Here's the latest issue of DTU's "Trader's Edge" newsletter -

SPOTTING PROFITABLE TRADE SETUPS

  • Big picture, the market has started to have signs of buyers returning. I did several new swing trades, my only new swing trades entered since last year, CMRC EXDS JDSU TMTA. These were all profitable this past week and were sold for profits. Overall, I am still primarily daytrading until the COMPQ gets over 2200 and maintains an uptrend for several days, though. Take a look at the COMPQ ascending triangle chart below to see the last few day's trading trend.
  • Reminder: Enroll in our Anaheim Seminar soon - click here for complete information and audio clips!
  • Let's take a look at some of the educational Live trade alerts that were posted in our DTU live training room (it is closed to new members for now, I will be relaunching the service publicly in October, on a part time basis, please email me to be on the wait list with the words 'wait list' in the header...thx :):
Here's another winner we posted, entering using DTU's now-famous "2-Day High Breakout Entry" strategy:
Here we see an "oops" entry, eg the stock broke over where we should be a buyer, over the .50/.60 over the whole number above previous days' high, yet didnt' get more buyers. So, we took a small stop. This is part of trading, taking small stops when things don't work out the way we anticipate, based on technical entries. Thankfully, these usually occur less often than do the breakout continuations.
4-Day NASDAQ Composite Chart: We've nailed many good trading opportunities recently. See the ascending triangle, COMPQ 2200-2300 is still the near term resistance line. Avoid non-trending days in the 2000-2200 chop zone, look for breakouts over 2200 in the near term,
Want to learn how to trade like this, from me personally? I'll be on the mainland US in Anaheim, CA after speaking at the OnlineTradingExpo from my home in Hawaii for just a few days this year delivering this seminar below, take a look:

Trading Tips for Summer Trading:

As I mentioned, summer trading volume tends to be lighter, and trading opportunities are more intermittent, so selective trading is the key.

Here are a few tips I'll share with you. Study the charts above.

  • Be a breakout trader: "Keep it simple".... look at a 2-day COMPQ chart and limit yourself to buying 2day highs on days where the COMPQ is making a new 2day high, during the morning session only, from 9:40am til 11am. This will limit your trading opportunities of course, but should also significantly reduce your 'wiggles' and stops. Use close (<.3pt) trailing stops and stop losses on all trades.
  • Minimize all bottom bounce attempts: For all daytraders, it is recommended to keep your bottomfishing/short top fading attempts to less than 20% max of your trades, during summer months consider tightening this down to 10-15% of your trades.
  • Learn Fibonacci retracements: Use fibonacci retracements in your trading, so that you are exiting by the midrange on bounces and using close stops.
  • Taking +1/2 to +1 1/4 point profit per trade is great in this market, using close, small stops of no more than .3 point. Use close stops, always.

Consider getting your personal copy of DTU's new "Winning Chart Patterns Video", to be released this July 31, 2001. We are now taking pre-release orders - reserve your copy soon if you wish.

"May your Stops be Small and Your Profits Larger"

Aloha from Hawaii,

Ken Calhoun, President

http://www.Daytrading-University.com

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Disclaimer: In reading these materials, you agree to hold Daytrading University and our staff harmless from any and all liability of any kind. I expect all traders to use our live trading alerts only to learn, to papertrade from, so you can learn my trading methods. The trading methods do not constitute advice to buy or sell any specific stock, you accept full responsibility and outcomes for your trading decisions, and agree to consult a qualified broker prior to buying/selling any type of security. We are not a licensed broker or investment advisor. All posts and discussions in our room are used solely to illustrate our trading methods, which may or may not be appropriate or suitable for your financial situation or trading abilities.

We teach traders to take stop losses of no more than .4 point per trade; there are a percentage of live trading alerts that would generate stops as well as the successful trades posted herein. Past performance may not be indicative of future performance, and the examples posted here are based on hypothetical trades, to teach traders our chart patterns and breakout long/short entries. We are not compensated in any way by any of the companies whose stocks we mention in the live trading room. Slippage and late fills may also occur, which would reduce the actual amount of profit (or increase loss on stops) in live trading situations. Under no circumstances should traders actually attempt to make trades based on live alerts posted in this or any other chatroom, as the alerts are for training purposes only. We recommend you use a trading simulator with our room, to learn how we trade. Please see the SEC's website for information on chatrooms.

By accessing these materials, you are indicating your agreement and compliance with all terms in our full disclaimer, at http://www.Daytrading-University.com/disclaim.htm Best wishes!

Click here to learn about our latest video release coming July 2001:

"DTU's Winning Chart Patterns for Nasdaq Day Traders"

For our Advanced Seminar Info, click on the seminar banner below to find out details and listen to audio clips to learn more: