Category: MarketClub Techniques, Tips & Talk

Wednesday, April 30th, 2008

FR: Adam Hewison, President INO.com

RE: Trading patterns that work

We first previewed this simple yet powerful theory that most traders overlook and ignore seven weeks ago. In case you missed this video, I highly recommend that you take a few minutes and grasp the theory before watching our second video. In our second video we test the theory with two real world trading examples.

Here's the theory:

After you watch the theory, watch as we put this theory to work with two real world trading examples.

Here's the theory in the real-world:

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Sent: 4/29, 11:03

Hi Adam, I just wanted to let you know in a few words, a big thank you, I have bought "JRCC" at your recommendation. I never been happier since finding your website.

This is what I have been looking for a long time. I still have a lot material to read and learn. I will write more later. Adam, thank you very much and regards Netty

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It's all here, the theory, two real world examples, and the above email is proof that this concept works. Watch, learn and benefit from this powerful new trading video that most traders have overlooked.

Watch with our compliments. No registration required.

Adam Hewison
President, INO.com.

True Story

When I first started my career in this great business in the early seventies, I worked under a guy named Gary who acted as a mentor to me.

Now Gary was definitely over the top personality wise and his trading style was something else altogether.

Let me share with you one of Gary's trading quirks. Gary was a short term trader and good at it. He was talented technically when it came to charting as he kept all his charts by hand on special graph paper. Remember this was back in the seventies before we had all these wonderful computer charting programs .

Well here I am next to Gary watching him trading in and out, in and out, of all these different markets throughout the trading day. Gary was a super busy, and successful trader and I was happy to watch over his shoulder and learn how the markets really work.

The one thing I haven't told you about Gary, was that he had a big egg timer on his trading desk. Every time he made a trade he would flip the egg timer over and the sand would start running.

Now you have to remember, I was green to trading back then and had never seen someone of Gary's caliber and trading style. I just thought that having an egg timer on your desk was a normal part of trading.

Have you figured out yet why Gary was using a egg timer?

Was it because ...

(A) He liked playing with egg timers
(B) He liked to time his poached eggs
(C) He used it for money management

If you chose (C) you are correct. Gary did use an egg timer for money management. It's not as crazy as you might think and it suited Gary's style of trading perfectly.

You see Gary was using a TIME STOP.

How it worked is like this, Gary would see something on his intra-day charts that was a buy, and then buy it immediately. If it did not go up by the time the sand had finished running through his egg timer he would exit the market win lose or draw. It was just that simple.

I never had the type of trading personality to trade like Gary, but I have to admit the egg timer worked.

Have a great weekend and trading week.

Adam Hewison
Co-founder, MarketClub.com

P.S. If you missed any of the "Traders Whiteboard" series watch them here.

On the 21st of March we created a video on gold and presented an in-depth analysis on what we thought was going to happen in that market.

I think sometimes it's good to look back and reflect on what was happening over 4 weeks ago and then compare what is happening right now.

In this short video we give exact downside targets that many folks thought were crazy. We are beginning to see the first of those targets reached with today's down move in gold. You can see all of our other target zones when you watch the video.

Could gold move further on the downside? I will let you decide that.

Take a look at this short video that was made over a month ago on gold and see what you think. You will see just how accurate our Trade Triangle technology has been in spotting the turns in this precious metal.

Enjoy the weekend,

Adam Hewison
Co-founder, MarketClub.com

Be Our Guest

We welcome syndication of our content in your blog or on your trading website. Please feel free to use our content with attribution - more details here to syndicate our content

There is an old adage on Wall Street that goes something like this...

"Buy the rumor, sell on the news"

Many times in the financial markets, price is already factored in before the earnings news is released. This appears to be the case for both Apple (NASDAQ_AAPL) and Amazon (NASDAQ_AMZN) who both released earnings today (4-23-08) after the bell. As we showed in our latest Apple Amazon video, we expected to see these two stocks enter into a trading range. We also displayed in the video why we thought that both stocks were at the upper end of their respective trading ranges.

If we see downward pressure today in both Apple and Amazon shares, I think it will confirm that we are moving into a broad trading range for both these stocks.

Let's see how the day develops and how much profit taking affects the stock price of these two companies.

Every success in life and in the markets,

Adam Hewison
Co-founder of MarketClub.com