Home Page - View Our Latest 2009 Updates Inc Free Stock & ETF Reports.
If you have ever wondered what the fundamental difference is between one trader who achieves regular profits trading the stock market, and another that struggles for a breakthrough, you'll find the answer is simple - but critical to your trading success.
For instance, why is one
trader able to dramatically produce profits on a consistent
basis, while others continually despair over mounting losses?
If you read many of the popular books written about successful traders [a good example is: New Market Wizards by Jack Schwager] it becomes abundantly clear that a person can - with the right tools and discipline - make regular profits trading stocks. It is no longer a question of whether it is possible or not. It is a question of 'how'...
I am going to cut to the chase here, and let you in on a little insight. Let me start by saying that the actual development of a successful trading plan, which allows you to find the very best stock trading opportunities, becomes relatively easy, once you grasp the simple concept of 'moods' & 'cycles', which exist in every freely traded market place throughout the world. This includes the stock market...
Cycles and mood-swings exist like a pendulum which
oscillates between positive and negative, and this 'mood'
impacts directly on stock prices.
Think about this for a minute: The stock market is driven intrinsically by mood-swings, just like you and I. More importantly, there is a significance to this...
Whenever the stock market is in a good [positive] mood, then even bad news announcements will have very little negative impact on the market, while good news announcements will propel stocks even further up.
Similarly, whenever the stock market is in a bad [negative] mood, then even good news announcements will have very little positive impact on the market, while bad news announcements will drag stocks even further down.
So, from this basic foundation of understanding market 'moods', how do we actually go about finding the right stocks to trade, and to actually make money from stocks?
Over the course of the next few hours, you will learn the art of recognizing the underlying 'mood' of the stock market using a highly sophisticated piece of online software which we have developed, which captures the 'trend' in the market...
This tells us whether a stock is 'optimistic' or 'pessimistic' in the short term. Moreover, you will also learn in detail, how we profit from this information...
There are many ways you can trade stocks. For example, you may be happy simply to buy and sell stocks in the straightforward old fashioned way. Or you may prefer to trade margined stocks which require less capital, or single stock futures, or options. Some of our members stick to spread-betting or CFD trading, etc. How you trade the market has to be up to you and you should learn about all of the different instruments available to you which we will cover in step-by-step detail a little later on.
Let's take a closer look at market 'moods'...
If you study the chart for any stock, and look back on it, with the application of an indicator which effectively 'measures' the 'mood' of the market, it becomes relatively clear exactly where you should have traded.
Take a look at the chart above, for IBM stock. I am sure you will agree, it was a wonderful time to buy the recent up-swing in this stock.
Now take a closer look... you will notice that underneath the chart is an indicator, which we call the 'trend index'. This is a highly complex, but simple-to-use indicator which we developed for our own trading.
The trend index indicator measures the 'mood' of the market. You will notice it is a smooth orange/gray oscillator, which moves fluently up and down...
If the indicator is 'orange' the market for this particular stock is in a 'positive' mood. If the indicator is 'gray', the market is in a 'negative' mood.
Using our online software, you can view the chart for over 16,000 stocks and indexes worldwide, with the trend index indicator directly underneath [just like the chart shown above]. Now, whenever you look at a stock, with the trend index indicator directly underneath, there is no doubt that you have a distinct advantage over other traders, because you have an 'insight' into the mood of the market. But, this is NOT the complete strategy we use in our trading.
We need to take it a step
further...
Every stock is a member of a larger 'family' of stocks, which make up the stock market. For example, the popular Dow Jones Index is a family, which consists of 30 leading blue-chip stocks, such as Coca Cola, Exxon, Du-Pont, Home Depot, etc.
Similarly, the Nasdaq 100 index family consists of the top 100 technology stocks in the USA, such as Cisco, Dell, EBay, Yahoo, etc. The FTSE-100 index family consists of the top 100 UK stocks, such as Tesco, HSBC, British Petroleum, etc.
We can call these major indexes a large 'family', or 'group' which consists of 'individual' stocks. Now, the 'trend index' indicator can be applied to the 'family' [or the major index] as well as the individual stocks...
When we apply the trend index indicator to a major index such as the Dow Jones, or the Nasdaq 100 index, or the FTSE 100 index, we are gauging the 'mood' of the 'family' as well as the 'individual stocks. This is a good analogy, because in life, as in the stock market, the 'mood' of the 'family' impacts to a great degree, on the 'mood' of the individual. It is important to grasp this concept.
