGNAL data manager.

A tip to have good operation
After use, daily before swiching youtr pc, just go to global server tools, go and click on RUN NIGHTLY MAINTENANCE, it saves lots of problems.
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Trading edge comes from trading basics-not indicators

------------------------------------------------------------------------------------
Gentlemen,

First, let me thank the excellent coach,Sam Seiden, sseiden@tradingacademy.com for his wonderful insight into how trading is to be taught in a practical way.
------------------------------------------------
Objective Rule Based Trading with Consistent Low Risk/High Reward Results - The Online Trading Academy Way
------------------------------------------------
Please visit and learn trading basics.
There are free lessons.
Free Newsletter:
Lessons from the Pros are powerful trading articles covering all aspects of trading, including charting, technical analysis, shorting, taxes and more.
The recent best lesson you can find at



------------------------------------------
Summary:
1)Does your trading lack the "trader's edge" needed to be a consistent winner in the markets?
2)Do you find yourself entering and exiting positions at the very wrong time?
Learn to understand first why most traders fail
If you enter and exit along with the crowds using the charts,indicators and other tools the way they do,you will do what they do-say enter and exit trades with no trading edge.
The Nucleus or core of this lesson is
The whole thing is you must know how to properly identify and utilize support (demand) and resistance (supply).
Then you can become a consistent winner and benefit from those very consistent loosers of two groups who are (a)Never had any trading education (They decide buy/sell based on emotion or (b)second group are the people who have been thoroughly educated, Exactly the wrong way .

What is so special about second group of highly trained traders?

This group is in much worse shape than the first group
because they are walking east and west trying to find the North Pole
and don't even know it.

Now you can guess why 90% of traders fail?
Not due to emotion based trading(new traders and untrained traders), but due to
ignoring the trading basic number one-support and resistance coupled with low risk entry-misinformed folks. Just price chart alone is sufficient to trade,no need of complicated indicators.
-------------------------------------------------------------------------------
In case you cant open links given above, please read lesson below


Objective Rule Based Trading with Consistent Low Risk/High Reward Results - The Online Trading Academy Way
Does your trading lack the "trader's edge" needed to be a consistent winner in the markets?
Do you find yourself entering and exiting positions at the very wrong time?
If the answer is yes, you're not alone.
The good news is that there is a very specific reason why the majority of traders enter and exit trades with very poor timing. Also, the answers needed to fix this problem are far simpler than you may think.
To gain the edge and learn how to stack the odds in our favor, we will go back to the school of basics, not just to review the basic concepts but more importantly to look at them very differently than we have before.
At Online Trading Academy, we know that if we look at charts, indicators, and any other tools used to perform market analysis the same way everybody else does, we would just be entering and exiting positions with them as well which gives us little to no edge.
To gain the consistent edge which means low risk/high reward entries, we must first have a solid understanding of why most traders fail.
Second, realize that moves in the markets are driven by mass psychology and the pure laws of supply and demand.
Third, know how to properly identify and utilize support (demand) and resistance (supply).
Finally, we need to be able to see what this looks like on a chart and also have an objective and mechanical set of criteria for execution.
Today, I was teaching the Online Trading Academy Professional Trader Part 1 and 2 class in Houston Texas . It's now day six of the seven day class and for me, day six is always my favorite. The reason it's my favorite day of the class is because this is when I can really see the students trading the markets the way I have been teaching them all week. They tend to do well on days four and five but by day six, most are trading very well and having a blast doing it. While it's fun to trade and make money, by day six, they realize they have been taught the rules for obtaining consistent low risk/high reward profits forever, not just a strategy that will work in certain market environments, and break down in others.
They understand now that
when you have a solid understanding of pure supply and demand coupled with objective and mechanical rules for analyzing a chart and trading, you are able to perform the same in any and all markets, and market environments.
As I mentioned before, most people lose consistently in trading. There are two groups of consistent losers and it's important that you get to know them well. I will explain why in a minute.
The first group is the group who has never been educated in trading. This group tends to make buy and sell decisions based on emotion.
The second group are the people who have been thoroughly educated, the wrong way .
This group is in much worse shape than the first group
because they are walking east and west trying to find the North Pole
and don't even know it.
They don't know it because they are following the rules they were given and likely paid for so how can the education be wrong? It must work! Think again... The problem is that the foundation of their strategy and training is fraught with lagging indicators and oscillators that only increase risk, traditional chart patterns that are better served with a frame around them on your wall, and tons of illusions given to them by those who have more to gain by obscuring reality .
Let's go back to school and re-learn some basic concepts you may have already been taught, the wrong way.
The reason I said that you had better get to know the consistent loser very well is because these people are the ones who provide income for the consistently profitable trader.
Let's explore this by looking at three trades taken today by students in my class trading real Online Trading Academy money, using objective rules based on the laws and principles of supply (resistance) and demand (support).

This student sold short at the circled area.
Example1
The trading platform inserts the little green line at the entry price. The student inserted the blue lines to identify the objective supply (resistance) level. As price was rising for shares of ADBE, my student was waiting for price to come up to his level so that he could sell short. He only wanted to short at his predetermined level for the following reason...
This reason is the key to a proper foundation when buying and selling anything. It's the difference between consistent profits and consistent losses.
When price came up to his supply level, intelligently he sold short to the buyer who was buying AFTER an advance in price and at a price level where SUPPLY EXCEEDED DEMAND.
The laws of supply and demand ensure that the buyer of anything who takes this action will lose consistently.
The student who made this day trade gladly sold to this ill-informed buyer. Shorting at the turn in price means your risk is very low and your reward is very high. The longer you wait to short from the level, the higher the risk and lower the reward. We will revisit this topic in the weeks to come.

The supply level here in ABAX again represents temporary price stability which gives the appearance of supply and demand equilibrium. The price drop from that level tells us objectively this is really a price level where supply greatly exceeded demand. Therefore, if and when price revisits this supply level for the first time, we can say that price is revisiting a level where supply greatly exceeds demand.
In any market, when price is at a level where supply greatly exceeds demand, prices decline.
Example2
Again, another intelligent student in class sold to a buyer who was buying AFTER an advance in price and at a price level where SUPPLY EXCEEDED DEMAND.
His short entry was at the circled area. Mind you, this is a daily chart and a huge low risk gain in a short period of time.
What I impressed upon the student was the fact that while the gain was nice, the most important part of the trade was the low risk entry taken to obtain that gain.
An Observation...
I have been trading and providing trading education for many years.
One of the most important lessons I have learned is that most people can't follow simple rules.
I can hand someone quality trading tools and a mechanical set of rules on a silver platter but if the foundation of their trading belief system is faulty, they will not be able to follow or execute the simple rules.
The problem is that they succumb to illusion filters they don't even know are present. These illusion creators can come in the form of lagging indicators and oscillators, market or economic news, so-called professional's opinions, green and red candles on your price charts, and so on.
This leads to falling for what I like to call, "the illusion trap".

At Online Trading Academy, our objective is to not only teach people how NOT to fall for these traps but also how to get paid from those who do with a set of objective rules.
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The consistent looser pays the consistent winner in the markets and the winner uses the right timing of entry exit based on support-resistance (demand-supply).
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TRADING BASIC NUMBER ONE TO BE A CONSISTENT WINNER IN TRADING

IDENTIFY DEMAND(SUPPORT) AND SUPPLY(RESISTANCE) BALANCE, SELL AT RESISTANCE,BUY AT SUPPORT (Loosers do exact opposite)

What makes a Winning trade? trend,entry-exit,confidence

Ramesh,

We have all felt the jubilation of a winning trade. What makes the
difference between a winning or losing trade? Is it timing, luck, or skill?

