Dear Trading Friend, in this Edition of Traders Ezine we offer several
interesting article contributions. Plus, more from Greg From Downunder,
our Downunder Aussie Friend. Also, more on our upcoming trading seminars
and seminar location and date changes, and more content.
Please note this Ezine does not use an attached file using the Adobe PDF
program. We normally only use attached pdf files on very large documents,
like our recent electronic edition of Commodity Traders Club Newsletter,
which was 45-pages long.
This Ezine was thoroughly virus checked just before transmittal using the
latest McAfee Virus Scan, which version is freshly updated.
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Hello Dave. I read your Ezine (and CTCN) about Greg from Down Under. I
hope you will learn his system even if he isn't interested in your
proposal. You could then generate the signals and make them available for
a percentage of the profits (10% - 20% sounds reasonable).
Rather than send the signals to hundreds of emails, you could have a lot
more control by sending them to one broker who executes the signals for
everyone involved. That way, no one shares them with their friends and
family and you could be assured of getting your cut (I would suggest every
week or month rather than every day). You should keep the group small by
giving a very short window of opportunity to interested parties.
Since multiple contracts could eventually come into play, even a few
hundred participants could dramatically impact the results down the road.
Thousands of contracts bought or sold at one time will affect the results!
Hope you will let the small trader participate by requiring no more than
a $10,000 account.
Please keep us informed and good luck. P.S.: Yes Dave, feel free to quote
me. If you put this together, you deserve to be well compensated.
Thanks, Jim Watson
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Hi Dave, well that was quite an article from "Greg from Downunder." I am
very interested in whatever you can setup, please keep me advised!! Maybe
1,000 traders might be too many.
You should start with a few hundred, and see if it affects results.
Either way that you decide to go forward, please sign me up now!! Thanks,
Mike McLaughlin
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Dear Dave - I marveled at the article from Greg from down under (as I'm
sure everyone else did)! and would love to be updated on his response to
your very stimulating offer. If even a portion of his claims are correct
it would still be a lucrative system.
I would also very much like to review Greg's five charts you referred to
in your article thus my inquiry is to become a member contingent upon
receiving that information. It is still possible to become a member AND
receive those charts? I would appreciate a response from you when you get
the opportunity. Thanks. Al
Editor's Note: Yes, Greg's charts are printed in the current issue of CTCN
and are mailed to you when you join, along with some other goodies and
free stuff.
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What’s More Important – Paying Less Commissions or Making A Lot More In
Profits! - Greg From Downunder
Hi Dave, I understand and appreciate the concern expressed by some traders
over the number of possible daytrade entries and consequential brokerage
commissions. This is a valid viewpoint. But, might I also say that it is a
somewhat misguided concern and a bit of a red herring.
It is a common fault with traders that we can’t see the forest for the
trees. We seem to be preoccupied with minor issues and the big picture
often eludes us completely!
Trading should be approached as a business, even if we do it for fun or
as a sideline hobby. This means we should be prepared to pay for the cost
of doing the business. I have a friend who owns and runs a precision
engineering business in South Africa. He says, “ Greg, in order for me to
tool up for a job I have to spend a fortune on machinery, computers,
software, design engineering, training, machine operators, etc, etc.
Sometimes, several hundred thousand dollars later I have yet to make a
cracker.
What is this kak you traders have about spending a few thousand on
software and brokerage?” Now, when we trade, we think nothing of running
four computers, four live data feeds, 5 ISPs and two additional free phone
lines. Does all this cost money? You betcha!
In relation to the No Brainer. The NB employs a scalping technique that
seeks to take small bites out of the market with the lowest possible risk.
It does not sit there waiting, watching and hoping for that magical trend
to appear.
It is out there fighting for a slice of the action. Sure, we can have less
entries and less brokerage, but, this might also mean bigger stops and
therefore bigger risk, and at the end of the day, smaller profits. As an
example, I give you two choices;
A. Brokerage $ 160, Net Profit $60%. OR B. Brokerage $400 Net Profit
$2000.
You pick!
Oh, but surely taking so many trades gives you stress? Yes, of course it
does. No pain, no gain, but hopefully we get compensated for it. We
certainly have not ignored the stress factor, and this is another reason
why we are offering to take the stress off you, the trader. Trading with
the NB is not everyone’s cup of tea. It is definitely not a fun way to
trade.
