Free trading videos

[des44]

Jimmy,

No problem, my man.
Your question is certainly a good one. The bottom line is--I am, indeed, at risk for holding stocks over-night.

The choice to hold over-night is based off of a few elements that help me sleep better at night:
1) The stocks I enter are (normally) very strong fundamentally and either in an uptrend or breaking out. So the chances of a gap down isn't as likely as it might be on a dawg of a stock.
2) Stocks also gap UP to your benefit, and with the stock picks that I (try) to make are prone to doing so. This acts as my "hedge" If I am not in it I miss out.
3) If I dump a stock before day's end it may be harder for me to find a decent point to re-enter.

I have been doing this for 4 years (in good times and bad), and I know to unload my stocks before earnings dates, when news hits, and when planes fly into our buildings here in the U.S.

I hope this helps and thanks for your kind words.

d-

Just a quick note of thanks for all the effort you've made putting this lot together Des. The medium you use certainly brings things to life far better than written text, which has a tendency to be very dry. Great stuff.

I know you don't like people cluttering up these pages with questions etc, but then again, I didn't want to be accused of adding clutter to your PM In Box without being invited!

My question is:

"What about gapping downwards (against your expectations)?" Holding overnight, particularly in US markets, exposes you to this possibility and stop losses can't always halt overnight runaway trains!

(BTW this question should be read as coming from someone who's genuinely interested, not a cynical b*m trying to stir!)

 

[TerryS]

Great thread Des, thanks for giving your time. I am learning a lot.
A few questions.
How do you calculate your position size on each trade?
I see that you give the stock a bit of room to move and you only move your stop based on a swing low or other significant candlestick volume techincals, do you ever take partials, sell part of your position to lock in a bit of profit?
You say that you use the IBD 100 for a watchlist, do most of the stocks featured in the videos come from that list?
Are you full time trading or is it secondary income?
Thanks for your willingness to share your experience and knowledge of trading.
Terry

 

[des44]

Hey Terry,

I see that many posters on this thread are "Newbies" (under 20 posts I think) to Trade2Win. It's hard not to wonder if people are finding this thread via Google. You might find it cool to know that this thread ranks #1 in Google for the phrase "free trading videos." That's pretty cool in my opinion.

How do I calculate position size? I normally buy 300 share lots. Back in the day I capped myself at only buying 100 shares due to the urging of my mentor. This kept me from doing much damage to my trading account while I made my amateur trades. When I became proficient at 100 shares I moved on to 200 shares until I proved to myself and on paper that I was ready for 300 lot sizes. People tell me that I should be trading 1000 share lot sizes, but I just smile and nod because I know that my system is one that works along side the boundaries of the mental element of trading. They have a logical point, "If I can make money at trading 100 shares shouldn't I make money trading 1000 shares?" Technical, yes. However the mental element is the fundamental weak link between 100 and 1000 shares. What I am trying to say is, I don't get too excited or depressed when I make or lose $500 (trading 100 shares), but what if it were $5000 gained or lost? Could I still stay emotionless? If not, I shouldn't be trading that lot size.

I do frequently add to my lot size while in a position. This is a common practice for me especially when my stock pulls back to the 20dma and giving me a reversal candle pattern. I'll set a trap for the next day if the stock makes for a newer higher high.

If a stock really has great potential I will buy a double lot size of it like I did on HANS. However I do not do this often.

Do I take partials? Yes, especially if my stock is near a swing-high and the broad markets are looking weak also.

Do most of my videos come from IBD 100 list? Yes. It's a great list. I stand corrected on the cost that I stated a few videos back. They just hit my credit card again for this year and it was debited for $99. However someone on these forums shared with me a place to get the list free. Check it out here: http://www.istarquest.com/ You'll have to type them all into your charting software however. If you feel like a tight wad just pay the $99 and get the list in Excel so you can just cut and paste in your charting software. That's what I do and it works great. I don't have time to be adding 100 ticker symbols by hand. Too lazy.

Is trading my secondary income? Yes and no. What I mean is, I am one of those rare people that didn't have to quit my job(s) to start trading for a living, because I actually own the companies that I worked for. Both are still in operation, but they take little of my time. I believe in creating multiple avenues of passive income. Trading is by far the BIG money versus time invested. Nothing in this world generates this much cash in such a small amount of time. Trading is by far my passion and I have a strong belief that some people are able to do this for a living if only they take the time to educate themselves first and do so properly. When I started trading I wanted to make $1000 per month and achieved it just sometimes. Today my goal is to make no less than $10,000 per month.

Mentoring is a high for me and I'll do this for the rest of my life I would guess. Matter of fact, I am flying to Las Vegas in a few weeks to speak to a company about becoming an "approved mentor" for them. They were told about me and they found me--I did NOT find them. This is important to know because I certainly do NOT NEED to mentor. Do I simply love the idea that I can be instrumental in helping others achieve what I have also achieved also by the help of others?---YES! The funny thing is the mentorees this other company will be sending me will pay double what I normally charge. Tisk-tisk.

