Dear Trading Friend, in this Special Edition of Traders Ezine we have
reprinted the fabulous article titled “The Great Escape,” by “Greg From
Downunder,” along with the 4 charts Greg originally submitted with the article
which we are now printing for the first time.
Several of you eziner’s have contacted asking about the benefits of
attending our June Seminar in view of the fact Greg will be concentrating on
teaching his overnight trade EOD Method, and not his No Brainer daytrading
methodology.
The charts included with this ezine, visually reveal how amazingly well
Greg’s trading has gone in markets like Crude Oil, Japanese Yen, Swiss Franc
and Soybeans, and will more than address the great benefits of learning the EOD
(End-Of-Day) Method and trading it via our upcoming EOD Website Signals.
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The Great escape – Is Daytrading the
Answer?
I guess most of us are attracted to the idea of daytrading because it
opens up a lot of possibilities.
The usual - freedom, flexibility,
financial independence and control. At last, we have to opportunity to give the
boss the flick and take charge of
our own destiny and income producing capacity. But is daytrading all that it is
cracked up to be?
We have all read the many articles and surveys that point to the fact
that most daytraders lose money! But lets disregard this because Dave and
myself have both proven that it is possible to make regular and significant
profits in daytrading. Unfortunately, while we may have solved one problem
there are still others outside our control.
The biggest problem is the time commitment. “ So what?” I hear you say
– “If I had a regular job I would still have to report for duty for around 8 hours per day. At least this way I
get to work in my pyjamas and don’t have the hassle of peak hour commuting”.
Can’t argue with this, but daytrading does bring on its own peculiar set of
stresses and strains.
True, it does get you away from all those horrible, unreliable people
with their messed up personalities. The ones that have little regard for the
sensitivities of numero uno. Who needs em anyway! As time goes on we get less
and less interested in people and their many inadequacies and retreat into our
secure little world of computer screens and emails. The perfect escape – or is
it?
Now that we are Daytraders, when people talk to us we only half listen
because our minds are far away on the e-mini chart. Most people talk rubbish
anyway. We superciliously look down on their idle prattlings knowing fully well
that there is a higher purpose in life and we are the only ones connected to
the heartbeat of the markets.
Pretty soon we get disconnected from partner and family and our
presence becomes resemblant to that of
the lodger in the manor. For those that are not single, I might leave
the rest of this part of the story to your imagination. Some of us might not
wish to go there.
Being glued to a screen and earning income with a few mouse clicks can
seem like fun at first, but before too long the novelty wears off. A million
candles later, one gets sick of looking at charts . “Never!” says the chart
junkie. Does boredom produce
stress? You better believe it! Many Daytraders, including the successful ones,
suffer from early burn out and
finally seek refuge in teaching, broking, software design and other
related occupations. Does this signify defeat or capitulation on their part ? I
don’t think so, maybe it’s a last grab at sanity?
So tell me – what was our original objective? Most of us would agree it
was financial independence and a better quality of life. But somewhere along
the line this objective lost its way and finally mutated into daytrading.
Daytrading which was originally intended to be the means to achieve the end
suddenly became the end. So what’s
the problem – surely a simple solution would be to take lots of breaks and
holidays. Yes, possibly, but we do get used to bringing in a regular income and
most Daytraders can’t stay too far away from a “market” fix.
So, I offer you another solution.
Split your business into two parts – one directed at short term
daytrading or scalping and the other longer term position trading. But most of
us do this anyway. We all have a little dabble in the stocks or options from
time to time. What’s new about this notion?
I know, I know. What I am suggesting, though, is a more serious and
absorbing “end of day” approach to trading the Futures and Currency markets. It
provides the fix and also the ongoing income. We can still be trading when we
are not daytrading. It makes it easier to take that break or reduce our overall
time commitment. Our position trades can also act as a life saver when we have
that bad day at the office with our daytrades. In contrast with daytrading,
position trading can be a lot less stressful and at times a lot more lucrative.
What ? you mean more money than daytrading? No way!
Well, allow me to give you skeptics a few examples to illustrate my
point. Take a look at the attached chart for March Soybeans.