On the other hand, which is more stressful - sitting on the sidelines,
chewing your fingernails, waiting for that big opportunity and then
freezing on the trigger?
By contrast, the NB is doing constant battle with the market and looking
to come out with a sizable chunk of the profits all the time. Some might
argue that your stress levels can diminish quite a bit when your trading
account starts to show steady growth. Different ways to look at stress!
What we are offering is an opportunity to make regular profits in an
exceptionally tough market. Stress is part of that package. But the way we
have structured it, we take on the stress and the only stress you have is
deciding how to spend the money.
As a trader, you must decide what is more important for you.
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Stops Are Not Just For Roads! Rick J. Ratchford (Updated Article)
When the discussion turns to the use of Stop Loss orders, you can be
confident that a division will occur between all the participants of the
discussion, as they are first divided on whether to use stops, and then
those who say we should, are therefore divided again on how to use them in
everyday trading.
It is with this understanding that you read this article with an open
mind. If you are of the opinion that stops are not useful in your trading,
rest assured that the author of this article respects that opinion, and
merely suggesting that stop-loss orders are important to most traders.
The bottom line, the point of this article, is discussing how we can limit
our losses. Every trader experiences losses in trading. Find me a trader
that says he never loses, and I will show you a mouth spewing forth lies.
Stops are one vehicle in achieving a good risk management plan. Properly
placed and allowed to work, your trading losses can be limited, while you
let those winners reach your objective.
The argument for using stops is really basic and simple. If you speculate
that the market is going to move in one direction, and it goes the
opposite way, the stop is meant to get you out before your losses grow any
larger.
If you did your homework, and I stress that you should do so first, and
it is of your opinion that the market is to perform in a certain way but
does not, at what point would you finally admit to yourself that your
initial analysis was incorrect and you should get out and re-evaluate? If
you don't use stops, are you leaving this up to how you FEEL when the
market moves against you?
In the past, I personally have experienced the aching feeling of seeing
the market move against me, and then when it reaches the price that WOULD
have been my stop had I placed one, I would hesitate because I don't want
to take a deliberate loss. Then, in my despair, I would watch it go
against me more, and more, and more, and...STOP!!!
Well, that is one way to place a stop, but I would not recommend it!
Many will argue that had they placed a stop, they would not have made the
profit that they did, when the market finally turned around and went the
way they had originally calculated.
Yes, this has happened to me as well, and I walked away happy that I did
not have a stop in. But this happiness is fleeting and a danger to
experience. The win will enforce in you a good feeling for doing the wrong
thing. It can turn you into a gambler, one who takes unnecessary risks.
I submit that for most who does not use a stop is in essence admitting
that he has no clue as to what price against his position constitutes an
error. If he had such a clue, he would place a stop at that price. Yet, I
must add that this does not apply to all types of trading.
For example, a scalper would not use stops. Why, the time to place and
reverse them and so-forth would murder such a trader. He is one that is
watching and actively trading the market at such speeds that he isn't
going for long pre-calculated moves. He knows his support and resistance
areas and is trading off of those, as well as what he sees the action
doing.
Another may be a day trader who is merely taking out chunks from a daily
range. The action is usually too quick to calculate those stop areas. And
just like the scalper, speed is of the essence. However, as a former day
trader turned short term trader, I found myself getting chewed up on
several occasions where I should have exited when my anticipated move did
not materialize, yet to just watch the market continue to move against me
for greater losses. All I can say is, daytraders beware!
Now we come down to the problem of placing stops. Where should we place
them now that we are convinced that we should use them?
This problem of placing stops seems to stem all the way down to the
Municipal level. In the city where I live, they seem to have stops all
over my neighborhood. It seems that they don't have a clue as to where to
place their stops either. I imagine if they were traders, they would over
use stops to the point of many losses over time.
There are volumes of books on the subject of trading. But have you ever
noticed that when it comes to the subject of stops, they many seem to fall
short of stating exactly how they should be placed? Reason may be that
there is no exact way to place a stop. Yet, this will not stop the trader
in trouble from continually asking the next guru in line, "Where should I
place my stop?"
I'm going to share with you some suggestions for stop-loss placement. Of
course it won't be the best for all situations, that will require trial
and error on your part. However, for many situations, it should work
relatively well.
