TRADING CONDITIONS

The market is having some serious problems starting and maintaining a long term trend. This has been the case all year this year. It has been called the most trend less period ever. Of course this makes it very difficult to trade trends, since they don't exist as much.

Even though it is difficult, we have had much success lately in setting up for a longer term trend, capturing the initial momentum, capturing our minimum 2% profits and then letting the stock run. If we can continue to deliver at least 2% profits on every trade, the rest of the trade is free. Taking profits at 2% and letting the rest of the trade run allows us to ring the register a bit, pay for the trade and still be in the trade in case it becomes a big winner. Make sure that you scale out on first slow down of momentum, around 2%, in order to maximize your returns.

MARKET "EXCITOMETER"

Use this new "Excitometer" to determine your trading aggressiveness. The higher up the number, the more excited we are about trading the market here.