The trades between 12/18/00 (the high) and 01/26/01 (current close) are
as follows:
(Incidentally, why do you Americans always write your dates backwards?)
Soybeans Mar 01
Date Trade Profit
to Date
Dec 26 -1
@ 514.50 $
2712.50
Jan 2 -1
@ 504.75 $
2225.00
Jan 11 -1
@ 488 $
1387.50
Jan 19 -1
@ 471.25 $ 550.00
Jan 25 -1
@ 467.75 $ 375.00
Total $
7250
So, in a period of little over a month we have made $ 7,250 US with
possibly a bit more to come from our open position. Not convinced?
OK. So that was a fluke, but lets have a look at our friend Crude. This
contract I would be less likely to pyramid because it is a little less trendy
and also more costly to get wrong. So lets just take single trades as per the
attached chart which covers the period from the swing low of Nov 3 to Jan 26,
roughly two months.
Crude Mar 01
Date Trade Profit
to Date
Nov 9 +1
@ 30.76
Nov 30
-2 @ 32.10
$ 1340
Jan 3 +2
@ 26.66 $
5440
Jan 26 Still
open $
3110
Total $
9890
Another fluke ! But maybe by now I have your interest. OK, so lets have
a look at a couple of currencies (again as per attached charts).
Unfortunately, we only got four bites out of Jap Yen (disgusting from
daytraders point of view) for a total of
a mere 911 points or $ 11,387 US ! The Swiss Franc was less
disappointing with a result of 1525 points or $ 19,062 US over the last couple
of months (refer chart). Of course, these results may have been improved if we
traded more than one contract.
So, are we saying that using position trading we could have pulled out
a total of $ 47,589 US over the last couple of months? I have never been good at arithmetic
but I think the answer is – “Yes”.
Mind you this is no comparison to what most of us Daytraders made
during the same period – or is it?
Hands up all you daytraders who had results similar or better than
this………… Hello ??
Still reckon that daytrading is the only way to go?
Again, this is only four markets and we could conceivably do better if
we traded more than just these few. The problem is that we might have to extend
the time spent on our analysis from just a few minutes a day to possibly an
hour per day. B…..i…..g time
investment. If we got really serious we might even have to give up two hours
per day i.e. only if we turned up our MP3 music and had a few extra glasses of
wine while we did our analysis (my style of trading). What a sacrifice !
OK, so where am I going with all this?
I think a lot of us have been duped by all the hype and razza matazz of
daytrading, so much so, that
position trading has become hugely undervalued and daytrading has become
highly overrated. I think its time to redress the balance. We may be conning
ourselves. True – daytrading does allow us to use smaller stops and therefore
limit risk, but all those ins and outs can drive you around the twist. More
often than not we miss out on all the long runs which is where the big money
is.
People sometimes say to me that I don’t sound like a daytrader !! Maybe, that’s because I have two
separate compartments in my brain - two distinct mindsets. One for position
trading and one for daytrading. Both operate simultaneously and often act in
total contradiction to one another. It is quite common for me to take a
daytrade on a 5 min currency chart
that is completely opposite to my position on the longer time frame. As a daytrader I am
simply trying is take a bite out of the days action. This does not mean I want
to jeopardize my position on the longer time frame. I might for instance take a
long looking for a 60% Fibonacci retracement, when in fact my position trading already has me short on the
Daily time frame. Can you see how this might work ?
Am I nuts to work this way?
I don’t think so. As highlighted above there is a lot of money to be
gained from capturing the big long term moves and I am not going to let my
intraday activities screw up my thinking on this. As far as I am concerned they
might as well be two completely different markets.
End of day position trading offers a lot less stress. Sure, there is quite a bit of tension when we
enter our first position, but as soon as we are in the black we can loosen up
and let our profits run, adding additional contracts as we go . Daytrading on the other hand keeps
one constantly in a state of high
tension. Pay very, very close attention to this last point because
I cannot emphasize it enough. Think of what this tension is doing to your
insides. Think of what your insides are doing to you.
