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Moderator: Duma Assistants: spdpro
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Last Post: 3/24/2017 11:12:23 AM - Followers: 71 - Board type: Free - Posts Today: 0

INTRODUCTION (modified 10/2014)

I originally created this board for the specific purpose of discussing the Phase Chart method of trading cycles that was first presented on the ETF SWING & DAY TRADING board, my main board.
 
I have since changed that goal.  I now much more favor a community of traders who know how to share ideas with each other and discuss ideas about how to improve cycle trading. That is what we have evolved to, and I like it. So if you have an idea, we would love to hear it.
 
If you are a new trader and want some help, we will do our best to point you in the right direction to get you started. There are no dumb questions on this board?

 

WARNING


All of us do a lot of posting on this board with our ideas and our views of what we see. That doesn’t mean that they are all correct. We all bring our history of trading with us, so there will be lots of times that two traders will see the same event very differently. There is nothing wrong with that. 

I for one am still in a very large learning curve and very much appreciate the views of others, even if I don’t agree or can’t understand. So I try to pick and choose what I think works with my personality and my trading style. I have gotten new ideas from the most unusually places. That search never ends. 

So if you disagree with something that I say, please by all means, post back as how you see things and WHY. The WHY is very important. I have totally reversed my opinion on issues many times after hearing a good argument for another view. I respect your right to a different opinion/view. This board, as all boards should be, is about how to make all of us better traders. We learn from each other.

Personal attacks on posters either directly or indirectly will not be tolerated. Continued useless posts will not be allowed.


Yield Summary for 2016


Buy & Hold 
12.0% SPY 
10.8% SSO (stated as 1x) 
 21.6% IWM 
19.7% TNA (stated as 1x) 


Traded with Daily Phase Chart 
16.3% SPY 
38.8% IWM 
 48.9% TNA (a bit of a surprise, same trade dates as IWM) 

Sector Trading with Daily Phase Chart (The 10 SPDR ETFs) 
Independent Trading
19.3% Each sector invested with the same weighting as in the S&P when long 
Rebalance Trading
24.3% Investing long sectors only with weighting each has in S&P, scaled up to 100% 
 26.0% same as above except scaled to 110% when 9 sectors long 
27.7% same as above except scaled to 120% when 9 sectors long 
29.1% same as above except scaled to 125% when 9 sectors long 




PHASE TRADING - I am changing my focus for 2017 to the Daily Charts. See posts 16950 and 17054 for more detail.
 
The following is a description of how I normally trade each Phase. In the past I gave guide lines for shorting. With my focus now on Daily charts I do not advocate shorting. Long only.
 
 Mark Down - Should start MD phase in cash. Hold cash until get long signal. Singal is when MACD
(85,90,24) flattens and MACD-histogram(85,90,24)>MA5.

 Accumulation  - Should be long. A few times the trade fails, but is low probability.  If it does fail, just get out and get ready for the next signal. I like to go back to cash if 
MACD-histogram(85,90,24) drops back below MA10.

 Mark Up  - Stay long. At times I have used 2nd support as a stop, but it is seldom needed.

 Distribution  - Go to cash immediately upon entering Distribution. Go long again with the same rules as going long in Mark Down.



***********************************************************************************************************************************************************************************************************************************

IWM Daily Phase Chart




SPY - Daily Phase Chart



QQQ - Daily Phase Chart



Major Indexes plus BRK YTD



The Big Three




**********************************************************************************************************************************************************************************************

Sector Trading


I have changed my direction for trading in 2017. After trading 60min charts for many years, I have decided to go back to daily charts. I am doing this for two reasons. 1) I want to have more free time in 2017, and 2) I have come to believe that Sector Trading with the use of my Phase Daily Charts will give some impressive results. In 2016 this style of trading gained over 25% vs S&P of 12%. I will be very pleased with anything over 20%.

There are no guarantees that this will work, so it is somewhat an experimental plan.
 
I will be adding additional information in this area and document the results.