Whatever your trading tactic, I suggest watching this streaming video
that gives insight on what makes a winning trade. This could help you
put the odds in your favor:

http://broadcast.ino.com/videos/winningtrade/?WK929

See 4 real-market examples that show how technical analysis and good
old common sense combine to make a winning trade. Watch it for no cost
and no registration here:

http://broadcast.ino.com/videos/winningtrade/?WK929Great Trading and Good Luck,

Adam Hewison

Music Love song Tamil-Engae enadhu kavithai and others

================================================================================
List of songs
1.Nan thediya kavithai- TAMIL song

2.Meri NAZAR hai tujhpe- hindi song from moovie " The burning train"
EAST or WEST Which is best? Everything is as good.Even music wise
http://www.youtube.com/watch?v=GKNNC1rxu60
3.My favourite song in telugu
http://aakasavani.com/2007/07/28/jeevitham-saptasaagara-geetam/
Video available in google video.
Moovie Chinni Krushnudu, singer Asha Bhonsle, Music R D BURMAN, Actors Ramesh babu, Khusboo
4.Deewanon ko pata hai - hindi song

http://www.youtube.com/watch?v=-H5RTYVxA8U

-------------------------------------------
NICE VIDEO
http://www.youtube.com/watch?v=ArFpAumxUDo


Tamil Song - Enge Enathu Kavithai - Naan Thediye Kavithai
-----------------
Lyrics lovers: Song means
The romantic poetry I have been searching has come in the form of a beautiful girl,and the beautiful girl I have been searching for has brought the nice romantic poetry
--------------
Moovie name:
YENGAE ENADHU KAVIDHAI -
TAMIL LYRICS
Song: Naan Thaediya Kavidhai
Singer: Sujatha, Bharathwaj
-----------------------------
naan thaediya kavidhai
oru peNNaay vandhadhu
naan thaediya peNmai
oru kavidhai thandhadhu


rojavin vaNNam kenjum
nadai poattaal annam anjum
nilavukkum ivaLai kaNdaal
vetkam dhaan vidaiyaay minchum
yaaro yaaro ivaLdhaan yaaro


(naan thaediya kavidhai...)


aRiyaadha nesathai aRindhaenae unnaalae
idhu poalae innaaL varai unadhaaga sugamdhaanae
kaNmoodi paarthaalum un nenjam therigiRadhey
enakkuLLum karuvaRai uNdu adhu unnai sumakkiRadhey
vizhi paesa vaarthai edhuvum illai kaadhal kasikkiRadhey
uyiraaga neeyum vandhaay vandhaay idhayam karaigiRadhey
sila neram iLamai iLamai yutham seigiRadhey


(naan thaediya kavidhai...)


vaan vaanam veezhndhaalum en kaadhal un pakkam
adhai neeyum aRindhaal poadum vaeRillai en soRgam
unai paartha pin dhaanae ulagai naan aRindhaenae
sila naeram ennai naanae nesithum magizhndhaenae
en kaadhal undhan sondhan endru neeyum sollvaaya?
en nenjin aasai nooRu illai ondrae aRivaaya?
iru uyirin idhayam ondru enbadhu purigiRadha


un kaadhalai thaanae naan kadavuL enbadhu
nee thaediya kavidhai un swaasam aanadhu
idhayathil innoru idhayam puthidhaaga poothadhu udhayam
unai kaNdaal ennuyir sidhayum
kaadhal dhaan sonnadhu adhaiyum
yaaro yaaro nee dhaan yaaro


(un kaadhalai thaanae...)


http://www.youtube.com/watch?v=ArFpAumxUDo

===================================================================================

Part-2 LONG TERM INVESTING-SCALE IN

Part-2 Long Term Investing With Trailing Stop
JDS Uniphase:

A Perfect Run-Up in the Stock MarketAnd now we've come to our quintessential example of the power of the trailing stop: JDS Uniphase.

Even though the story is almost five years old, it defines the profit-making power of trailing stops like no other.

In March of 1999 we heartily recommended JDS Uniphase. We said then that "it would be the company that would create the next great fortune," and it "is one stock investment that you don't want to miss." We placed the normal 25% trailing stop on it. It turns out this was sage advice, as the stock had a perfect, even breathtaking, run-up.

It rose from our recommended price of $10.95 (split adjusted) to $110.12–a whopping 905.66% in 14 months.

But amazingly, during that entire stretch, the stock never had a real pullback in the market. Without the 25% trailing stop strategy, it would have been tempting to sell some or all of it at 100% or 200%. Had we done that, we would have missed out. When the stock reached $150 we were still in it, and subtracting 25%, the lowest price we would sell this stock would be $112.50.

As it turned out too, $150 was the high point for the stock. Of course we didn't know this at the time, nor did anyone else. But that's the great thing about the trailing stop system–it takes the "guesswork" out of trying to determine a stock's value. We let the market tell us when the run is over. The trailing stop system always keeps us from losing our shirt and always locks in our profits when a stock has had a significant gain.

How many times have you heard of investors saying they made 100%, 200% or more–only to give it all back when the stock corrected? That's not happening with our system–sure, we may give back a little, but we're always locking in profits on our winners. If JDS Uniphase had continued to rise above $150, we would have been along for the ride. But in this case, $150 was the top, and it gives one a great feeling knowing that even if the worst were to happen–a stock collapse–we would have a huge 905%+ profit. That's the beauty of the 25% trailing stop strategy.

The Rest of the Story–Don't Buy and Hold

JDS Uniphase also provides a dramatic example of the benefits of our system versus the perils of holding and hoping. As we said above, we took more than 906% profits from this investment. JDS was a grand slam for us. Unfortunately, for investors who don't use a trailing stop strategy, JDS is also the perfect example of the "big fish that got away." From its high of more than $150 per share, the stock has plummeted. As of July 2004, JDS was trading at a little over $3.28 per share–that's about a 97% drop from the high.

Use Daily Prices in Your Stock Market Investment Strategy

We use end-of-day prices for all our calculations, not inter-day prices. You should too. This makes things easier.

If a stock has gone to $100, put a mental stop at $75. If, subsequently, the stock closes at or below that $75 level, sell your shares the next day. The Oxford Club's web site features daily updates and posts on our recommendations. The instant one of our stocks triggers our trailing stop, we immediately post notification on the web, so that you can take immediate action. This means that you don't have to follow the stock yourself or worry about when you should sell. Remember, the key is discipline. This is a good technique. Stick to it. Choose a broker who understands trailing stops and will do the work for you. Stock Market Investment Advice You Can't Afford to Miss Out OnIf you use a discount broker or trade on the Internet, there may be times when you are moving your stop up each day–even when you are on vacation (that's a great problem–it means you're making money). We know that most people need time away from the stock market to recharge their batteries. Each person has to decide whether it pays to go with a full-service stock broker who can run their investments for them. To help with this decision, we initiated our Oxford Club Safety Switch e-mail service. Now, any time one of our recommendations hits our trailing stop, we immediately alert our members via e-mail. One thing about life is certain: You are never going to know the future. Nobody–even the most astute analyst or investment advisor–can know enough about a particular company, industry or the nuances of the stock market to anticipate with 100% certainty the future price of a stock.

