Here's all the Potentially Money-making Details on
the Simplest, Basic, True Stuff
Which May "Work" for you . . .
Come With Us On A Knowledge Journey . . .
& Explore This Complete Guide to . . .
possible commodity futures trading success . . .
Editor's Note: We have developed a new "sister" website devoted exclusively to the "Real Success - Revealed Secrets" Daytrading Video Course. This new knowledge base is also easier to navigate. In addition, it goes into even more detail on this comparatively "low risk" methodology for commodities trading and "day trading."
Successfully learning this trading method is an opportunity for you to "get on the road to profitable trading."
You may read about it here by scrolling-down on this CTCN website, or by visiting our new site dedicated to this unique trading methodology by clicking-here: to access Traders Organization
As the Publisher and Editor of Commodity Traders Club News, it puts me in a unique and privileged position to hear lots of feedback, details and hands-on type of information about trading systems and success or lack thereof, trading the commodity futures markets. Having personally talked at length to a large number of traders over the last ten-years, has given me insight and intimate knowledge on many trading systems and methods. During those hundreds of conversations, most every system and trading methodology ever used has been discussed. This "insider's information" is rare knowledge, known to only a few.
Unfortunately, I have found out it's extremely rare for any of the numerous trading systems and methods advertised for sale to really work in real-time actual trading, consistently making money, with low risk, low stress, reasonable and low drawdowns, and without an undue amount of "work."
Luckily for all of us, I was very fortunate (due in part to my "privileged position as the editor of CTCN") to finally discover a methodology which can really "work" in real-time trading. Read on for all the details . . . on this relatively simple common sense approach to potentially profitable trading, with comparatively low risk, "with reasonable drawdowns and comparatively low stress."
Your editor first heard about "A.S.T." one blustery and cloudy and cold December day (we were living in frigid Wisconsin at that time, not sunny warm Arizona) when we received an unsolicited article covering his successful trading methods, which article was actually a positive response to a negative article we published the prior month in commodity futures trading club news. You may now acquire the complete series of "A.S.T." articles and hand-annotated charts!
In case you wondering what "A.S.T." stands for. It was originally the (second) non-de-plume name CTCN gave this apparently highly successful trader, who by the way wrote these articles under a different non-de-plume of his own, as he wanted to avoid being identified. However, as time went by it stood for a lot more than simply non-de-plumes.
"A.S.T." now stands for "Revealed Secrets" or "Real Success" (TM), which is extremely descriptive, accurate and very fitting words, and revealed in these articles.
Throughout this letter and Info-Guide you will see the letters "A.S.T." used repeatedly. Please keep in mind whenever "A.S.T. " is mentioned or referred to, your editor or the author/contributor is actually referring to CTCN's own copyrighted trading methodology known as "Revealed Secrets or our Real Success methodology." We want to make this clear, so please understand this Website doesnot offer "A.S.T.'s personal trading methodology or system but is CTC's product and methods. However, all the incredibly valuable "A.S.T." articles and personal annotated charts, which are all copyrighted by CTCN, are included with our package and available to you as part of our Real Success Educational Course, to help you make money investing and trading in the commodity futures markets.
As mentioned before, originally, A.S.T. was a non-de-plume we used to identify an overall successful trading approach. It's now a word or letters which signify CTCN's trading methodology referred to as "Real Success" We are not referring to a specific individual trader or his methodology but our own.
Over the past four-plus years we have published many fantastic articles in Commodity Traders Club News, to make you or save you money covering all aspects of commodity futures trading. The series of articles using the letters A.S.T., which appeared in every issue of CTCN over a 15-month time period written under the non-de-plume "A.S.T." is very likely the "best of the best," which may help you trade successfully and consistently, with amazing small stop-loss orders, low risk and low stress.
This all started that December day when the first amazing "A.S.T. article" arrived unexpectedly at my office. It was in response to a negative article published the prior month (Nov) in Commodity Traders Club News about how hard it is to make money trading, day trading in particular. He originally wrote using his own non-de-plume, as he didn't want his name known to avoid any subsequent publicity from interfering with his trading. Subsequently, he asked us to not identify him in anyway, including any use or reference to his original non-de-plume, which we agreed to abide by.
The so called "A.S.T." methodology is an "average guy's method" in many respects. However, it's far from average in one major way, namely the real possibility of successful commodity futures trading combined with the opportunity to achieve consistent profits all from the comfort of home, with reasonably low risk and comparatively low stress.
This Revealed Secrets Methodology uses amazingly small stops of about 60 to 150 S&P 500 market points (depending on market volatility), which means your average risk on a typical trade is an amazingly low $300 to $750 per trade! Note: At the time we made the educational video tapes in April 1996, a 60-point stop in the S&P was working "good." However, what with today's elevated price levels and volatility higher stops are sometimes necessary. Sixty-point stops may still be valid but at volatile times stop-losses ranging up to 150-points are sometimes warranted.
"Real Success" methods are referred to as "blue collar trader methods." By that we mean it's not used by someone like Paul Tudor Jones, for example. Our Real Success method is not being traded by some money manager sitting in an "ivory tower" and is not used by well-known fund managers with very deep-pockets.
This method is for small and medium size traders who want to trade successfully, using a relatively simple approach, which is not exceedingly technical or complicated. In fact, this unique methodology is fairly easy-to-use and teach to others.
It really doesn't matter if you are a beginner, new trader or experienced...this is easy to teach and easy-to-use.
Still another reason our Real Success method is referred to as a "blue collar trader method" is it does not make $1,000 or more each and every day, like many brochures you get in the mail claim or imply you can also do.
In fact, your editor believes it's really next to impossible to make that much most every day, combined with low risk and one-lot trading. Instead, Real Success traders are very happy making comparatively small (but significant in the long-run) profits.
You too can do it, by studying and using this methodology, not "over-trading" and using our conservative money management techniques.
These techniques and methods can make Real Success traders consistent and steady profits. We may average approximately $1,000 to $1,500 per week net profits, about $200 to $300 per day, as A.S.T. says he has made in real-time trading. Also, sometimes we may hit a home run or two (like A.S.T.) and make $3,000 to $4,000 in a week.
All this is based on trading just one contract per position. On the other side, once in a while this method will incur a weekly drawdown of $500 or more.
But not to worry about reasonably sized and fairly rare weekly drawdowns. Because the following week may be a more typical week, with anywhere from $900 to $2,000 in possible net profits (like A.S.T. says he usually makes). Keep in mind, these numbers are based on only one contract per signal. Of course, if you want to trade two-lots or five-lots, etc., simply multiply the above numbers. However, keep in mind we prefer one-lot trading because it keeps our risk low and enables less stressful trading, and less stress in our life.
We have done some fantastic VHS Videos showing CTC's Real Success (Revealed Secrets) being traded by Dave at his home office. They are concise, hands-on, and contain great knowledge and are also easy to understand. They are based on a number of our copyrighted articles written by A.S.T. and other traders and club members from late 1994 thru early 1996. Also, Dave has added many of his own wrinkles and secret methods which he has been privy to over the years . . . his own personal trading knowledge based on trading commodity futures for his own account since April of 1982, and knowledge volunteered by several highly successful traders. It can make the Real Success method work even better for you.
These knowledge based hands-on videos, along with CTCN's comprehensive trading manual and some bonus extras, are offered to traders with this limited special invitation offer, available for the first time on the Internet.
"How An Apparent Negative Turns Into A Positive For You!" Good News, you may learn this fantastic methodology at sharply reduced cost . . . $477, instead of the $3,000 seminar package. This is because we have permanently canceled seminar plans as we are no longer in partnership with "A.S.T."
Consequently, CTCN is able to save you lots of money with a sharply lower price. Priced at only 29% of the original proposed cost and an incredible bargain. You will get all the details on how the Real Success methods may make you consistent and good profits trading for a living from home.
Good News for You! We still have limited numbers of these amazing videos and manuals available. They are available to all traders who want to trade profitably but at the same time realize the risk involved in trading commodity futures and are realistic about their chance of easily achieving great success. The cost of the tapes and manual is a very reasonable $477.00, plus $20.00 for FedEx S&H (add $60 for foreign express).
All you really need to learn consistent low risk money-making methodology are the video tapes, accompanying trading manual and the (picture is worth a thousand words) charts. The long-ago planned seminar was really only supplemental and not needed to learn this method.
By the way, a seminar is not really necessary for you to learn this amazing low-risk money-making methodology. In fact, these high-cost weekend seminars you see advertised are rarely really mandatory to learn various trading methodologies.
More Good News! As you watch these amazing tapes you no doubt will be curious about the availability of "omega tradestation" compatible software, which is the software used in the real-time trading videos. You should know, software of this type is mainly a visual aid, and it is not actually required to trade this methodology successfully.
Even though computer software is not mandatory, Webtrading has written the program to do what you will see in our videos on the real-time Tradestation screen.
This program displays colored dots under or above all of the signal opportunity bars, draws horizontal resistance and support areas, and signal indicators, including Keltner Channel Bands, all on your Omega Tradestation Screen. It is available now, as a low cost "user-study" add-in program to supplement Real Success Trading Course.
In keeping with our "blue collar" image we offer this beneficial supplemental software to you at low cost, only $297.00.
You may place your software order NOW. By ordering this great Tradestation compatible software NOW, along with the video course you will only pay $1,194 total.
Friendly and free technical support with either the methodology or the optional software is available direct from CTCN via 24-hr recommended e-mail, or Fax. Your Editor is expert at this methodology and will be available to assist you.
For your information, CTCN holds copyrights on the name "A.S.T." and on all A.S.T. articles, as published in Commodity Traders Club News, and on all comments and contributions regarding A.S.T. made by members.
Sincerely and Best Regards,
Dave Green, Editor, Pres., Webtrading.com & Editor of Commodity Traders Club News
P.S.: To get yours, and start you going on the path to trading success, you need to act immediately. Remember, the number of CTCN packages still available is limited. Therefore, please get your copy at once. This may put you on the road to profitable trading but of course it can not be guaranteed. For your benefit, please don't delay, do it today . . . be sure to order this NOW!
"The Amazing & Thrilling Story About How our Real Success. . . Revealed Secrets Methodology May Teach You How To Consistently Make Money, with fairly Small Stop-Loss Orders, Low-Risk and Surprisingly Low-Stress"
"How The Fact The Cancellation of our once planned Seminar Has Turned Out to Be a Great Benefit to You . . . Because You Can Still Learn the techniques used by Real Success traders, some of whom successfully and profitably trade the markets (so you may also do it) . . . At Very Reasonable Cost of Only $477 . . . compared to its original planned price of $3,000"
Starting on the next page are words to a several CTCN members in reply to their many phone calls, Faxes & letters so they too may trade this great methodology. Many of our members are always on the lookout for techniques and methodologies they may use to trade better in the future.
Dear Commodity Traders Club News Member,
As you know, the "A.S.T." articles were published in Commodity Traders Club News for a 14-month period. These great contributions have helped many members immensely with their trading. In addition, many of you have asked to learn more details about CTC's "Real Success (Revealed Secrets)" methodology, so club members will also be able to trade successfully.
I know of particular interest to you, is the Real Success methodology involving our use of amazingly small stop-loss orders of between $300 to $750 or so. Also, how you may trade consistently, with steady profits and reasonably low-stress!
By the way, about stress, all futures trading entails stress to varying degrees. Usually, stress levels are extremely high. One of the greatest benefits you will get from this low-risk methodology is the fact your stress level will normally be surprisingly low.
There are several reasons for our reduced stress trading, including the fact you may take a 2-hour (or longer) lunch break each day, sometimes even quitting "work" early in the week. In fact, one of the greatest benefits of this methodology is the fact stress levels of traders using this approach are amazingly low.
Not only you, but many others have called or written repeatedly asking CTCN to go into more detail on the "Real Success" method. You have asked me to make available more details and more hands-on instructions . . . more in-depth information on ways to make money with reasonably low-risk . . . a similar trading methodology, like the methods referred to in the series of "A.S.T." articles written for, published in and copyrighted by Commodity Traders Club News. We have answered your many requests by developing these tapes. They are based in part, on many articles written by A.S.T. and others. In addition, since we have less experience than A.S.T. with these methods, the profitable trading verbiage used by A.S.T. in his articles are the basis of our opinions on the chances for trading success, profit possibilities, and loss and drawdown potential of the overall methodology.