SPDR

Summary for week 3/24/17

* Only 2 sectors positive for the week, RE and U
* Only 3 sectors positive for the month, K, U, Y


************************************************************************************************************************************************************************************************************************************************************
List of key posts that I wrote on Sector Trading as I developed my plan. 
16870 - why Sector investing
16901 - Phase trading by Sector
16950 - initial investigation and results for trading by Sectors
17054 - Investors vs Traders
17065 - how to become rich
17090 - final yield numbers for 2016
17130 - Rebalance and Independent Invest plans described


*******************************************************************************************************************************************************************************************************

10 Habits of Highly Profitable Traders
1. Create asymmetry in your trading by using stop losses. Profitable trading only happens by making more money than you lose. Big losses are the main cause of not being profitable. Eliminate big losses by cutting your loss when proven wrong. 
2. Have a great risk/reward ratio on entry. Give yourself the potential to make two or three times more if you are right than you could lose if you are wring. Let a winning trade run until there is a reason to exit. 
3. Trade with the odds on your side. Trade historical patterns and price action that has worked in the past. 
4. Trade a plan and a system using quantifiable signals instead of your own predictions and opinions. 
5. Trade your plan with discipline and perseverance. 
6. Limit your capital at risk on any one trade to eliminate your risk of ruin. 
7. Work so hard when the market is closed that all their is to do when the market is open is take your signals. 
8. Have a system that profits in up and down trends. 
9. Have a system that works in multiple markets. 
10. Trade position sizing that does not cause your emotions or ego to get louder than your trading plan.

 
Linda Raschke's 12 Rules for Technical Trading.

1. Buy the first pullback after a new high. Sell the first rally after a new low. 
2. Afternoon strength or weakness should have follow through the next day. 
3. The best trading reversals occur in the morning, not the afternoon. 
4. The larger the market gaps, the greater the odds of continuation and a trend. 
5. The way the market trades around the previous day’s high or low is a good indicator of the market’s technical strength or weakness. 
6. The previous day’s high and low are two very important “pivot” points, for this was the definitive point where buyers or sellers came in the day before. Look for the market to either test and reverse off these points, or push through and show signs of continuation. 
7. The last hour often tells the truth about how strong a trend truly is. “Smart” money shows their hand in the last hour, continuing to mark positions in their favor. As long as a market is having consecutive strong closes, look for up-trend to continue. The up trend is most likely to end when there is a morning rally first, followed by a weak close. 
8. High volume on the close implies continuation the next morning in the direction of the last half-hour. In a strongly trending market, look for resumption of the trend in the last hour. 
9. The first hour’s range establishes the framework for the rest of the trading day
10. A greater percentage of the day’s range occurs in the first hour then was the case in the past, and thus it has become increasingly important to trade aggressively if there are early signs of a strong trend for the day. 
11. There are four basic principles of price behavior which have held up over time. Confidence that a type of price action is a true principle is what allows a trader to develop a systematic approach. The following four principles can be modeled and quantified and hold true for all time frames, all markets. The majority of patterns or systems that have a demonstrable edge are based on one of these four enduring principles of price behavior. Charles Dow was one of the first to touch on them in his writings. 
Principle One: A Trend Has a Higher Probability of Continuation than Reversal 
Principle Two: Momentum Precedes Price 
Principle Three: Trends End in a Climax 
Principle Four: The Market Alternates between Range Expansion and Range Contraction! 
12. In the world of money, which is a world shaped by human behavior, nobody has the foggiest notion of what will happen in the future. Mark that word – Nobody! Thus the successful trader does not base moves on what supposedly will happen but reacts instead to what does happen. 


Free trading articles http://www.trading-software-collection.com/Free%20Download/

Block pop-up ads http://www.adfender.com/

Dividends http://www.nasdaq.com/symbol/spy/dividend-history

Three X ETF's   http://www.3xetf.com/ETF_List


 