But common sense dictates two investment fundamentals:

1) Taking small losses is much better than taking big losses.

2) Letting your profits run is much better than cutting them off prematurely.

Using trailing stops is the best first step you can take to greatly improve your portfolio's return. Follow this time-tested technique of the world's greatest investors and your investments will outperform those of your friends, neighbors and even your fund managers. This is the first step to having a coherent, reliable system that will let you sleep at night and give you the satisfaction of knowing you're maximizing your profits. Once you apply trailing stops, you'll be that much further ahead of the ordinary investor. Now, you're ready to go to the next level in our 'Stock Market Investment Advice' White Paper–and learn the next secret of the world's greatest investors...

Secret #2: Go With "Low Risk"–And Then Let Your Winners Run

You've learned that the first secret shared by 99% of the world's greatest investors is that they never–ever–allow any one of their investments to rack-up huge losses in the market. We've seen how trailing stops help there.

The other secret is that they always invest in what they call "low-risk" opportunities.

Now, as you'll see, that doesn't mean their stocks or investments carry no risk or that they're not expecting very high gains from these investments. Quite the contrary. After all, we can't make 30%, 50%, or 70% each year if we have our money in savings accounts or money market funds. Those are low-risk strategies for your money, but they're also extremely low profit. For the world's most successful investors, low risk means entering only into positions where the probability for high profits far exceeds the possibility of losses over the long run.

They invest their money in such a way as to position themselves for maximum profits while–at the very same time–ensuring that their exposure to serious loss is absolutely non-existent.

A High-Profit Tool for Sophisticated Investors

"Position sizing" is really all about money management. But it's not the kind you use to make sure you have enough money on hand to pay expenses like the mortgage, household bills, college tuition for your children, car payments, etc. The money management connected with position sizing is strictly limited to your investment portfolio. And it's every bit as crucial to your profits as trailing stops and the stocks you choose. That's because this management process tells you how much you should invest in your positions so that you're not risking more than you're comfortable with. Position sizing also helps you when you decide it's time to add to your winning investments–a process we'll discuss in a moment.

Investment Advice in the Form of a Marble Game? At the many seminars he speaks at each year (including The Oxford Club's Investment U), Dr. Tharp illustrates the importance of position sizing by having the participants play an investment game using a bag of marbles... At the start of the marble game, participants are each given $100,000 in play money to seed their portfolio. There are 20 marbles in the bag, each one representing either a losing (black marble) or a winning (white marble) trade. There's one more interesting variable. Sixty percent of the marbles in the bag are winners while 40% are losers. And each marble is replaced after it is drawn. One of the winners is a "10 times winner," and one of the losers is a "5 times loser." Now, the odds of winning in this marble game are far higher than the odds you and I face in the markets. Still, when Dr. Tharp conducts this game with his seminar audiences, more than two- thirds of the participants always lose money. And a full one-third go bankrupt! How is that possible? How can a majority of people lose in a game in which the odds are so heavily in their favor? The answer is very simple: Those who lose money do so because they have no idea how much they should be investing in any one marble draw. They are playing the game without a "system," so they're really doing nothing but gambling. This sort of approach doesn't win the marble game. And, in the real-world investment game, it won't lead to long-term wealth. The key to success they're missing in the marble game– and the strategy you should use in your portfolio–is position sizing. Successful Investing Is Emotionless Investing Just as we saw when we were looking at trailing stops, investors in this marble game lose money because they get caught up in the emotions of investing. During his marble game, Dr. Tharp does just what's needed to push all the "hot buttons" of his audience... For example, after 10 pulls from the bag, he'll ask to see the hands of all those whose play-money portfolios have doubled in value. And a few hands always go up. Of course, when the others in the game–the vast majority–see that a few of their fellow participants have hit it big already, worry and envy enter the picture. And what do you think happens? In an attempt to catch up with the winners, the other participants start increasing their bets. Problem is, when these ill-considered bets turn out to be losers, they're doomed to failure–they dig themselves into a hole they can't get out of.Now, I'll show you how you could win in this marble game. It's the same way you'll win in the real-life investing game– the game that will determine the level of wealth you're going to attain in this life. Here's how you can pursue the very same low- risk ideas the world's best investors go after... First of all, I'm assuming that you'll be following our investment advice and always have 25% trailing stops on your investments. The 25% is our rule–you can chose your own percentage. The most important thing is that you use it consistently! Based on this assumption, for your investments to be low-risk, you should be dealing with odds of at least 2-to-1 or 3- to-1 in your favor, and that means you should be expecting returns of between 50% and 75% on your profitable investments. We arrive at those figures knowing that because you'll never lose more than 25% on any one investment (you'll be stopped out at a 25% loss), 50% and 75% gains represent, respectively, 2- to-1 and 3-to-1 odds. To give you another example,let's say you invest in a stock that you expect to return only 30% rather than 50% or 75%. To keep your investment low risk (and your odds at 3-to-1), you'd have to change your trailing stop from 25% to 10%. Whatever your expected profits, here are two "golden rules" you should follow: Know your worst-case scenario to keep from going bankrupt Determine how much you're willing to lose in any one investment Now we'll see how you would apply these two golden rules to Dr. Tharp's marble game in order to come out a winner. You'd first have to decide how much of your $100,000 you were willing to lose on any one marble pull. Now, because you're adhering to The Oxford Club's 25% trailing stop rule, that decision won't be difficult for you–you know that 25% is the maximum you're ever going to lose. So you would never want to put more than 5% of your money on any one marble–because if you were to pull that 5 times loser out of the bag, you'd hit your stop-loss limit (5% x 5% = 25%). You'd have to start with a bet of $5,000 (5% of $100,000). But what would you do next? Would you simply continue to bet $5,000 on every marble you pulled from the bag? Well, because the odds of this game are heavily stacked in your favor, that strategy would probably mean you'd end the game with more money than when you started. So it would be a good strategy–but it's not the best you can do... To really optimize the profit on your investments–in the marble game or in real life–you should scale the size of your investments to the amount of total capital you have in your portfolio. Our Stock Advice: Always Know Exactly How Much to Invest in the Market for Maximum Profit and Comfort If in the marble game your portfolio had grown from the starting $100,000 to $200,000, and you want to stick with your 5% rule, then instead of investing $5,000 on your next investment, you'd go with $10,000. Your risk stays the same (a $10,000 investment in a $200,000 portfolio is the same as a $5,000 investment in a $100,000 portfolio), but your potential for profit escalates because you have more money in play. Similarly, if you happen to start out with some losses, you only risk 5% of what remains in your portfolio. For your initial investment and for all subsequent investments, you should never take on a bigger risk than you're comfortable with. And you should have a systematic way of investing that ensures that no matter how the size of your portfolio changes, you'll continue to maintain that same risk level.

The advice we give at The Oxford Club includes a strong recommendation that our members never have more than 2% of their capital at risk in any one position. But remember, that doesn't mean that you can only invest 2% in any one position–it means you shouldn't have more than 2% at risk.