I know you have asked for more details and more concise methodology, more annotated charts, more in-depth instructions, most every possible question addressed, and most importantly, wanted to study videos of these method in action, in real-time trading. This way you may learn the secrets of profitable futures trading with low risk and low stress. Therefore, CTCN has done these great videos and a trading manual, teaching all the Real Success (Real Success - Revealed Secrets) amazing methods, in a hands-on way.
With these knowledge based hands-on videos and other extras, you will have the ability to learn successful low risk trading, with consistent profits, low drawdown and reasonable stress, all from the comfort of your home! Our recent decision to not have a seminar will actually benefit you greatly, as you will learn CTC's amazing methodology easier than possible via the seminar route, and at much lower cost. You will benefit greatly as a result of the seminar cancellation. Instead of it costing you $3,000 or more to learn this trading methodology, it will only cost $477. You will get CTCN's complete Trading Course and new series of VHS Video Tapes, consisting of both real-time actual trading and hypothetical theatrical trading, both done in real-time using hands-on teaching methods and detailed instructions, with CTCN's Omega Tradestation charts and PC screen running in real-time in these amazing educational video tapes.
In addition, we have finished the computer code for CTCN's new software, which places all buy/sell opportunities and projected high/low resistance/support levels on your TradeStation screen. This great supplemental software is not really needed and certainly is not mandatory to learn and successfully trade this methodology. However, it is an excellent visual aid and teaching tool, which you will find very beneficial and useful on the road to profitable commodity futures trading.
Keep in mind, this software is totally optional and is not mandatory for your successful use of the trading methodology. In fact, our Tradestation compatible resistance and support software (with built-in Keltner Bands), will work well by itself. It can be highly useful in conjunction with many other trading methods, in addition to commodity futures trading club's Real Success S& P 500 market daytrading methodology.
We are now accepting orders for CTCN's own amazing Video Tapes and Trading Course. We have a limited quantity. Therefore, please place your order NOW! As soon as we get it, we will start working on your 'successful' commodities trading package.
The video tapes are reproduced by a professional video duplication company. The duplicating company gave us a surprisingly large quantity discount by giving them a firm order, to keep costs low. This significant video duplication discount is an important cost-cutting method to save you money.
Another way we keep costs low is by our printer doing all trading manuals with one press-run. Subsequently, we are able to keep our costs low and offer this for only $477.
We will give you free support for up to six-months. Support and assistance involving both the trading methodology and (optional) software will be available 24-hrs per day via e-mail or Fax direct from Dave Green, who is expert with this easy-to-use commodity futures trading methodology.
In case you are wondering what happens to the funds from this, you should know the plans are to set aside about 80% of the net income to subsidize Commodity (Futures) Trading Club News, to keep your future membership cost low, which will then save you money.
The other 20% or so will help fund planned future commodity futures trading products for your benefit. Including additional software, research and other products, we will offer you, on the road to being a successful and independent futures trader.
A signed order-form from you is also mandatory. You are also required to agree (in writing) not to reproduce anything and keep this profitable methodology confidential. A non-disclosure agreement is required. Therefore, we require signed mail or Fax orders (Sorry, no phone orders will be accepted). However, you may use our web trading online (Secure) Order-Form and any additional documents needed will be sent to you.
In addition, it is respectfully requested you supply us with identification, such as a copy of your drivers license, etc.
We also need you to jot down your social security number and date of birth.
Of course, all information will be held in strict confidence. I am sorry we need to have identification requirements. You are assured our ID requirements are also for your benefit.
Best regards and profitable trading to you in the future,
Dave Green, Editor, Commodity Traders Club News & Pres. of Webtrading Co.
Keep in mind some of the great benefits of this methodology are:
- Amazingly reasonable stops of $300 to $750 (at the time the tapes were made the stops used were only $300)
- Low Drawdowns are possible
- can be a Consistently Profitable Methodology
- Surprisingly Low-Stress - compared to most other methods
- Relaxed Trading Style
- Trade only one-contract per opportunity (more contracts only if you want to, because you want to make more money but have more risk)
- Only take the low-risk High-Potential Opportunities
- Quit Your Job - if you desire . . . It's Possible To Trade For A Living From Home!
- Or have the security and great comfort of knowing you may do the above at any time and can be Financially Independent
- This method may also be used (with modifications) on daily charts and overnight position trades in other markets.
- It also may be used in other markets or other market groups, even though it's more specifically designed for day trading the S&P 500.
- May be a Lifetime Method for Making Money for you
Doing The Walk, Not Just The Talk
You will learn from a successful day-trading method, which unlike many other self- proclaimed trading experts (vendors), (A.S.T.) actually "walks the talk." However, the "Real Success (Revealed Secrets)" methodology does in fact do the walk with successful real-time trading possible from the comfort of your home office. As well-known CTCN member Gary Smith wrote about those vendors, "They Can Do The Talk, But They Sure Can't Do The Walk"
The Trading Method Any Man Can Master!
Yes, anyone can master this method, including yourself. We are willing and able to personally assist you with no cost free (e-mail) support (for as long as six-months, if needed - but you will no doubt master this relatively simple but unique methodology quickly), until such time as you can say "you now have the methodology mastered."
Real-Smart Trading Method Purchase . . . Don't Be a Dummy!
Don't waste your time buying the other systems out there which more often than not, don't really work in real-time actual trading, consistently with low risk, low drawdowns, low stress levels, and result in steady, reliable lifetime trading income.
My reputation as the editor of Commodity Traders Club News is on the line in saying this, but from what I have seen or heard about over the years, the Real Success methodology is the only method that may "really work"
Question: How many trades per day are normally made using the Real Success methodology?
Answer: Normally, there are from two to six opportunities per day. However, for reasons explained in the video, those opportunities will result in typically from one to three trades per day, or approximately five to fifteen trades per week, on average. These numbers are typical when daytrading the S&P 500 market. Daytrading other futures markets like the currencies or the t-bond market, will likely have similar trade frequency. Of course, overnight position trading in other commodity markets will have far less trade frequency compared to daytrading, as inter-day daily bars are normally used, rather than intraday 5-minute bars, or other intraday bars.
Question: Are there trades each-and-every day?
Answer: No, on some days the markets are too choppy, are sideways, or entail too much risk for our low risk and low drawdown trading style. Our course will detail the reasons we sometimes will stay out of the markets, rather than over-trade or make higher risk trades and chance large losses or high drawdowns.
In fact, learning to stay out of the markets at certain times is just as important, if not more important, than being in the market. It's also one of the primary reasons this methodology works so well. There is no so called "over-trading" with this fantastic method. In fact, by you not trading all the time, it makes this method a comparatively relaxed and low-stress approach to profitable trading.
Question: Are the stops really "low"?
Answer: Yes! In fact, reasonably small stops are critically important to this method's success. Don't believe the "experts" who insist very large stops are required to trade high risk markets like the S&P. As you know, many systems use stops of anywhere from $1,000 to $3,000, or even higher, or worse yet no stop at all! Far too much money to risk on a trade. The secret is to use this methodology and signal setups, which result in high profit potential and potentially a high success rate of trading signals, which can be traded well with fairly low stops. These are basically simple techniques but major secrets you will easily learn from our videos tape educational course.
Question: Can I trade this method based only on reading the "Successful Anonymous Trader" articles which have appeared in your newsletter in the past?
Answer: Trying to do it based simply on those articles would be very difficult, time consuming and entail a greater chance of you doing it wrong. In addition, his great personal annotated charts are only available with CTCN's own Real Success Trading Course, which is different from the methods referred to in the articles. These unique copyrighted (by CTCN) charts by themselves are easily worth $500 or more. The best way to really learn these methods and fully understand how it's done is with CTCN's video tapes and trading manual. There's an old adage saying "It's simple, but it's not easy." Very true words when applied to our Real Success methodology. This method is indeed fairly simple but it takes attention, study, practice and work to fully master it so you may trade for a living, if desired.
Question: Are you affiliated with any other trader and is your methodology unique?
Answer: Commodity Trading Club News has no affiliation with any other trader, vendor, trading system, or with "A.S.T." We are totally independent. At one time we were planning a partnership with the anonymous contributor to our newsletter who wrote the series of articles. However, we are no longer in partnership with him or anyone else.
About the Real Success method being unique. Some of the methodology and indicators are in the public domain and have been used by others for many years. By the way, a vendor in a Northwest state at one time made ridiculous claims of ownership to some public domain type of indicators. No one can claim they own public domain indicators. However, the way CTCN combines the indicators, methods and techniques into an overall trading methodology and the way it's used is in fact unique and this is one of the reasons it's copyrighted by us.
Question: Is CTCN's Real Success Revealed Secrets methodology the same methodology used by "A.S.T.?" Are you using "his system?"
Answer: No and No! There are differences. For example, "A.S.T." mentions elsewhere he "no longer uses Keltner Channels." Instead, he said he now uses a moving average. He said this at about the same time a vendor in a Northwest State was threatening an absurd suit involving the alleged disclosure and use of Keltner by his former student "A.S.T." for allegedly disclosing or somehow duplicating his trading method. In fact A.S.T. talks about this matter himself in an one of his articles located elsewhere in this report.
Question: Is your Real Success method only useful for day trading the S&P 500 market? May it also be used for position trades or other markets?
Answer: The original tape series concentrated on day trading the S&P 500 market, mostly using intra-day 5-minute bars. In those original tapes we also discussed the methodology also will "work" on overnight trades and in other markets but did not spend much time on the subject. We will soon make available to owners of our original course, video tapes and an accompanying annotated trading manual which does not concentrate on almost exclusively daytrading but spends about equal time on both daytrading and position trades.
Our new course will devote lots of time on both overnight position trades and on daytrading the S&P. Due to high overnight risk exposure we do not recommend the S&P for position trades but instead suggest markets such as currencies, financials, and other markets like some grain and meat markets, plus energy markets. It seems certain markets work inherently better than others. The specific markets we recommend and all details will be explained when you get our upgraded course.
Question: How does Real Success use Keltner Channel Bands?
Answer: CTCN places great value on "Keltner Bands." In fact, we rely heavily on them, mostly for trade entries based on "Keltner Band Retracements" occurring and a subsequent move back into the "direction of the trend." Keltner Bands are basically the only true technical analysis indicator we use. We also look at other things, such as resistance and support levels, past price areas and "swings."
Question: I have seen the term "Pivots" used. What are pivots and how do you use them?
Answer: We don't use the word "pivot" much but refer to these patterns as "Lower Swing-Highs and Higher Swing-Lows." These are high bars with lower bars on each side, or lower bars with higher bars on each side. In fact, I believe CTCN coined the words "Swing Highs" and "Swing Lows" and may have been the first to use them extensively starting in the mid-1980's. This was many years before we heard of A.S.T.
Question: How does your Real Success method use these Swing Highs and Swing Lows?
Answer: Without going into too much detail here, we basically use a "Lower Swing-High" as a bearish trade set-up, and a "Higher Swing-Low" as a bullish trade set-up. We have prepared a Free Special Report on "How To Trade Swing-Highs & Swing-Lows Successfully." Read our Special Report on this by clicking here .. Successful Trading with Swing-Highs & Swing-Lows. but be sure to return here after you are done reading the Special Report!
Question: Is this methodology really easy-to-use and easy-to-learn?
Answer: Yes ... As explained in the articles and your editor, the basic concepts and methods are in fact relatively simple. However, doing it all correctly and following the steps involved, along with good money management and discipline, result in it being not quite as simple or easy as it first appears.
This is why the hours of videos instructions and comprehensive trading manual are the best way to go about learning this method, to trade futures successfully with "low risk." There is some art to the science and some work involved if you are to do this successfully. You should be able to learn a way to trade profitably and independently for the rest of your life. However, there is a degree of "work" involved and a (relatively) small cost involved.
Question: How long will it take for me to learn how to trade this method profitably?
Answer: It's best if you listen to the video tapes at least three or four times (or even more) so all methodology and instructions are fully understood and absorbed by you. In addition, contact us at anytime for assistance with the method. Please keep in mind, you are not acquiring a fully mechanical trading system. It's roughly 80% mechanical. The rest is important and the reason for our in-depth videos and accompanying detailed manual, so you will easily learn the important last 20% or so.
Question: Are you limiting the number of courses available?