PostSubject
#17352  Sticky Note I wanted to really make a point of Duma 02/08/17 03:32:18 PM
#17338  Sticky Note Over the weekend I was given links to Duma 02/06/17 12:47:26 PM
#17247  Sticky Note I added a section in the intro for Duma 01/16/17 03:00:52 PM
#17565   have a good weekend gang > Later spdpro 03/24/17 11:12:23 AM
#17564   good trade spdpro 03/24/17 10:48:10 AM
#17563   Re. MU Long Calls, JLS 03/24/17 10:44:11 AM
#17562   Re Coattails, JLS 03/24/17 10:38:31 AM
#17561   Thanks Duma 03/24/17 10:17:05 AM
#17560   http://poleshift.ning.com/profiles/blogs/plane-crashes-on-the-rise-updates-daily Y worry Murray 03/24/17 09:51:17 AM
#17559   Iwm ex divi>>> $ 0.39 paulgmx1 03/24/17 07:44:56 AM
#17558   My power went out at market close. JLS 03/24/17 01:07:40 AM
#17557   great trade! jaws57 03/23/17 11:29:14 PM
#17556   take it and run spdpro 03/23/17 04:31:47 PM
#17555   now +/-1.47 > see what happens spdpro 03/23/17 04:01:48 PM
#17554   I expect Micron to beat. JLS 03/23/17 03:57:38 PM
#17553   now +/-1.52, should be interesting to see what happens spdpro 03/23/17 01:49:25 PM
#17552   Re 25.50 Calls JLS 03/23/17 02:25:05 AM
#17551   fyi > those 25.50 calls on Monday were spdpro 03/22/17 11:23:21 PM
#17550   Riding Coattails JLS 03/22/17 05:28:51 PM
#17549   Interrupted; those were $25.50 Calls. EOM JLS 03/21/17 05:19:30 PM
#17548   MU Mar 31 '17 Calls JLS 03/21/17 04:14:09 PM
#17547   Sold Calls on CRBP this morning. JLS 03/21/17 02:10:02 PM
#17546   look, see > Later spdpro 03/21/17 11:24:14 AM
#17545   CRBP Additional Position, JLS 03/20/17 06:14:16 PM
#17544   CRBP options Buy-write update, JLS 03/20/17 11:28:29 AM
#17543   Massive MU Call Buy ... JLS 03/20/17 11:09:07 AM
#17542   WDC, JLS 03/17/17 11:19:13 AM
#17541   have a good weekend gang > Later spdpro 03/17/17 11:18:39 AM
#17540   spy ex divi >> $1.0331 paulgmx1 03/17/17 04:45:21 AM
#17539   VRX Buy Write, JLS 03/16/17 03:10:54 PM
#17538   WDC JLS 03/16/17 02:19:21 PM
#17537   laying low > doing nothing this week > Later spdpro 03/14/17 08:10:47 PM
#17536   thanks, cool stuff spdpro 03/13/17 11:01:06 AM
#17535   http://radio.garden/live/asbestos/fm993/ Y worry Murray 03/13/17 10:08:25 AM
#17534   keep in mind for this week > spdpro 03/12/17 06:28:04 PM
#17533   ?, be interesting to see how that works out spdpro 03/12/17 04:18:17 PM
#17532   https://www.internet-radio.com/ spdpro 03/11/17 09:34:55 PM
#17531   Well, JLS 03/11/17 07:44:03 PM
#17530   You too Duma 03/11/17 09:27:42 AM
#17529   2.50 wide strikes wow spdpro 03/10/17 08:12:32 PM
#17528   have a good weekend gang > Later > spdpro 03/10/17 05:22:55 PM
#17527   CRBP options Buy-Write, JLS 03/10/17 03:33:10 PM
#17526   Short-Term Bottom, JLS 03/06/17 03:56:35 PM
#17525   The gap syndrome rotor1 03/06/17 10:56:35 AM
#17524   Exhaustion gaps, JLS 03/05/17 10:51:39 PM
#17521   It's a Bull Market JLS 03/04/17 03:26:02 PM
#17519   Re 3D memory from Micron, JLS 03/04/17 02:47:48 PM
#17518   2nd source > spdpro 03/04/17 11:52:55 AM
#17517   I sure like how 2017 is shaping up Duma 03/04/17 11:43:47 AM
#17516   The headlines ... JLS 03/04/17 03:50:30 AM
#17515   more > some light reading spdpro 03/03/17 06:19:03 PM
#17513   3-D Memory, JLS 03/03/17 01:39:26 PM
#17512   another Friday > have a good weekend spdpro 03/03/17 10:25:24 AM
PostSubject