To illustrate this 2% rule, let's look at a $100,000 portfolio. I

f you follow The Oxford Club's rules for 25% trailing stops and 2% risk, the maximum you can invest in any one stock at any one time is $8,000. Here's the formula for figuring that out... [(.02 x 100,000)/.25]. Now here it is "spelled out": .02 times 100,000 = 2,000, divided by .25 = 8,000. If you decided you wanted to put less at risk–1% of your capital–our formula would be [(.01 x 100,000/.25] and your limit would be $4,000 in any one stock. The central message here is consistency: Decide on how much you want to risk... and then stick with that number no matter what. Stay with low-risk ideas... have a consistent exit strategy for the stock market... and you'll begin to make money just like the world's greatest investors.

Let Your Winners Run–"Scale" Your Way to Ultra-High Profits

As a final, bonus secret technique of the world's greatest investors–again from Dr. Tharp–I want to tell you about "scaling in" to investments. The basic reasoning behind this technique is that once you've found a winner, you absolutely don't want to sell it. Instead, you want to put more money into it...

So far we've seen exactly how your portfolio will benefit from strictly following The Oxford Club's 25% Trailing Stop Strategy. And you've seen how following position-sizing opportunities keeps your capital safe while letting you rake in the maximum amount of profits available. That's a perfect combination. It's also one that few investors get advice on from their stock brokers. In scaling in, you'll be using a similar rule to what you learned in our look at trailing stops. Only this time, instead of selling when your stock falls 25%, you'll be adding to your investment when–and every time–it rises 33%.

Now let me pause for a just moment to issue a warning... At about this time, average investors will begin to worry. That's because to them the idea of adding money to a stock that's rising is every bit as frightening as selling a stock that's falling. Once again, emotion has come into play, and it threatens to get in the way of your profits. But by this time, you should be beyond that.

You've seen how being afraid to sell a falling stock can hurt you, so you understand the negative role emotion can play in investing. What's more, you should be able to appreciate how investing more money into a rising stock can help you... ======================

SCALING UP

One of the best examples that we can use to illustrate the power of scaling in involves the French telecommunications giant, Alcatel. When we first recommended this company to members it traded at a price of $22. We rode the stock all the way up to a 108% gain before selling it on the way down when we ultimately pocketed 78%. The fact that we gave back 25% off the stock's top didn't bother us a bit. After all, every $10,000 our members invested in Alacatel had blossomed to $17,000–and this money was safe from any further erosion in the stock's price. But here's how you could have done much, much better with Alcatel. Rather than just sitting back and watching their winning positions climb, the world's best investors will "feed" their successes more money–so that there's more capital on the table to take advantage of the high profit that will be thrown off by these winning rides. And, of course, they always know how much additional capital to add because they're using the position sizing technique.

As you've seen, our advice is to not put more than 1% or 2% into any one stock market investment or 1% in subsequent scale-ins of that investment. In other words, you put 2% in to start the investment, and then if it climbs 33% for you, you add another 1%... another 33%–another 1% goes in, and so on. I'll illustrate this principle using a very simplified scenario, but I will use a 2% scale-in to emphasize the effective use of scaling in...

Let's suppose that after your initial investment in Alcatel–and for the subsequent 14 months–the size of your portfolio was such that 2% equaled $4,000. That would mean that if Alcatel had gone up 33%, you'd be in a position to feed this investment with another $4,000. As we saw, Alcatel in fact rose 108% after The Oxford Club recommended it. Which means that you would have had opportunities to do three "scale-ins" of $4,000 each. This scenario is played out in the chart above. By adding $4,000 each time this stock went up 33%, you would have maximized your profit from it during the 14 months The Oxford Club recommended it. So instead of a $10,000 investment growing to a very respectable $17,000, your total stake in Alcatel would have skyrocketed to $43,514!

The reason we recommend you wait to do the initial scale-in until your investment has risen a full 33% is that by that point you're guaranteed never to lose any money on the stock as long as you get out at the trailing stop.

Because you'll be using a 25% trailing stop, the very worst that could happen to you at this point would be for the stock to return back to the point at which you bought it–a wash, in other words. An Ideal Profit and Safety Scenario Unfolds... The secrets that Oxford Club Investment Advisory Panel member Dr. Van Tharp discovered are used by 99% of the world's most successful investors, and are now yours to apply to your own investments.

At the end of the day, these secrets–limiting your losses and maximizing your profits–seem to spring from just plain common sense.

The problem, of course, is that common sense is an extremely rare commodity in the world of investing.

Many stock market investment advisors, newsletters, mainstream media financial TV shows, and Internet "gurus" make a living out of complicating the process with their own forms of investment advice, rather than simplifying it. After all, the more complicated they make it, the more mysterious it seems. And the more mysterious it seems, the more it can play on the emotions of investors. And the more emotional investors get, the more they'll turn to these very same self-proclaimed experts for "investment advice." It's a vicious circle. The Oxford Club takes a different approach. It is our hope that you now appreciate the absolute necessity of stripping emotions out of your investment decisions. Our goal is to make investing simple for you. We believe that if you follow a common sense–but incredibly powerful–system of controlling your losses through trailing stops and feeding your winners with fresh capital, you'll find yourself pulling in the kind of profits that will build real wealth for you and your family. Good investing,Alex GreenInvestment Director, Investment U, The Oxford ClubFor more information on the The Oxford Club,

visit http://www.oxfordclub.com/

View the complete Stock Market Investment Advice white paper as a .PDF file.

LONG TERM INVESTING WITH TWO RULES

Gentlemen,

Investing in stock markets has always been a big puzzle.

There is a systematic way to pull profits out over long term

Two rules to be followed are
1. USE 25% TRAILING STOP BELOW YOUR ENTRY PRICE
2. A)SCALE IN AND ADD EXTRA MONEY TO BUY EXTRA STOCK IF IT MOVES UP
2.B) FOLLOW MONEY MANAGEMENT-POSITION SIZING.