Answer: At one time during our initial course offering in 1996 we were somewhat concerned about possibly too many traders using the same method. Since then we have determined the S&P 500 is such a huge and liquid market, a relatively minor number of Real Success traders would have little, if any, effect on the market. In addition, since trade selection and other techniques are in some ways arbitrary or non-mechanical, Real Success traders are using somewhat diverse methods and different actual trades. However, we still want to know how many clients are trading this methodology. In fact, one reason for our Non-Disclosure Agreement and identification requirement is the desire to verify how many clients are trading this potentially great moneymaking potential method. Also, very importantly, we need to know how many traders are actually trading our method so we are able to give good support to everyone.
Question: Is it guaranteed? May I get a refund if I'm unhappy with it?
Answer: It has a guaranty of satisfaction as follows. If for any reason you are not completely satisfied with this method, you may return everything (of course, in undamaged like-new condition) by the end of month-six from purchase date for a non-cash Merchandise Credit Certificate good toward any other products or services of Webtrading.com - CTCN. Exact guaranty terms and details are spelled-out in the order-form.
Unsolicited Comments from some Commodity Trading Club Members on the "Real Success Methodology" and the "Revealed Secrets" A.S.T. Articles Published in CTCN
A December letter from member "A. F." from Australia: "There seems to be (in CTCN) this (great) breathless excitement (from members), almost akin to Gold Rush Fever once readers heard about the highly successful daytrader "A.S.T."
Nikola M. also wrote to us in December: "Reference A.S.T.'s article in June, a novice looking at the chart and the signals would think how easy it is to make money . . . (However) the most important message that A.S.T. gives on the diagrams (charts) are not his indicators or how he trades them, but the two trades that he mentions (based on) experience . . . A.S.T. and all the successful people have learned how to live with the changes . . . A.S.T. says that he trades a couple hours in the morning and a couple hours in the afternoon. That shows his understanding of today's markets. (I.E.) S&P is trend-less in mid-day and it is not worth trading all of the time."
Prospective Club Member Mr. Wilson Meador also wrote: "I read with great interest the articles about S&P trading (Reprinted by permission in Bruce Babcock's Commodity Traders Consumer Report) which was originally published in your (Commodity Trading) Club News. P.S. Please send me a sample issue of Commodity Traders Club News."
Mr. Wong Seng from Hong Kong wrote in September: "I would like to attend the possible seminar featuring A.S.T. , but I cannot attend. Is it possible to have an alternative for members who are interested but can't attend, e.g., videos, etc.?" Editor's Reply: A number of other members have also requested videos in lieu of a seminar. Good news: You may now get CTC's own fantastic VHS video tapes of the Real Success method being traded by Dave Green from CTCN's home/office.
Commodity Traders Club News Editor wrote in a December issue: Editor Comments and recap of our activities during the year: "My nomination for the most positive and promising article during the past year is the article by A.S.T., which appeared in your December issue."
His article counteracts much of the negatives we hear on how difficult it is to trade commodities successfully, in particular with regard to daytrading. Though daytrading is admittedly difficult, it can also be highly profitable if done correctly, and good discipline and sound money-management is used.
Perhaps A.S.T. will agree to share some of his trading secrets with members. I will write and ask if he would be so kind to do that in the future. Of course, he may not want to share his techniques because of fear that if his methods were publicly known, they would not be effective anymore. However, I personally doubt that would in fact occur. The markets are too big and traders' discipline and money-management is usually too small and weak for a successful methodology to be widely duplicated by others.'' Subsequent note from Editor: Luckily for us all, A.S.T. did agree to share this successful trading methodology in future pages of Commodity Traders Club News.
The articles from members "A.S.T." and Dave Reiter in January issue of Commodity Traders Club News are excellent and great benefit to members and should be read carefully. However, though extremely valuable, some of you may be somewhat disappointed by A.S.T.'s latest contribution (January issue). That's because I have received calls and mail from a number of members who had hoped A.S.T. would reveal a moneymaking 800 mechanical approach.
Unfortunately, A.S.T. could not do it, as this approach is NOT 800 mechanical. In other words, there seems to be some "art of the science," and other important factors involved in his success." Subsequent Editor's Note: The Real Success method is about 80% mechanical. There's a certain degree of "art to the science" involving the last 20% or so. However, the important 20% will be taught to you in our videos and trading manual.
Opinion on A.S.T. from George Bashar (January issue of Commodity Traders Club News): "First, three cheers for A.S.T. It is about time a successful trader countered the critics of daytrading. As he points out, it's absurd to criticize day trading simply because one has to pay a commission every day. If one holds a trade for two-weeks, pays the commission and exits with a profit, is he better off than a day trader who does ten trades in the same two-week period, pays ten commissions and has a higher net profit? This would seem to be analogous to saying he would rather make $100,000 per year instead of $200,000, because he would have to pay more taxes on $200,000. A.S.T. is correct when he says it is just as easy, if not easier to make a profit day trading, provided you know what you are doing."
Editor Comment (in this February issue): "It is very unfortunate A.S.T. does not want to disclose his identity or submit additional articles. However, I will again try calling or writing him in an attempt to get him to change his mind." Subsequent Editor Note: Of course, I was in fact successful, as A.S.T. continued submitting articles. CTCN's revealed secrets methodology, which is based in part on A.S.T.'s articles owned by Dave Green and Commodity Traders Club, has been enhanced and covered in even greater detail those famous articles in our hands-on futures trading videos and our easy-to-use spiral-bound trading manual. The markets current higher price levels and increased volatility are also taken into consideration. In addition to the money management and stop-loss methods employed during 1996, the currently suggested stop-loss levels and other ways to fine-tune the method are provided to you as a new (free) supplement to the original trading course, so you may trade profitably.
"Traits of a Winning Trader" article by Gary Smith; (same February issue): I hope the readers of this forum can read between the lines and grasp what A.S.T. is trying to say in his excellent article in the December issue of Commodity Traders Club News. In the first place, he tells us he buys strength and sells weakness. The select few winning traders I've encountered the past 29-years all shared this trading characteristic. Sadly though, the public has been manipulated into erroneously believing that tops and bottoms can somehow be miraculously picked. Editor's Note: Yes, this moneymaking commodity trading method does indeed usually go with the trend, and does not involve top and bottom picking . . . which as Gary says, is very hard to do.
A.S.T. goes on to say that "good trading is not 800 mechanical." Amen! Most traders spend a lifetime seeking a totally mechanical system, so they won't have to think. If not using their brains in trading is their goal, then they would probably be better off working as extras in some of those Night of the Living Dead zombie movies.
A.S.T. also tells us that he struggled for 8-years before becoming successful. How many beginning traders would be willing to pay such a tuition? Most newcomers are completely oblivious to the fact that successful trading requires a skill and talent just like any other profession. Years of schooling and on-the-job training are required - Gary Smith.
Commodity Trading Club News member Joe Ross wrote in the same February issue - "Dave, I am very particular about the company I keep. I will not get involved in writing for a publication where the contributors argue, insult or carp at each other. A good example of what you should allow is the article in your December issue A.S.T. If I'm not missing my guess, that article was written by someone who went through a living hell to learn how to day trade. (No doubt) He almost lost his wife and kids over it and he lost a lot of money on the way to becoming a successful daytrader. His article is genuine and well stated. You ought to get him to write about the rough road he traveled on his way to success. Such an article would be tremendously encouraging and useful to your readers.
Editor's Note: I worked on just that (during February of that year). I both talked to and wrote A.S.T. to get him to go into more detail on his trading methods. I also tried to call him again, but he was on a long vacation so I couldn't reach him. When you are such a successful trader, you can afford to take long vacations. Also, as he pointed out earlier, it's good to occasionally get away from the markets. Fortunately for all Commodity Traders Club News members and friends of CTCN, I did persuade A.S.T. to continue writing articles. Subsequently CTCN decided to do these great educational videos of our own.
Don McCullough (following March issue) - Your February issue was a dandy. I must say that if Commodity Traders Club News continues with high caliber articles like in the past three-issues, the competition is going to have a tough time. I'd like to comment on various statements made in February's issue. What can we say about A.S.T.? A giant THANK YOU for starters for all three of his inspiring articles. A.S.T., I'd be just like you and would want to maintain my privacy. I don't like "speaking for others" and don't really think I have a right to do so, but as for me, you certainly get my sincere thanks.
I recently got hooked-up to real-time data. I'm licking my chops as I watch the S&P make its $1,000 to $2,500 daily moves. I won't start trading with these intraday-day charts until I get a little more data to work with. I really believe I have valid or good bet signals, but what concerns me most is will I be able to consistently trade my signals? I knew about this very fundamental and serious psychological problem long before A.S.T. mentioned it in his last article. However, it's always good to have a successful trader agree with you. I rank this reinforcement of valid truths about the market as badly needed psychological help for the up-and-coming trader.
Another valid truth mentioned by A.S.T. is, "You learn trading by trading." Real trading in real markets with real money. I couldn't agree more, and yet I'm sure lots can be learned through thousands of hours of studying historical charts.
As mentioned by A.S.T. and re-stated here: "Don't be too concerned with data service, type of data (perpetual vs. continuous vs. regular data), quote machines, charting services, advisory services, technical analysis methods, etc. This is all garbage and will not make you any money. Discipline, a well defined but simple trading plan based on sound trading principles, good money management methods, and the psychology of trading will make you plenty of money. That's only providing you can shed all the heavy baggage of the believed to be valuable trading tools and concentrate on these aspects of trading. This will really make you lots of money!
Observations on Recent Issues of Commodity Traders Club News - Member William Shelton (following June issue) - Dave, your publication is getting to be very interesting and would like to praise you for the extra work you are doing for your readers, e.g., trying to get more information from A.S.T., etc.
Comments on Past Commodity Trading Club News Issues - George Bashar (July issue) - My question is, why would a trader who has a proven, successful system sell it to anyone else? Futures trading, as we all know, is a zero-sum game. For every $1,000 one person "wins," someone else has to "lose" $1,000. Therefore, could someone selling a book, system or running a seminar, please explain why, if your system is so good, would you not keep it to yourself? And please spare me the explanation of altruism or humanitarianism or sharing your thoughts with others to enhance the mutual learning process. (The two article reprints below give answers to this question)
Editor's Note: Commodity traders are frequently highly suspicious as to why vendors sell their knowledge or their trading system, rather than use it themselves as their main source of income. The truth is, it's usually much more lucrative and easier selling knowledge and teaching others, compared to doing it yourself.
For example, I recently listened to a speech by Robert Allen, the well-known author of the popular book on how to buy real estate with no down payment titled "Nothing Down." Even though he is an expert on the subject and has successfully invested in 125 properties, he admits he makes much more money as a vendor of the "nothing down" knowledge versus doing it himself. He also says it is easier, less time consuming, less risky, and has far greater profit potential being a vendor of information on how to do it, rather than actually doing it.
If you can market and sell your own product, regardless of what it is, you can make much more money teaching others how to do it versus just doing it yourself. This is true in many diverse types of businesses, including trading and investing. If you think about it, it makes sense why this is true. . .because knowledge is power.
Remember the old Bible Proverb "Knowledge is of more value than gold, receive my instructions and not silver, and knowledge rather than gold." In fact, due to the tremendous profit potential trading commodities successfully, commodity futures knowledge is probably more valuable than any other endeavor. This is why there's nothing at all wrong or suspicious about someone being a vendor rather than trading full-time for a living.
For the Most Part Vendor Prices are Fair & An Incredible Bargain! (Re-printed from May issue of CTCN) by new member Bob Aughey - There's always lots of discussion on the subject of vendor prices, particularly trading systems and software. While it's certainly true there's some overpriced garbage out there, I think for the most part, pricing is fair and often an incredible bargain.
I have heard the argument that most trading system software programs are less complex to develop and program than the average word processing program, so therefore, it should cost the same or less. I think that there is an important difference, not the least of which is that software designed by large corporations for mass distribution is just that, mass distributed. Volume sales will always allow for smaller gross profit per unit. What I feel is the more important issue to support higher prices for trading software is the disclosing of valuable secrets. . .trade secrets.
Why people sell their secrets is another subject for discussion, but personally, I think that plain old pride of authorship is the main reason. But back to the subject here.
An incredible amount of work goes into creating a quality trading system that can be marketed to the trading public. That is the trading public, not the general public. After hundreds or even thousands of hours of development and testing, is it realistic to think someone should be able to buy the product for next to nothing?
Trading system vendors sell their products to a very tiny slice of the software end- user pie. You have to wonder why anyone would devote so much time, money and expertise to market a product to such a small audience. We are fortunate that some do.