So, to complete our trading strategy, we look for opportunities where two simple rules apply. We BUY a stock when...
[1] The 'trend index' in the stock is moving UP, and...
[2] The 'trend index' in the major index for the stock is also moving UP.
A precise, step-by-step process...
Let's start from the beginning...
Once you have received your username/password, you can login to the members area, by going to our home page and clicking on "Members Login" on the top-left of the page. When you click on this, a login screen [as shown below] opens up. Enter your username/password, and hit the "Login" button.
As soon as you are logged in, the first screen you will see is the "Nasdaq 100 Stocks" screen. We made this the default [opening] screen because these are our own favorite set of stocks - the stocks that we like to trade...
However, if you want to look at other 'sets' of stocks, for example if you are based in the United Kingdom and want to trade only the London FTSE 100 stocks, simply click on "FTSE 100 Stocks" from the left hand side menu. Or, if you like, you may also view other sets of stocks, such as "Dow 30 Stocks" or "Toronto TSX Stocks" etc.
The below screenshot shows our favorite set:
The Nasdaq 100 Stocks screen.
We designed this screen, so you have EVERYTHING you need to know on one single page. Let's go through this screen in more detail...
At the top of the screen, below where it says "Nasdaq 100 Stocks" and the brief description of what the screen does, you will see a single line of information, which simply states when the screen was last 'updated'...
Our database is fully updated once every evening after the market closes. All the mathematical analysis which results in the trend index indicator for every single stock we cover, is automatically done by our computers at that time. The screen is then ready, and provides information on key trading 'opportunities'.
Below this 'last update' bar, is the all-important "Trend-Index" bar for the major index, in this case the "Nasdaq 100" Index itself, shown here...
There are only two very simple rules which you need to observe:
BLUE BAR = The trend index in the Nasdaq 100 is UP
RED BAR = The trend index in the Nasdaq 100 is DOWN
If the trend index in the Nasdaq 100 is UP [in other words, the bar is BLUE], then you will only look at stocks underneath which are ALSO blue. Similarly, if the trend index in the Nasdaq 100 is DOWN [in other words, the bar is RED], then you will only look at stocks underneath which are ALSO red.
Moving on, look carefully at the stock grid. The stock grid is simply the matrix of stocks on the screen. For example, the Nasdaq 100 Stocks screen shows a matrix of these 100 stocks in a 4x25 table. The FTSE 100 Stocks screen shows the 100 FTSE stocks, the Dow 30 Stocks shows the 30 Dow stocks, etc.
The Stock-Box...
Each stock in the Nasdaq 100
is listed as a clickable 'box' in the grid.
Look at this stock 'box' example for IBM stock...
Notice the characteristics of this stock at this particular time: Firstly, the stock is BLUE, meaning the trend index in the stock [IBM] is UP.
Underneath the blue band, you can see the LAST PRICE for this stock, which is 82.99, as shown above.
The Triple-Light Sequence...
Next to the last-price is a 'triple-light' sequence, which shows the last three days' trend index in the stock. In this example, the light sequence is ORANGE/ORANGE/ORANGE. This means that on the last 3 days, the stock's trend index has been ORANGE/ORANGE/ORANGE, or UP/UP/UP.
When you click on the stock box, a 'chart' for the stock will open up...
Every chart that loads up on our system, for any stock, always shows both the stock chart and [directly underneath] the trend index for the stock...
In this case, notice that the last 3 trend index bars in the stock were orange/orange/orange which agree with the triple-light-sequence in the stock box.
The thinking behind our system was to develop absolute simplicity - so we don't get bogged down with the mathematics of the entire process. When we were trading 12 years ago a lot of this work had to be done by hand - to identify underlying trends based on volume, and apply it to as many stocks as humanly possible. Nowadays, faster-chip computers are more than capable of handling these intricacies, and number crunching several thousand stocks at once, so we don't have to...
The bottom line is - what we need is to 'see' this information clearly and to use it, which brings me to the next step...
How to use this information to profit from the markets...
To re-cap very quickly, we logged in, and looked at the opening screen [Nasdaq 100 Stocks]. At the top of the screen we observe whether the trend index in the main index [Nasdaq 100] is UP [blue] or DOWN [red]. If it is blue, we move our eyes to 'blue' stocks only. If it is red, we move our eyes to 'red' stocks only.
Effectively, we are quickly 'eliminating' the majority of the stocks, in order to drill down and focus in on only those which provide key trading opportunities.