READ ALL ABOUT IT AT
http://www.investmentu.com/research/investmentadvicePDF.pdf

Why 25% trailing stop for Long term investing?
Whatever your expected profits, here are two "golden rules" you should follow: 1)Know your worst-case scenario to keep from going bankrupt 2)Determine how much you're willing to lose in any one investment =========================================March 4, 2007 Stock Market Investment Advice "The Two Most Profitable Secrets of the World's Greatest Investors"An Investment U White Paper Special ReportBy Alex Green, Investment Director, Investment U, The Oxford ClubContributors: David Melnik, QC, JD; Michele Cagan, CPAInvesting today is not for the faint of heart. Finding the right stock has never been harder, much less getting truly helpful stock market investment advice. Yet investors keep plunking money down like there's no tomorrow. Why? For one thing, the ease of trading is like a siren's call. No longer is investing a mysterious financial play made by only those in the know. Today, the image of the investor is that of the day trader, an average Joe attempting to amass a fortune from the comfort of his own computer. But ease of investing is only a part of the story... The real reason we keep pouring money into the markets is that we've seen lightning strike before. We were either in on it, and loved the thrill; missed out on it entirely and can't let that happen again; or even worse, latched onto a tech rocket, rode it to the top, then held on until it crashed back down in a blaze of worthless paper. Lightning Can Strike Twice... And We Want In Like you, we know there are winners out there still–but they're increasingly hard to find. So when we do find a profit rocket, we want to be able to grab on to it with both hands and ride it to the stars. Then, just as importantly, we want to know when to get out–so our profits don't burn up on re-entry. That's why we created 'Stock Market Investment Advice: The Two Most Profitable Secrets of the World's Greatest Investors.' In this white paper special report, you will learn about two of the investing secrets shared by more than 99% of the world's most successful investors–the key to letting you squeeze every cent of profit from your winners and to getting out with your profits intact. And you'll learn about a technique used by the world's greatest investors to take your winning investment and ratchet up the profits. Sound Stock Market Investment Advice from the Good Doctor Oxford Club Investment Advisory Panel member Dr. Van K. Tharp is "coach" to the world's greatest investors and traders. These superstars come to Dr. Tharp (he has a three-month waiting list according to USA Today) for stock market investment advice that will lift their profits to even higher levels. He was profiled in Jack Schwager's best-selling book, Market Wizards: Interviews with Top Traders–in fact, Dr. Tharp was the only trading coach included! During the past 20 years, Dr. Tharp has accumulated psychological profiles on over 4,000 investors from all around the globe. To maintain current profile data, he has conducted many follow-up interviews with them. In addition, he has conducted extensive, in-person interviews with many of the world's best investors and traders. Two techniques... were used by a full 99% of these investors. In other words, they disagreed on almost everything else–but a full 99% believed that these two techniques were essential to their success...The goal of all this work was to find the elements of investing success these superstars had in common. What were the things they all did that helped them pull in far more money than ordinary investors? If he could isolate those techniques that were shared by the world's greatest investors, Dr. Tharp believed he could unlock the very essence of investment success. Remarkably, Dr. Tharp discovered that these great money makers had hardly anything in common. They invested in different kinds of stocks, some liked commodities, others favored precious metals, many dabbled in currencies–and almost all had their unique systems for investing. And of course this made the two things they did have in common all the more precious... Dr. Tharp found that out of all the techniques, strategies, and systems these great investors used, only two had strong appeal across the board–but these two were used by a full 99% of these investors. In other words, they disagreed on almost everything else–but a full 99% believed that these two techniques were essential to their success. And these are the techniques we'll be looking at today. Once you've learned these strategies and start applying them to your investments, you will be in the fortunate position of being able to greatly multiply the returns you've been accustomed to pulling in from your investments. One final note before we begin... As with all the individual investment recommendations and strategies you'll discover through The Oxford Club, the two techniques you'll learn about today have been thoroughly analyzed– and have been enthusiastically endorsed–by the entire Oxford Club Investment Advisory Panel. Now–let's start ratcheting up your profits with stock market investment advice and secrets from the world's most successful investors. Secret #1: Never—Ever—Lose Big Money in the Stock MarketBuying stocks is easy. Anybody can do that. The hard part is knowing when to sell. And very few people know how to do that. We've all made expensive mistakes–either missing the full upside by selling too soon, or taking a huge loss by holding a falling stock too long. Let's face it. Most people don't know when to sell a falling stock. So they're frozen into inactivity, saying, "Should I just keep holding and hoping, or should I cut my losses now?" And there's no reliable crystal ball to tell anyone when a rising stock has peaked. The problem that causes both these mistakes to happen is simple: Ordinary investors are ruled by emotions. And the only way you're ever going to join the highest echelon of the world's best investors is to strip all emotions out of your decisions. Greed... fear... worry... nervousness–all these feelings have to go. Here's our advice on how to do it... While you'll never be able to sell at the peak each and every time you invest, or ensure that you never buy a stock that subsequently falls dramatically, there is a secret weapon that is proven to get you the lion's share of any move. ================================================== ===When you buy a stock, you buy it with the intention to sell it for a profit some time in the future. In order to do so successfully, you should put as much thought into planning your exit strategy as you put into the research that motivates you to buy the investment in the first place. ================================================== ==We call this our "Trailing Stop Strategy." All great traders and investors consistently cut losses short and let their profits run, and Dr. Tharp has found that trailing stops are one of the easiest and most effective ways of doing that. In this White Paper you'll see many examples from our own files of actual recommen-dations, ones selected specifically because they show how well this technique works. You'll also see how bad things can be if you don't use it. You, the Successful Investor In business and in the stock market, you've got to have a plan, and you've got to have an exit strategy. At The Oxford Club, we know in advance exactly when we're going to buy and sell. Our strategy allows us to ride our winners all the way up, while minimizing the damage our losers can do. Before I get into our specific strategy, consider this business example. Let's say you're in the T-shirt business. You've made a ton of money on your T-shirt business in the states, and you're now in The Bahamas looking for new opportunities. You size up the market, and you figure you can make money in two places: in golf shirts, geared at the businessman, and in "muscle-tees," geared toward the vacationing beach-goers. These are two products clearly aimed at two different markets. You invest $100,000 in each of these businesses. At the end of the first year, your golf shirts are already showing a profit of $20,000. But the muscle-tees haven't caught on yet, and you've got a loss of $20,000. There are numerous reasons why this is possible, so you make some changes in your designs and marketing and continue for another year. But in the second year the same thing happens–you make another $20,000 on your golf shirts, and you lose another $20,000 on your muscle-tees. Now let's say you're ready to invest another $100,000 in one of these businesses. Which one business do you put your money into? The answer is obvious. You, as a business owner, put more money toward your successful businesses. But as you'll see, this is the opposite of what 99% of individual investors in America do. You, the Successful Stock Market Picker What does "owning shares of stock" actually mean? This isn't a trick question–as you know, it means you're a partial owner of the company, just like you're the owner of the t-shirt company in the example. Owning your own business isn't any different than owning a share of a business through stock. Let's say the shares of your two shirt companies trade on the stock exchange. They both start trading at $10 a share. At the end of the first year, the profitable golf-shirt company is trading for $12 a share, and the unprofitable muscle-shirt company is trading for $8 a share. At the end of the second year, the golf shirt company is trading at $14 while the muscle-shirt company is trading at $6 a share. Which shares would you rather own? Even though you know you should buy the winning concept in this business example, most investors don't do so in their stock investments. They keep throwing good money after bad hoping for a turnaround. They buy the "cheap" stock–the loser.The Best Investment Advice You Never Hear about: The Trailing Stop Strategy In the stock market, you must have a strategy that makes you methodically cut your losses and let