The next time you power up your PC and call up your favorite trading system, analysis or toolbox program, and at the end of the session you are armed with trading signals in which you have confidence and that have resulted in making you money in the toughest financial arena in the world, take a moment to reflect on the fact that system vendors have to make a living, just like traders and everybody else.
Lastly, when you consider the purchase of any software product, do us all a favor: Do your homework! Ask the tough questions. When you are satisfied, pay the money.
You will remember the quality of the product and the support long after you have forgotten the price. Remember that knowledgeable consumers are always the best defense against Holy Grail merchants. They also make the best customers. Editor's Note: After hearing about Bob's article (which appeared in another publication), I contacted him about it. I found what he had to say very valuable and true...and something rarely publicly stated before. Bob authorized running it in CTCN.
About Market Structure & Simple Consistent Trading & Five Vertical Bars - B. E. Kramer (Aug/Sept issue) - I joined Commodity Traders Club News last month. After reading the present issue and then all the back-issues, I felt I had to send in my two-cents.
First congratulations to Dave Green. I think you have a great publication. A forum that allows views to be expressed like this aren't found very often. I was very impressed with some of the contributions that have been written thru the years. In particular, I enjoyed what A.S.T. had to say. It's very interesting.
Miscellaneous Ramblings from a Neophyte Named Zas - Ron Zasadny (Oct/Nov issue) - First, I want to thank and encourage A.S.T. for sharing his very encouraging thoughts on his trading concepts. Unless a person is ego driven (are there any ego- driven successful traders out there?) it takes a fair amount of effort to make the time to sit and put your thoughts in writing. It took me 3-months of procrastinating to write this. A.S.T. mentioned, and other successful traders have alluded to it, that as a trader matures and becomes more profitable he uses fewer and fewer indicators. In my searching for the "Holy Grail of Trading" there seems to be a perverse ratio of "wannabe" indicator crazed "techno" geek traders to actively trading Real Traders, at the various seminars I have attended.
Could it be??? na . . . but then again maybe . . . The Holy Grail might be found in the kingdom of K.I.S.S. (Keep it simple sweetie) I think I am on to something.
Dave, I just received the latest issue (October issue). Really glad you are going to offer the methodology. My problem: I shall be out of the USA for much of next February, and would really hate to miss out on it. Dan Salyer from Kentucky. Editor's Note: February issue: Don't worry, we only have limited sets but you may reserve your copy NOW. It normally takes a couple weeks to fill orders, so you will get it after you return home.
Love Being a Full-Time Trader From Home - Paul Ryan (Oct/Nov Commodity Traders Club News) - It is great to have a forum like yours, especially for one who is striving to be a successful trader, whose life and well-being are really on the line trading everyday. I can't share any great easy secrets, but I'd like to share some thoughts and perhaps a path with the potential to introduce you through your desire and hard work to someone who can help you. I took the plunge to working alone. No employees, no customers, very little contact during the working day with anyone. I love it as I'm sure you do. The decisions we make are totally our own whether we win or lose, we learn and hopefully grow.
"A.S.T." . . . man, you just keep on keeping on. More power to you. My approach to trading is very different from yours, but I still get a lot from your articles. Keep them coming! You wrote a small paragraph in your last article which is pure gold. It starts with: "The biggest challenge to your success." So very painfully TRUE! Dale Johnson had a nice article in the last issue. I have to disagree with him when he says a person trading daily bar charts will make as much as the intra-day trader over a year's time. I haven't proven it, but I see much more potential profits from daytrading.
Special Announcement made in Commodity Traders Club News Dec/Jan issue: "Please watch your mail for a special offer from CTCN for the S&P daytrading methodology. You will be able to spend time watching (Dave Green) trade the markets both real-time and hypothetically, using CTC's own Revealed Secrets (Real Success) methods, from the comfort of your home and you may be able to trade successfully by studying the tapes and manual."
Joe Ross - My trading methodology, if I have one, is to have learned how to read a chart and to know which tool to use and when to use it. Almost everything I do works, because I've learned how to trade. I think A.S.T. has been explaining that concept to your readers.
Benefits from A.S.T. and Psychology Evaluation & Advice - The Enemy is Within - Robert Edwards - As a personal note, I want to thank A.S.T. for having the guts to publish an article nearly a year ago in which he pointed out my negative psychological perspective. I decided to be evaluated and was determined to be manic depressive. Through counseling, an anti-depressant (Zoloft) and a good support system that has been set up, I have made tremendous psychological improvements and my trading has benefited as a result. With help and counsel found in Commodity Trading Club News, I can and will trade successfully.
Member David Fent - Thanks for creating this forum. Eight to 10-years ago I washed out on my first effort at trading commodities and haven't traded since. As a recent subscriber to CTCN, I have been greatly encouraged to the extent that I'm certain I will be successful when I resume trading in the future.
Thanks for the tips and advice from successful traders kind enough to share them with the rest of us. Thus to see that A.S.T. is making a living using essentially the same market entry signals that I failed with, shows me that my trading tools will work if I can get out of the way and let them.
Though I have not yet resumed trading, my entire experiences of what it feels like to be alive, has been profoundly uplifted by the certainty that with the help of the counsel offered here, I can and will trade successfully.
Michael Mansfield - I now got the feeling that you will be (or probably are now) the most credible traders' forum in the futures industry, (perhaps you should have an on-line version on the Internet). CTCN needs more articles like those from A.S.T. in . In that regard, I hope to help facilitate your success by providing your readers with some tasty items to entice their imaginations with visions of $$$$. I am happy to say you have a real winner in your stable of futures trading tools. It just goes to show you (us), if you have a dream, go for it.
Dr. Robert Fojo - October issue of Commodity Traders Club News: I just recently began my membership in Commodity Trading Club. I thoroughly enjoy it and have extracted many useful ideas for my own trading. I am very interested in day trading the S&P 500 and have read with great enthusiasm and encouragement the articles by A.S.T. . He states in his articles he uses Keltner Bands as channels, but I have been unable to find any such indicators in any software package. I wonder if it might be possible to find out how he constructs the Keltner Bands or what software he uses to chart them. I would appreciate your assistance in this matter.
Editor's Website Update: CTC's own tradestation compatible software program draws all Keltner Channel Bands, including Upper, Lower and Mid-Keltner Bands. It's available separately for $297 direct from CTCN. Note: It may also be used by itself or in conjunction with other trading methods and is not dependent on using the Real Success method.
Keep up the excellent work with Commodity Traders Club News and I soon hope to share my trading experiences with you and the rest of your subscribers. Editor's Note: The exact Keltner Formula will be given to you in our new trading manual. Also, Keltner Bands will be running on your screen when you get our Real Success/TS software. Keltner Bands are included as a free extra benefit with our optional TradeStation compatible futures trading software program.
Richard M. (last name withheld by request) - CTCN December issue: Just a short note here to tell you I'm really enjoying your newsletter. Best investment I ever made! Also, keep me on the Real Success method mailing list.
Joe Curtin - January issue of Commodity Traders Club News: I am a new subscriber who looks forward to each copy of this newsletter. For a novice, it's the best investment I have made. After each issue, I feel empowered and focused. I currently follow the markets through daily quotes provided by Technical Tools. It is a good service for my current needs. I enjoy the stories regarding fill quality of firms. Being a small trader, fill quality is very important. More recommendations, please. I look forward to writing articles in the future and paying back the members for the wisdom I have taken from them.
Editor's Note: No doubt Joe is referring to the A.S.T. articles, which has supplied more in-depth wisdom and knowledge than anyone else . . with CTC's own hands-on videos and trading manual you will learn even more . . . so much you should also be able to trade for a living . . . from home, if desired, and be financially independent the rest of your life.
John Holsinger - wrote in January to Commodity Futures Trading Club News: I have enjoyed reading the "A.S.T." series of articles in CTCN. I make it a point to reread them frequently. Your methodology makes a great deal of sense to me.
I am writing you to inquire as to when you will be releasing your tapes and reference materials. I read in the January issue of CTCN that ordering information would be available soon.
Are the Real Success Videos Available? Harold Neer - I have followed A.S.T.'s letters with considerable interest since daytrading the stock indexes has come to be my main interest (forsaking position trading, bellies, bonds, cattle, grains, O.J., coffee, etc.) Now using the NYFE, maybe S&P later. I probably won't be able to attend a seminar, but would be interested in purchasing videos, notes, books, etc., which might be available, if the price wasn't too high. Editor's Note: Many other members have also asked about obtaining video tapes or manuals of CTC's Real Success's successful futures trading methods. Therefore, since our planned seminar has been canceled (as we are no longer partners and due to legal reasons), we are going to offer our own video tapes and futures trading manual detailing our Real Success (Real Success - Revealed Secrets) methodology. Included with the offer will be some free extras which will enhance its value to you, including availability of supplemental software.
I was not very successful until I developed my own methods of trading - by Bob Perry - I've been reading Commodity Traders Club News for about a year now and have run across many good ideas. It's been very refreshing to read the articles written by A.S.T. He clearly dispels the notion that you cannot make a living from trading. I like his mental approach to trading and have found that most of the problems a trader has is of the mental variety. Reading CTCN has definitely paid off for me. I continue to look forward to each issue for all the great ideas that people have discovered and share with their fellow traders.
Sam Jackson writes - I would be interested in attending a Real Success seminar. Why not hold it in a central location, like Chicago? Editor's Note: The planned seminar, which was in fact planned for Chicago, has now been canceled. However, this turns out to be a great cost-saving benefit for you. By not offering an expensive and not really necessary seminar we can save you vast sums of money. You may learn this amazingly successful low risk method with CTCN's own videos and manual at a sharply lower price than if the seminar, etc. were included. Thus saving you tons of money (69% lower price) but still giving all you need to trade this commodity futures trading method profitably, and with very low risk.
Dan Fretter - I received an ad in the mail for Commodity Traders Club News and as I read through some topics, I became interested in Real Success I immediately sent for a 1-yr. subscription and all back-issues. I called Dave and asked if he would rush the package. (Thanks a million Dave.) When I received the back-issues, I devoured articles by A.S.T. and found that I knew all this stuff, but I was usually counter-trend rather than with the trend. The next day I took a trade in the S&P. My first trade was an $825 profit. This stuff works. Now most of my trades are profitable. I almost went back to my old job, but now I can stay home trading.
"I Got My Wonderful Trading System, So How Come I Can't Make Money Trading It?" As the Editor of Commodity Trading Club News, I Hear that all the time. It's because most of the trading systems out there are curve-fitted, either the system's algorithm or curve-fitted to certain market(s), sometimes just by luck they happen to work in a specific market. This is not the case with Real Success ("Real Success...Revealed Secrets") methods, which has been time-tested, and can "work" consistently and with no optimization involved. "If you weren't born rich, didn't marry money, haven't won the lottery...here's how you may be able to make it on your own . . ."
Important Editor's Note: The "A.S.T. Real Success - Revealed Secrets" articles follow. The ideas and methods discussed, along with and combined with many of our own methods and techniques, are the basis of CTCN's Real Success Methodology. This series of copyrighted articles are highly acclaimed contributions published in Commodity Traders Club News and are priced at $500 (but worth even more), including both our charts and "A.S.T.'s" personal annotated charts, which were given to CTCN at the time these articles were submitted. These great contributions (but not the charts) are reprinted here in this Real Success Commodity Futures Info-Guide as a Free Gift to all web trading and web browsing friends and future clients of Commodity Traders Club News - Webtrading.com
"A Hard Look at Day Trading"
Reprinted with permission of Technical Traders Bulletin Part One
Extracted from Commodity Traders Club News November Issue
We receive more requests for articles and advice on day trading than on any other topic. Beginning traders are especially interested, particularly those that have been attracted by the glamour and intensity of the pit traders who seem to be constantly jumping in and out of the markets and reaping enormous profits.
It seems like almost all traders have tried daytrading at one time or another. After all, it is very tempting to try and slug it out with pit traders. Every tick is exciting. Every rumor or news item that affects the market either creates euphoria or is another nail in the coffin. When you have a position on, you can't stand the pressure, but if you're not in the market you tear your hair out every time prices act the way you predicted.
Your heart pumps fast, your adrenaline surges, and you feel like you've finally arrived in the wild and woolly world of fast-paced futures trading. All of this sounds like fun, but as you might imagine, there are many pitfalls along the way.