Summary
End of Day trading offers the following “lost and forgotten” benefits
and advantages:
Opportunity to capture most of the big moves
Regular breaks, and much less time in front of the screen
Diversification of investment
Greater development of expertise from trading multiple markets
What’s the catch? The catch is that markets don’t trend like this all
the time. So it becomes important to pick the turns or reversal points and hang
on for the ride without getting our stops knocked out. I can show you how to
pick these turning points when you attend our seminars.
The Perfect Marriage
No, I am not talking about your romantic prospects. Nor am I saying
that you should give up daytrading. But, wouldn’t it be great if we could have
the best of both worlds? We want the profits from daytrading but not the stress
that goes with it. We want to be able to enjoy our lives without being chained
to a computer.
For some time now, I have been searching for the ideal combination. A
service that will take care of the daytrading responsibilities and allow me to
focus more time on leisure activities. Unfortunately, most trading systems out there have small profits and big
drawdowns. What we need is a trading system that will provide the regular
returns without the big risks.
Dave and myself have been working hard to present you with exactly this
type of opportunity. At some stage we might also looking to provide you with a
software update so that you can trade it yourselves, i.e. when you feel like
it, not because you have to.
We look forward to feedback concerning your preferences but as yet no
firm decisions have been made regarding the best way to meet your needs.
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Editor Comments: One reason we are sending this Ezine only a few days
after our last one as we fell behind in our goal of publishing 3 Traders
Ezine’s per month during February what with so much of our time occupied in
setting up the “No Brainer” trading via a participating broker, the EOD Website
Signals, and our Seminar.
An even more important reason for this Special Issue is the fact we
wanted to finally publish Greg from Downunders bar charts revealing many of his
EOD Position Trades in some diversified markets. These charts depict in
graphical format the impressive trading results Greg refers to in his “Great
Escape” article.
Bulletin: In an email received from Greg tonight (only minutes ago) he
said this “Sorry, I forgot to send this to you: Profits for the week-ending
March 2, 2001: 257 points, or
$5140 is not a bad result for a generally choppy and difficult week! Our next Traders Ezine
(in approx’ 10-days) will include some additional P&L Reports from Greg,
including results via one of his student traders who he is currently in
training.
For those of you who already pre-paid the $75 No Brainer waiting list
fee we intend to start the potentially highly profitable daytrading service, along
with the End-of-Day Service to paid participants during the month of March,
barring any unforeseen delays.
We are only allowing limited enrollment in both the EOD and NB trading.
Reservation for both are filling rapidly so we urge you to pay your pre-reservation
waiting list fee right away to assure your participation. The reservation list
fees are $50 for EOD Website signals list, and $75 for the No Brainer waiting
list.
If you have not already done so we urge you to sign-up now at:
as the number of
participating traders is limited due to the markets possibly being
affected if too many trade the same trading method at the same time. Plus, we
need to limit numbers to give good support to our traders.
As previously mentioned, we have changed our seminar schedule as
follows. The first 3-day Seminar location has been scheduled for June in Las Vegas.
The links to the seminar details are here
https://www.financial-seminars.com
Our first seminar, teaching both Real Success, and also featuring Greg
From Downunder, will be in Las Vegas June 10, 11 and 12, 2001. Greg will be our featured speaker all
3-days (we anticipate him speaking at least 60% of the time), including the 2
Live Internet Trading days on Monday and Tuesday, when Greg and I both will be doing
some real-time trades using our methods.
As mentioned before via Ezine and also on our website, Greg has
expressed a desire to not completely reveal his No Brainer Daytrading secrets
and prefers to teach his EOD Position Trading Method. Click-Here for Greg’s
letter regarding what he will be teaching at the seminar
https://www.financial-seminars.com/invitation.htm
You will find his EOD Method extremely valuable and potentially
profitable involving position trades, easily worth more than the seminar cost.
This is the 1st ezine issue of March.
All the best, Dave Green, Editor/Publisher
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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
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
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
If you are reading this and you are with a trading related firm, please
go here for Website Sponsorship information https://www.webtrading.com/advop.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.