your winners ride. If you follow this rule, you have the best chance of outperforming the markets. If you don't, your retirement is in trouble. Our advice is to follow this simple plan: We ride our stocks as high as we can, but if they head for a crash, we have our exit strategy in place to protect us from damage. Though we have many levels of defense and many reasons we could sell a stock, if our reasons don't appear before the crash, the Trailing Stop Strategy is our last-ditch measure to save our hard-earned dollars. And, as you'll see, it works well. The main element to The Oxford Club's trailing stop strategy is a 25% rule. We will sell positions at 25% off their highs. For example, if we buy a stock at $50, and it rises to $100, when do we sell it? When it falls back to $75, or 25% off our high. So with our Trailing Stop Strategy, when would we have gotten out of the muscle-shirt business? You already know the answer. Remember the shares started at $10 and fell immediately. Instead of waiting around until they fell to $6 as the business faltered, using your 25% trailing stop, you would have sold out at $7.50. And think of it this way–if the shares fall to $8, you're only asking for a 25% gain to get back to where they started. But if the shares fell to $5, you're asking for a dog of a stock to rise 100%. This only happens once in a blue moon–not good odds! Advice on When to Buy StockHave you ever seen Coke or Microsoft selling at a single-digit P/E ratio? Me neither. And these aren't isolated cases. The fact is, by hoping to buy super-cheap, you would have missed out on many of the greatest investment opportunities of our time. To make the big bucks in the best investments you'll have to forget "buy low, sell high." The new Oxford Club investment rule is "buy momentum, sell higher." We like to buy companies on the way up. It usually means the company is doing something right. It's equivalent to your golf- shirt business in The Bahamas. Let me explain. Let's say that you and I believe in the idea of a three- wheeled car, and the price of the stock in the company that manufacturers them is at $30... but falling. When do we invest? At $30? $20? $10? $5? We don't know how far this thing will fall. We want to buy when there's some inkling of a market confirmation of our idea. There is no price that's the right price. Take $10 for example. I'd be a buyer at $10 if our three-wheeled car had fallen to $5 first, and then the stock started to take off because Ford was going to take it over. But I'm not a buyer at $10 if it's one stop on the way down–the last stop on that elevator could be the basement. The bottom line is this: I don't want to buy dreams alone–I want to buy dreams that are turning the corner to reality. We've got a complete buy and sell strategy for all–every single one–of our stock positions. Here's How Our Trailing Stop Strategy Works If you do hold onto a falling stock too long, the loss will often be far more than just 25%. And all it takes is one big loss to set an investor back for years. Let's say you start off with $10,000. A year later you've made 25% ($12,500). Same for next year ($15,625), and the next ($19,530). But then after three years of 25% annual gains, the fourth year, you take a loss of 50%. It puts you back below where you started, at $9,766. Now, let's say you had a 25% trailing stop during the year you lost 50%. You would have been stopped out at $14,648. Then during the following three years (when you again profited by 25% each year), your holdings would be $28,600 at the end of that entire seven-year stretch. However, if you didn't have a 25% trailing stop in place, after the same seven-year period, you would only have $19,073, still below where you were prior to the 50% drop! Over the seven years of this example, you'd be up 186%. That's an average return of over 26% per year, much better than you'd think. But pick your own example, and do the math. Look back at your own portfolio. You'll see that cutting your losses is the key to both getting good overall returns and avoiding lost years. Examples from Our FilesThis is best illustrated by some specific examples–real recommendations made by The Oxford Club. And fortunately, the tech run-up and subsequent meltdown provided substantial proof that limiting your downside gives you more capital to invest in your winners. Let's begin with a look at Adobe, the innovative software company on the (then) booming Nasdaq that we enthusiastically recommended. It zoomed up, with no sizable price correction, for 10 straight months. The stock kept achieving new all-time highs. Along the way we kept adjusting upward our 25% trailing stop. Given that we bought in at $31, we kept locking in higher and higher profits. When the technology and communications sectors finally began to correct, Adobe corrected along with them. But thanks to our 25% trailing stop, the worst-case result for Oxford Club members turned out to be a profit of over 81%. =========================================The High Price of "Buy and Hold" Loss and Profit Needed for Breakeven 5% loss needs 5.3% of profit to break even. 10% loss needs a profit in next trade of 11.1% 15% loss needs a profit of 17.6% to remain at no loss no gain 20% loss needs a profit of 25% to break even the above is a tolerable zone-OK TO BEAT IT.now comes ENTRY INTO DaNGER ZONE,BARGAINING FOR MORE LOSS THAN YOU CAN HANDLE-25% loss needs a profit of 33% to be made to break even30% LOSS needs a profit of 42.9% to be made to recover to zero profit level40% loss needs a profit of 66.7% to break even50% loss needs you to make a profit of 100% to break even60% loss on your trades needs you to make a profit of 150% to break even75% loss needs a profit of 300% to remain at no loss no profit level overall90% loss needs a profit of 900% to breakeven=======================================Contrast this approach to the "buy and hold" strategy. The Nasdaq high techs had an amazing run. But when they began to unravel, things got ugly in a hurry. Compare our profit of over 81% to the devastation that occurred among other high-tech stocks during the same 10-month span. Amazon was down 60%, Qualcomm down 63%, Intuit down 66%. Several companies witnessed declines of as much as 90%, and the "buy and hold" crowd held all the way down. That's what can happen when you hold a stock investment with no exit strategy. That kind of loss is hard to recover from. Just look at the chart above, and you'll get a good feel for the kind of long-term damage just one bad stock can do to your portfolio. Hang on too long... and it could take years to recover your loss. In reality, most investors who say they're buying and holding will in fact panic in a bear market, especially a long grinding one. We saw it graphically in 2000-2002–the last bear market.Don't let this happen to you: Use a smart exit strategy that lets you capture the majority of any profits–even a doomed one. ---------------------------------The System Is Not Fool-Proof As good as the trailing stop concept is, it's not perfect. For one thing, in particularly volatile stocks, you can get stopped out at a price much worse than you had hoped for. Take Microsoft as an example. As stories circulated that the Justice Department was proposing a court-ordered divestiture of the company, its shares experienced serious volatility. Before the ruling the stock was trading at $79. The next trading day, Monday, the stock opened at $67. Even if you had a $75 trailing stop in place you would have had to sell at $67 because that was the next available market price to execute the trade. Once a stop price is triggered, it becomes a "market price" sale, that is a sale at whatever the market will bear. Normally that won't be a big problem, but sometimes volatility can make your target price impossible to fill, as in the Microsoft example. Domestic U.S. stock markets do not accept trailing stop orders. And for thinly traded stocks, they don't even accept "hard" stops. Exchanges outside the U.S. seldom accept any stop orders at all. (Trailing stops move constantly based on the stock price. Normal "hard" stops are put on at a particular price and remain regardless of what the stock does.) Trailing stops are changed according to what the stock does–the higher it climbs, the higher the trailing stop is moved. If exchanges won't accept these orders, there are two alternatives. Both are mental stops, either put on by you or by your broker. Either one of you–or both–must be on top of the situation–always. Value Trading–When the Trailing Stop Might Work Against You in the Market By its very nature, value trading can work against the trailing stop. Value trading–the system of buying strong companies at or near historical lows–implies that you may temporarily follow a stock down past a trailing stop before it begins to rebound. With a trailing stop in place, you may never see the rebound. And this happened to us recently. We recommended Debt Strategies Fund as a good way to play the beaten-down, high- yielding corporate bond sector. At the time, it was priced around $7. But, more importantly, it was yielding over 16% annually, making it a perfect candidate for our Oxford Income Portfolio. However, about nine months later, we came full circle with breaking stock market investment advice. We advised members to disregard our trailing stop for this investment. Why? Because at that time, Investment Director Alexander Green valued the income-producing yield more than the price-per-share dip. And he thought the chance for the fund to dive significantly below our trailing stop was remote. So, when the price dipped below our $5.80 trailing stop, we held on. With no trailing stop strategy, there was no guarantee that we would stop losing money on this investment if the stock continued to slide. We might have lost 60%, 70% or even more. Fortuanately, the fund behaved like Alex thought it would. The price per share quickly rebounded to over $6 in just a few days. So we need to carefully consider value trades in light of the trailing stop.

