Meteors and Fixed Stars

Often I get asked the question, where to find profitable trading ideas. There are many public domain trading systems which have very high returns if you are willing to put an effort in making them work. Many of you who read my blog must have seen that I keep recommending Mark Boucher book The Hedge Fund Edge again and again.

The book has lot of discussion on economy based on Ludwig von Mises economic theory, but inside that book is a very valuable momentum based trading system for short term trading.The most important lesson of the book is that there are two types of stocks, Meteors and Fixed Stars

Meteor is the stock that blasts off; reaches extreme overvaluation; and falls back into obscurity. Meteors are the `fad' stocks that explode up 300% or more in a 1 to 3 year period, then collapse. Fixed Star: Starts the same way as a meteor but does not become extremely overvalued. These stocks sustain steady price growth for years, some more than a decade.

So, how does one find such stocks during their initial moves?

He offers a detailed step by step methodology for this using earnings and momentum. At the crux of it is looking at characteristics of the first one third of a move and based on that predict the next 2/3 rd move. He has found stocks exhibiting certain kinds of volume and momentum patterns in first 21 days of their move have very high probability of making the meteoric move. The book offers complete trading system with risk management, entry and exit strategies for this.

Now if you are TC2007 user your task is simple. Go to Yahoo Telechart2000 users group and look at messages 4502-4510. You will find complete set of scans for trading Mark Boucher system. Those series of scans can help you put it together very easily. You should also find a file explaining the system once you sign up with the group. Run a search in the group with "tbblbg" as search term. tbblbg is the short form for Mark Boucher system and it stands for thrust breakout, breakout lap, and breakaway gap.

If you are a day-trader or short term trader and want a very profitable system, this one is one of the easiest and it works. There are no lack of very profitable systems openly available, why because 99% of people will never trade them anyway because there is more comfort in following a guru or a newsletter or they don't want to put the effort involved in making any system work.

Best site to learn to trade

If you are serious about your trading and want to build an enduring edge, the Stockbee Member site might help you.

Members tell me they have tried a lot of things before coming to my site, and it has offered them the most extensive and detailed methods to swing and position trade. Members range from very experienced traders to novices.

No advertising, no hard marketing, no promotions, no free offers, no affiliate marketing, no incentive to other bloggers to promote the site, no constant tweets self-promoting the site, and no tall claims. Every member comes through word-of-mouth recommendations from existing members.

As a member, you will learn the basics of swing trading, momentum investing, growth investing, and risk management. You will learn about Stockbee Momentum Burst breakouts, Stockbee Trend Intensity Breakouts, Stockbee Episodic Pivots Breakouts, Stockbee Lemonade Strategy for 401k, and many other member-shared methods.

You will learn how to set up your own scans, how to select the right kind of stocks, how to set up stops, when to enter, when to exit, how much to risk, how to track your trades, and all other details about trading.

You will learn about developing your own methods and not relying on others for trade ideas. Develop your own edge. Once you develop your own method, you will have a lifelong profitable method.

The site gives you an opportunity to interact with some of the most successful traders and learn from them about their trading methods. It is a vibrant community with members from different backgrounds and experiences willing to help each other. Members have shared their methods, scans, software, backtests, and market insights.

Every day, the emphasis is on continuous learning and upgrading of market knowledge and setup knowledge. The members range from hedge fund employees, financial advisers, active swing traders, investors, and new traders.

You will see that many trading bloggers have been using my market timing methods, scans, and chart templates. They have developed their own methods based on my methods.

Almost every member comes through a recommendation of some of the leading trading bloggers and trading sites. 80% or more members continue to be members for more than 3 years. Most tell me that they stay on because every day they learn so much from the members' site.

If you are looking to develop your own trading strategy, the membership site might be for you. You have to be willing to put in the effort to build your own method. There are no silver bullets offered on the members' site. Every method, every scan, every nuance is detailed, and all possible help is offered to design your own method.

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