The Preceding Article Got "A.S.T." Started Writing for CTCN. The December Issue Contained Article One, Which Was Unsolicited When It Arrived in Our Mail Unexpectedly
"How I Consistently Make Money Day Trading" . . . a Very Positive & Contrary Response to Last Month's Negative Article about Day Trading
Extracted from CTCN Issue of December
I am writing in response to the article "A Hard Look at Day Trading" (November CTCN). I'm a professional trader for seven plus years and a day trader to be exact. I get so disgusted with the experts on trading methods, systems, etc. If I had listened to all these opinions about how difficult day trading is and how it is almost impossible to make money, I probably would have believed it and quit many years ago.
I make excellent money day trading most every day. I find it exciting, enjoyable, challenging and very profitable. There are many advantages to day trading:
No overnight exposure on a regular basis - occasionally I'll hold a profitable day trade overnight to get an extra pop at the beginning of the next day's session, where as a position trader will hold losers overnight regularly.
My risk is very small per trade.
I can multiply my money many times over during a day or week than the position trader.
One thing I must say though, is that day trading (like the article said) must be done in a liquid and volatile market. Which in my mind only makes day trading feasible in the S&P 500 and possibly the currencies. I only trade the S&P 500.
There is more than enough money to be made in this market every day than a human can want. Why look at anything else? You get a tremendous bang for your dollar and risk reward.
Face it, S&P 500's daily ranges average regularly $1,500 - $2,500+ per day. The average five minute bars (which I trade) have a range of $200 - $300. That's almost as much as most markets' daily bars.
If a trader is disciplined, trades with the trend, uses stops and lets profits run, he can make excellent money day trading the S&P. I only risk $250 per trade and regularly take profits of $500 - $750 - $1,000 per trade, sometimes larger. But in general, I'm not greedy and when I have a good profit, I look to take it. I love it, and I get to do this 2-5 times a day. Sure, I have losses, but they are few and small.
As far as all this mathematical babble and analysis on more transaction costs and slippage - who cares? A trade is, a trade, is a trade! If a trader makes 10 trades a year and I make 10 trades a week, there is no difference in slippage or costs. All that counts is if you made money.
If that guy made $2,500 off his 10 trades per year and I made $2,500 or lets say $1,000 - $1,500 off my 10 trades a week. I'll take my 10 trades a week, because I'll multiply my money many times over during the year. Cost per trades are all the same. If you're a profitable trader, it pays for you to trade more, not less. I'm not knocking long-term trading. Good traders make money at both long- term and short-term. You must trade what psychologically fits your style. The very short-term works for me. It is very profitable, enjoyable and cost efficient.
Also, I pay $16 round turn, just to let you know I'm not much different cost wise than anyone else.
People say they don't know many day traders who make money consistently. Well let me tell you, it has nothing to do with day trading. I hardly know anyone who makes money trading. Long, intermediate or short-term, most people I know are too messed up in their heads to trade profitably.
I believe there is just as much, if not much more money in day trading than anything else. If the trader has learned his craft well and developed a successful and simple methodology and (most traders never get this far) get their psychological or mental attitude changed to the right mode for successful trading - this is the true key to winning.
Let me preface all this by saying, I believe the S&P 500 is probably the only market worth day trading on a daily basis. Bonds don't have enough range and with currencies (most of which make the majority of their moves overnight). Now and then you'll get a $1,200+ intraday day in the currencies, which is a very dead day in the S&P's. So intermediate to long-term trading would be better in most all other markets. In closing, daytrading can be extremely profitable, and long-term. You just have to learn how to trade.
As I write this on December 2nd., I made $1,800 per contract on three trades in the S&P for about 5 hours work. How many long-term traders made that much in one day on a one-lot . . . very few on very few days, I'd venture to say. I do this at least once a week in the S&P.
As far as burnout, I don't have that problem. I look forward to getting up and being at my monitor throughout the day. I love trading. However, one must be balanced. I take breaks and days off to relax and vacation.
I'd rather be at my monitor every day in the comfort of my home from 8:30 am to 2:30 p.m., with my family, doing something I enjoy, rather then going to an office and putting up with that nonsense.
What's so hard about day trading and watching the monitor - beats working. I think day trading provide s a great life-style.
How I Successfully Day Trade the S&P 500
Extracted from CTCN Issue of the following January
In trading, I would recommend trading with the trend. I know it sounds cliche, but I have found it is the most rewarding (I found this out - like everything else - the hard way).
Selling tops and buying bottoms is like being a salmon. You are always swimming upstream against the trend. You may get a good trade now and then, but a market will wear you out in the process. I have always found these trades looked great going back on a chart. In trading real-time from the hard right side of the chart without the benefit of hindsight make these trades difficult to not only see, but see through to the profitable end.
So trade the trend. Enter on pullbacks, use reversal bars that make pivot lows/highs and close back in the direction of trend. Move stops quickly. Take reasonable profits from the markets trading that day. If market is slow and in a trading range mode, go for less. How do you know what to go for? Your experience will tell you. There are no hard and fast rules, sometimes I get out way too soon.
Sometimes I stay in too long, but in general I do OK and get my share.
I hate to say it, but good trading is not 800 mechanical. I wish sometimes it was, but that's what your there for. I find that good trading will be 80% mechanical or/so and 20% will give you the flexibility. To use your experience and feel for the market to enhance your method and make it comfortable.
I'm not saying you can't be 800 mechanical. I believe your most profitable trading will be a system that allows you some input on entries and exits. I use a 3 and 5-minute chart, side by side and take the first signal. I get in the direction I want to trade. Sometimes a 3 will get me in and a 5 won't give me the reversal bar, and vice versa. This way I don't have many moves pass me by. One of these usually will get me in.
I have been told that many people have called Dave Green wanting to share my system. So I will, but I told Dave it's ridiculous. I know these people are thinking, If I can find out what and how this guy is trading, I'll use it and I will start making money. I'll be rich. All I need is a good system. It sounds like this guy has something really hot! If he will just divulge it. Well, if you really look at what I'm doing, it's waiting for a trend to begin and getting in on pullbacks that usually come into a 38 - 50 - 62% Retracements of the last swing and reverse out of there back in the trend direction. Very simple.
This was probably being done before 1900 - you can do this. So why are most people losing money daily - read on.
Editor's Note: Some of A.S.T.'s methodology is depicted on his chart which appears in the print version of this article:
(By the way, this simple method is the best way I've ever seen to trade. I just put my own little wrinkle in it with common sense money-management). I'm not doing anything new or secret.
My method is very simple and easy to trade. I hope this gives readers some ideas. However, I want to make some caveats and warnings for all the wanna-be- traders who want to trade for a living and/or think they can.
I'm no market wizard. I still trade mostly one and two-lots and I don't live in a $500,000 home or drive a Rolls Royce. My trading has become very consistent and profitable and continues to get a little better every month. My method is my tool. It's an excellent tool and works extremely well when I use it the way it should be used. If more money is lost than normal, if stupid or random trades are taken, it's not my system or my method that has failed, it's me, myself, and I, (Yes, I take stupid trades now and then) I'm human. I try to keep them at a minimum and allow for them. My first 8-years of trading results would probably make you throw-up. Lord knows my wife did!
The point I'm trying to make is that learning how to trade profitably is very difficult. Once learned, it becomes simple and fun, like I mentioned in December CTCN article.
I feel sorry for the people who write to these newsletters or forums. Most of you are missing the boat (just like I did my first 8-years). I see you squabbling over data vendors, system vendors, methods, hotlines, new and old systems. People who made false statements about their product.
You are too concerned with continuous data or the other kind of data (I forgot what it's called). Optimization, back-testing, percentage of wins, maximum drawdowns, broker problems, new software programs, books, articles, seminars. (Oh, I just remembered the other data is called perpetual, I think) etc., etc.
This stuff is all secondary in nature to success. All this is crap. It will not make you money and is a complete waste of time. Believe me, I know.
People need to work on what's inside them. Your psychological makeup, how you interact with the market and how you deal with fear, greed, anxiety, etc. It's you against you every day. Not you against the market. Not you against another trader.
The market is going to do what it's going to do every day. Whether you're in or not. The only thing that determines if you make money or not, is how you react to market action. Only you can give yourself money or lose money trading. Not the market, not the system, not the data, not the software package you use, not the hotline, br data vendors, system vendors, methods, hotlines, new and old systems. People who made false statements about their product.
You are too concerned with continuous data or the other kind of data (I forgot what it's called). Optimization, back-testing, percentage of wins, maximum drawdowns, broker problems, new software programs, books, articles, seminars. (Oh, I just remembered the other data is called perpetual, I think) etc., etc.
This stuff is all secondary in nature to success. All this is crap. It will not make you money and is a complete waste of time. Believe me, I know.
People need to work on what's inside them. Your psychological makeup, how you interact with the market and how you deal with fear, greed, anxiety, etc. It's you against you every day. Not you against the market. Not you against another trader.
The market is going to do what it's going to do every day. Whether you're in or not. The only thing that determines if you make money or not, is how you react to market action. Only you can give yourself money or lose money trading. Not the market, not the system, not the data, not the software package you use, not the hotline, book or seminar you purchased. Just you!
Do you would-be or aspiring traders finally get it? Most of you are looking in all the wrong places as the song goes. A perfect example, is in last month's CTCN article, page 2 by Robert Edwards. He wants to improve his trading and I'm sure he is trying very hard. But as I read his article, Robert has missed the boat and will never truly succeed until he works on his psychological flaws. For example, he continues to let fear and greed ruin his trading. He's afraid to let a profit run, for fear of giving back a small profit (greed).
These are serious problems and deep rotted in his psyche. However, he's not seriously dealing with it. How do I know? Robert made the statement "I may lose next year. If I do, it must be, it will be, because a better team beat me. It will not be because I beat myself." Now Robert, what kind of stupid statement is that.
It shows you take no responsibility for your losing, some other team or guys beat you! Robert, if you lose next year, it will be because you traded poorly. You didn't react well to market action. Nobody or no market is out to get you. They don't even know or care that you exist.
Your assumptions are not quite right on what it will take to turn your trading around. You say you must change your patterns - get some guts - you believe as you stated "If you trade you will error" and "Trading is like throwing a knife in the air and catching it in one's hand and getting bloodied pretty good." That's a real positive view of trading, isn't it!
It is no wonder your having trouble. You truly view trading as a very negative thing. You really do! You must work on changing your views into a positive attitude. Can you be honest to yourself to do it? You must, if you are to succeed.
I trade 2-5 times a day. If I felt as you do, I'd probably blow my brains out in a week. I look forward to each new trade. I can't wait for the next signal. I'm confident enough to know I'll make money 6 to 7 out of 10 times. That's the attitude to have - positive with confidence.
I don't mean to pick on you, but your case is typical (I was there once). I hope you will take this in a constructive way. It will change you. It will take sometime, but you can do it.
I'm writing this letter for therapy to keep my concept in the front of my mind, as well as helping others. I speak from real feelings and experience.
I started writing a short letter, which has turned into a lengthy dissertation. I hope I have awaken some of you.
It makes me sick to look back at my horrendous years. I went to all the seminars, bought systems, books, tapes, software. None of them made me money, because I had some real psychological issues to resolve that only manifested themselves in trading. If you have any personality flaws, trading will bring them out.
Do you really want to trade for a living and enjoy the kind of life-style it affords? One of freedom and money. Then you better be prepared to deal with your dark side and confront your psychological weaknesses and be honest with yourself (painfully so) be willing to change. It's not easy, but can be done. I have come far enough to turn my trading around - but I work on it every day.
Do you have problems with placing stops and taking a loss? Do you get mad at the broker or the market when you lose? The market doesn't do what you thought it would do. Do you get mad at that stupid system you bought? The system went into its largest drawdown the day you started trading it.
The list of questions goes on and on and yes I've done all this and more. Resolve to turn your quest for trading excellence and profits inward - yourself. Learn to expose all your weaknesses and then work on them. Be very honest with yourself and humble. Get rid of your ego. You want to be right on a trade attitude. Risk 2% or less of your equity on any one trade.
Do this and you'll make money with any system. You will be in control, not the markets or the Holy Grail Gizmo's associated with it.
I wish everyone the best and hope you don't have to go through what I did to succeed.
Cheer up, because it can be done and it's worth the price when you have success. P.S. - I've said my piece - got it off my back and hopefully helped some. I'm not one for much interaction and have made myself somewhat of a hermit with trading (It helps to not talk with traders) to be successful. Too much B. S. gets in the way.
So I will leave you all to ponder my thoughts. I don't care if people don't believe I'm right, because I know I am. I speak with experience, conviction and compassion for those on this journey. I will not be writing again and will now disappear into trading obscurity to enjoy trading for a living!