First, to limit my risk, I trade only on time days. There are various ways
to calculate time, each with their own accuracy levels. Those familiar
with my work know that I use Fdates for my time days. But you are free to
use whatever method you choose. As a matter of fact, you don't even have
to use any time days if you don't want to. That is just my own preference.
You can still apply the stop-loss methods to your own way of trading.
The purpose of using time days is to limit my initial risk exposure. I
want to get into a trade as early as possible to the beginning of a new
move, so I will know where to place my initial stop-loss. Suppose that
yesterday was a time day, for example. It made a lower low than the day
before. So maybe I believe it is going to put in a short-term bottom.
I could just buy into this market the next day, but if I am wrong about
the bottom, it is throwing good money away unnecessarily. My solution?
Simply to place a BUY STOP order just a tick above the high. If the market
fills me the next day, then it must be moving higher and my time day
bottom may be correct. If I am not filled, no harm done.
Now, suppose I'm filled. I immediately place my STOP-LOSS a tick below the
low of yesterday. Why? Because if it goes lower now, then my bottom isn't
really a bottom, is it? I want to get out cheap! Alas, the STOP-LOSS is
there to keep my expectations honest. If I am right, I am filled. If I am
wrong, I'm likely not filled. If I'm filled anyway (such as an outside
price range day which happen a low percentage of the time), I'm out cheap.
See why I value stop-loss orders?
Now, this is just the initial stop-loss, mind you. The hard part is the
EXITING of a trade. Some use profit objectives, others exit at the next
time day, and some simply trail their stop by some fixed amount. I like to
use a couple of other methods instead. Let's discuss the first one, shall
we?
Say you want to go the longer-term route. You want to milk this trend for
all it is worth. You have waited patiently for a weekly bottom to start
forming based on some indicators you use (mine would be Wdates). You've
fine tuned your entry with a time day or some oscillator you like to use.
Whatever the method, you are now long with your initial stop-loss placed.
One option is understanding trends. A good bull trend forms a pattern of
higher swing bottoms, one after the other. Knowing this, you can keep your
stop-loss at the initial location until the market makes its first top and
starts to correct.
You can make sure you move your stop-loss to breakeven at this point, and
wait to see how far it will correct back. Once the correction is completed
and price resumes its move up, or even exceeds the first top in price,
your stop-loss can then be moved up to just below that first correction
bottom. This you can do until stopped-out.
Another option to this approach is to initially keep your stop-loss at
least 65% back from the currently highest top from your entry to the
beginning of each new up move. A good bull move usually will not retrace
more than 62% off any top.
If you can identify major corrections based on the degree of bullish waves
(requires experience in identifying waves), after the second major
correction has completed, you will want to abandon the 65% approach and
start tightening your stops to capture more of the last wave or so.
Another approach to stop-losses is using moving averages. There are a few
ways to do this. One approach is to plot a 18-day moving average on your
chart. Once the value of the 18-day moving average exceeds the price of
your initial stop-loss, you would then place your stop-loss just under the
18-day moving average with a few additional points to give the market some
leeway (quick dips below the moving average, for example.)
You can also experiment with the value of the moving average on the last
trend of the same market, to get an idea of its characteristics. Maybe a
13-day or 21-day would suit that particular market better. Only you can
decide this.
Another approach is using trend lines. Once the first major correction
occurs, you can then draw a pretty reliable trend line and use it as a
reference for your stop-loss placement. If you notice the market changing
its angle in relation to this trend line (becoming steeper, for example),
you may wish to adjust your trend line value accordingly, since most
parabolic moves are met with an equally fierce move in the opposite
direction, 'against your position'! Play it smart and anticipate.
I have noticed over the years that each market exhibits a unique behavior
in pattern. Some markets trend smoothly most of the time while another
jumps all over the place and is very volatile. Experiment with the market
you wish to trade and see which approach captures more of the previous
moves. It will provide you with excellent clues on how to tackle the
future moves as well. What better template could you have than a markets
repeatable behavior?
We dealt with a market going up, but just reverse for a market going down.
Simple. Now if I only can get the city to remove many of their stops, I'd
be a happy camper!
