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Moving averages are very investment specific. Certain lenghts work better for certain vehicles. First find the best average for your vehicle and in your back testing you can see what works best.

To be successful in this assumption, you probably need to start investing when you are 10 years old to give yourself the maximum chance for success. You could find a stock that drops 3% a year when the market drops 5%. Your stock is going down but it is outperforming the market. The market...

Program Trading is for Member Firms and professional trading firms, it is not for individuals. Program trading works off of the spread between a basket of stocks and a derivative. Hedged transactions require minimal capital requirements for Member firms and that is a great edge. Firms can...

1. Get information from the exchange so you know the in's and outs of placing an order, initial margin, maintanence margin. 2. Read everything you can about money management, that is placing and maintaining stops. 3. Find out if your capital meets the requirements of any on line brokers...

This is where keeping a journal is the perfect solution. In recording your trades you should start to see better exits caused by having a greater confidence in your trades. If you are not seeing this improvement, look at each trade you recorded to see where the problem lies. You might be...

Several weeks ago I posted some support levels for the S&P 500 based on its range of a low 776.76 and a high of 1011.66. Now it is time to reverse the process and post resistance points from the high at 1011.66 to the close on 6/30/03 974.50. We take the range and take one third of the...

I see the problem with the system is that you are waiting for a lot to happen before you trade. You are looking at the indicators for a signal and those indicators are a step or two removed from the market itself. The market moves, your indicators give you a signal, you enter the market...

First, always use a trailing stop. Second scale out of your trade. Don't concern yourself with commissions, the concern is a proper exit. A 1,000 share trade does not have to be done as 1000 x 1000 while you are learning. It is okay to go 500 and then 500 and then exit 500 300 and 200...

I know the pivot points for the day, yesterday's high and low, the high and low for the week, and some short term moving averages. I also know the time of any economic announcements. I keep a journal of the trades that I do and the journal consists of a. why I did the trade b. what I...

http://www.tapetactics.com Howard

Go with the flat panel LCD for the reason that there is no flickering so that they are much easier on your eyes. Howard http://www.tapetactics.com

I have found Trading Technologies to be the best front end. A Globex Terminal has the best up time but for ease of use, Trading Technologies is my favorite. Howard http://www.tapetactics.com

If you are trading very short term, you don't need indicators, since in very short term trading you must anticipate and using indicators you are waiting for a signal and therefore lagging the action of the market. Howard http://www.tapetactics.com

Generally you construct two momentum indicators, a short and a long. In my work I use an 8 day and a 12 day. Sell signals usually come when the short term indicator falls below the long term indicator when both are in over bought territory. The idea of over bought is specific to the vehicle...

I think you should realize that the NYSE has several automated systems to execute orders that bypass the specialists. I believe they are DOT and SuperDot. In addition, with all the ECNs, a lot of volume takes place away from the exchange. Finally, you don't know the hedging activity of...

With the S&P 500 making a new high on Monday 6/16/03 at 1010.74 the new range becomes the difference between 1010.74 and the low at 776.76. Dividing that range into thirds and taking one third of the range from the high close 1010.74 we get major support at 932.75 The 50 day average moved...

Thursday's price was the high (to date) for the move so that price was used to establish the range (low to high). I would use the information to determine where a pull back might take the market. In any move higher there are minor pullbacks that do not impact the major trend. There are also...

The low close on the S&P 500 was 776.76. The close this past Thursday was 998.51. This gives a range of 221.75. I take one third of this range and 73.92. Subtracting 73.92 from 998.51 gives me 924.59. The 50 day moving average is currently 926.68. The combination of points presents the...

I think a common mistake is when signals are not matched to the appropriate time frame. For example when a 50 day average crosses above a 200 day average. This is an intermediate term signal but it looks like most traders take it as a short term signal. Generally on a cross like this the...

My calculations show that on the close today 6/9/03 the 50 day moving average of the S&P 500 Cash Index moved above the 200 day moving average of the S&P 500 Cash Index. Because of the length of each index, the cross is not a short term trading tool, I use it as pointing to an improvement in...