More on How A.S.T. Makes Lots of Money Trading & Why Others Don't or Can't
Extracted from CTCN Issue of the following February
This is in response to the letters written concerning requests for personal instruction and education on day-trading. I'm sorry to say I cannot fulfill these requests. I am very busy trading during the day and cannot be interrupted while trading and spending time with my family in the evening. Plus I do not have the temperament to be an educator. I'm also not a system vendor, guru or newsletter writer.
If it makes anyone feel better, I have tried to teach two good friends to do exactly what I do and they have learned well. They can recognize all my trades every day. However, they still lose money. Why?
They don't take the signals. They watch 5 or 6 winners in a row go by, then take a loser and quit again; or they get in a winner and as soon as they see a little profit, they get out; or sometimes will not use a stop and a small loss turns out to be a big loss. Yet they have the same information available as I do. Why can I make $1,200 today and my friends lose $350 trading the same methodology? It's in their psychological makeup. They need to work on it. They will eventually pick it up, if they stay with it long enough. I cannot get inside their heads and that is frustrating for a teacher. You have to learn this by constant experience. I can tell you what I did that helped me psychologically. I recommend certain books (as detailed and identified in our Trading Manual).
More on How to be a Successful Trader
Extracted from CTCN April Issue
As mentioned in my last letter, I would not be writing any more (never say never I guess). Dave asked me to contribute again, since he has gotten many requests concerning my trading, methods used and observations, and how I could be reached. First off, let me begin by letting readers know, especially those who have written me via CTCN, I cannot respond to individuals personally. I am too busy either trading or spending time with my family. I just don't have the time or energy to deal with people after trading every day. When the day's done, I walk away from the monitor and relax with my family.
If I did respond, I would have to charge $3,000 to $5,000, and I would feel guilty. I have lots of losses from previous learning, educational and getting your guts kicked in years to make up. You see, I was just like everyone else, until the last couple of years.
The only difference, I was able to find a simple methodology and the key to make it work - inner psychological control of my dysfunctional behavior. (Read Mark Douglas' book, I mentioned specific chapters in my last article - very important).
I feel that after all I've written that many people missed the boat about what I was trying to say. Dave tells me many CTCN readers wish to know how I trade, where to enter, exit, place stops, how to know whether to go long or short, etc.
As I mentioned before, I have shown two friends how I trade. They know it so well, that they call me up and tell me what they thought I did for the day and they're just about right. However, one cannot pull the trigger and he loses on the one or two trades he takes every week. I trade 3-6 times/day. The other friend is an older man who makes great money when he trades, but hates the fast pace and sitting at the monitor all day, so he doesn't trade much. He is fairly well off and doesn't need the money.
My point is, it's not the method, it's how you handle your emotions when trading. Knowing yourself and your likes, dislikes, strengths and weaknesses will help you develop a way of trading you'll enjoy. Trust, execute flawlessly as possible and then enable you to pay yourself as much money as you're able to handle in the market, and this in time will grow also.
Again, my method is very structured and mechanical. It is not 800 mechanical.
Sometimes I pass up trades because my experience and gut feelings about the markets' behavior makes me cautious. Sometimes I'll wait 5 or 10-minutes before acting on a signal. Sometimes I enter immediately without hesitation. Sometimes I get out before my method tells me to. Sometimes I bring my stop to break-even quicker than I normally do.
The point is, every day is different. Even though I basically trade exactly the same way each day, the manner in which I execute the trades is a function of my experience, confidence and psychological training. This is the art of trading, and makes the difference between losing and winning.
Neither I nor anyone can teach this. This is acquired by oneself through experience, practice, pain, suffering and heartache. We learn the most from our failures, this is so true. This is why I will not work (directly) with anyone, because I can't teach this. This is my problem with so many educators. Trading looks easy on back charts.
I will try to give some tidbits of advice on where to start looking or what I feel is the best and most simple way of trading. I have included charts at the end of this article.
One thing I use on occasion throughout the trading week is the Ross Hook (if unfamiliar, buy the book). The Vanilla Hook is all you need. Trade in strong trends in the beginning of moves or breakouts, risk little, take medium size profits. You can make a living just doing this. See 5-minute chart of examples of a hook.
Also I use pullbacks of between 35-62% retracements in a trend swing that gives a reversal bar back in the direction of a trend and that makes a pivot (low, high). I use this the most and it works great. However, it is the art of trading that will make all this very profitable when you master yourself and reading market behavior.
Personally, I would take one market and master it. Don't trade twenty markets like a banana-head. I like the S&P 500 and I take a couple trades a week in the Swiss Franc. All on 5-minute charts (same method, same everything).
My average trade lasts 30-60 minutes, sometimes more, sometimes less. I take my profits quickly and try not to get married to trades.
Learn to be imperfect at times and plan for this. This might make some of you feel better. I usually never risk more than $300 on an S&P trade.
Editor's Note: A.S.T. included charts here which we have not reprinted. However, these charts and others will be in CTCN's trading manual.
Well I did two (not one) really stupid trades last week. My ego got involved and I knew or thought I was right on a couple of trades. The first one, I sat thru a $750 drawdown to make $300 which sounds great, but it set me up on the next trade. I did the same thing and lost $1,500 in 30-minutes on the S&P. I reversed my position and started going with the trend. Put my stops back in and ended up making $1,100 for the day. Had I not made these mistakes, I would have made $3,000 plus for the day. On a 1-lot (that's what I trade mostly) I'm fixing to increase to 2-3 lots shortly. So you see, I still make mistakes and continue learning each day.
I've included charts to show examples and give ideas to develop your own methods and personalize them. Sorry - there's no canned 800 system that will make you a great trader!
The Keltner Channel is something I use as a visual aid in market direction and strength. I don't know much about it. It helps me visually, so I use it. A friend told me about it. I looked at it and liked it. Enclosed is my TradeStation formula. You can figure it out, if you wish. Again it's a tool, not a Holy Grail.
I personally recommend only intraday trading. I hate trading daily charts and overnight trades. Benefits of intraday trading are as follows:
- More profit - especially if you trade size
- Less risk
- More control with money-management
- No overnight exposure - you sleep at night and weekends. Remember coffee, lumber, cotton, and currencies, lately. How would you like to wake up with these against you or locked limit for 2-5 days in a row against you? One bad one like this can ruin 6-12 months of hard work. No Thank You! I don't care what anyone says, it's not for me.
- Quick reinforcement - you get a winner or two in the morning and feel great. You don't have to wait 3 to 7 days to book profits - just 1/2 to 1-hr.
- If you lose, you can make it up within a few hours and you are back in the black quicker, making you feel good. I know some people will write and dispute this, and that's OK. It's my opinion formed after doing all the other stuff from experience. Daily's didn't work for me. Too slow, too boring, too much exposure and too many markets to keep an eye on.
Again, trade with trend, enter on retracements, use small stops and take profits as best as you can. Better off taking a profit too quick than staying in a trade too long. You'll learn the right feel for this as real-time (not paper) trading experience grows.
You will only begin to learn about trading and yourself with real-time, real (actual) trades. You must trade to learn. Set aside some money you expect to lose as tuition. You'll probably graduate with honors and do it quicker. Don't get hung-up on paper trading.
I hope this information helps. I wish I could do more. Unfortunately, this is a journey we all have to make alone. For those who succeed, the rewards are truly satisfying.
P.S. I enter two ticks above or below the signal bar. Risk $200-300 maximum in S&P 500. Swiss Franc (currencies) 7-10 tics maximum risk. These are only guidelines, you must adapt for yourself.
On Keltner Channels - The stronger the angle or slope, the stronger the trend. In a trend, I like for prices to retrace back around the mid-Keltner before I look to enter - on a signal back in the direction of the trend. However, in really strong steeply trending markets, I will not wait for price to hit mid-Keltner Channel, because it will never get there. You'll see this thru experience.
More Details on How I Successfully Daytrade the S&P 500
Extracted from CTCN May Issue
I understand many traders continue to have questions on my "methodology" of trading. One big question that keeps coming up is why can't your trading be 800 mechanical? I have already answered this question in April's issue, but I'll try to expand a bit more in this issue. (Order the April issue from CTCN, if you don't already have it) . . . (also see Gary Smith's article February CTCN).
Trading is not a science, it's a discipline. Just like any discipline, i.e., (martial arts, sports, art) there is a certain amount of basic fundamental or mechanical expertise that needs to be achieved. However, to be successful or above the masses, there has to be more than just basics. A person needs to become totally committed to being the best. One must be automatic in action. One must develop a so-called sixth sense or intuitiveness (I call it lots of experience) for their discipline. Take a sport like basketball. Most guys can dribble, pass and shoot basketballs.
So why aren't they all pros. Why aren't all pros like Michael Jordan? It is the application and the experience of dealing with the basics that sets one apart from the crowd.
If you want to be a trader, that's exactly what you'll have to do, is work hard to be good. Being a trader requires your responsibility for your results. People who want a 800 mechanical system really want an excuse to shift the responsibility for winning or losing to their system. If it was that easy, everyone would have a 800 mechanical system and be sitting on the beach retired.
The fact is, you get paid for your expertise as a trader. The better a trader you are, the more money you make. All successful traders use their experience and feel for market action - even if they are mostly mechanical.
My entry is mechanical, my stop is mechanical and my stop movement is mechanical.
What is not totally mechanical are my exits. I leave some degree of experience to do this. Trade selection is up to me. For example, I might have a buy signal, but the way the market is acting, I might not take it. If it doesn't feel right or look just right - sometimes I miss a good trade.
I don't take every trade that comes down the pike. If I do decide to take it, I'm mechanical about entering, placing stops, moving stops and exiting to a degree (this is not 800 mechanical).
The market is not mechanical - 800. However, it is fairly predictable 60-80% of the time. This is what you as a trader gets paid for. How well you can predict, anticipate and recognize market moves with a methodology that puts the risk reward odds on your side. Only experience can improve this, and no mechanical system can sense these things. That's why!
Also, some readers asked what a pivot is (how I define it). A pivot is a bar that has one bar on each side, lower or higher than the middle bar - very simple.
Editor's Note: A.S.T. included charts here which we have not reprinted here. However, these charts and others will be in CTCN's trading manual.
Readers have asked about my commissions. As I've stated before, I pay $20 per round-turn, all fees included. I use a retail brokerage firm as my clearing firm and I do not have direct floor access. I use a trading desk and they give me my fills while I hold most times. It is not necessary to have direct floor access. I understand some say, it is impossible to trade without direct floor access. I say it is a hindrance.
The guys at my trade desk know me and how I trade. They watch out for me and handle any problems and even correct me sometimes when I say the wrong thing. Like buy instead of sell. It happens sometimes when your thinking quick. The guys on the floor are very rough and intimidating sometimes, so my trade desk shields me from that.
Readers are asking questions about bar spacing, colors of charts, Keltner formulas, floor brokers, data feeds, etc. Don't waste so much time fretting over these things? This stuff is all a bunch of secondary crap. It won't make you any money. People need to concentrate on learning a methodology. Practice and gain experience, then work on executing properly. These things are important.
Odds'n Ends from A.S.T.
Extracted from CTCN June Issue
I wanted to make a few comments and observations after reading my May CTCN issue.
I enjoyed the article by Don McCullough. This man seems to grasp how much commitment, dedication and hard work it is to be a successful trader. Fortunately, it is a labor of true enjoyment for many traders which make it tolerable, but not easy. He has begun to learn things that I have learned like stick to one or two markets and specialize (the S&P 500 is the best market for risk/reward or bang for your buck) without a doubt. He has seen how different it is to be focused watching 400+ stocks or even 5 or 6 commodities and try to be totally concentrating on the trades without distraction. He is correct in his observations about the T-Bond market and currency market. They are tradable, but the moves intraday are not as rewarding as the S&P.
So that's the philosophy I have come to for myself. Find the market that has the best risk to reward value for your trading and then just trade that and become good at it. Why trade another market that has less bang for your buck, it doesn't make sense! Rather than watch 2, 3 or 4 markets, why not just then trade a 2, 3 or 4 lot in the best value market and concentrate on that. It makes life much more simple. I think Don and some others are starting to find this out. For most traders this works better.