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The following is excerpted from The Webtrading’s Comprehensive Gann
Commodities Trading Course - Originally written by W. D. Gann
Latitude and Longitude
On all charts -- daily, weekly or monthly -- the price must move up or
down on the vertical angles. Therefore, the price movement is the same as
latitude. You should begin with 0 on any chart -- daily, weekly or
monthly-and draw the important angles and resistance levels across, which
measures latitude.
Next, number the time points in days, weeks or months across and draw the
horizontal angle at each important natural angle, such as 11-1/4, 22-1/2,
33-3/4, 45, 56-1/4, 67-1/2, 78-3/4, 90, 101-1/4, 112-1/2, 120, etc. Then,
you will know when price reaches these important angles and meets
resistance.
Longitude measures the time running across the chart, as it moves over
each day, week or month. Therefore, you must keep your chart numbered
from each important top and bottom in order to get the time measurements,
according to angles.
These important angles, such as 11-1/4, 22-1/2, 33-3/4, 45, 56-1/4, 60,
78-3/4, 90, etc., from each bottom and top will show you where the
strongest resistance in price and time takes place. These angles prove
the parallel or crossing point. Study past records and see what has
happened when prices on monthly charts reached these important angles or
time periods.
Example: 90 points up in price from 0, draw an angle horizontally across
the chart. Then, 90 days, weeks or months, going to the right across the
chart, draw a vertical angle up which will cross the horizontal angle at
90 and prove the square. By keeping all these angles up and understanding
them on your charts, you will know when important time cycles are running
out.
If the price of an option at 60 comes out on the 60th day, week or month,
it will meet strong resistance because it has reached the square of price
with time. It is at the same latitude or price, and the same longitude or
time period. You can always put the square of 90 on a chart, either
daily, weekly or monthly, and use the natural angles, but I advise only
using this on the weekly and monthly.
You can begin this square of 90 from any bottom or top, that is, going up
90 points or from the natural points which are 90, 135 and 180, but you
must not fail to square the extreme low and high price, as well as the
second and third lower tops and higher bottoms with time.
Rule For Keeping Time Periods On Charts
It is very important that you keep the time periods on all of your charts,
carrying them across from the bottom and top of each important move, in
order to check up and know that you have your angles or moving trend lines
at the correct point, and to see where major and minor cycles indicate
changes in trend.
Time Periods From Bottoms
When an option makes bottom one month and then the following month makes a
higher bottom and a higher top, or, anyway, after it makes a higher bottom
and rallies for one month or more, you can start numbering from that
bottom. The month that it makes the low belongs to the old or downward
movement and is the last move down. Count the first month up as 1, and
then number across on the 1/2-inch squares, running them across, adding 4
each time.
Example: If an option has made bottom and advanced 50¢, and you look down
at the bottom of the chart and find that the price is on the 25th month,
then the angle of 2 x 1, moving up 2¢ per month, would cross at 50, while
the 45º angle moving up 1¢ per month would be at 25; and, if the price
broke back under 50 the following month, it would be falling under the
angle of 2 x 1 and indicate a further decline. If you had an error on the
chart in the timing or numbering across from the bottom, the moving trend
line or angle would not come out correctly.
Time Periods From Tops
After an option has advanced and made an extreme high and reacted for a
few days, a few weeks or a few months, and you start putting on the angles
from the top down, you must then begin to number the time periods across
from the top. Apply the same rule for the top: The month, week or day that
the option makes extreme high, finishes the upward movement and is not to
be counted.
You can count the number of days, weeks or months moving across after
that, allowing the top month to be 0, the next month, week or day over to
be 1, adding 4 across on the squares to get the correct position. If this
time period is carried across on all the charts correctly, then you can
always check up and find out if you have made any mistake in bringing down
the angles or moving trend lines.
This is a simple way to always know when the angles or moving trend lines
are correct because you simply add the movement to the bottom and subtract
it from the top. Suppose the price referred to above, when the price has
declined 75¢, was 150, then subtracting 80 from the top at 150, the angle
would cross at 70 and the price of the option down 75¢ would be at 75.
Therefore, it would be above the angle of 2 x 1 from the top and in
position for a rally if the time cycle indicated it.
Points From Which To Number Time Periods
The most important point on the monthly high and low chart to carry the
time period is from the extreme low of the life of an option. From the
extreme low price, the time period should always be carried across on the
chart just the same as the important angles should be continued right
along for years.
