Note: All of the posts in this thread are directly quoted from super_ego.
Originally posted by super_ego
In my newfound quest for popularity, and the lack of success of so-so many traders-traders, I, SuperEgo, in the coming weeks and months, will be educating YOU, the trader, on the NEW and changing market.
Consider yourself extremely lucky, as in the next few months you and I are going to take a journey into the profitable extremities of the Nasdaq/NYSE stock markets.
I will be teaching you how to trade. Plain and simple. I will be giving away some of the SECRETS that very few pros use. In doing so, I will hope to relinquish the duties of those that I have learned from (who wasted my time and probably your's, too). I do not wish to slander anyone, but this list includes the likings of Oliver Valez, Allen Farley, David Nassar, Jae Yu, Greg Capra, William O'neal (and his worthless newspaper: Investor's Business Daily), William's protege Tony (I don't want to mention my last name) Oz, and a little guy by the name of Harvey "soesmeister" Houtkin. The list includes Active Trader Magazine, and Stocks and Commodities Magazine. IN MY OPINION, the latter are a WASTE OF TIME.
I have learned NOTHING from these so called "gurus" and neither will you. So, in order to get started here I ask you to THROW AWAY any memories you have of the aforementioned and REV UP YOUR PLATFORMS, cause you, my friend, are going to LEARN HOW TO TRADE!
I am a very profitable trader trading from Hawaii. I started out trading with Prudential Securities as a Market Maker and moved on to trade with the mammoth grand-daddy-looter of the securities markets, Goldman Sachs. I have a BS in Bio-Physics, an MBA, and a PhD in Economics. I am 42 years old. I have traded for 10+ years and I was around before all the loop-D-loops.
And yes, I do make gramatikkle errors now and then.
I will need to know where everyone stands on the market todempole. So take this rediculous little quiz.
If a stock is bid 5.38 by 6.22 at what price will you (try to) enter the market?
Do you know what forces drive the market? (don't say supply and demand, please!)
Do you know the difference between a mathematical indicator and a data-compiled indicator?
How many times per day do you get SCARED to take a position? (be truthful)
How many times per day do you fight the daily trend?
what was the last trade that you made (size of postion, name of stock, price of entry/exit) and WHY did you enter it?
Very important, since I will be showing you all that EVERYONE is making the same mistakes and that is what the market is counting on!
Help yourself and be truthful in answering these questions and I promise you that you will get more out of my knowlege than you have ever received from any money grubbing guru!
PEOPLE....I AM A FREE SERVICE AND I WANT TO SEE MORE TRADERS SUCCEED. I ASK NOTHING IN RETURN FOR MY SERVICES OTHER THAN YOUR WILL TO BE A SUCCESSFUL TRADER.
Without posting complex answers. How do you spot a trend?
Please don't make this complex. I will tell you how I spot a trend. With simple moving averages. That is it. Simple. To the point. Done.
next...
To setup and identify a trend you HAVE TO HAVE a 2min, 5min, 15min, and Daily Charts.
On these charts you need a simple (not exponential) moving average of time frame= 5,20,40,222. This is a MUST.
Set up these charts in the manner I have mentioned and go and look at your favorite instrument that makes you money these days. I should hope for you to see them come to life.
We are only going over the BASIC strategies of identifying a trend. We will get much further into detail. For now I want you to see things the way that you should, NOT the way that you have. If you are already used to the setup that I have mentioned, that is fine. I just want to be on the same page as everyone else.
We are discussing how to deal with a trend WHILE WE ARE IN IT, we haven't disccussed how to identify a trend as it is developing.
Breakdown of charts:
2min- used for entry/exits
5min- intermediary chart (we will get to this one a bit later)
15min- this is the chart you use for PIVOTS.
Daily- Chart used for IMMEDIATE TREND
I don't use 10min charts cause they are worthless, the 15min does a much better job of nailing pivots/reversals.
Remember, don't make this harder than it should be. I just want you to become familiar with these moving averages. These are the only moving averages that work, based on stats.
The 222 I will be showing you how to OFFSET to predict trend reversals.
what your job is going to be is setting up charts/averages described before and :
In Uptrends--Buying ALL pullbacks into(and BELOW) these moving averages.
In Downtrends--Shorting ALL rallies into (and ABOVE) these Moving averages.
There is your entries. Exits will come later and exactly which moving average is the KING will come later also.
Now, since I can't show you pictures of charts, I will refer to the QQQ's and you can view them on your own computers. Just make sure you have the moving averages setup on your charts.