I'm not knocking the guys who trade daily's, weekly's and hold positions overnight. Some do well at this. I'm only saying that after doing that myself, I've come to find it's not for me. I operate better specializing in one market and holding no overnight positions. I think many traders are finding this out for themselves also. How would you like waking up in the morning and finding the currencies $1,000- $3,000+ against you or coffee $5,000- $20,000, cotton, lumber, O. J., soybeans going limit against you for several days in a row sometimes? That's a heck of a way to start your day - no thank you sir.
Speaking of starting your day, maybe some would like to know how my day's schedule goes to give you an idea! My office is upstairs in my home and is fixed up comfortable with my office equipment, plus sofa, TV, reclining chair. Very much like a studio apartment, since my wife tells me I live in there.
To start my trading day: I come upstairs, relax and watch Good Morning America and CNBC while drinking my coffee. Then at 8:15 a.m. or so I get situated at my desk. Review the market action yesterday. Look at the Globex S&P, Bonds, Currencies just to get a feel for what kind of a day it might be (I can relax and start the day off in a good frame of mind, since I don't have to worry about horrid gaps against me).
I look at my support resistance points displayed on my screen and watch the opening at 8:30 a.m. CST. Then I usually get off one or two trades by 10:30-11:00 a.m. The markets usually start getting quiet. Then I'll leave to go walking, catch lunch, run some errands and watch "All My Children." Then about 1:00 p.m., I'm back in my seat for the afternoon session to have some fun. Then I'll usually get 1-2 more trades off from 1-2:30 p.m. Then I'm done. Sometimes if I have a good morning, I'll just quit for the day.
This makes trading enjoyable. Most people think daytraders are permanently glued to the screen seven days a week - 10 hours per day. This is not so. You see that daytrading affords one plenty of free time without the anxiety of overnight or over the weekend positions. Be honest, how many of you have had overnight/weekend positions and find yourself watching the news or national weather to see how it will affect your T-Bond or Soybean position Monday. On my God, it rained in the Midwest Saturday and I'm long beans. Now I spend the rest of the weekend throwing up, waiting for Monday's open to kill me! I laugh now, because that's happened to me more times then I care to admit. No more, I enjoy my evenings and weekends.
Also S.F. from Europe keeps making little snide remarks about how I would not like his method, because it's so inferior to my $1,200 day amazing returns. First, just to get this guy's record straight so he doesn't mislead other readers, I don't care about his trading or method. If it works for him, that's great. I don't know why S.F. keeps worrying about whether I would approve of his % returns or not. Everybody is different, and if he's happy, that should be all that matters to him.
He also keeps alluding to me making $1,200/day every day, where he picked that up I don't know. I read all my articles and never found that.
Editor's Note: A.S.T. included charts here which we have not reprinted. However, these charts and others will be in our trading manual.
I have days when I do make $1,000- $2,000 or more. I have days when I lose $300-$700 or more. On the average (with a 1 lot in the S&P) I aim for $200-$300 per day, day net. This is realistic. That's $1,000-$1,500 per week plus some weeks even more. That's lots of money - when I get up to a 5 lot or 10 lot someday. That's $5-$10,000+ per week. You can live very well on a one-lot.
How many people you know make $6- $10,000 month working at home. So where this guy comes up with $1,200/day, I don't know. Readers, if people tell you that you can make $1,000+/day trading a 1 lot every day in real-time (not paper trading) run for the hills. In the beginning $100-$200/day is a good goal to shoot for. Some may be disappointed in this, but I had to lower my expectations so I could trade properly.
On the lighter side, Don talks about the greatest trader, Marty Schwartz, he's one of my favorites. He, like so many others, failed for so many years (10 losing years in a row for Marty) until he made it. These experiences kept me going during my tough times. Also, he talks about how exiting a trade is the hardest thing and he never seems to get good at this. I find I leave lots of money on the table also, so I feel I'm in good company. @quot;Linda Bradford Raschke@quot; said she could retire from all the money she leaves on the table, but prefers to take reasonable profits when they're there. So even the market wizards aren't perfect. They just make money. I think their stories are very encouraging to see they make lots of mistakes also.
I have a little thing called steps to becoming a trader that I find was real good. Perhaps other traders will enjoy reading this, and see themselves as I did.
On a positive note - trading is fun (hard work but fun) and yes you can be successful after time. Maybe not a market wizard, but successful. Keep trying, keep learning, don't be greedy. Happy trading!
Often Asked Questions From Many Members to A.S.T. & A.S.T. Responds
Extracted from CTCN June Issue
Many members have asked these three questions:
1.Question: Exactly what does "2-pivots back" mean, and how is it used by you?
Editor's Note: A.S.T. included charts here which we have not reprinted. However, these charts and others will be in CTC's trading manual. Answer: Support - if broken I usually go to a sell mode
2. Question: What is that apparent moving avg. plotted in the middle of your Keltner Band on your charts and how is it used by you?
Answer: I think it comes out to about a 7- period exponential moving average (its close)
3. Question: How do you determine the pullback amount before you act, why is it 35% on one trade and 65% on another trade? Answer: I really don't measure them. Most of the trades I take though seem to pullback in these areas.
When You Try To Help, Sometimes It's Not Worth It!
Allegation Of Copying Method & Lawsuit Threat
Extracted from CTCN July Issue
I am writing this article in order to clear up a misconception that has arisen since I began to write my articles on daytrading. Most readers don't know about the problem. The main intent of the articles was mainly to encourage traders and pass along experiences I have gained. Many traders asked for hints on how I trade. So I published a few charts showing some entry signals.
Since then a vendor, who offers a trading course, has claimed foul and said that I have copied his secret methods of trading. He claimed this due to the fact that I used a Keltner Channel (which is public domain, like Stochastics) in my trading.
He has threatened to sue me. Well let me explain. I took his mail-order course 2½ years ago. His system comprises a step oscillator, multiple time frames coupled with uni-bands (support and resistance Fibonacci lines) multiple Keltner Channel corridors. He even tells you to sell tops and buy bottoms using Stochastics, like George Lane teaches. There were some ideas I got from his course, but he offered no concrete method or money management. He asked me to write some letters and talk to some prospective students on recommending his course and he would compensate me, which I did and he never compensated me - but that's O.K.
I have told readers that I have done it all, i.e., bought systems, went to seminars, purchased educational courses like this vendor's, have taken classes from Bill Williams, Name Withheld, Joe Ross, George Lane and have learned a little from each. I took Joe Ross's class and first learned about the Keltner Channel from Joe.
This vendor thinks if you use Keltner Channel and sell retracements or buy pullbacks in a trend you are copying his methods. Well all traders who now trade or ever traded should pay him a fee for this remarkable discovery. He has been harassing me since I started these articles. He's mad because I didn't laud his course to the heavens, but I did this for no one else either.
I signed a non-disclosure not to reveal any of his trade secrets or reproduce, copy and distribute his manual, plus tapes, which I have not. What he considers secret is in fact public domain, i.e., Keltner's - Stochastics RSI - Fibonacci. So what I have shown in the newsletter would resemble many other similar methods.
That vendors method is so complicated and complex, I could not trade like his course describes. He has got so many indicators and channels on your screen you can't see the price bars. My trading is far simpler. However, some may like this, give him a call, check it out, ask for a brochure.
I no longer use the Keltner Channel. I just use a moving average as my visual aid. The fact is, my trading is a compilation of years of education (some good, some not so good) and painful experiences. I had to develop a consistent way of entering and a good money management method. No one taught me this, and took much time to evolve into a simple but effective way of trading. See my steps to becoming a trader. I hope all enjoy this. I'll bet many can see themselves here.
It's a shame that by trying to write some positive and helpful articles that someone's greed and ego can put a damper on it. Yes I got some interesting ideas from him, none of which I use anymore.
He thinks he invented the world of trading pullbacks in trends, Fibonacci retracements, overbought and oversold, etc. I don't think so I'm surprised Mr. Keltner and George Lane don't sue him for using their indicators in his class. I hate to write something like this, but the man made such a big stink about it with me and Dave Green, that I felt I had to write. I've learned when you try to help, sometimes it's not worth it. A few bad apples always spoil the bunch. Good trading and keep positive.
38-Steps to Becoming A Successful Trader
Extracted from CTCN July Issue1. We accumulate information--buying books, going to seminars and researching.
2. We begin to trade with our 'new' knowledge.
3. We consistently 'donate' and then realize we may need more knowledge or information.
4. We accumulate more information.
5. We switch the commodities we are currently following.
6. We go back into the market and trade with our 'updated' knowledge.
7. We get 'beat up' again and begin to lose some of our confidence. Fear starts setting in.
8. We start to listen to 'outside news' & other traders.
9. We go back into the market and continue to donate.
10. We switch commodities again.
11. We search for more information.
12. We go back into the market and start to see a little progress.
13. We get 'overconfident' & market humbles us.
14. We start to understand that trading successfully is going to take more time and more knowledge then we anticipated.
Most People Will Give up at this Point as they Realize Work is Involved
15. We get serious and start concentrating on learning a 'real' methodology.
16. We trade our methodology with some success, but realize that something is missing.
17. We begin to understand the need for having rules to apply our methodology.
18. We take a sabbatical from trading to develop and research our trading rules.
19. We start trading again, this time with rules and find some success, but overall we still hesitate when it comes time to execute.
20. We add, subtract and modify rules as we see a need to be more proficient with our rules.
21. We feel we are very close to crossing that threshold of successful trading.
22. We start to take responsibility for our trading results as we understand that our success is in us, not the methodology.
23. We continue to trade and become more proficient with our methodology and our rules.
24. As we trade we still have a tendency to violate our rips and our results are still erratic.
25. We know we are close.
26. We go back and research our rules.
27. We build the confidence in our rules and go back into the market and trade.
28. Our trading results are getting better, but we are still hesitating in executing our rules.
29. We now see the importance of following our rules as we see the results of our trades when we don't follow them.
30. We begin to see that our lack of success is within us (a lack of discipline in following the rules because of some kind of fear) and we begin to work on knowing ourselves better.
31. We continue to trade and the market teaches us more and more about ourselves.
32. We master our methodology and trading rules.
33. We begin to consistently make money.
34. We get a little overconfident and the market humbles us. 35. We continue to learn our lessons.
36. We stop thinking and allow our rules to trade for us (trading becomes boring, but successful) and our trading account continues to grow as we increase our contract size.
37. We are making more money then we ever dreamed to be possible.
38. We go on with our lives and accomplish many of the goals we had always dreamed of.
Personality Is One of the Keys to Success
Extracted from CTCN August Issue
Several traits are necessary for success. Patience and discipline. You must also have the persistence of a bulldog. Do not quit or get discouraged easily. You must also be an optimistic person and must become flexible to change and go with the market flow.
The biggest challenge to your success is not in recognizing what to do, but actually doing it and doing it properly and consistently.
Another area that will give you trouble is boredom. You must not just jump in the market because you have not done anything for a couple of hours and feel like you need to make some money. This can really play havoc with your success. Your are there to make money by taking quality trades not quantity.
Editor's Note: As you know, A.S.T. is one of the most successful traders out there. I have received numerous requests from members asking for additional details on the REAL SUCCESS trading methods.
In addition, many of you have asked for A.S.T.'s address or phone number. I have been unable to supply that per A.S.T.'s insistence on privacy. He wrote these great articles, as he wanted to help you. However, he wished to remain anonymous so he could concentrate on his trading without interruptions, and also preserve his privacy.
Due to so many requests from our members as he wrote all these fantastic articles over the last 8-months, I have been trying to persuade A.S.T. to go into much more detail and teach his methodology to CTCN members. Subsequently, A.S.T. had agreed to teach his money-making unique methodology to fulfill the apparent large demand for more details on this methodology.
A.S.T. Speaks Again - Up $4,300 in 2-Weeks with One-Lot Small & Consistent
Wins & Nuts & Bolts of Trading
Extracted from CTCN October Issue
Last two weeks of trading up $4,300 with one lot only. No big killer days, just small wins and consistent. It adds up. This is what I want to teach.
I just wanted to write a short helpful piece that deals with the business or nuts and bolts side of trading. So many people (including myself) start out spending lots of time looking for the system or method that will make them financially independent.
Few people ever get into spending and devoting time and thought to their trading organization at home or in the office. This is extremely important to run your trading as a business. (it is one you know - not a pastime). Very little if nothing is mentioned about this. It is important to be professional and organized.
This is also good for your mind-set. You must feel like a businessman in control. It really helps. Here's some things I believe every trader should have and do.