The next important point to number from is a second or third higher
bottom, but you should not consider a bottom established until the market
has held up or advanced 3 or 4 months, then commence numbering from that
bottom, if it appears to be important.
Use this same rule at tops. After top is reached and the trend turns
down, carry the time numbers across from the top; but after any top is
crossed or bottom is broken that you are numbering from, do not count that
top or bottom of importance to number from except to determine a time
period on another cycle 3, 5, 7, 10 or 20 years ahead.
Tops that stay for a long time without being crossed are always the most
important from which to carry the time periods. The extreme high reached
by an option is always most important until that high is crossed. Then,
the next high price made on a secondary rally, which is always a lower
top, is the next most important top from which to number.
Always note the number of months between extreme high and between extreme
low points, and note what angle tops and bottoms come out on.
Squaring The Price Range With Time
This is one of the most important and valuable discoveries I have ever
made, and if you stick strictly to the rule, and always watch an option
when Price is squared by Time, or when Time and Price come together, you
will be able to forecast the important changes in trend with greater
accuracy.
The squaring of Price with Time means an equal number of points up or down
balancing an equal number of time periods, either days, weeks or months.
Example: If an option has advanced 24¢ in 24 days, then moving the 45º
angle or moving trend line up at the rate of 1¢ per day, the timing line
or time period and the price of the option are at the same level, and the
price is resting on a 45º angle.
You should watch for an important change in trend at this point!
If an option is to continue up-trend and remain in a strong position, it
must continue to advance and keep above the angle of 45º. If it breaks
back under this angle, then it is out of its square on the bear side of
the 45º angle and in a weaker position.
When you are squaring out time on a daily chart, look at the weekly high
and low chart, and monthly high and low chart, and see if the option is in
a strong position and has yet to run out the time periods because on a
daily chart it has to react and then recover a position, squaring its
price many times as long as the weekly and monthly charts point up.
Market corrections or reactions are simply the squaring out of minor time
periods and later the big declines or advances are the squaring out of
major time periods.
Squaring The Range
Refer to Form #12, where a range of 12 points is shown from 48 low to 60
high. Now, suppose an option remains for several weeks or several months
moving up or down in this range, never getting more than 12 points up from
the bottom and not breaking the bottom. Start the 45º angle from the
bottom of 48 and move it up to the top of the range to 60, then, when we
see the option is holding this range and not going higher, move the 45º
angle back to the bottom; then, back to the top of the range again, moving
it up or down over this range until the price breaks out into new low
levels or new high levels.
You will find that every time the 45º angle reaches the top of this range,
or the bottom, there is some important change in the trend of the option.
1949, February 9, May Soy Beans, low 201-1/2. To square this price with
time on the weekly chart will require 201-1/2 weeks, and the 45º angle
moving up from 201-1/2 will be at 403; but the 45º angle moving up from 0
will be at 201-1/2 equaling the price.
The 1/8, 1/4, 1/3, 1/2 and other parts of 201-1/2 must be watched in
periods of time from 201-1/2. 1/8 was 25-1/4 weeks or August 6, 1949; 1/4
was February 4, 1950; 1/2 was 101 weeks or January 20, 1951. May and
November Beans made high February 8, 1951, and the trend turned down.
1951, December 29 will be 150 weeks from February 9, 1949, and this is 3/4
of 201-1/2, and is a very important date for a change in trend.
1952, January 15, will be 4 years from 1948, high 436-3/4, also important
to watch for a change in trend.
1953, December 29 will be 202 weeks from February 9, 1949, and this will
square the price of 201-1/2 with time. Watch this date for an important
change in trend.
You can also use the angles of 2 x 1 to the right of the 45º angle and the
2 x 1 to the left, as they again divide the time period into 2 equal parts
and are of some value.
If an option finally moves out of this range on the up side, then the
angles would begin at the new and higher bottom and move up, but from the
point where the price went into new high, or from any important bottom
made while it was in the range, especially the last bottom that it made,
would be most important.
You should then begin an angle at that bottom and continue on up again.
Watch when this angle is broken or when time is squared out again with
price, which would be important for another change in trend, either major
or minor.
Three Ways To Square Time And Price
We can square the range, that is, the number of cents from extreme low to
extreme high with time; then square the extreme low price with time; and
square the extreme high price with time. When the market passes out of
these squares and breaks important angles, the trend changes up or down.