Compounding effect of investing

http://www.stocksatbottom.com/compounding.html
The Magic of Compounding
Some of you know about this, some of you don't. Either way I'm going to give you the basics of compounding, plus a couple of new slants on the concept. I suggest you read The Magic of Compounding not just once, but several times. If you have children, print this write-up and give it to them to read. If they master this concept they will become rich.
The Basics
Compounding describes how numbers, or money, can grow. Numbers can grow in an arithmetic progression, for example 2,4,6,8,10,12 or 3,6,9,12,15,18, where one unit is added on at each step in the progression and that action provides the growth, or, numbers can grow exponentially, 2,4,8,16,32,64. In an exponential progression the increase comes by doubling the number at each step in the progression. See the difference? This is compounding.
Now the really amazing part, the magic, comes when you see how fast compounding will make money grow. And guess what! That's right, I've got a little game to play with you, a little story to tell, that will illustrate this principle.
This puzzle is as old as J.P. Morgan's moustache comb, so if you've already been schooled in compounding you've heard it before. But didn't I tell you to read this section several times? OK, then, solve the puzzle with us once more while I tell it for the first time to the children for whom "The Magic of Compounding" has just been printed out.
The Puzzle
I'm a wealthy and generous man, and I want to hire you to work for me for one month. Since I'm also flexible, I give you a choice: you can choose to be payed the entire month's salary up front on the first day of your employment, or, I will pay you 1 cent the first day and I'll double your pay every day for the rest of the month, but you won't get the money until the last day of the month. So on the first day you'll work 8 whole hours and you'll have 1cent coming to you. But on the second day you'll earn 2cents. Hold on, it gets better, the 3rd day with me you'll have earned 4 cents, the day after that 8 cents and so on. Saturdays and Sundays are included just to give you a chance. Oh, by the way, if you take your pay all at once on the first day I'll give you a million bucks ($1,000,000.00) cash. Seems like an easy choice, doesn't it?
Well, you decide for yourself . Now let's look at how much the nuts're who picked the penney-a-day plan are going to have at month's end. Remember, on the one hand $1,000,000.00. On the other hand:
Day Amount
1 $0.01
2 $0.02
3 $0.04
4 $0.08
5 $0.16
6 $0.32
7 $0.64
8 $1.28

Hey folks, it's day eight, you're up to $1.28 and you only have a month. Maybe you are better off taking the one shot deal, the million dollars.
Day Amount
9 $2.56
10 $5.12
11 $ 10 .24
12 $20.48
13 $40.96
14 $81.82
15 $163.84
16 $327.68
17 $655.36
18 $1,310.72
19 $2,621.44
20 $5,242.88

By the way, did any of you ask me what month of the year we're in? Is it February with 28 days, or leap year with 29 days, or September with 30 days, or December with 31 days? You should realize that it's going to make a difference. Do you want the million dollars? Ask your kids again which they would choose?
Let's continue:
Day Amount
21 $10,485.76
22 $20,971.52
23 $41,943.04
24 $83,886.08
25 $167,772.16
26 $335,544.32
27 $671,088.64
28 $1,342,177.28
29 $2,684,354.56
30 $ 5,368,709,12
31 $10,737,418.24

If you work for me in September with 30 days you make over $5,000,000. In December it's over $10,000,000! I have never met the child who didn't leap at the $1,000,000 on day one. This is because human brains think arithmetically, not exponentially. You might say that we are hardwired to think in this linear way, that the software in our brains compels us to think about progressions as being simple arithmetic ones. Luckily though, how we think about things, our prejudices, our attitudes, and our mindsets, can all be changed and worked with. We can update the software! We can consciously change the way we think about numbers, money and investing by absorbing new information, namely, that when you make your money compound you can get rich sooner rather than later.
The New Slant
Really understanding compounding will make all the difference in investing. I believe that Warren Buffet, the world's greatest investor, is hardwired to think geometrically. He is rich beyond belief because he totally gets the magic of compounding and he executes on the concept. I am going to get these numbers wrong because I'm doing them from memory but it doesn't matter, you'll get the concept. Buffet started a partnership way back when. He had a number of limited partners invest with him and he took a percentage of the gains. In the late 1960s he terminated the partnership with his famous letter, "When you no longer understand the way the game is played, it's time to leave the game." I'm paraphrasing, even though it's in quotes.
Buffet took about $100 million out of that first partnership for himself, so he was working with $100 million, keep that in mind. In 1974 when the bear market bottomed, it might have been early 1975, he started another rise...he took over Berkshire Hathaway. Buffet, since the 1970's, has been getting a compounded (remember that means exponential) growth rate of about 22 to 24%.
This is where I introduce you to The Magic of Compounding's cousin, The Rule of 72. With the Rule of 72 you can calculate how long it will take you to double your money at any given rate of return. OK? So for example, if you're earning 12% on your money and you want to know how long it will take to double it (we're compounding, remember?) divide 72 by 12 and your answer is 6, it will take 6 years to double your money. Do another one. If you're getting 6% on your money, divide 72 by 6 and you'll see that it will take 12 years to double. If you're getting 9%, it's 72 divided by 9, or 8 years to double up.
So for Warren B., he's getting 22% on his money. That means he divides 72 by 22 and sees that, gee, in only 3.27 years, or every 3 years and 4 months, he doubles his money. Since he's been at it about 25 years with that $100 million he had to play with, he's doubled his original $100 million about seven times (25 years dividend by a double every 3 years and 4 months equals 7.69, or let's go with seven even doubles). Remember now, he's not making 7 times his money with the $100 million, that would be an arithmetic progression that would give him $700 million. He's making seven doubles, a geometric or compounded progression.
Let's see how that works.
Warren Buffet's Geometric Progression
Starting Dollar Amount: $100 million Time Periods Involved: Seven 3 year and 4 month periods
Period Time Taken Compounded Gain
0 Starting Point $100,000,000
1 3 years 4 months later $200,000,000
2 6 years 8 months later $400,000,000
3 10 years later $800,000,000
4 13 years 4 months later $1,600,000,000
5 16 years 8 months later $3,200,000,000
6 20 years later $6,400,000,000
7 23 years 4 months later $12,800,000,000
I believe Buffet is worth about $15 billion, it could be $20 billion at this point. It doesn't matter, he is somewhere in his eighth double. This is the magic of compounding! Also, he never sells. That means his money is doubling every three years and four months with no tax consequences. He gets taxed only when he sells. The money compounds until he dies, then it's taxed at a capital gains rate in the far distant future. Buffet could not sell if he wanted to because emotionally he can't bring himself to stop the compounding effect.
Teach your children to live a balanced life, and also help them master this concept and you will have very happy and very rich children. In stocks I show you how to make money at the bottom by buying depressed securities that are going to come right back, making you a fortune as they rocket off the bottom. In the future I will also show you how to make money with the Warren Buffet concept, or classical Graham and Dodd analysis. In the mean time, good luck with understanding the magic of compounding and good luck with Stocksatbottom.com.
Start thinking exponentially,
MAKE MONEY NOW,

Death cross trader-Power of Death Cross

please read

http://www1.youreletters.com/t/461449/14573449/812617/1807/


Do You Have What It Takes?
Let me be blunt: Death Cross Trader is not for everyone.

First, this is NOT a “buy and hold” program. We make quick strikes, often taking profits in a matter of days, and possibly in a matter of hours.

