Stock Trading a Charting System

Using the trading system pointed to in the upper right hand side bar successfully, comes with practice. As of today's date it should be understood that the market reversed in  late March early April... from there it was a broad market down turn.... the doldrums through the summer to Early part of Sept was decidedly down and sideways. In true fashion, September should have produced a seasonal rally, but in this case did not.

The trading system was selective by my own choices, however the system worked true to form and spotted the doldrums continuation quite realistically... and as such for me I have been out of the market for most of the period.. I did not take on short positions but rather played the social life vacation.

If you had been aware of the downturn as illustrated in the system... it would have been the time (at the top of the down turn) to adopt the shorting strategy for a long hold short in top heavy stocks, in truly weak fundamental stocks and most importantly a broad market downtrend.

A broad market downtrend, tends to throw the baby out with the bath water... Looking for these babies is what you should be doing now... when shorting is being covered, you should be moving into a long position.

This late in the game, taking a short position is a profit diminishing strategy, as well attempting to go long buying the dips in a down market is still a risky strategy because the dips often lead to new lows and if you are not prepared to sell on the sell signals (the sells are short entry positions)... you will get caught in the down trend.

A person who had traded properly at the beginning (shorting), would be preparing (at this point) for a short cover and buy back into a long position with some profit  to be on the right side of the market. They would not be trading often and if you're trading often, you are out of step with the system. So trading the system is easy to say, but hard to do if you trade emotionally. The system works best early in the cycle for either direction, long or short strategy applied.

The conclusion for today's post is that the system is tracking the extreme end of the down move and going long is not the strategy just quite yet... If the seasonal tax selling leads into the January effect, then it would be the timing to choose to look for a reversal to go long. Never underestimate how low a market or stock can go with sentiment trading as it relates to trend. If you're crystal balling... expect to eat glass. Select the buys as of this late date using caution and be extremely sensitive to the sells until the market reverses. Buying the buys cautiously and selling the sells aggressively will no doubt provide some profit and loss, but the average should be few points to the  good side until one of the buys lands in the middle of the reversal.

Not the best way to really play the system, but if you covered a short or are just thinking on entering and have experience, you could pull it off. Just My Opinion.


GLTA Lostoutwest


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Dilbert Online Trading

Thanks Dilbert

GLTA Lostoutwest

If you see the hand mousing over screen shots... click on screen shots to enlarge them.

After connecting to a link... you should refresh the page by clicking on the Home button or the Web Page title to ensure the latest updated page

|| Stockcharts Public List ||

|| Kenuck SmallCap Trader || The Gold Report || Korelin Radio || StockCharts You Tube Lessons || Money In Metals || Resource Clips || Stockhouse || Ticker Trax || Bullion Bulls Canada || Lex corp || Track My Trade || National Post || Grandich || Penny Stock Journal || FreeStockCharts || Gold$eek Drill Results 101 || CBCnews || Seeking Alpha || SmallCapPower || Macroaxis || GOOGLE

Please read our Complete Disclosure

Trading System

 Finding a trading system that works, depends a lot on your level of tolerance for sentiment... being your own devil to control... Many different sites that expand on the subject of charting as it applies to online trading demonstrate for the most part, some sound information, but are very dry and hard to grasp.

It must be terrible for novices... as well for intermediates alike.

This trading system incorporates trend recognition in practice and highlights trading triggers for swing trading for those that wish to take part in online trading gorilla style. In a nutshell... the indicator  (slow stochastic 50,1) which is actually the second indicator from the top is your indicator trigger for trading. Nothing is foolproof, and this trigger is one of many a person could incorporate...

So feel free to expand on it in your own style.

The supporting indicators you will notice give some advance heads up that some type of price action is in progress.

Market Timing

Markets change and so does strategy... hence, there is some need to reflect cycles from January to December seasonal timing.

Use this blog platform to research potential charting picks...   This link... that leads to an index of current charting studies selected from the Public Chart list to save you a lot of time doing your own footwork.

The biggest boost to the stock market comes from the end of tax selling where bargins abound  and...

Of course passing through the Santa Rally... Christmas to New Year

Leading into the January effect, the result of tax selling being exhausted. That time of year at least for the first 4 months of the year are typically good for Canadian markets... and marks the best part of the year for taking a position in your favorite strong speculative stocks... next...

The Summer Doldrums move in about the end of April through to and including the month of August...

With the period from the beginning of September through to the end of tax selling by the last day before Christmas deadline. This period also hosts a couple dark months such as October and November.

Check out the right side bar for newer and better organization with some new links to better focus for some research.


GLTA Lostoutwest


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