Now, for each stock we are focusing on, we look at the important triple-light sequence. Here are the rules:
If the trend index in the major index is BLUE, then look for stocks which are also BLUE, and contain the gray/gray/orange triple-light sequence...
Many of our traders are also interested in trading stocks 'short' [profiting from a falling stock] through options or other instruments, eg., CFD's, stock futures, etc., which are available [more details in the online manual]. If you are trading stocks 'short' the ideal sequence to look for in a stock is orange/orange/gray as shown below...
These triple light sequences provide 'early' opportunity to get into a trade, prior to the expected rally [or decline if trading 'short'].
The objective of this system is to identify [very quickly] stocks which are in 'alignment' whereby the trend index in the stock AND the trend index in the major index [the family] are in agreement.
Our research and development is centered purely upon these simple, common-sense market principles which work for us. A 'market' simply consists of a crowd of people who are either buying or selling. Stock prices are based on the 'perceived' value - what people as a whole [crowds] think a stock is worth. These thought 'patterns' are always governed by the crowds 'frame of mind', or 'mood'. And moods are cyclical...
Think about it: What truly governs individual stock price movements is the 'mood' of the market, both within the stock itself, and within the major index [family] itself. The key is to 'align' these indicators, so you are trading when the market is expressing least resistance. This is when both trend indexes are in perfect alignment.
Over the next few days/weeks, we want you to watch stocks, and witness all of this in action. Find a few stocks which you like, and watch them closely...
As you watch stocks move and learn how to trade more intelligently, you will notice that when the market is in a 'positive' mood [when the trend index in both the stock and the major index are UP], then any bad news will have very little effect on the stock price, while more good news will drive it further upwards. Similarly, if the market is in a 'negative' mood [when the trend index in both the stock and the major index are DOWN], then good news will have very little impact on prices, while bad news will tend to drag the stock price further down.
These are important principles/truths which govern the markets. I hope I have not provided 'too much' information overload at this early stage, but hopefully some food for thought - it is a challenge to try and explain this entire concept on this one opening page alone. But it is worth the effort. Rest assured, all will become clear.
Our 'trend index' indicator was developed and built upon this essential reality of the market. Over the next few pages, you will learn exactly how we trade the signals with the trend index provides, using the trend index 'alignments' as shown above. This approach to trading actually 'engages' you with the market, and therefore places the advantages significantly in your favor, to trade more effectively, with better awareness, and positive results.
A Briefing Before We Get Started...
Below is a quick briefing of what this manual covers. Many of our members know [and appreciate] that we continually update and improve this online manual wherever possible [this comes at no extra cost - it is something we provide incessantly in order to continually deliver/share important new ideas/insights], so check back often. This is free information, of use to subscribers and non subscribers to our web service. You may introduce this manual to your friends/colleagues if you wish - simply point them to our main charting site clickcharts.com [remember to let us know - if any of your friends subscribe to our premium service, as we provide a 30% commission for you as a token of our thanks!]...
Here's what you will learn in the forthcoming pages...
Quick Introduction/Briefing [this page]
How to trade stocks: General guide
Charting stocks
Introducing the 'Trend Index' alignment trading tool
Quick primer on 'how to' trade the trend index signals
Trading Straightforward Stocks
Trading Margined Stocks
Trading spread-bets and CFD's
Trading Call Options
Trading Put Options
Trading The Covered Call
Using a stop-loss & the re-entry technique
Putting it all together
Home Page - View Our Latest 2009 Updates Inc Free Stock & ETF Reports.
Or, Go Directly To Any Of Our Other Dedicated Stock Trading System Strategy & Stock Charts Information Pages:
Stock market scanner | Dow index trading system | Stock trading system | Stock trading software | Stock market trading basics
How to trade stocks | Technical stock charts | Stock technical indicators | Trading signals | Online trading brokers
Margin trading and shorting stocks | Spread betting and trading CFD's | Call option trading strategy | Put option trading strategy
Trading the Dow index | Risk management and stop loss | Online stock trading | Dow index trading rules | Trading the major indexes
Dow futures, ETFs & spread bets | Dow technical indicator | Dow trading plan | Dow analysis | Stock index trading
Trading entry and exit strategy | Online technical analysis software | Dow trading methods | Dow mini future | Dow DIA diamonds ETF
Spread betting the Dow | Stock index trading business | Privacy statement and policy | Sitemap