There you have it. I feel like I should have simply made a video to answer these questions instead of making all you guys read this. I assume most of you are guys. If not, forgive me for using the generic term "guys." It's just a habit.

d-

 

[Trader333]

des,

I am curios to know why you trade the IBD100 only ?


Paul

 

[spunkyblonde]

THANKS des ..thats a great info m8

 

[jimmy1jag]

Des,

Many thanks for your answers. Curiousity satisified!

 

[des44]

Trader333,

The IBD100 list is the latest and longest list of fundamentally strong stocks I have yet to find. Although I am a technical trader I believe it works to my advantage to choose from stocks that are also fundamentally strong. I get the best of both worlds. Of course this doesn't always work out, but one can't go wrong incorporating technicals and fundamentals together in my opinion.

Man, I need to crank out a video or two make up for all this "typing."

Des

 

[TerryS]

Thanks Des for your reply to my questions. I appreciate your openess. What is your feeling about holding a stock near an earning announcement? Where you do source news of upcoming earnings reports?
Terry

 

[Trader333]

des,

Thanks for your answer


Paul

 

[marcusaurelius1]

Hey Des,
Thanks for the posts. I'm new to this and was wondering where I should go to learn about candlestick charting. Hope you can help me out.

 

[spunkyblonde]

hi ..what is your favorite candlestick charting book .please.??

 

[des44]

TerryS: The rule of thumb is to NEVER hold a stock on news. And "earnings" would certainly constitute as being "news." I heard somewhere that when news breaks (or earnings are declared) there is an 80% chance that the stock the news broke on will drop. I just tighten stops over earning dates just in case the stock goes up. No need to dump a potential winner that still has room to run.

Marcus: If you like seminar settings I have found that the educational institution "Teach Me To Trade" has a fantastic course on Candlestick Charting. I have personally taken the course and it put me on the right track.

SpunkyBlonde: Get the book "Japanese Candlestick Charting Techniques, Second Edition" by Steve Nison. It's a large book, but very easy to read. I think it retails around $90, but you maybe able to find it cheaper online somewhere. It's a GREAT book and I highly recommend it.

Great questions, guys.

Des Woodruff

 

[eddyjo]

Hi Des, I notice from a previous post that you mentioned that you used a "dma" can I assume from that you are using a displaced ma? Also have you been influenced by Toni Turner in your trading?

Keep up the good work you have helped so many by giving your time and experience, easily the best thread I have read. I give your thread "excellent" each time I log in.

Happy trading, Eddy.

 

[des44]

Eddy,

You're great! Thank you for the "Excellent" rating(s). It amazes me how appreciative people seem to be. You guys are like a drug to me. (just kidding, of course) Maybe with more people like you I might have a shot at this year's "thread of the year" contest. LOL

When I make mention of "DMA" I usually have a number in front of it, ex: 20dma. This is my abbreviation for 20 Day Moving Average. I am not sure who Toni Turner is, but when I did the quick Google search on her it brought up many impressive things about her and her services.

Best of luck to you in the markets, my man.

d-

Hi Des, I notice from a previous post that you mentioned that you used a "dma" can I assume from that you are using a displaced ma? Also have you been influenced by Toni Turner in your trading?

Keep up the good work you have helped so many by giving your time and experience, easily the best thread I have read. I give your thread "excellent" each time I log in.

Happy trading, Eddy.

 

[spunkyblonde]

thanks des 4 the details of your favouite tradeing book .. cheers sally

 

[Actual]

Just ordered Japanese Candlestick Charting Techniques, Second Edition by Steve Nison myself, found it at www.abebooks.co.uk for £36 or so with a couple of quid for postage. Looking forward to learning more. Thanks for the info Des.

 

[des44]

Sounds like a great deal. Nice find. I am not sure what 36 pounds equals to in U.S. dollars.

Anyway, the book could act as your coffee table book due to its size. It has lots of picture examples with just the right amount of text to explain the setups and reasonings behind patterns.

I see in the Knowledge Lab that there is a nice interview with Steve Nison.

d-

Just ordered Japanese Candlestick Charting Techniques, Second Edition by Steve Nison myself, found it at www.abebooks.co.uk for £36 or so with a couple of quid for postage. Looking forward to learning more. Thanks for the info Des.

 

[Trader333]

£36 = $67.32 (approx)


Paul

 

[marcusaurelius1]

Thanks a bunch Des. I put my name on the site's contact list and should be hearing from them soon. Will this course cover the crux of what I'll need to know in terms of technical analysis?
p.s. this has been the most helpful thread I have been a part of. Thanks again!

 

[marcusaurelius1]

Hey Des,
Thanks so much for the input. Do you feel it's worthwhile to purchase Bollinger's DVD package ($250)? It seems to provide all the instruments necessary for a thorough understanding but will give me more than I need to know.