Daily trading plan - Part 1

This is a summery post for those who are new to Members only site.

Market Monitor: Bearish

The starting point for everyday trading decision is Market Monitor (MM). When MM is green it is bull market, when it is red it is bear market. MM is basically a Market Timing system for all the method traded here. So it acts as a overall filter and when it indicates safer period , your results with EP, IBD 200, DT, Virgins will be good, when it is in red, you have to be either short or in cash.

The Market Monitor is a market breadth indicator that tells you about the buying or selling pressure in the market. It uses different time-frames ranging from daily to annually to calculate market breadth. It can anticipate likely turning points and tells you when the market is in a confirmed rally stage.
This information is useful in managing risk and avoiding bearish phases for long side trades.

Number of stocks up and down 4% or more on high volume today.
Number of stocks up and down 25% or more in a quarter.
Number of stocks up and down 50% or more in a month.
Number of stocks up and down 25% or more in a month.
Number of stocks up more than 100% or more in a year.

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Detail guidelines for interpreting Market Monitor are in the Trading Guide

If you see the MM signals in 2007 and 2008, it has signaled both bearish and bullish periods clearly and much ahead of time. It can give false signal as it did recently on bullish side, but the signal reversed in just 24 hours. MM gives you consistent and reliable signals as opposed to many other methods which rely on questionable assumptions. More than that as you can calculate MM values daily, you know what exactly it measures.

So the first starting point for trading decision on day to day basis is MM signal.

Currently MM is in confirmed red territory and hence cash or shorts are the favored options.

Methods

The predominant theme behind the methods traded and detailed here are :

1 Price Momentum

2 Earnings momentum

3 Neglect

4 Timing entry post a catalyst.

5 Breakout as primary signal

6 Conservative risk management

The basic principle is based on proven anomalies which show stocks with price momentum, earnings momentum and neglect tend to outperform the market in next 6 month to 1 year time frame. Most important thing in trading these things successfully is to have a well defined step by step approach where every element of the trade like equity selection, entry, exit, risk, stop, and profit targets are well defined and are structured in such a way as to enhance overall performance of the system. So for each method you would find detailed sub rules and guidelines to aid decision making. Each of those rules and sub rule has a well defined logic behind them.

Note: While the public site gives broad guidelines behind the various methods, it does not have the actual rules, scans, sub rules and guidelines used in day to day trading. So don't go by those scans.

On a day to day basis I trade a combination of methods:

Episodic Pivots Bullish
IBD 100/ IBD 200
Double Trouble
Virgins
Earnings Breakout
Episodic Pivots Bearish

Out of these methods the most are

Out of these methods the most are more

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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