Category: MarketClub Techniques, Tips & Talk

True Story

When I first started my career in this great business in the early seventies, I worked under a guy named Gary who acted as a mentor to me.

Now Gary was definitely over the top personality wise and his trading style was something else altogether.

Let me share with you one of Gary's trading quirks. Gary was a short term trader and good at it. He was talented technically when it came to charting as he kept all his charts by hand on special graph paper. Remember this was back in the seventies before we had all these wonderful charting programs that we enjoy and use everyday.

Well here I am next to Gary watching him trading in and out, in and out, of all these different markets throughout the trading day. Gary was a super busy, and successful trader and I was happy to watch over his shoulder and learn how the markets work.

The one thing I haven't told you about Gary, was that he had a big egg timer on his trading desk. Every time he made a trade he would flip the egg timer over and the sand would start running.

Now you have to remember, I was green to trading back then and had never seen someone of Gary's caliber and trading style. I just thought that having an egg timer on your desk was a normal part of trading.

Have you figured out yet why Gary was using a egg timer?

Was it because ...

(A) He liked playing with egg timers
(B) He liked to time his poached eggs
(C) He used it for money management

If you chose (C) you are correct. Gary did use an egg timer for money management. It's not as crazy as you might think and it suited Gary's style of trading perfectly.

You see Gary was using a TIME STOP. How that worked is like this, Gary would see something on his intraday charts that was a buy, and then buy it immediately. If it did not go up by the time the sand had finished running through his egg timer he would exit the market win lose or draw. It was just that simple.

I never had the type of trading personality to trade like Gary, but I have to admit the egg timer worked.

Next Friday, I will be writing about some other forms of money management that may not be as quirky as Gary's, but they all work in trading.

See you next Friday.

Have a great weekend and trading week.

Adam Hewison

P.S. Look for blog updates on Monday, Wednesday and Friday.

Here's your first lesson in "The Secrets Of
Professional Floor Traders" mini email course.

Lesson 1 - "The Psychology of Commodity Price Movement"
presented by Adam Hewison
================================================================

I expect you will find some real gems in this lesson.

Most traders don't realize just how important a role psychology
plays in trading. Successful traders know that trading is
more than just buying and selling a market. It requires a
complete understanding of what is going on in the market and
other traders' minds. You will gain some valuable insights
with this lesson that I am sure will benefit your trading.

This lesson contains one very important chart; please read
the full lesson here.

Full Lesson Here

Do you know....
What makes a Winning Trade

P.S. Here is a little added bonus on finding winning futures that you will enjoy.

Watch Video Here

It has finally happened... Google hit over $600 today before dropping back down to $597.13. With 3rd quarter earnings scheduled to be released on October 12th, the share price has peaked new highs 6 times since in the start of the 4th quarter.

The prices of Google at today's high are over 7 times higher than the initial public offering price of $85 a share in August of 2004. AP Business Writer, Michael Liedtke notes that this " 9-year-old company with a market value of $187 billion -- (is) worth more than bigger, more more mature businesses like Wal-Mar Stores Inc., Coca-cola Co., Hewlett-Packard Co. and IBM Corp."

Something to watch... It looks as if Google has shown tremendous interest in DoubleClick, Inc. A proposed $3.1 billion acquisition deal waits on the table as federal antitrust regulators explore complaints of a virtual monopoly.

MarketClub's members were in this Google move as it made its way to $600. The "Trade Triangle" suggested that members take a long position on September 4th at $519.75. Even if members jumped out at the historic $600 high, they would have walked away with a profit of $80.25/share. That is a 15.44% profit in 24 trading days.

See How MarketClub Members Did It Here...

Dear trader,

New highs in the stock market, hooray, hooray, but are stocks the only game in town??

It's true, there are powerful forces underway in most, if not all the worlds equity markets.

But, is this the only game in town? Should you have your entire nest egg for retirement, or your son or daughters college plans dependent on just one asset class.

We don't think so.

The world has changed, no longer can you simply buy and hold stocks for the long-term. That worked brillantly for Warren Buffet when he started in the sixties when China and India were considered third world countries. The world has changed, now China and India are powerhouses in there own right and compete globally for every raw material on earth. This new reality dictates that to remain successful you must remain fluid and open to a new universes of opportunities and ideas.

Today, there are some other amazing opportunities for smart investors to make money, the stock market just happens to be one of them.

Did you know that by diversifying your portfolio into non-correlating assets you can actually reduce your overall risk and still make an excellent return on your money?

Learn about asset allocation here and here.

I have just completed another third quarter video that shows the trading results of MarketClub's "Trade Triangle" technology on three asset classes that can provide you with a comprehensive way to diversify your stock only portfolio.

Take a look at the merits of the three markets in the video and see if they makes sense to you. I think you'll be surprised and shocked at the simplicity of this approach and its bottom line returns.

View video here.

After you have watched the video (no registration required) give us a call and let us know what you think. You can reach our offices at 410-867-7424 or you can drop us an email at

su*****@in*.com











.

View my other Q 3 video here.

Don't worry we are not brokers so we won't be badgering you to open an account. We simply provide you with very powerful trading tools and ideas that will help you survive the new world of volatility.

We look forward to hearing your thoughts on the video.

Thanks,

Adam Hewison
President, INO.com

P.S. Here are some other interesting trading videos.