A volatile sideways range is not conducive to momentum swing trading on both long or short side. 3 days up 2 days down , 2 days up and so on isnot predictable environment.
Lot of skill in momentum trading is in avoiding such bad periods. Such periods do not last long and are followed by uptrend or down trend. If you trade such period with longer or intermediate term swing trading style you will get whipsawed to death.
Many participants who survive the market for 10 years plus recognize this from real life experience. They avoid such periods. That is why you will see people like Dan Zanger, Mark Minervini and many other vetran traders have been advising.
Mark Minervini made the following post on
Stockbee Members Site emphasizing the same point:
You don't need to trade in all market environment to make good money over long term. That is one of the ways to trade and that has been my style for many years. You wait for market to setup and trade when it is favorable to momentum investing.
As against that you can be a day trader and for them trading everyday is their choice strategy. They should be thriving in such environment of high volatility.
For my style of trading the most important thing I look for is breadth trends. Breadth trends tell you when momentum based methods work best.
The Market Monitor is timing tool which tells you when breadth trends change. It is a process where stocks have a breadth thrust and the breadth turns positive. During that period overwhelming number of stocks make long moves. That is the period where obviously momentum works.
Because the the Market Monitor measures the breadth daily you know as a new move starts developing and you can anticipate turns. So when the market decides to change direction there will be more 4% plus breakout to upside, the 34/13 bull readings will improve and you will have the first indicator of change in breadth trends.
Market breadth based tools are extremely useful if you want to understand the underlying buying or selling dynamics in market. There are many ways to use market breadth . There are very few books on this important topic and the book which I have recommended many times before on this topic retails for $450 on Amazon. It is now out of print due to high demand from many traders.
The Complete Guide to Market Breadth Indicators: How to Analyze and Evaluate market Direction and Strength
If you want to prospect and survive in the market for decades then you must study market breadth. A good understanding of market breadth will help you manage risk better in your trading account and in your 401K accounts. Fortunately there is lot of readily available information on market breadth and how to use it. If you are motivated trader you will find ton of information on this topic on the internet and on this site.
Are you serious about your trading?
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 lot of things before coming to my site and it has offered them the most extensive and detailed methods to swing and position trade.
It is only for those who want to develop their own self sufficient trading method. It is not a stock picking service. It is service for you to build your own scans and trading method to have your own daily pick based on your method.
Be warned it will take you time to learn to trade. Learning to trade is difficult art and unless you are willing to spend months or years to perfect your strategy and also develop your mental edge you are unlikely to succeed in this game. Unless you understand that no site, no service, and no mentoring is going to work.
Why traders come to stockbee?
The member site is one of the most recommended site for learning to trade by other traders and bloggers. You will see no advertising, no hard marketing, no promotions, no free offers, no affiliate marketing, no incentive to other bloggers to promote the site, no constant twits self promoting the site, no free trial and no tall claims of making you instantly wealthy, and yet the site attracts new members everyday. Members come from all walks of life and all kinds of trading size and trading styles.
You will see that many trading bloggers have been using my market timing methods, scans , stock ranking lists and chart templates. They have developed their own methods based on my methods. Many paid newsletter site recommend my site to their subscriber for learning about trading and market.
Over the years thousands of traders have been members and those who benefited from the learning talk about the site to others or talk about the methods used and that is how new members learn about the site.
What will I learn in the members site?
The members site will give you in depth understanding to develop your own trading method. The emphasis is on making you self sufficient and confident of your own trading method and style.
As a member you will learn the basics of swing trading, momentum investing, growth investing and risk management.
You will learn about Stockbee Trend Intensity Breakouts method that uses momentum based swing trading to find 3 to 5 day swing trades for 8 to 40% profit.
You will learn about Stockbee Episodic Pivots Breakout method which uses Post Earnings Announcement Drift (PEAD) to find stocks that had a game changing earnings and that are likely to rally for 3 months to 12 months.
You will learn about Stockbee Dollar Breakout method that uses momentum, range expansion and swing trading approach to find 5 to 40 dollar moves in high priced stocks.
You will learn about Stockbee Lemonade Strategy for 401k which uses market timing and momentum to invest in 401k. You will get weekly update on how I am using the strategy on our 401k to do allocation decision.
You will learn about Stockbee Market Monitor method for market timing using breadth. It allows you to avoid risky periods in market and allows you to identify market turns. It is used for 401k allocation decisions.
You will learn about Stockbee Double Trouble method to find stock with confirmed upside momentum using anchored momentum and that are likely to continue their up move.
You will learn about Stockbee Night Time is Right Time method to find news catalyst based trade ideas for short term day trade and swing trade.
You will learn about Investor's Business Daily’s IBD 200 list and how it can be used to find swing trading candidates for explosive moves.
You will learn about Telechart 2000 and how to use it effectively to scan for swing and position trade ideas and to set up your 401k strategy.
You will learn about Jesse Livermore Range Breakout, Darvas Box setup, and many other member shared methods.
You will learn how to set up your own scans, select 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.
The site has hundreds of videos and trading methods and variation of methods. Members help each other in developing the methods and share actively their research and finding. A collaborative spirit allows you to get input from others on your trading ideas or problems.
The site gives you 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 background and experience willing to help each other. The emphasis is on continuous learning and up gradation of market knowledge and setup knowledge. The members range from hedge fund employees, financial advisers, active swing traders, investors and new traders.
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 members site. Every method, every scan, every nuance is detailed and all possible help is offered to design your own method.
Do you have a trial?
If you are just looking for trial you are better off trying thousands of other trading sites that offer free trial or one month trial and offer you promise of riches.
It is for those who are ready beyond the trial phase and ready to put serious months or years of efforts to learn to trade on their own. It is for those who want to learn to find their own fish.
The free blog has all the details about the methods I trade and if you go through the posts highlighted in the sidebar you will learn about them.
How can I become a member?
To sign up go to www.stockbee.biz and follow the sign up process. The site uses Paypal for payment processing.
5 comments:
This is an outstanding book, I have used it to create a ton of market indicators with AmiBroker. I will let mine go for $300, contact me ASAP at
market monk seven seven seven (use #s instead) at yahoo dot com
I think those prices are ridiculous. It is good book but being out of print the prices have been driven up.
Understood. But that is the market responding to supply and demand.
Heck my price is a steal. I will pay shipping.
it is almost $2000 in UK...
http://www.amazon.co.uk/gp/offer-listing/0071444432/ref=dp_olp_used?ie=UTF8&condition=used
if this book was a stocks, I think would be a bubble.
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