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The 10 Habits of Highly Successful Traders

BACK in the winter of 2003 I held an online seminar for several hundred of our clients, most of whom were rela-tively new to trading. In two grueling four-hour sessions we covered the basics of chart reading, candlesticks, and trend trading. I also included a full explanation of two never-before-taught trend trading setups that I had been working on the previous year. During the question-and-answer period, however, I was surprised to find that most of the concerns of the audience had little to do with the logistics of trend trading and more to do with the specific details of my trading approach. In order to answer those questions as precisely as possible, I promised my clients that I would write up my trading rules and send them each a copy.

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The Truth About Divergence

One of the fIrst things that every trader learns early in his or her career is the concept of divergence. Whenever divergence is discussed, it seems that the majority of examples used to illustrate the concept use the Relative Strength Index. Divergence occurs in any momentum-based indicator and occurs when price and an indicator are doing different things, i.e., price is moving higher and the indicator is moving lower or vice versa. These types of divergence are classifIed as simple divergence. There are also examples of multiple long-term divergence and hidden divergence.

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In today’s market action, breakouts often move far before making the first retracement. Some power trend breakouts are like an “express” train departing from a train station-you either jump onboard quickly or you miss the train altogether. The ADXpress is an alternative entry strategy for fast moving breakouts.

Generally, we trade breakouts by looking for new price highs/lows and an ADX above 25; and then we look to buy the first retracement back to the 20 EMA (ADXodus). But power trend stocks have stored up energy and can really fly once they breakout; sometimes the 20 EMA entry is too late. The ADXpress strategy is the answer to this problem and will ensure that you don’t miss the express train.

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What to Look for When Trading Stock

The most important factor in determining a shift in the stock market is a solar eclipse.  This occurs when the Sun and Moon are conjunct with the North (Rahu) or the South (Ketu) Nodes of the Moon. A solar eclipse occurs every six months either in Rahu or Ketu.

An eclipse is very unpredictable, but one thing is for sure — they cause reverses. A Ketu eclipse causes a down trend in the market, whereas a Rahu eclipse will cause an up trend. The shift begins to move toward the following eclipse. Planets conjoined or aspecting these eclipse points flavor the effects. The sign (sidereal) the eclipse falls in has great emphasis on what kinds of stocks will rise or fall.

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Gann Signs Introduction

Many of you have spent countless hours pouring over Gann’s notes, with little result. This has left many disillusioned, about Gann and his methods. Hopefully, we can cut to the chase here, as you take a guided tour through “Tunnel thru the Air” and other Gann works.

W.D.Gann’s “The Tunnel Thru the Air” has been studied by generations of traders, since he  wrote it in 1927. Whilst there has been much conjecture about the veiled messages contained in his text, there has been little evidence published to support the theory, that some PRACTICAL  astrotools were disguised in the TTTTA text.

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Precise Projections with Basic Geometry

A simple right triangle may be used as a template for illustrating important market moves. It is also the basis for generating additional, more complex templates. This particular right triangle has one leg twice the length of the other leg. Therefore, it is termed The One-Two Right Triangle. This triangle has unique properties, particularly in relation to Pi and frac-tional components of Pi (3.14159). A few of these are demonstrated in the following pages. These properties graphically illustrate geometric relationships between market moves as long as 40 years, many of which are perfect to the exact trading day.

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Bar Grouping Technique

Short-term trends may be seen on an hourly or daily chart. Intermediate trends may manifest more clearly on a weekly chart, while long-term trends show up nicely on the monthly charts. Having more than a single perspective of trends, as well as support & resistance, provides extremely valuable information for making trading decisions. For example, if you are trading based on the daily chart, the trend lines on the weekly and monthly charts can be very useful in planning your entries.

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Breakout Trading

Who hasn’t harboured the thought of reaping massive profits from a big price move in a short time? Despite the notoriety associated with trading breakouts, it remains one of the most basic concepts in trading. A breakout typically occurs when the currency price moves beyond a period of consolidation or trading range, or when the price penetrates above or below an established price level, which can be a resistance or support level, resulting in a follow-through of prices past those levels, whether temporarily or permanently. The price movement past a breakout point can either be a short or a more sustained affair, and that may depend on the time frame of prices that you are looking at.

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Keys To Successful Speculation

Obtaining the correct knowledge and gaining actual market experience will of course lead to successful trading. However, once you have obtained the knowledge, you must learn the art of patience. Most traders fail because they feel the need to trade all the time and lack the required patience to wait for more ideal situations. This is absolutely WRONG!

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Chaos Theory and Gann Angles

A butterfly, flapping its wings in New York, moves an infinitesimal mass of air, and this, through a series of chain reactions, leads to a hurri-cane in Miami causing serious damage. Obviously this is a paradoxical situation, but it is a form of reasoning that uses the latest metamodels derived from contemporary physics and, more precisely, it is the reason-ing at the base of chaos theory. One aspect of chaos theory studies series and chains of phenomena that lack a cause-effect relationship. The aim of chaos theory is to develop models able to create functions that can mathe-matically describe and represent the statistical data derived from phenom-ena apparently heterogeneous and casual.

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