Category: MarketClub Techniques, Tips & Talk

Joe Ross, an active professional trader, author, and educator, is president of Ross Trading International . He holds a degree in business administration from U.C.L.A. He is best known as the inventor of the Ross hook. He has written Trading by the Book, Trading by the Minutes, and Trading is a Business.

In the workbook below, Joe raises the question, "Where Do You Place The Stop?" You will learn which specific items are important to consider for stop placement. You will learn several techniques for placing protective, objective, entry and exit stops. You will learn to place stops based upon natural support and resistance and volatility. You will be taught about small profit objective stops and full profit objective stops. You will learn how to properly trail stops and how to increase the size or your protective stops using OPM. Joe shows you how to "curve fit" market volatility, and how and when to use Fibonacci expansions for objective stops.

Learn about:

• Mechanical Stops: As dictated by mechanized trading systems.
• Protective Stops: To protect against loss, or to protect profits.
• Entry Stops: To initiate a trade.
• Exit Stops: To terminate a trade.

Also Learn About Stops Considerations based around:

• The size of the margin account
• Margin requirements
• Individual psychological and emotional tolerance
• You economic tolerance for loss
• The number of existing open positions already held
• Market volatility
• The rate of trade
• The tick size

Read about this and more in Joe Ross's work book, "Stops- Where Do You Place The Stops?"

Listen to Joe Ross on "Stops"
Follow Along In Workbook

"The point I'm trying to make here is that a lot of traders end up stopping themselves out of a market when there is no need." -Joe Ross

Enjoy,

Three of the our original five positions remain open. Two positions were closed with small losses (see below).

See the original video here that I shot a month ago.

Here's the breakdown on how we are doing so far.

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STOCKS
Long 275 PGH shares at $18.02. Close 6/14 at $18.77
Open Profit $206.25

Short 125 M (FD) shares at $39.07. Close 6/14 at $39.52
Open Loss $56.25
Federated Department Stores, Inc. (FD)(NYSE Arca:FD) today announced that shareholders have approved a change in its corporate name to Macy’s, Inc., effective June 1, 2007. On that date, the company’s shares will begin trading under the ticker symbol “M” on the New York Stock Exchange.
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FUTURES
Long 1 August Mini Natural Gas contract at $8.4050.
Stopped out on 5/22 at 8.1700 Loss $587
See how we were stopped out

Short 3 September T.Bond contracts from 110.44. Close 6/14 at 105.90
Open Profit on all three contracts $10,687.50
————-
FOREX
We used a currency futures contract for accounting purposes
We were long the USD and short GBP cross. 2 contracts from .5063/1.9751. Stopped out on 5/23 at .5058/1.9770 Loss $237.90
See how we were stopped out
————-
Total capital $25,000. Capital in use $19,912.25 for positions. In reserve $5,087.75.

Total gains including open trades … $10,893.75
Total loses on open and closed out positions … $ 881.65

Net open profit as of the close of business 6/14 … $10,012.10

The return on margin capital … 50.5%

The return on total capital … 40.16%

This real time one month demonstration shows how easy it is to pick winners using the MarketClub methodology.

Trading Tip: Always be diversified, be disciplined and always use stops.

If results like these are attractive to you and you are not already a member think about joining MarketClub today before our rates go up.

Membership information here

Seminar: The man who developed the Moving Average Convergence-Divergence (MACD) indicator will teach you the intricacies of this popular and effective indicator. Professional trader, Gerald Appel will lead a seminar where he will explain the basic construction of the MACD indicator and the principles that underlie the patterns it describes. He will show you the basic buy and sell signals generated by the MACD, and then build upon those signals to demonstrate how to use longer and shorter term MACD lines to refine buy and sell signals. He will also show how to adjust MACD signals for market trend. Gerald will also cover stop-loss techniques and the application of cyclical phases. He will how you how to use MACD to determine when very strong market up moves are in progress.

Covers:

The Basic Buy/Sell Signals
Using Divergences to Recognize the Most Reliable Signals
Further Examples of Divergences
Comparing MACD To A Price Momentum Oscillator
Comparing MACD Combinations with Trend Following Techniques for More Accurate Signals
MACD During a Strongly Up-trending Market Period
MACD During a Strongly Down-trending Market Period
Treasury Bonds, MACD, and a Strong Uptrend
The Stop Loss Signals for an Unsuccessful Trade
Using Trendlines to Confirm Buy/Sell Signals
Long Term MACD Signals- The Start of a Bull Market
A Long Bull Market - Then the Crash
Using Monthly MACD to Define Very Major Trends
MACD as a Day-Trading Tool
Using Time Cycles to Confirm MACD Signals
When MACD Does Not Provide Timely Signals.

Gerald Appel is the president of Signalert Corporation, an investment advisory firm that manages approximately $280 million in capital. Signalert also publishes the technical newsletter Systems and Forecasts, highly rated by the Humbert Financial Digest and by Timer Digest for its performance in market timing.

See Gerald Appels, "Construction and Application of the MACD Indicator" by clicking the links below...

Listen to Seminar
Read Along In Workbook

Dear Members and Guests,

At MarketClub and INO.com, we have all the resources you could ever ask for. If there is a topic you would like to see covered, a question you would like answered publicly on the blog, an article you would like to write, or video you would like to see... WELL JUST ASK!

Leave a comment by clicking on the comment icon at the bottom of the post. I will read it, I will respond and I will post topics that you want to see!

Always here to help,

You can always email me at

li*****@in*.com

Dear Trader,

I believe that the more you know about the markets the better off you are in the long run. With this in mind we are going to post on a regular basis, words and terms that will help you expand your own personal knowledge of the markets and the marketplace.

Here's part 3.

A better informed trader … is a smarter trader.

It's up to you.

Cheers,