1. Range
The range that any option makes between extreme high and extreme low can
be squared, so long as it remains in the same price range. If the range is
25¢, it squares with 25 periods of time -- days, weeks or months.
Continue to use this time period as long as it stays in the same range.
2. Squaring Time with Bottom or Extreme Low Price
The next important price to square with time is the lowest price or bottom
of any important decline. Example: If the bottom of an option is 25, then
at the end of 25 days, 25 weeks or 25 months, time and price are equal.
Watch for a change in trend as based on its bottom or lowest selling
price.
As long as the option continues to hold one bottom and advances, you can
always use this time period running across and continuing the time period,
noting every time it passes out of the square.
Watch especially when the price reaches the third square, the fourth
square, and again the seventh and ninth squares of its time period. These
squares only occur frequently on the daily or weekly charts, as the
monthly in most cases would move out of a range, up or down, before it
squared a bottom as many as 7 or 9 times.
However, this does sometimes happen when an option is in a narrow range
for many years.
Example: May Beans, 1939, July 27, low 67. This would require 67 months
or 67 weeks to square the lowest price. Note monthly chart marked
"Squares of 44 and 67."
3. Squaring Time with Top or Extreme High Price
The other important price with which to square time is the extreme high
price of an option. The time period must be carried across from the high
of the daily, weekly or monthly, and the square of the top price in time
must be noted and watched for a change in trend.
If the top of an option is 50, then, when it has moved over 50 days, 50
weeks or 50 months, it has reached its square in time and an important
change is indicated. This can be determined by the position of the angles
from top and bottom. Example: May Soy Beans, 1948, January 15, high
436-3/8. This requires 436-3/8 weeks to square Price with Time.
Both major and minor tops and bottoms on all time periods must be watched
as they square out right along. Most important of all is the extreme high
price on the monthly high and low chart. This may be very high and work
out a long time period before it squares the top, in which case you have
to divide the price like 8 equal time periods and watch the most important
points like 1/4, 1/3, 1/2 and 3/8, but most important of all is when Time
equals Price.
When you are watching the position of an option, after it has squared out
from a bottom or a top, always look up the time period and the angles from
the opposite direction. If the market is nearing a low price, squaring out
a top, see how its relation is to the bottom as it might be in the second
or third square period from the bottom, which would be a double indication
for a change in trend.
Squaring Weekly Time Periods
The year contains 52 weeks and the square of this in time is 52 by 52.
Therefore, you can make up a square of 52 wide and 52 high; put on all of
the angles from 0; then, chart weekly high and low prices of an option in
this square. Example: If the low price of an option is 50, then the top of
this weekly square would be 52 added to 50, which makes 102 as top of the
square.
As long as the price stays above 50 and moves up, it will be working in
the weekly square of 52. On the other hand, if the option makes top and
works down, you would make up a weekly square 52¢ down from the top and 52
over to get the time period.
You can take the past movement of any option, put on a square of 52 x 52,
and study the movement noting 13 weeks or 1/4, 26 weeks or 1/2, and 39
weeks or 3/8 points on time; and the changes in trend which take place
when the price reaches these important resistance points in time and
price. You would watch for a change in trend around these time periods.
Squaring Monthly Time Periods
At the time an option breaks a 45º angle, if it is selling at 135 on the
135th month, it is breaking a doubly strong resistance level -- a strong
angle and a natural resistance level. This would be time and space for
balancing at resistance levels or geometrical angles and would indicate a
big decline to follow. Reverse this rule at the end of a bear campaign.
On a monthly chart, 12 months complete a year. Therefore, the square of 12
is very important for working out time periods on the monthly chart. The
square of 12 is 144 and important changes often occur on even 12-month
periods from a bottom or top of an option. It will help, if you use the
resistance levels on prices of the even 12's, noting 24, 36, 48, 60, 72,
84, 96, 108, etc. Watch how the option acts on angles when it reaches
these important resistance points in price.
Price Ahead Of Time
Why do Grain options often cross the 45º angle on the daily, weekly or
monthly chart, then have an advance for a short period of time, decline
and rest on the same 45º angle? Because, when the price crosses the 45º
angle the first time, it has not run out or overcome the square of time
with price. Therefore, on the secondary reaction, when it rests on the 45º
angle, it is at a time when the price has reached the square of price in
time. After that, a greater advance follows.
