This ones from the Money Manual

But I’m feeling generous as it’s the Spring Equinox and thought that I’d throw this concept and strategy out there.

If you adapt this strategy and use something different to what I do then you have to make sure you test the concept enough and make sure it works PRIOR to committing money to positions using it!

The risk as they say is then in your hands as it is with every single trading/investing position you put on.

Overview:

OK, this concept and strategy is very simple, we are going to look back over 12 months (1 trading year) to test out this theory, then from then on we will take EVERY SINGLE trade when our parameters have been met.

Now to improve the odds of success you can adapt this concept further but I’m only divulging those advanced concepts to those that buy my Money Manual (when I get around to publishing it!) which should be available soon.

The real purpose that I hope you pick up on is that you don’t have to know a thing about a market at all, no economic research, no background investigations into company accounts – all we are going to trade by is an indicator!  The aim is to take at least 10% from this market during a year but ideally much more.

In the conclusion section I disclose a technique you could use stripping constant 3%’s out of this particular market – Tip:  Other markets move more & other markets less than this market – think about the concept!

Strategy/Trading Set-up:

We are going to take every single (8) DTosc BULLISH reversal below 20% by entering long 1 penny above the previous days high price and trail a STOP on the previous bars low when the (8) DTosc reaches the 80% zone, until such a time that the market takes us out of the position.

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A day in the life of a Trader….

This is a truthful representation of a typical “working” day for myself, the intention is to show you just how EASY investing and trading really is.  Some people think it requires special skills, big brains, extensive knowledge of financial aspects – no it does not.

The only real skill required is discipline and obtaining a trading set-up that you take trades on when it indicates – when it does not indicate a trade stay out of the markets, until it does.  I base my trading set-ups based solely from technical analysis detail off the chart, there is no reason why if you use fundamental analysis that you can’t design a set-up using that detail.

The quickest way to learning a trading set-up is finding a trader that uses one that works or as I did (I prefer to learn myself and then look at options) immerse yourself in the markets and study what seems to happen and work out probabilities etc. I developed a basic system using RSI indicator, from that I was successful but I knew I could be better so I started looking for others using RSI in a better way to me – luckily I came across Robert Miners book that very day and I’ve not looked further as this suits my personality and style perfectly.

It is important for the reader to know that the reason I trade is because of the freedom it gives me as you are able to see below – not for the money, the money is a by-product.  Another great by-product is that don’t have to work for an inane boss that thinks they’re clever – I’ve worked for too many of those types in the past and only have respect for 2 of them out of many more!

Let’s take a look at a typical working day for myself:

7am – still in bed

7.20am – get-up

7.45am – computers on and 1st cup of tea for the day

8am – Markets open and by this time I’ve usually downloaded and exported price data from yesterday into my DT software to look for potential trades – usually a typical day will yield 3 potential trades – The DTosc is the key filter to whether I take a trade or not – my software is set to certain parameters and if a share hits those parameters it’s flagged up.

8-8.30am – I don’t trade between these hours, instead allowing the markets to find their feet from the overnight session in the US and Futures markets.  During this time I will search my selected portfolios for fresh (8) DTosc reversals and take a peek at the charts – if there’s a trade on I’ll quickly work out the Entry, Stop and Target levels and place an order for each trade*  This take less than 5 mins per share and I never have more than 5 positions open at any one time.

If there are no set-ups for that day then I manage any existing trades and then finish for the day

8.30-9am – Shower and dressed.  Feed the guinea pigs, put the washing on and make a cup of coffee.

9-10.30am – manage any existing trades** I’m in, update my stats and trades taken into my log-book and general admin tasks.

10.30am – 4pm – Rest of the day free.

4pm-5pm – manage existing trades, check the market at the close and general admin tasks then close up shop for the day.

5pm+ – Family Time

10pm – Watch the news – this is the only news I’ll look at per day and I don;t pay attention to the business news either – most of it does not assist me in the way I trade/invest.

I do not look at the markets at all of a weekend, weekends are for Family.

* = I only monitor 14 shares from the FTSE100, 5 Currency pairs, the Dow, Gold, Silver and Natural Gas – that’s enough to keep me busy

** = making sure target levels are set in the market and stops adjusted to protect gains.

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Marks & Sparks – Recent Trade

Hi, heres a chart of a recent trade.  It shows 2 things:

  1. A recent trade taken last week
  2.  It also shows that if you’d bought and held this share at the low prior to point A (March 2011) you’d have just started to make a profit in February 2012 some 11 months later

This is why I don’t buy and hold – it’s virtually impossible to know when a share or market will do in a 12 month period – It just suits my personality to know for certain what I’ve made by trading/investing often.

I bought with my entire pension fund the trade I show on the chart below, profit is now locked in to 3.5% and what I will simply do is move my stop up every single day until it’s hit – therefore potentially locking in more and increasing profits daily – 3.5% a week compounds up to a pretty decent annual return, once I’m out of this trade I then need another to produce the same returns the next week or so – and simply repeat.

The reason I do this is because I don’t want to own this share for long, at some stage in the next few days to week this share will have a reaction of some degree – I don’t know what kind of reaction, it might only be a 1 day pullback, it might be a 6 month sideways to down reaction!  If it’s the latter I don’t fancy getting trapped anyway.  I’d much rather be in control of when and how I trade this one in the future, rather than being trapped in a trade.

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Democracy’s Longest Decline in 40 Years: Was It Predictable?

With socionomics, it’s no surprise at all…

by Nathaniel Williams

Democracy has long been considered a model political
structure for self-governing societies. So why is “government
of the people, by the people, for the people” losing ground?
Consider what The Economist magazine observed:

Freedom House, a New York-based body that monitors
a range of political and civil rights, reported that
2010 saw a net decline in liberty across the world
for the fifth year in a row, the longest
continual decline in four decades
of record
keeping…. Western governments have become shy about
spreading the idea that certain human rights, enshrined
in the United Nations conventions, are universal
.”

– The Economist, September 2011 (emphasis added)

You may find this turn of events shocking, and rest
assured that we have yet to hear a satisfactory “fundamental”
explanation of the trend. But with socionomics – the
study of social mood – we can say that at this juncture it’s
no surprise at all
. Robert Prechter applied socionomic
principles to anticipate this trend more than 19
years ago
:

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