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Who can use this
site? Anyone
who would like to take a more active role in their
401K retirement, individuals wanting to supplement their income
and those who would like to trade for a living.
If you have a 401K you probably are offered
a few funds to choose from and most likely one of them closely tracks the Standard
and Poors 500 Index and a Government Guaranteed
fund that will pay guaranteed return no matter which direction the
market moves. You could actively take charge of your investments by placing your money in the S&P
500 tracking
fund in a bullish market and in
a bearish markets in the Government guaranteed fund.
If you want to do
some stock picking you need to know the direction
of the market. You will find that buying in a bear market will prove very difficult,
the same would be true selling in a bull market. When you make your stock picks
in the direction of the market you quickly become a stock picking genius. For the
those who would like more risk and reward, one could trade oex
options.
If
you want to trade for a
living, you could trade S&P 500 Emini futures. They are very commonly traded,
very liquid and highly leveraged. Each 1/4 point move represents
$12.50, each point $50. A S&P 500 Emini futures contract moves almost precisely as the S&P 500 index,
if the S&P 500 index is up 5 points most likely the
Emini contract will be up 5 representing $250. It normally takes
about $3,500 margin to trade S&P Eminis some brokers will allow you to trade
with $1,500 margin if you liquidate your position each day at close.
From the conservative to the highly
speculative most anyone's objectives can be met trading the Standard and Poors 500
Index alone.
This site is not about recommendations or
advising (there are quite enough people willing to do that), just the opposite,
it's about empowering the individual investor to make their own decisions.
In the light of recent events it should be more evident then ever that the
public needs take a more active role in managing their own investments. Everyone is free to use the indicators and
information on this site as they wish, but until one is able to draw their own conclusions
drawn from their own knowledge, system, or criteria don't expect things to
change.
You may look at this site and some of
its indicators and think trading looks easy. You can easily gain a understanding
of the market but how well do you understand yourself ? As Sun Tzu said in the Art of War over 2000
years ago, "know your adversary, win half your battles, know yourself win
half your battles, know yourself and your adversary you will win all your
battles. Winning only half the battles will prove futile you will soon go broke
after paying slippage and commissions, even more costly will be the emotional toll
taken arriving there.
You need to build a relationship
with your system to have the proper state of mind to trade it. Healthy
relationships are built on trust, faith and confidence the same emotions you
will need to have towards your system. It is very difficult trading someone else's system,
like adultery its destructive relationship. Not having your own system also
leads to fear and greed, greed may being trying to gain with out doing the
work, and fear, may be not having the confidence in your decision once any
adversity appears.
This site is free to use
as you would like, but the most valuable answers will be found within once you have set perimeters and guideposts to
measure yourself. Know yourself.This system is based on the triple screen
method, first introduced by Dr. Alexander Elder in Futures Magazine in
1986 then later published in his book trading for a living in more
detail. The premise being that trend following indicators and oscillators often
give conflicting signals, the trend may be up and showing a buy signal
while the oscillators may be overbought and showing a sell signal. In the same
way different time frames will give conflicting signals,
the trend may be up on the daily charts while down on the weekly.
The Dow theory states there are 3 trends (1) the long term, the tide,
(2) intermediate term, the wave and (3) short term a ripple. Dow states
you should trade in the direction of the tide.
The
Triple Screen System is a forum of triangulation,
a method of survey. For thousands of years, from pyramids to satellites, 3
points have been used to construct measurements. It seems to be law that to get any type of
measurement 3
points are required. The measurement of time
requires 3 points, past, present and
future, so too to find a location or area you need 3 points X Y and Z. The 3 points
that can be used
to survey the market on this site by utilizing the monthly, weekly, daily,
and the 15 min intraday charts depending on the
time frame you are trading.
The
anchor of the Triple Screen System is the weekly macd slope, trade in the direction
of the slope and use the other weekly charts for confirmation. Use daily
charts to confirm the weekly trend and trade against daily countertrends
that go against the weekly trend. Monthly charts
are used to gauge the economy and 15 min intraday charts are used for
entry points.
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