Reverse this rule at the top of a bull market. When an option breaks
under the 45º angle, a long distance from the base or bottom, it is most
important.
Many times an option will rest on the 45º angle in the early stages of an
advance, then later, on a reaction, rest on it again; then have a
prolonged advance, react and rest on the 45º angle again, and then advance
to a higher level; break the 45º angle the next time, which places it in
an extremely weak position because it is so far away from the base and so
much time has elapsed since the price made low. Don't forget: It is most
important when angles are broken on the monthly and weekly charts.
This accounts for Grains that have a sharp, quick decline from the top and
then advance and make a slightly higher top or a series of slightly lower
tops, and work over until they overcome the square of the price range at a
comparatively high level and break the 45º angle, then a fast decline
follows
Editor’s Note: Gann uses the word "Option" extensively in his writings.
Please do not get it confused with Put and Call type of Options. By Option
he means a trading position in individual stocks or commodity contracts.
-----------
Asking for good or bad experiences on Field Financial Group. Thanks
William Seideman
-----------
Editor Comments:
In regards to a number of letters, emails and phone calls, including the
ones reprinted above (with permission). I have been watching Greg’s
daytrades using MSN Instant Messenger in real-time (which performance has
been very good) and speaking with Greg via long distance to Australia,
exploring ways to teach his methods.
So far we have agreed to two upcoming Seminars. The first one in June in
Las Vegas. We are also discussing various ways to communicate his “No
Brainer” signals, including the possibility of letting club members trade
the signals via a participating broker. More on this later.
We are also taking pre-registrations for our No Brainer waiting list. The
cost is $75. Please sign-up now
https://stronghold.netnation.com/~webtrade/webtrading/seminarorder.htm
as the number of participating traders is limited as we are concerned
about the markets being adversely effected if too many of us are trading
this method.
In regards to the Real-Time E-Mini S&P and E-Mini Nasdaq Charts from
running from our website links. At one time they were non-commercial and
advertising free. However, Quote.com (who provides the charts) contacted
us and required us to run their banner ads on the charts page.
We are working on ways to offer free real-time non-commercial and
non-advertising charts as a member benefit. We will let you know how this
is going from a programming standpoint.
Here are the links:
Free Real-Time Mini S&P: https://webtrading.com/charts/f_esp.htm
Free Real-Time Mini-Nasdaq: https://webtrading.com/charts/f_esp.htm
We have changed our seminar schedule as follows. The first 3-day Seminar
location has been changed to Las Vegas, NV due to a number of requests
from traders who preferred not traveling all the way to London, and also
wanted to attend the Seminar in June rather than later in the year. The
links to the seminar details are here https://www.financial-seminars.com
Therefore our first Seminar teaching both Real Success-2 and Real
Success-3 and also Greg From Downunder and his End-of-Day method will be
in Las Vegas June 9, 10 and 11, 2001. Be sure to attend. Greg will be our
featured speaker all 3-days, including the Live Internet Trading day on
Monday when Greg and I both will be pulling the trigger on some real-time
trades. To those who were planning to attend the London Seminar we urge
you to come to Las Vegas instead rather than waiting an additional
3-months.
Greg, has expressed a desire to not reveal his No Brainer Daytrading
secrets and prefers to teach his EOD Position Trading Method. Click-Here
for his letter regarding this
https://www.financial-seminars.com/invitation.htm
I can't promise you this but there is always a possibility Greg may relent
and reveal some (but likely not all) his No Brainer secrets at this
Seminar. In either case, you will find his EOD Methodology extremely
valuable and potentially profitable as far as position trades go.
Please note our Seminar offers both Short-Term Daytrading and longer-Term
Position trading methods. Real Success-2 will concentrate on daytrading
the E-Mini S&P Market, Real Success-3 is more devoted to the E-Mini Nasdaq
Market, and Greg From Downunder emphasizes his Overnight End-Of-Day
Trading Method.
As mentioned before, our Real Success 2nd Edition Course is getting good
feedback reports on how the RS2 Video Tape Training Course has been
helping our trader clients, both daytraders and also longer term position
traders in misc markets.
