< Back To This Issue's Index >< Subscribe >< Send a Letter to the Editor >

........

Advocates of the old "Buy & Hold" theory are suffering!! Why? Because the U.S. Stock Market TRENDS UP AND DOWN !!! (most recently DOWN) So why not trade in the direction of the trend??!! Put simply: Buy when the main trend is UP and Sell Short when the main trend is DOWN. Is that difficult? A basic moving average moderately placed on most any time frame chart will clearly show what direction the "market" is moving. This is not rocket science; it's basic visual realization.   Yes, this is based on Technical Analysis. To say that most "managers" or  traders don't use technical analysis is avoiding the truth. But how can the reading of charts really be profitable? MULTIPLE TIME-FRAMES A major key to successful trading and making consistent profits is the use of multiple time-frame charts.  As an example: A daily or hourly chart with 40 - 50 period exponential moving average will establish the overall or main trend. In addition, a 5, 10 or a 15 minute chart with a similar moving average will establish the mid-term trend. Then a one or a 5 minute chart will show the short-term trend. When the long term trend is down and the mid-term trend turns from being up to going down, usually the short-term chart can be used as a "trigger" to execute the entry of a trade.

. Gordon Corp is a successful short-term trader/manager who has traded for over 15 years. He has tested and scrutinized 100's of trading systems and over the years has developed his own methodology that is consistently making profit.   Additional Resources Offshore Investments  Offshore Tax Havens of the World  Stock Markets of the World  www.quote.com  Contact Gordon Corp  . .

SHORT-TERM? Short-term trading can be defined as a trade that is entered and exited within a few minutes or up to five days (as in Swing Trading).  Some investors are beginning to take notice of the many benefits of short-term trading, viewing the taking of profit sooner is better than waiting to potentially watch the profits disappear. There are good "technical" methods of maximizing profits and exiting trades at an optimum time.   NASDAQ 100 INDEX Using the example of trading the NASDAQ 100 Index, is it a realistic investment goal to want to design a simple short-term trading strategy that can consistently secure ONLY 10 points per day per contract being traded???

Let's do the math. The NASDAQ 100 E-mini (meaning that it is quickly and easily traded electronically from anywhere on earth) is valued at US$20.00 per point. Margin requirements are very low (typically US$3000 - US$4000 are required to trade one contract). Ten points per day equates to US$200.00 profit per contract. Considering the NASDAQ typically moves in a moving range of hundreds of point, securing only 10 points is very realistic and conservative.

Now, let's look at the numbers. A trading account with US$12,000 could trade 3 contracts. When 10 points per day is secured, it is a US$600.00 profit. With 20 trading days per month, that equates to DOUBLING THE ACCOUNT'S VALUE IN ONE MONTH !!!!!!
 

Is this unrealistic? Look for yourself. As a simple example, go to Quote.Com (see Additional Resources above). Click on their "LiveCharts." In the symbol box, type in NQ01Z for December 2001 (nq is the symbol for the NASDAQ 100, 01 is the year, z is the December contract month). For this example only, put the time frame to a one minute chart. Click on "indicators" and select an exponential moving average and adjust it's period to +/-35. Paper trade it to verify these facts. Every time the moving, live prices go "just" above or below the moving average, then retraces and moves again to break that crest "just" above or below the line, go "short" when it thus breaks DOWN and buy "long" when it breaks out to the upside. See for yourself, live, first-hand, that this works and that 10 points is a VERY conservative and realistic goal - and extremely profitable !!!! When you see that this over-simplified example

really works and the numbers are not exaggerated, you will very much appreciate the unbelievable potential of short-term trading. Is your Fund Manager making you 100% per month? Maybe they do not know what you now know!!!
 
Buy & Hold has lost massive amounts of capital lately. Short-Term Trading is securing money everyday!!! All it takes is a little education, a little testing, a little knowledge, and a little experience - BUT IT REALLY WORKS !!!
 ..

.

.