The Surf Report

marketsurfer · Nov 14, 2002

Quote from Agassi:

Hello marketsurfer:

I have been eagerly reading your postings every day for the last few days. I also have read most of your postings going way back. I am an aspiring daytrader and have been offered a job as a proprietary daytrader on WallStreet. I am in the process of passing my examinations. I would appreciate it if you can answer the following questions for me:

1) Do u have a mechanical trading system that u use? If so, which one? is it www.neowave.com by any chance?

2) I understand that u use Gann. I do have Robert Krauz's W.D. Gann treasure discovered book. But this book is for swing trading only. Can Gann and Fibonacci ratios be used for daytrading?

Any other ideas/advice that u may have for me would be highly appreciated. Thank you very much.

Agassi [/QUOTe

hi agassi,

thanks for the post. i am a huge fan of glen nealy, having read his "mastering elliott wave" when my interest first started . although i do not use nealy's interpretation of the wave it was a building block in the development of my system.

i do use a mechanical trading system of my own design when trading the dow and nasdaq index. its my neogann channel system, you can scroll back on the posts here and i pretty much explain the system in detail. if you are interested in how i came up with the system, you can check out my innerworth.com interview posted on my site www.marketsurfer.com under the dave's wave tab.

my system is designed to catch BIG moves in the indexes, as such, i do not use it for day trading. when i day trade, i use basic technical studies and you can read more about this in my interview where i go into detail. people do use gann and fibonaci (mainly fibonaci) for day trading but i do not.

congrats on your new position on wall street !! nice going. i wish you the best.

surf
More...

marketsurfer · Nov 14, 2002

miki,

unlike tennis, we both can win daytrading depending on our time frames.

best,

surf

marketsurfer · Nov 14, 2002

hi,

the current channel figures for the dow are 8577 to 8297--the nasdaq is 1293 to 1427---- long above, flat in the middle and short below.

best,

surf

marketsurfer · Nov 14, 2002

the dow and nasdaq are moving closer to the upper channel figures. remember, we wait for a full three minute candle to form above the figure's horizontal line before entering. should the index gap up above the figure, the 12 minute rule is invoked, just like the opposite should the market gap against us, as discussed previously. we wait 12 minutes before entering and if the index is still above the line, we enter long.

let's go do what happens,

surf

Agassi · Nov 14, 2002

Hello,

How much capital do u need (at a minimum) to trade your system? How long do u hold your positions? Do u just trade the indexes or do u also trade individual stocks? Thanks.

To Mike:

I think the mind of a daytrader is just like the mind of a professional tennis player. To win its different i.e. winning aspect is totally different. At the pro level, everbody has the tools, weapons then what determines who wins? I look at daytrading the same way. A lot of things are mental. That's why those guys like to hire people who have played competitive sports.

uptik2000 · Nov 15, 2002

surf-

i have the Nas figure as: Long over 1427, short under 1293
is that right?

I don't have the dow channel and I'm not sure if you even posted it.

Thanks
uptik

u130747 · Nov 15, 2002

I believe it was 8297-8577, but I would check back posts.

Bert

uptik2000 · Nov 15, 2002

thanks..now I see it.....I scrolled right passed it the first time. I need my eyes checked.

marketsurfer · Nov 15, 2002

wow! the upper channel figure in the dow (8577) rejected the index back down this morning. we came within 12 points of the upper figure, and smack down !! nasdaq is churning nicely within the channel at this time. we are FLAT.

reading my previous post concerning the gap rule--- allow me to rephrase as the earlier explanation is a bit unclear. should an index gap up thru the upper channel figure--we wait 12 minutes--mark the high of those 12 minutes-- then enter LONG should that high be violated. if the index drops back thru the upper channel figure, we trade as if the gap never occured. hope this explains the gap rule in more detail.

best,

surf

marketsurfer · Nov 15, 2002

once again, the dow approached the upper channel and got rejected thus far 3:22. we are still flat in the nasdaq and dow at this time.

on a side note, i am prepared to enter heroic sized short positions in the dow/nasdaq upon FIRST HINT ON THE NEWS WIRE of another terrorist attack in the united states, regardless of where the market is in relation to the channel. let's pray that this never happens again, but as market participants we need to be ready for anything. have a great weekend !!!!!!

all the best,

surf