To help even more we have expanded the new RS-2 Trading Course from 4
Tapes to 6 Video Tapes (2-Hrs each). That's approx 12-hrs of learning,
including a number of real-time 100% Internet Based trades made during the
filming. The 2 additional tapes have also been sent as a FREE bonus to
early RS2 clients.
We are announcing some great extra benefits (for paid Club Members only).
This reduction in CTCN printed issues is due in part to more and more of
our articles and resources being targeted to Traders Ezine's sent via
email approx 36 times per year, and also website content, including our
new Paid Members Only area. Also, we have received considerable support
and requests to do this more and more electronically or over the Web for
its speed in delivering content and its great cost effectiveness.
For example, some content in this Ezine the article by "Greg from
Downunder" was received only a few days ago, Nov 29. By sending it
electronically you get it significantly faster than is possible with
printed issues of CTCN. However, it is nice to get occasional printed
issues in booklet format, so we will mail them out at least twice per
year, perhaps more.
Our Traders Ezine frequency is normally 3 electronic issues per month (or
2 monthly Ezines when we have extra large issues) is about right. This way
you will get more and more rapid trading knowledge to help you get on the
road to profitable trading! This is the 2nd Ezine for January 2001. The
first was 45-pages long in Adobe PDF Format. This one is 17-pages as a
Rich Text File. That’s 62-pages of trading knowledge for you this month in
2-Issues.
By the way, aren't the many emails and email newsletters you get from
others, sometimes every day annoying! That's far too frequent a schedule.
Getting them Daily makes them seem more like spam than something of value.
All the best, Dave Green, Editor/Publisher
-----------
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------------------------
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Editor's Note: We greatly appreciate our Advertisers and Sponsors listed
above as the revenue helps maintain our websites and keeps our service and
product prices low, in addition the advertiser/sponsor may also offer a
service or product to help you trade better.
-----------
P.S. If you are reading this and with a trading related firm, please go
here for Website Sponsorship information
https://www.webtrading.com/advop.htm
-----------
Here are some suggested trading related links for you:
More details on the upcoming Seminars are located here:
https://www.financial-seminars.com/brochure.htm
-----------
More Info and to Order our Gann Commodities Course - Please note, we now
offer 2 Gann Courses, a low priced one we wrote and a republication of
Gann's Original Commodity Course, including many of Mr. Gann's hand-drawn
charts, plus some improvements and enhancements we have made to the
course. Remember, it is said W. D. Gann sold his Commodities Course in the
early 1950's for $5,000 a copy. In those days it was enough money to buy a
real nice house!
https://www.webtrading.com/gann-commodities-course.htm
-----------
Commodity Traders Club Free Knowledge Based Primary Website
https://www.webtrading.com
-----------
Real Success 2nd Edition Trading Course Information and Buying Details are
located here https://www.traders.org/realsuccess2.htm
-----------
New RS-2 (New and Very Strong) 1-yr No-Strings-Attached Guarantee of
Satisfaction Details https://www.traders.org/guaranty.htm
-----------
To Order New RS-2 6-Tape Video Training Course:
https://www.traders.org/rsorder.htm
-----------
Go here to Become a CTCN Paid Member https://www.webtrading.com/member.htm
-----------
Traders Organization Portal Guide for Daytraders https://www.traders.org
-----------
Year 2001 (June) Las Vegas, Nevada Combined RS-2 & Greg From Downunder
Trading Seminar (special Discounts for Early Registration & Prepayment:
https://financial-seminars.com/
-----------
Webtrading Knowledge Based Free Traders Search Engine
https://www.webtrading.com/searchengine.htm
-----------
Low-Cost W. D. Gann Trading Techniques Gann Methods Trading Course by
Webtrading https://www.webtrading.com/gann.htm
-----------
Low-Cost Options & Spreads Trading Course - The author (Mr. Donio) say's
90% Wins Are Possible with this specific options strategy!
https://www.webtrading.com/options.htm
-----------
Please send me an email mailto:dave@webtrading.com whenever you have any
questions on trading related issues or if you wish to sign-up for a
service and have questions about it.
-----------
As a reminder, you are getting email from us because you either once asked
to go on this Traders Ezine list, or requested info on a trading related
subject we normally cover via this communications method, or you are a
client of ours. Your email address and other information will be kept
confidential per our online Privacy Pledge. Of course, you may opt-off
this Traders Ezine at any time if you do not find this trading knowledge
useful.
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