Teach Talk Trade Day Trading & Technical Analysis

Mechanical Trading Systems and You, Trade your Plan

Traders love to talk about their trading. The love to talk about what could be than rather what is.Intellectually, we know that the chart says everything we need to know, but as emotional beings, we are always looking for the “insight” or the “intuition” to put us a step ahead of everybody else who are all looking at the same charts we are.

Sometimes all you have to do is call up a trading buddy and say, “Hi, how are you today?” What you’ll get in return will be, “Boy, have you seen the ’so-and-so’ chart today?If that breaks the XY level, it’s going to really take off!” He continues, “And with that unstable political situation, this could really be a big trade.” Why should you care? You shouldn’t.

I guess we could take a look at the suggested chart and apply our trading parameters to it….. and if it passes scrutiny, well, that would be alright to trade, right? Yeah, OK.You have to watch yourself, though. You see, you can have a tendency to want to MAKE a trade fit.After hearing all about the great fundamentals, you can (subconsciously) view the chart with “I wanna buy” eyes, meaning that you can tell yourself that an almost-confirmation is close enough (with all those fundamentals going for it!).

That’s the danger.It’s always best, I think, to come across a trade yourself. You see a price falling….. and falling…..

gosh, when will it bottom? Your system says, “Don’t guess, be patient”. So, the market has a nice reversal day…. new low during the day with a higher close. Getting close to a buy, but not yet. The price goes higher for a few days and then starts to come back down.It’s looking good. The low holds, the market breaks the rally high and BOOM, we pull the trigger and we are in.

The system rules. THAT’S the way to take a trade.Every trader (you, included) has his or her own agenda. Only you know what works for you, system-wise and emotion-wise. Trust in your tested trading system. It will serve you if you stick to it.

Please take advantage of the FREE 7 DAY TRIAL to title=”The Morning Call”>The Morning Call ( we discuss 21 futures, ETF’s, E-minis, NASDAQ & Solar & Alternative Engergy issues ) & title=”Mechanical Monkey”>The Mechanical Monkey where we discuss our mechanical trades.
 

Repay Loans????

When a loan isn’t repaid and is only followed with another, larger loan… it’s not really lending, is it? Besides, even your grandchildren would be able to calculate this rate of interest (3.95%) is less than the present, official rate of inflation and far less than any bank could borrow money with in the markets today – that is, if they could borrow at all. Don’t you wish there were an entire federal agency dedicated to erasing all the mistakes you’ve made as an investor with collateral-free, below-market-interest-rate loans, which need not ever be repaid?

 How long can this game continue? We don’t have a crystal ball, We only know as long as the Fed continues to pump huge amounts of money into the banking system at interest rates far below the market rate, buying hard commodities – especially gold – is very likely to be a great bet.

Please take advantage of the FREE 7 DAY TRIAL to The Morning Call ( we discuss 21 futures, ETF’s, E-minis, NASDAQ & Solar & Alternative Engergy issues ) & The Mechanical Monkey where we discuss our mechanical trades.

The ideal trading system would be one that trades without emotions.  This means that you have to develop a systems that gives you the odds, in the long run, to have a profitable trading system.  Online trading systems that take the emotion out are called mechanical trading systems.  I think that you still need some emotion in trading but  the great traders channel this emotion into competitiveness.  Most are very competitive in nature and these traders work on their systems, their risk management and work their online trading plan.  They keep their emotions out of the plan they have developed and follow the plan.  Teach Talk Trade has mechanical plans that help take the emotion out but many still try to second guess the plan.  These traders try to justify their reasoning once in the trade to take a smaller loss or lesser of a profit.  You can not and will not influence the market.  The market will do what it is going to do, you need to continually assess the markets and put the probabilities in you favor with your online trading plan.  You will have losing trades as part of you online trading plan, and if you don’t then  I will tell you that your online trading plan is pie in the sky.  Accept losses as part of the business, this is difficult to do, and learn from them.  You will not eliminate losses, so embrace them, learn from them, and know that the profitable trades are around the corner.

Please take advantage of the FREE 7 DAY TRIAL to The Morning Call ( we discuss 21 futures, ETF’s, E-minis, NASDAQ & Solar & Alternative Energy issues ) & The Mechanical Monkey where we discuss our mechanical trades.