(1) Have a morning routine to prepare for the day - that includes:a) checking your equity run to make sure all trades, confirms and positions are accurate (you should have your equity run Faxed to you each day). Settle any discrepancies before the markets open.
b) Check the markets you are trading and review last few days' action. Just for point of reference.
c) Look for support and resistance areas
d) Make sure your equipment and quotes are working - sounds stupid, but you'd be surprised sometimes.
e) Get a reopening call.
f) Relax and get ready
(2) Have an end-of-day routine to close your day:a) Review your trades - did you follow your method?
b) Log all trades - keep a record
c) Have a comments/or diary setup to make brief observations on the day
(3) You should have designed the following:a) Trade ticket that makes sense for you - 1 ticket per trade
b) Daily trade log with weekly and monthly results - keep up daily!
c) Monthly log sheet
d) Monthly diary or comments sheet
(4) You should also have a goals sheet listing your goals for the year and not just monetary - things like improving discipline, patience, etc.
These things are important. I recommend reading Joe Ross's book "Trading is a Business." It goes into lots of detail on these things I mentioned. Also, many of you have voiced a concern that you cannot find a good broker who will execute your orders in a timely manner, receive good fills, report back quickly and offer you good back office support on your account statements. Finding a good broker is part of treating your trading as a business. May you all continue to learn, improve and increase in your success.
You May Also Trade The Daily Charts Successfully - Not Just Intra-day Charts
Extracted from CTCN December Issue
For Those Who Want To Trade The Daily Charts - These signals: the bull and bear hook and the reversal bar work on the daily charts as well. There is a difference though in execution and volatility and market trends.
Daily bars tend to gap a lot on opening above or below the previous day's high or low. Also, the volatility on the daily bars will not be anywhere near the S&P 500. So you will be getting less bang for your buck, and the daily charts will not trend as well and as long as the intraday S&P 500 relatively speaking. With that in mind, there is still good money to be made. I believe you have to treat it a little bit differently. So here are some general guidelines that will work very well to get you started. These are only guidelines and you can modify them to suit yourself.
The way I would try to trade the daily's, is that I would look for a decent trend to develop. Get in on the pullback using one of our two types of entries, and then look for a quick 3 to 4 day pop in our direction and then exit.
So try this:(1) Enter about $50 above or below your signal bar whichever way your trading (allow up to $150 limit on order for gaps)
(2) Initial stop (or risk): 75% of signal bar
(3) Then use a one bar trailing stop ($50 to $100)
(4) Exit on the fourth days' close
(5) Have a profit target of say $1250 in market each day with an O.C.O. order in with your trailing stop.
You may ask why I would use a profit target. Well on daily charts that's a pretty good move in most markets inside of 4- days of being filled and most trades off the daily's will average about $300 of risk, so this will give you a 4 to 1 risk reward ratio which is not bad if you can get it. Remember, these are just guidelines.
For those who want to be quite mechanical and cannot watch the market during the day, these rules should work very well considering you take reasonable trades in trending markets. Be picky about the trade selection and markets you trade. Since most daily markets these days do not trend as long and as frequently as in the past, you want to take the quick 3 to 4 day moves and move on. I would recommend you look at 8 to 10 markets and that is all. There's plenty of money to be made in that many. You do not and should not watch 23 or more markets. Stay away from orange juice, lumber, silver, gold, soybeans, sugar, pork bellies, sugar and cocoa.
The markets that trend best and work the best from my observations are the following: Wheat, Cotton, Coffee, Copper, Crude Oil, Heating Oil, Treasury Bonds, Treasury Notes and Eurodollar. The currencies trend wonderfully off the daily's, but the gaps every day can be stomach churning along with sleepless nights and weekends. If you don't mind big risk and big gaps you can trade these. There are some tremendous moves, but can you really stay in real-time? Only you can answer. I can tell you up front that I cannot and will not. I like the short-term, low risk type trading. These other markets will give you something of that nature for those who can't watch the markets intraday.
Recap Of My Past Articles & Planning For New Year & More
Details On How To Trade Successfully
Extracted from CTCN December Issue
Well, again it is that time of year again. That is the time that most people reflect on their success and failures and try to plan ahead for next year to make it productive and prosperous. It has been a very interesting year to say the least. The markets were all moving in big swings like copper, coffee, lumber and cotton. Some were trending more than anyone thought like currencies, bonds, stocks and stock indexes. As I look back at the year and examine my style of trading (intraday trading the S&P 500) I am even more excited and committed to this type of trading. Why? Well here are some points that I will review that I have found to be beneficial to myself and hopefully to others. These are all points that I have brought out during the year, but it is a good time to reflect, review and plan for next year.
Many people are still searching for a trading method and have been for years. This is one of the most frustrating modes to be in, because how can you plan for a prosperous year if you still don't know exactly how you are going to trade or approach the markets. You simply cannot have any confidence if you do not have a method or way of identifying trades along with money management guidelines.
You're lost in the woods, so to speak. I was there for many years. What did I do? This may help a lot of you. I threw out 99% of all the crap I learned about oscillators, divergence's, Elliott Wave, cycles, timing, seasonals, Gann, pitchforks, volume, fractals, RSI, stochastics, overbought/oversold (this is a good one-the stock indexes, currencies and cotton for example everyone said were overbought and topping in February and March this year. Look what they did. Needless to say, I don't pay attention to this anymore either.) etc., etc. The list goes on to infinity almost. I went back to the basics. I went back to a few simple chart patterns, (a simple moving average and trendline now and then for a visual aid).
I came up with a low risk money management plan and put it together with trading with the trend and wah-lah, presto, an effective and time tested trading plan. The plan is simple and has worked since trading began and will last me a lifetime. What a relief not to have to spend countless hours every night trying to find a new way to trade. I am sick and tired of that after 7-years.
When the day is done my analysis for the next day is automatically done in less than 5-minutes on my own software program I had developed and I'm off to enjoy my evening. No more, honey, I need to analyze the charts till midnight again and all weekend. Now I can concentrate on improving my psychological or mental skills during the trading day. This will be an ongoing lifelong challenge. Nobody ever stops learning and trying to be a little better. Is my method perfect? No! (None are) am I perfect? Surely not. But it is the simplest and most accurate way of trading that I have come up with, and I've looked at lots (tons) of ways of trading. My method or approach works just as well on daily, or weekly charts. I choose not to trade that way.
I really enjoy and believe in the daytrading concept. There are so many advantages. No overnight exposure to huge gaps, not getting sick to your stomach over the weekend if it rains in Iowa and your long soybeans or some government official makes the wrong comment over the weekend on "Meet the Press" and your life flashes before your eyes, because your long currencies and they're going to tank on the opening Monday morning. I've been through it and so have many of you. No thank you anymore. Every day is a new day. You start fresh with a clean slate. You slept at night. You enjoyed your weekend with your family. If you made a mistake yesterday, you can try to do better today. I realize that some traders cannot trade during the day because of other commitments. That's OK, you will just have to deal with the overnight risk. So trade small size and use stops. Perhaps use the Mid-Am or a smaller equivalent to the market you're trading if available. If you can have some access to intra-day daytrading type of bar charts, you can use this to establish a longer term or intermediate term position with very low risk. For example, when a daily (overnight position trade) trader sees a trade signal setup, they can go to the intra-day chart and wait for the same setup, intra-day. Establish the position with a fraction of the risk, turn the monitor off, walk away, and then monitor it from a daily perspective. You just need to be aware of gaps (there's that nasty word again) of which you have no control. So daytrading even has a place for the position trader.
I also believe at becoming an expert at one market and its behavior and then putting all your skills and energy to work in a concern(traded) manner. Get good at that market and trade the heck out of it. Increase your size over time and you'll make more money with less effort. There are lots of professionals that do this. Look at some floor traders or locals that stay in the pit for many years trading one market exclusively. You say you can't do it. I have two words for you. Tom Baldwin made all his money watching, waiting and learning the intricacies of the bonds until he could trade them in his sleep (which I'm sure he did, I do it all the time, most traders do!) and then traded the hell out of them. Point Made!
One thing that I have learned this year, is that I am trying to cut back on the number of trades I take and be more selective and not trade in congestion as much as I did before. I miss some good trades out of congestion, but I save myself a lot of mental energy, buy myself some more free time during the day, and get better more profitable trades. My attitude is changing now to one or two good trades, and that is all I need to make my week (a triple or a home run, so to speak). There are plenty of them during any given weeks time. There are also a lot of singles and doubles to add to that and a few strike cuts or losers to absorb. This is part of the learning process and part of getting older. So I pass these observations on to you, in order that you may profit from my experience. Don't try to reinvent the wheel.
Trading is fun. Once you have a method and money management in place, it allows you to concentrate on trading and not on searching and researching. That gets old and frustrating. Make it your goal to find a simple method for next year. One that you can hang your hat on and that will last you a lifetime. Trading is simple. Remember, it's the execution or implementation of your trading plan that is the bigger challenge.
Most people make finding the method the big challenge. That is because there is so much junk thrown at traders. They feel like a child in a candy store and have to try every doodad in the place. When they are done, they are sick and never want to see another candy store (trading gizmo) again. They could have had the plain piece of milk chocolate at the front of the store (simple method price patterns) which would have done everything they desired and fulfilled all their needs.
I think CTCN has evolved into a very good sounding board for ideas and interaction. I'm glad to see a lot more discussion on the psychological aspects of trading. I feel that this is where the most improvement for traders will come.
I wish to all a great new year. I hope some will be able to end their journey in search of the Holy Grail or indicator that will turn their life around. Search for simplicity. You will be surprised what has been right under your nose all the time, right there in front of you on the chart or price bars. Pay attention to what they say and they will tell you everything. You need to listen and get to know them. It can be that simple.
What You Will Get:
$477.00 Package Includes:
- Hands-On Instructions in CTCN's own enhanced and modified (for possibly even better potential performance, VHS Video Tapes containing hours of instructions by Commodity Traders Club News and Dave Green - "Classroom" type instruction, lecture and discussion, with both LIVE ACTUAL real-time and real-time hypothetical theatrical trading, both using real-time data and real-time intra-day charts. You will watch as Real Secrets thought processes are detailed and see Dave pick up the phone and place a few actual real-time trades for his own account.
- You should come away from viewing these videos with a clear understanding of the methodology and how to apply it. By going through the tapes and studying the materials you will should be able to learn methods to trade profitably, how to interpret market behavior, and how to react to different market scenarios. This knowledge will stay with you long after you have forgotten where you learned it.
- These Great Videos show some actual trading being performed LIVE! Real-time explanations of trades taken, reasoning behind them and YOU can see the trade UNFOLD, all the time listening to comments and thought process as we think out loud about the trade and how to manage it. These tapes contain BOTH winning trades and losing trades and show in some of the taped trades how the methodology holds up in REAL-TIME.
- Easily understandable spiral-bound trading manual explaining the entire methodology and trading approach. We provide specific rules for entry and trade management, to make trading comfortable.
- Annotated charts are provided showing this time-tested trading approach on BOTH good days and not-so-good days. Any trading approach has losses, as does this method too. However, we are not afraid to show how we perform in any type of market environment, good, bad or indifferent.
- Optional Low-Cost Software is ready for shipment to you. It's for use with Omega tradestation. It clearly shows all potential signals (opportunities), with colored dots drawn on your PC screen representing the buy/sell opportunity bars, and colored horizontal support and resistance lines.
- Personal e-mail address of Commodity Traders Club Editor Dave Green - for easy access when you have questions, 24-hours a day. Dave is not yet a registered (CTA) Commodity Trading Advisor and therefore he can not give real-time trading advice. E-Mail (or Fax) him at anytime to discuss most any subject, including this Real Success Methodology, CTCN, our Trading Manual, things not completely clear to you, and the video tapes.
- Technical support for the software direct from Commodity Traders Club. You may contact us at anytime you want support or assistance with this method or have software questions.
- Free e-mail consultation with Editor Dave Green on most any subject and all aspects of the many trading related subjects discussed in Commodity Futures Trading Club.
- Simple Non-Curve Fitted, No-Nonsense, No-Hype approach that will last you a lifetime.
- Relatively easy-to-learn . . . you probably will have it mastered in a fairly short time (but this can not be assured).
- Very Teachable . . . easy to teach you.
- Please remember . . . there is a high risk of loss in commodity futures trading and only risk capital should be used. Past results may be difficult to achieve in the future and also may be based on hypothetical trading, with benefit of hindsight, and not actual trades. Please keep in mind, profitable trading can not be and is not guaranteed.
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