So, if you’re looking for some long-term positions, I suggest you look elsewhere.

Second, Death Cross Trader exploits both overpriced stocks and the naïve investors who buy them. In most cases, you could be taking profits while your associates and neighbors are getting eaten alive.

While most folks are scratching their heads and licking their wounds, you could be chuckling all the way to the bank.

Are you ok with that? If so, I urge you to read on now. As I mentioned, our next trade recommendation is a flat-out fortune in the making.

I’ll tell you how to get in on this play in just a moment. I’ll also tell you how to reserve your six-month subscription to Death Cross Trader... free of charge.

But for now, I want to let you in on the three secrets behind Death Cross Trader’s incredible accuracy.


Secret #1: The Slingshot Power of Puts
Death Cross Trader makes money when stocks fall.

But we do it in a somewhat unique way.

You see, when it comes to falling stocks, most people think you have to “short” the stock in order to make money. (That means you “sell” the stock at a high price, take in cash for the sale, and then “buy” the stock back at a lower price.)

But I don’t like to short. I prefer to use “put options.” Why? Three reasons:

First of all, put options are easy to use. You can buy them just like you buy a stock or mutual fund.

Second, put options are much safer than short selling. Your risk is always limited and manageable.

Third, short selling limits your profits to 100%. That’s not bad. But with put options, you can make much more. In some cases, you can make 5 times your money.

And the best thing about puts? You can make huge gains even when the underlying stock only moves a small amount.

Take the trade we made on Safeway...


122% in One Month!
Back on September 8, 2006, I noticed over eager investors had pushed Safeway to a dangerously high price.

Again, the stock went up too far, too fast. I instructed readers to buy Safeway put options for 90 cents.

Sure enough the stock fell. Take a look at the chart. I’ve circled where Safeway got pushed into a danger zone.

Now, Safeway’s stock only fell 4%. And people who shorted the stock would have made about 4%. But people who followed my advice and bought put options made 122% in one month!

Bottom line: A small drop in the stock’s price resulted in quick triple-digit gains for Death Cross Traders.

Now, let me show you the second secret behind Death Cross Trader.


Secret #2: Fat Sheep Never Stop Grazing
Every week, we scan roughly 5,000 stocks looking for the most overpriced companies we can find. Of course, there are a lot of bloated companies out there. But finding an overpriced stock is only the beginning for us.

Once we spot a company that is overbought, we monitor it and wait.

Some overpriced stocks fall back to more reasonable levels very quickly.

We aren’t interested in these...

Some overpriced stocks slide sideways indefinitely.

We aren’t interested in these either...

But some stocks keep right on climbing. And climbing. And climbing!

Not only do these companies keep rising... but they do so on big trading volume.

I call this the “herd effect.” And it’s the result of naïve investors jumping on the latest hot company. When I see this happen, my mouth starts to water because I know big profits are right around the corner for Death Cross Trader.

Listen: Most investors are like sheep. They follow the herd. They see the stock soaring and they want in. They think the momentum will never stop. They think the stock will keep going up forever.

That’s what happened with Rambus, another one of Death Cross Trader’s recent winners.

Back on June 22, 2006, Rambus was on the rise. And more good news kept coming in. In fact, rumor was that a U.S. District Court was about to make a favorable ruling for Rambus.

You can imagine the euphoria Rambus fans experienced. A positive ruling!

People were piling into the stock. Problem was, Rambus was already way overpriced. But people kept piling in, pushing it higher and higher.

Rambus soon reached a price level that was absolutely ridiculous. Take a look at the chart. I’ve circled the point where Rambus had gone too far.

On June 23, I instructed readers to buy Rambus put options at $1.20.

Sure enough, Rambus fell. Take a look:

Now, the stock didn’t fall far. It went from about $23.75 to around $20. But our put options took off.

Just 5 days later, I told readers to sell our Rambus puts at $3.20. That’s 167% in less than a week!

And guess what? The situation I’m currently tracking reminds me of the Rambus trade. The stock is being pushed up by hype. It’s already in overbought territory, and yet... it keeps going higher.

Folks who get in on this play (I call it the “firecracker trade”) are probably going to make a flat-out mega-fortune.

I really hope you’ll give it a go, because if I could only recommend one trade this year... this would be the one I’d go with. No question about it.

But before I give you the details on the “firecracker trade,” I want you to understand something: There are a ton of overpriced stocks out there. But the key to Death Cross Trader’s success is knowing EXACTLY when to strike.

Let me show you how we do it...


Secret #3: The Death Cross
As I mentioned, investors are like sheep. They follow the herd. And they can never get their fill of a rising stock.

Thing is, as more and more investors rush in to a high priced stock, they send these already overpriced stocks past the point-of-no-return.

The stocks eventually reach a price level that’s impossible to sustain.

This is the point where buyers have overwhelmed sellers. There are simply not enough buyers to keep the stock going. In fact, there aren’t enough new buyers to support the stock’s price.

It can do nothing else but fall.

I call this point-of-no-return the “death cross.”

And that’s the exact moment Death Cross Trader makes its move.

We simply buy puts on the stock. When the price of the stock falls, the puts soar, and we make a bundle.

Now, how do we know when a stock has made its “death cross?”

We use a complex combination of fundamental analysis and technical indicators.

”Got in initially at 95 cents. Bought more at 55 cent for a basis of 75 cents. Sold half of the position at noon before the 4pm sell order at $1.85. Now at $2.00. What a pick! A total of 257% on the last half... Thanks. More great ones, please!!” – A.M.

Because of the proprietary nature of this system, I can’t give you the details in this letter. I've spent years developing the Death Cross indicator and I'm simply not going to give it away.

But I can tell you the results are deadly accurate.

Consider CVS...

CVS is a national drug store company with over 5,400 retail pharmacies throughout the United States. I can tell you: People love this stock.

Why? Because they see it everyday. They think just because they spend $10 a week on cough syrup and pantyhose that the company is a solid bet.

Or, they’ve read Peter Lynch’s book, One Up On Wall Street, and want to get in on a local company they can keep their eyes on.

But there’s a big difference between walking into a store to buy shampoo and understanding the company’s true financial situation.

Consequently, when a stock like CVS gets on a roll, people blindly climb on board. They want a piece of the action...

And guess what? These naïve folks drive the price up too far, too fast.

That’s exactly what happened back on September 12, 2006.

CVS had been on a run and people kept on buying. And buying. And buying!

Take a look at the chart. I’ve circled the exact point where CVS hit its “death cross:”

I instructed readers to buy CVS puts on September 12 at 95 cents. Not a moment too soon. The stock started to fall almost immediately.

On September 19, the stock had dropped from $36 to about $32 and our readers were able to take gains of 53% in 7 days.

Of course this is only one of many successful trades. In fact, since May 2006, Death Cross Trader has racked up 32 winning picks out of just 36 tries for total gains of 1,168%.

If you had put $5,000 into each trade, you could now be sitting on $250,000 with over $57,000 in pure profit!

And here’s the best part: I’ve just uncovered the next Death Cross sensation.

I must tell you, the opportunity at hand is stunning. The stock I’m tracking has just made its “death cross,” and it’s ready for a quick plunge. I fully believe that if you get in on this situation now, there’s the potential to make 2-3 times your money by New Years Day.

And if things go our way, a 10-bagger is not out of the question. Let me give you the details on this trade now...