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  • Archive for July, 2006

    Tips and Advice


    2006 - 07.26
      Shorting – The RulesIt is essential that : 

    • We only short stocks that are in sectors that are not in the current economic cycle phase, and are also not performing.
    • The stock is below both of it’s moving averages (50 & 200) or is breaking through it’s moving averages.
    • There is negative sentiment surrounding the stock.
    • You always have a stop – otherwise you could end up taking never-ending losses.
    • You have a risk to reward ratio of at least 1:3.
    • You adhere to correct money management.

    The Fundamental Rules

    Ideally the stock would have :

    • Negative current assets
    • Decreasing revenues
    • Operating margins of less than 10%
    • Confirming indicators
    Ideally the stock would not : 

    • Have a high PE – as there could be a good reason why and it may move higher.
    • Be a thinly traded small cap stock – as these can be easily run up in value.

    The markets have been less predictable

    Current volatility requires more focus on : 

    • Price action of the stock
    • Setups (Reverse power plays, descending triangles, double tops etc.)
    • Market direction
    • News
    • Oil

    With the market failing to find any longer term direction you need to be able to trade long and short.

     

    Trade of the week


    2006 - 07.26

    TRADE OF THE WEEK – sponsored by LiveTradingFloor

    Kier Group PLC (KIE)
    Technical Play: Consolidation Breakout – Long
    Entry Price: 1529.00 to 1533.00
    Stop Loss: 1495.00
    Target: 1750.00

    Strategy
    Break of consolidation and above 50ema indicates a move back to previous highs.

    Performance
    This stock has moved a total of 6.3% so based on a money-managed trade of 1% risk; your profit would stand at a 2.9% increase. That’s a 97 point profit in three days.
    Would you like to be guided step by step through trades like these? Log onto www.livetradingfloor.com NOW and receive live updates on high performing trades just like this.

     

    50% up in a month!


    2006 - 07.26

    In my first month sticking quite rigidly to the techniques taught on the course I was up 50%, I had turned my original £2000 stake into £3000 in a month, not bad at all!

    I have been trading using the Traders University methodology taught at the training weekend and have found it works very well for me. I have been trading for over 3 years and up to now have had mixed results. The last time I lost, I decided that I was going to find myself a course that would help to teach me what I needed to know in order to trade more successful and consistently.

    The main reason for enrolling on this course was because of the emphasis put on the after course care. I have found the weekly graduate presentations absolutely brilliant in helping to hone my skills, finding out what to look for, applying the skills learnt on the course and being brought back to the important points constantly.

    Thanks very much Traders University.

    Peter Apostolou, 2006

    Trade of the week


    2006 - 07.26

    TRADE OF THE WEEK – sponsored by LiveTradingFloor

    Northern Rock PLC (NRK)
    Technical Play: Other – Long
    Entry Price: 1047.00
    Initial Stop Loss: 1039.00
    Target: 1129.00

    Strategy
    Breakout over previous days high and small consolidation. Good news today and already low tested. Stop below round number at 1039. Enter no higher than 1049.

    08:57am – stop raised to 1049 to lock in profits. 9:02am – stop raised to 1059. 11:29am – stop raised to 1069. 11:47am – stop raised to 1079. 12:36pm – stop raised to 1089. 14:11pm – stop raised to 1099. 14:21pm – stop raised to 1109. 14:59pm – stop raised to 1119. 16.20pm Manual close at 1127.

    Performance
    This stock has moved a total of 7.6% so based on a money-managed trade of 1% risk; your profit would stand at a 10% increase in one day.

    Would you like to be alerted to trades like these BEFORE they happen? Register at www.livetradingfloor.com NOW, and never miss another great trading opportunity again.

     

    £2,500 in 5 days!


    2006 - 07.26

    After my coaching with Traders University my best result to date is £2,500 in 5 days, a 50% return which enabled me to hit a personal target of making more in one week trading than I make in one month in my day job, What a fantastic feeling!!!! I look forward to lots more!

    Great company, great people and GREAT RESULTS!!

    James Booth

    UK Economy


    2006 - 07.26
    The EU and US are blaming each other for the deadlock in the World Trade talks. WTO head says they are merely ’stalled’ and not collapsed.

    The talks are aimed at reaching agreement over agricultural subsidies.

    • The US claim that the EU will not open up it’s markets.
    • Europe blamed US inflexiblity
    • If talks remained deadlocked or fail completely, it may result in higher prices for Europe.

    The right tracks to reach my financial freedom …


    2006 - 07.26

    After three weeks of trading my account is now £6600, which is over 30% profit so far. All that from risking only 2% on each trade, including three losing trades.

    I have been trading for some years but not with a real money management or entry and exit plan and have been making some money one week only to lose it the next. Your talk on the first day of what not to do was exactly what I was doing. Trading indices and over trading when things where going wrong to win back any losses.

    Monday 22nd May 2005 was the first day I entered a trade with a real plan in place. I placed £5000 into my spread betting account with deal4free and using your spread bet sizer decided to risk 2% of my account on all trades. My first trade was Paragon Group in on the 3 day power play trade which resulted in a 60 point gain.

    I now believe I have started on the right tracks to reach my financial freedom and achieve my personal goals in life.

    Thanks!

    Alan Kingdon, June 2005

    World Economy


    2006 - 07.26
    • German Business confidence fell from a 15 year high in July – causing a threat to Europe’s largest economy.
    • US consumers surprised financial markets by becoming more optimistic about the economic outlook. Analysts had expected a fall as global problems had caused consumers to rein in spending.
    • Analyst expectations in US remain cautious and below levels of last year.
     

    A return of 811% in 7 trading days!


    2006 - 07.19

    After the course, I had in place a structure to enter and exit a trade confident in the knowledge that my risk was managed, so that I was aware of the maximum loss that I could incur when I opened the trade. I rarely made a loss and I doubled my money within three months which paid for the costs of the course!

    An example of one of my successful trades was to go £8 a point long on Collins Stewart on 3rd May at price of 723p with a stop loss of 714p. This meant that I was entering a trade with a maximum loss of £72 which was 1.5% of my portfolio. I exited the trade on 11th May when the price was 799p, which resulted in a profit of £685 risking a maximum of £72, which is a return of 811% in 7 trading days.

    Chris Lawrence, 2006

    Trade of the week


    2006 - 07.19

    TRADE OF THE WEEK – sponsored by LiveTradingFloor

    Hays PLC (HAY)
    Technical Play: Consolidation Breakout – Short
    Entry Price: 134.00 to 133.50
    Stop Loss: 128.25
    Target: 124.00

    Strategy
    Consolidation in a down trend fast gaining momentum. Decisive break below previous day’s low signifies a continuation of the trend..

    Performance
    This stock has moved a total of 6.0% so based on a money-managed trade of 1% risk; your profit would stand at a 2.9% increase in eleven days.

    Would you like to be alerted to trades like these BEFORE they happen? Register at www.livetradingfloor.com NOW, and never miss another great trading opportunity again.