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How to find trading opportunities

This section is like telling pirates the exact location to the buried treasures but we do not know the exact spot. Luckily for us you guys are not pirates but traders although you can be angry traders when you loose your monies.That is why you should read the disclamers at the bottom of every page.

Eventhough we do not have the exact answer to finding trading opportunities, we do have three strong suggestions on how to use what we have provided in this site to find good trading opportunity. After all we did create this platform not only from trial and error but also through years of research and practical trading experiences.


Suggestion no 1) trade with the current fundamentals. You are going to have to watch CNBC "sqwark box" and other financial braodcasts including reading the daily business section of the newspaper and megazzines if you want to succeed using this method.

You need to identify strong current trend like for example, high oil prices or week consumer consumption periods and list them down, then check the "buy/sell" signals of those stocks related to these current trends. These trend must be evident in the daily lives of ordinary people. They are current and existing with no end in sight, at least in the near future.

Because these are current and existing trends, you should be looking out for "buy/sell" signals on stocks using the "trend-catching" mode. If you know


Suggestion no 2) is for those who believe in only looking at the charts. Most technical analyst believe in this statement at least in the short term. This is because they believe that all information whether true or not are reflected in the stock price and therefore there is no need to check other sources.

In our view, those who believe this are missing the most important point and that if you include "true or not" in your trading, you are goiing to be hit with many false signals because of the stock reverses everytime the market verifying rumors.

To solve this problem we require that those who trade without looking at current fundamentals i.e those who trade only with the "buy/sell" signals from the charts to use only stocks with three or more PR ranking greater than sixty(60).

Before you proceed further please read "how to use this site", "trading modes" and Price Structure Ranking (PR). These three articles are vital to the understanding on the use of the PR matrix page.

What is a PR matrix page? Well, when you click on NYSE Stocks or Nasdaq Stocks on the top left hand corner of this page or the home page, you will be directed to the PR matrix for the NYSE and Nasdaq stocks respectively. Below is a snapshot of a portion of the PR matrix page for Nasdaq stocks.

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You will notice that we hightlighted "yellow" those stocks with PRs that are greater than 60. This is important because we want to concentrate on stocks with three or more PR rankings greater than 60 i.e three or more yellow highlights.

Stocks with three or more PR ranking greater than 60 mean that these stocks have price structure very suitable to all the price structures tracked on this site.

This will also mean that when the stock price structure changes from one mode to another and vice-versa the trading algorithm employed here will detect these changes and if you act on these signals, the chances of a succesful trade is much better than stocks with three or more PR ranking less than 60.

Below are examples of stocks with three or more PR rankings greater than sixty. You should be concentrating on trading on these stocks when the buy/sell signal appears.

 


Suggestion no 3) is for those who are using either or both of suggestion 1) and 2) above.

There will be times when you have got out of a successful trade while current trend is still active or you are scanning the PR matrix page and could not find any stocks with three or more PR ranking greater than 60 with "buy/sell" signals. What are you going to do as you are itching to trade.

Well, you use the "PSETUP" indicator to get you back in. Below is the PSETUP indicator for Amgen.

When the PSETUP indicator points up and the existing trend is up i.e you see a "still long signal" next to the PR rankings on the PR matrix page, then this is the signal for you to re-enter the bullish trade or to place a new long trade.

When the PSETUP indicator points down and the existing trend is down i.e you see a "still bearish signal" next to the PR rankings on the PR matrix page, then this is the signal for you to re-enter the bearish trade or to place a new short (sell short) trade.

However, if the existing trend has reached its final phase and you use the PSETUP indicator, your trade will not be successful. When that happens and the stock reverses, just follow the new "buy/sell" signals in the opposite direction.

Remember we are talking about ONLY using the PSETUP indicator to stocks with three or more PR rankings greater than 60 and stocks with strong current fundamentals trends.

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DISCLAIMER:

THE RISK OF LOSS IN OPTIONS AND FUTURES TRADING CAN BE SUBSTANTIAL. THEREFORE, ONLY GENUINE RISK CAPITAL SHOULD BE USED FOR TRADING PURPOSES. OPTIONS AND FUTURES AND FUTURE OPTIONS MAY NOT BE SUITABLE FOR ALL INVESTORS. YOU SHOULD CAREFULLY CONSIDER YOUR FINANCIAL CONDITION WHEN DECIDING WHETHER TO TRADE. PAST PERFORMANCE, PROJECTED OR HYPOTHETICAL RESULTS ARE NOT NECESSARILY INDICATIVE OF FUTURE RESULTS. THE INFORMATION PROVIDED IN THIS SITE IS BEING DISTRIBUTED "AS IS" AND IS INTENDED TO PROVIDE ACCURATE INFORMATION FROM A SOURCE CONSIDERED TO BE RELIABLE. ALL INFORMATION IN THIS SITE IS DISTRIBUTED WITH THE UNDERSTANDING THAT THIS SITE AND ANYONE ASSOCIATED WITH THIS SITE DISCLAIMS ANY WARRANTY AND LIABILITY CONCERNING ALL INFORMATION PROVIDED, EXPRESSED OR IMPLIED IN ANY MATERIALS OF FORMATS, PLEASE READ MORE HERE...

 
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