Great Upside Trading Week

[Arnold Kameda]

Hi All,

The action is the market has been exciting these past few weeks to say the least. I hope you all have been actively trading in some form, and if you have, you have been trading with the overall market trend, which has been Up-trending! Sorry that I've been quiet; but I've been either reading newsletters, studying charts, and waking up early to catch the market action. I've been taking long positions (buying stocks with stops set 3 percent below their past 3 month support levels) and on occasion been buying calls to trade for very short term trades (one day or two) on the hopes of catching some strong market upward momentum.

Attached is a current chart of the Nasdaq, which has been the strongest of the major indices and I hope you can open and read. After today, you'll see that it broke through past it's February highs and even touched the high for January '09 at the1650 level. It's also been above it's 30 day moving average since Mid-March. While the market is still volatile, today's big bump up was encouraging. It'll be interesting to see if what the market will do on Monday, whether it will continue its strong uptrend or turn down a bit. The pattern has been Big up, breather down, Big up, breather down....  Any guesses on this Monday's action? 

After hearing from Mark about his QQQQ trading, I even tried buying a call on the Q's and had some small success with that. I like the high volume of the Q's, which makes the options spreads low and easy to buy & sell. By the way Mark, I know you are leaving the islands soon. We should all get together soon. If we don't hear from AC about his arrangements, we can just go ahead and meet for lunch again. What's your schedule and how's that sound. How about everyone else?

Hope all is well with you all,
Arnold


Arnold K. Kameda

[Mark Politi]

Aloha Arnold and the rest of the Ohana Traders folks,

Wells Fargo sure surprised the entire market today, in a good way, unless you were expecting a drop and recently got in with a Put.  I've been a subscriber to Darlene Nelson Powell's Commentary and she has been stating for a few weeks now that the QQQQ's are screaming to turn around and pull back.  However, it's either Obama, or someone from his administration, or some surprise announcement like W.F. who comes out with some kind of press conference and makes a statement that's positive in nature and the market responds in kind.  Wells Fargo had a tremendous impact on the market today affecting every sector, however, Wells Fargo is only one bank and there are many analysts who continue to swear that the market still has room to decline.  I tend to agree because I can't swallow that such a huge global meltdown can reverse in as little as three months.  But as for trading, the bottom line is this:  DO NOT VIOLATE THE RULES WE LEARNED.  They are absolutely valid and there are consequences for violating them and the market is very unforgiving. 

 

I recently attended the three day Asset Protection Academy in Seattle.  It was well worth the trip and I am well on my way to taking full advantage of the benefits of trading as a business as well as having created a Living Trust, which is probably the most important thing a person can do to prepare for the future and the inevitable.  Once accomplished, it brings a feeling of contentment and confidence that you have done what is necessary to take care of loved ones without question, unnecessary expensee or delay. 

 

Since I retired in November, I now have time to research and pay closer attention to some of the Better Trades advertisements that pop up during my different visits to the various B.T. tools.   While I have experienced some success using Better Trades, when I've followed the rules, and some failures, when I haven't followed the rules, I have always experienced some degree of anxiety while trading.  One of the pop up advertisements that I saw last week made me schedule the free webinar.   It was by John White and it was all about Non-Directional trading resulting in minimum risk with moderate gains.  I attended the webinar and it actually gave me goose bumps.  It took me just ten minutes to decide that I needed to attend John White's live one day class in Las Vegas on April 18.  The gist of John's strategy is based on placing a simultaneous Bull Put Spread position and a Bear Call Spread position, collect the premium up front and make a consistent 10% per month EVERY MONTH and never have to worry about riding the back of a particular stock hoping it goes in a particular direction.  I have the one hour webinar archived on my PC and am willing to share it with the group next time we meet.  In my humble opinion, this strategy is far and away the best strategy I have seen so far.  100 % success rates are absolutely possible with this strategy and that's what gave me goose bumps.  The best thing about his strategy is you don't have to monitor the market all day.  Now if you like the adrenaline rush of success or failure riding on the back of the movement of a particular stock every minute of every trading day, this might not be the strategy to follow because it's going to be a boring ride.  I'm leaving Thursday of next week for the Saturday class and I'll be returning on Sunday.  I'm excited to bring back a ton of info on this strategy to share with the rest of you.  Just imagine if you took any sum of capital, and made 10% per month.  Then imagine compounding it at the rate of 10% per month.  It's an annualized return of over 300%.  I can definitely live with that and live without the nerve wracking stress of daily trading.  If this class is anything like the webinar described, I will subscribe to John White's daily commentary where he tells his subscribers exactly what he is trading the next day so there is no guess work involved.  These are trades, just like Bob Eldridge does, that he actually makes with his own money.  It is always up to the subscriber to decide whether or not to do what he is doing.  

 

Since I retired and started with Better Trades, I've learned a ton but as much as I learn I realize there is so much more out there to learn.  I've been searching for the path leading to the greatest prosperity with the least amount of risk and stress.  I think John White's strategy answers the mail for me and I'm more than happy to share it with you upon my return after next Sunday.  

 

I'm not saying that the other strategies don't work, because they definitely do.  However, I've experienced enough stress for one lifetime BEFORE I started trading and don't really need any more to make my life more exciting than it already is.  From what I've taken from White's webinar, this really takes the stress out of trading and frees up your day all at the same time.  More to follow......

 

Have a wonderful holiday weekend.

 

Aloha for now,

Mark 

[Arnold Kameda]

Hey Mark!

I must hand it to you. You are not one bit hesitant or afraid to invest in your trading education. It's quite evident that you've made good usage of what you have learned via BT. And yes, you are right, there is so much more to learn. I've recently enrolled in an advanced technical analysis and advanced options courses with Investools, which is another trading educational company. I think both BT and Investools have their strengths. BT seems to emphasize individual mentor strategies whereas Investools emphasizes that all traders develop their own foundational skills (in stock/option trading, technical analysis, etc.). I like them both.

Yes, I have heard of John White, but have never tried his free webinar. However, after hearing you speak about it, I'll try to check it out. So his non-directional trades in concept combines both Bear Call & Bull Put spreads simultaneously to collect up-front premiums? The concept sounds very good. I'm familiar with these individual spreads and have paper traded them with a modicum of success. The risk reward of these spreads by themselves haven't interested me much. Whereas the chances of success of each spread are fairly good (about 67%), the highest possible gain is constrained; the highest loss is also constrained but is typically double or more of the gain. But a good method of combining them to further reduce the risk sounds like a good way to go!  Sounds kind of like using an iron condor or butterfly spread, but better. I'd be interested to see how he structures his non-directional trades. But I think another key with John White's strategy is how is selects his trade candidates. I'm pretty sure he has his own proprietary filter (BT calls them scans) to selecting what securities would best fit his strategy; this probably comes with his subscription.

Anyway, your new venture with JW sounds exciting! I'd be very interested in learning more about JW's methods. Do you mind sharing how much he charges for his class and his subscription? If one can find a fairly consistent way, with very minimal risk, to make 10% per month (which is crazy!) on your portfolio, that's definitely worth some gold!

Yes, I agree with you. Regular trading can be quite stressful. It's so difficult to remove the emotion out of trading and I've been trying to key on doing that. It's a challenge not to get too bummed when you lose $$$ or too happy when you make $$$ and to stick to a trading plan at all times. I can definitely see why you are so eager about learning a good non-directional method.

Keep us posted!

Have a great Easter weekend everyone!
Arn