I don't know about you, but I get lost in the car all the time. I have a bad sense of direction. If I'm supposed to turn left, I accidentally turn right. When I go into the city, I always end up on the expressway back out of town. I am the person pulled over on the side of the road with a big map spread across my dashboard.
I have come to the realization that I need an automobile GPS. I need the annoying voice to tell me to "Turn Left In 0.3 Miles." I need a big arrow pointing to my destination at all times. I need someone to tell me that I have arrived at my destination.
It's funny that I need the same help with driving that I do with trading. I need someone, something to say... "Weekly Positive Trend on 9/28 at $23.97." I need to see a big arrow pointing which way to go. I need something to tell me that we have arrived at the trend destination, or we need to get back on for a another move.
MarketClub's trade triangles help me have a better sense of direction in the markets. It's not that I need someone to tell me what to do, it's a confirmation of my own intuition. It's how I can keep my emotions out of my trading by making simple rules for myself and following them!
Let's look at Garmin (NASDAQ: GRMN). Since 1989 Garmin has been developing automotive, aviation, marine and outdoor recreation navigation and communication devices. With the latest craze in automobile GPS units, internationally distributed Garmin products are flying off the shelves.
Garmin's stock has increased more than 400% in little over a year. Maxing out at $126/share, Garmin has made MarketClub members quite a profit since September of 2006. Of course it's easy to look back a chart and say, "Wow... look what you would have done," but if we set realistic rules... we can get the big picture of the big profits.
- Use MarketClub suggested method for equities (TRADE WITH TREND)
-Use the low from the previous three periods (weekly level) as a stop placement
-If stopped out / out-triangle issued use next in-triangle to get back into market
In 09/28 @ 23.97 - Out 11/01 @ 23.81 -$0.16
In 11/30 @ 25.29 - Out 01/09 @ 52.03 $26.74
In 02/08 @ 52.60 - Out 03/07 @ 51.13 -$1.47
In 04/20 @ 55.60 - Out 07/26 @ 73.58 $17.98
In 07/31 @ 87.00 - Out 10/01 @ 103.16 $16.16
In 10/23 @ 116.9 - Out 11/02 @ 103.13 -$13.077
Stopped out at the price of every red triangle
Profit - $46.17 / share : Approximately 100% return of initial investment