Wednesday, 02-Jan-2008

Thursday, 03-Jan-2008

Friday, 04-Jan-2008

Monday, 07-Jan-2008

Tuesday, 08-Jan-2008

Online trading can be a lonely experience for the beginning trader. You will be searching for knowledge and will feel isolated. You will soon have the feeling that you just might have no ideas what you are doing. Online trading can be addictive also. You find yourself glued to the screen for 8 hours or more. Try this for a few weeks and you will see that it is draining. If you end up like most people, they will gravitate to an online community for companionship and education. In the future, the Teach Talk Trade Live Trading Room will let you interact with other experienced traders. We have the whole array of traders in our community, from beginner to advanced trader. We are all their to learn and to give support. You will find that being in a trading room like this one, you learn a great deal by watching and listening to experienced traders as well as asking questions and interacting. You will get to see the different styles of trading , thus being able to decide on which style may fit your personality. You should be exposed and explore the different methods of online trading - swing trading, position trading, day trading ect… Loneliness will rear its ugly head especially when you are experiencing losing trades. Boredom can also cause a lack of focus as well as overtrading. That is when many start to abandoned parts of their trading plan which begets more fear and losing trades. Your emotions start to take over your rational trading plan based upon probabilities and you start gambling trying to make up the losses. Teach Talk Trade can help you will all these issues.Please take advantage of the FREE 7 DAY TRIAL to The Morning Call ( we discuss 21 futures, ETF’s, E-minis, NASDAQ & Solar & Alternative Energy issues ) & The Mechanical Monkey where we discuss our mechanical trades.

The Drive to Succeed would be considered to be the trait I see as most important in being a successful online trader. You also need skill and talent. Skill can be gained by knowledge and practice. Talent is an inborn ability for an activity. You must have risk tolerance and have the ability to make decisions under conditions of uncertainty. All you decisions will have uncertainty built into them, you will be in a business of probabilities. You will have to get your head around this idea. Professional gamblers know they are in the business of probabilities, they try to play with the odds in their favor and you must do the same. Amateur gamblers are just throwing their money at something and hoping for luck and chance. Sure they will win some but more often than not, they will be losers in the long run. Online trading can be similar to gambling if you have the amateur mindset. You must develop the professional mindset and try to stack the odds in your favor on each trade. This is where education and practice come in. You need to develop a trading system that fits your personality, fits you risk and money management model and exploits your talents, then and only then, will hard work and discipline work in your favor. You need to be willing to accept losses, it is not a personal failure, it is a normal course of business. Would you consider Ted Williams or Cal Ripken a failure in baseball, of course not, they did not get a hit every time at bat. You will not a win each time you go to bat with an online trade.

Please take advantage of the FREE 7 DAY TRIAL to The Morning Call ( we discuss 21 futures, ETF’s, E-minis, NASDAQ & Solar & Alternative Energy issues ) & The Mechanical Monkey where we discuss our mechanical trades.

Using Stop Loss Orders to prevent an Investing Disaster

Many investors fail to use a Stop Loss Order to protect themselves in case they end up buying a stock at the wrong time. In his book “How to Make Money in Stocks” William O’Neil states even the most successful investors maybe wrong about 50% of the time when choosing stocks to invest in. The key is to cut your losses early when a stock fails to follow through to the upside and minimize your losses. However many investors fail to do so and allow a small loss to turn into a much bigger one by not using a proper Stop Loss Order.

Many investors fail to use a Stop Loss Order to protect themselves in case they end up buying a stock at the wrong time. In his book “How to Make Money in Stocks” William O’Neil states even the most successful investors maybe wrong about 50% of the time when choosing stocks to invest in. The key is to cut your losses early when a stock fails to follow through to the upside and minimize your losses. However many investors fail to do so and allow a small loss to turn into a much bigger one by not using a proper Stop Loss Order.

A good rule of thumb is to never let a stock drop more than 8% below the Pivot Point when it reverses to the downside after initially trying to breakout. Thus this is where a Stop Loss Order would come into play.
Please take advantage of the FREE 7 DAY TRIAL to The Morning Call ( we discuss 21 futures, ETF’s, E-minis, NASDAQ & Solar & Alternative Energy issues ) & The Mechanical Monkey where we discuss our mechanical trades.

Thursday, 20-Dec-2007

Wednesday, 19-Dec-2007

Tuesday, 18-Dec-2007