Stock Index Trading As A Business

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Over the course of these last few sections, you have learnt about several different trading instruments you can use to trade the Dow. These are…

Dow Mini Futures

Dow ETF’s

Dow CFD’s

Dow Spread-Betting

We have also added a number of resources, and web-links to brokers, to add to your knowledge base. At this stage, it is a good idea to log in to your insight.net online service, and experiment with the different information screens…

The main screen shows you in a straightforward, to-the-point manner, our powerful Inter Market Strength indicator [or oscillator]. This allows you to quickly determine how we are trading the Dow. A rising oscillator means we are ‘long’ the Dow. A falling oscillator means we are ‘short’ the Dow.

You may also click on other bonus screens we provide together with this core main screen at the top of the menu. Additional screens allow you to view the ‘trends’ themselves in individual stocks. You can select any of the Dow 30 stocks to view the ‘trends’ in that stock.

Keeping It Simple...

Throughout this Online Manual, we have aimed to keep the learning process as simple and to the point as possible. It is not necessary to enter into in-depth discussions and complex strategies in order to demonstrate what is important about trading…

It is important to observe and appreciate that ‘consistency’ of profit far outweighs the amount of money made on any particular trade. So, the goal remains always a basic tenet – to develop a method, which produces consistent profitability, based on market truths.

We have come a long way since 1993 when we first started trading. In that time, we have come across many systems, technology, and ideas. But no amount of experience speaks louder than to realize that not all of trades are successful. There are winners and losers. From the outset, we do not claim to be right 100% of the time. In fact, if you look at our web home page, you will see x number of winning trades, and y number of losing trades. This is simply the reality of this business. But what a great business it is, if you have the know how…

The key is to be right MOST of the time, and let our profits ride. We are never in a trade which begins to move against us for long, simply because our Inter Market oscillator tells us to exit. This is why losing trades are contained, and winning trades are allowed to fly.

The Inter Market Strength (now known as xTrend) indicator is the result of a continual analysis, dedication, and testing of a systematic approach to trading, which objectively measures the 'mood' of the market…

The trends within each of the 30 stocks that make up the Dow, provide a gauge and early signal into ‘extremes’ of these moods...

It is human nature to not want to dwell in misery for too long, where excess pessimism suddenly turns into optimism, and over optimism is often short-lived. This translates itself in predictable patterns of behavior when multiplied into the mindset of mass-psychology and ‘crowd’ behavior. It is this predictability, engineered and quantifiable, which is at the heart of what we have achieved – what seems like such a simple oscillator it is hard to believe. But, like all beautiful things, the oscillator is indeed very simple.

Paper trade [with imaginary money] the oscillator. Buy the Dow when the oscillator starts to rise, sell [short] when it starts to drop. This will allow you to learn and appreciate this unique indicator. You may [if you wish] use it alongside other indicators and traditional analysis tools if you wish – in fact our software allows you to add multi-layers of indicators from the drop-down menu’s under the charts, such as Moving Averages, RSI, Accumulation/Distribution, Williams%R, etc. Remember, we originally developed this for our own member traders, so we built all of these easily accessible functions into the program, available freely to all current and future subscribers.

This online trading manual will be continually improved wherever possible. You will find interim add-ons and updates, from time to time, which are all aimed at presenting an easy to use, jargon-free body of trading information and knowledge. We will also be starting a ‘blog’ soon, so we can interact with each other – let me know [email me] if you want to take part – let us have your opinions/views/comments.

Our software screens adopt a simple design and structure, making it easy-to-use. Behind the screen is a dedicated team of professional programmers, system developers, ears that listen to traders’ feedback and inspired idea development…

The continual improvement of our product will not cease as long as new ideas and feedback continues, as it has become a passion to produce a simple-to-use, powerful interface, dedicated to the online index trader.

In closing we will leave you with this thought..

Do not try to 'predict' which way the stock market will move next. Instead, allow the market itself to determine your actions. All stock prices represent a 'perception' of value - what the crowd/market 'think' stocks are worth. All perception of value is based on 'moods', which swing like a pendulum between positive and negative. To align yourself into these rhythmic cycles, is the same as allowing the market itself to provide clues, and determine your actions absolutely.

In sincere appreciation of your patronage to our service, we remain dedicated to continue developing a valuable product, functionality and service, an ever easier-to-read Trading Manual, and everything to do with improving your trading wherever possible. This is our zeal, and commitment to you, our valued members.

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