Show Me the Money: Covered Calls & Naked Puts for a Monthly Cash Income

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Ronald Groenke rightfully stresses the importance of cash flow but he understates the risks involved. This is a book written for option beginners and, as such, a little more emphasis on the risk involved would be appropriate. The book is mostly about covered calls and while there is not much additional risk in selling covered calls there is an important trade-off that should be considered. When you sell covered calls you give up the possibility of a Peter Lynch style multi-bagger replacing it with an income stream.

There is not much discussion about selling naked puts but if they are suggested it should be made clear that they are a lot more risky than covered calls. The first caveat is that unless you are called Warren Buffett you have secure the puts. The puts are “naked” in that they are not covered by stock short sales but they are secured with cash or margin. On page 54 Groenke says: “And you get paid up front when you sell a Call or a Put. That money is yours no matter what.” This not true for puts, the premium you get plus another amount is retained by the broker as a guarantee against being assigned. If assigned, that money goes to pay the shares you are buying.

Groenke also overstates the income you get from the puts. In effect he ignores the amount of money you put at risk when selling the naked put which is the strike price less the premium you receive. From page 43: Jake asks “With Career Education you sold numerous Puts and they expired. How would you computer your return on that?” to which Graham replies: “Perhaps with the potential investment of an assigned put.” That is the correct answer but that is not how he computes the rates of return on the puts. On page 45 there is the case for Plexus which shows a gain of 9.96% based on .604.50 invested in 800 shares at .00. But the total amount of money put at risk is .604.50 for the shares and ,462.02 for the puts, ,000 strike less 7.98 premium received. Using ,066.52 as your base, the return is only 4.84%. My calculation assumes that the stock goes to zero and while that is not likely, had you invested in Lehman Bros. or Enron, well…

I bought the book because I too like selling covered calls and cash (margin) secured naked puts. Frankly the story of Jake and his professor is a bit corny but don’t let that put you off, it helps pace the real stuff. One reviewer complained that the book is really an infomercial, which it is. One of the big difficulties in investing is finding stocks to invest in, one should have an inventory of potential candidates. If the software Groenke has for sale, which I have not tested, lives up to what he claims for it, then it makes a lot of sense for him to offer that software and explain what it does. A lot of books are long on theory and short on practice. Show Me the Money is short on theory but, with the help of the software, long on practicality.

As a closing comment, if you are going to sell naked puts, make sure not to overextend your margin, the money you got for the puts has not been earned until either the puts are bought back or they expire worthless.

Show Me the Money: Covered Calls & Naked Puts for a Monthly Cash Income Feature

  • ISBN13: 9781934002087
  • Condition: NEW
  • Notes: Brand New from Publisher. No Remainder Mark.

Show Me the Money: Covered Calls & Naked Puts for a Monthly Cash Income Overview

Are you leaving Cash on the table?

As an investor you have stocks in your portfolio. Those stocks, individually, will go up, down or remain about the same. Nothing really you can do about that. Market forces and corporate actions beyond your control will cause fluctuations in the value of your holdings.

But……

There is one important action you can take that will put cash in your brokerage account, today and month after month as time rolls by.

Selling Covered Calls and Naked Puts is a stock market strategy favored by many savvy investors. Here s how it works. Take one of your stocks, Stock ABC, which has a market price of . If you will agree to sell that stock (a Call option) for on the third Friday of next month the market will pay you X amount of dollars today (the option premium). That s the money that you are currently leaving on the table. The premium X varies by stock and typically is two to three percent of the stock price.

Think about what can happen when you sell the option. Only one of two things will happen. If the stock price of ABC is above on the third Friday you sell it for . That will happen about 30% of the time. The other possibility is that ABC is selling for or less on the third Friday. In that case the option expires and you can sell another Call.

Either way the option premium Real Cash Money is in your brokerage account ready to be spent or reinvested.

Continue the process month after month for a constant cash income from your portfolio.

The Naked Put strategy also gives you immediate cash. Using the same example with Stock ABC, which is in your portfolio and has a market price of , if you agree to buy additional shares at a discounted price of .50 on the third Friday of next month (a Put option) the market will pay you Y amount of dollars today (the option premium). If the stock price is above .50 on the third Friday the option expires and you can sell another Put, generating more cash income. If the price does dip below .50 then you buy the additional shares and can now sell more Covered Calls. The put premium Y varies by stock and typically is one to three percent of the stock price.

This book will give you the basic skills to master the art of selling Covered Calls and Naked Puts.

Ron Groenke has developed software based on the investment concepts in his books. A free 21-day trial is available at RonGroenke.com

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The Efficiency Of China’s Stock Market (The Chinese Economy Series)

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The Efficiency Of China’s Stock Market (The Chinese Economy Series) Review

The Efficiency Of China’s Stock Market (The Chinese Economy Series) Overview

By investigating the efficiency of China’s stock market in accordance with the theoretical framework of the Efficient Market Hypothesis, this book focuses on weak form and semi-strong form market efficiency. Empirical tests have been intensively conducted on the random walk hypothesis, the presence of market seasonality and the price reaction to publicly released information. In addition The Efficiency of China’s Stock Market provides a comparative analysis between China’s stock market and other countries’ stock markets.

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Day Trading For Dummies

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Day Trading For Dummies Review


Despite the “For Dummies” title, this book is not for dummies but for smart people who want to avoid the mistake most dummies make – not doing your homework!

This book is not going to make you a day trader, in other words you’re not going sit down after reading this book, open an account, and be a profitable trader. But what it will do is give you the ability to realize what you’re getting yourself involved in on all different levels.

You’ll see what kind of work is involved, what you need to start studying, what the work flow is, what the risks are, what lifestyle it is, and perhaps most vital, the psychological issues you need to confront. That is extremely CRITICAL in my view for anyone to do prior to saying to yourself “I’m going to become a day trader”. Logue’s book is an excellent way to conduct the due diligence process that so many people neglect prior to opening an account.

Logue is not too optimistic or pessimistic, it is not one of those “Make millions trading online” or “Trading ruined my life” books. Most important, it stresses that trading is a business, an entrepreneurial venture, and needs to always be treated as such. I also give props to the traditional “For Dummies” layout, which I’m a big fan of – its easy to reference and get to what you need.

I think once you read this book, you’ll have a good idea of what trading is like which will help you decide whether or not it is right for you. It also helps point you in the right direction as to how to get started. If more people did this in advance of opening an account, the statistics for failed day traders would no doubt be smaller.

Day Trading For Dummies Feature

  • ISBN13: 9780470171493
  • Condition: NEW
  • Notes: Brand New from Publisher. No Remainder Mark.

Day Trading For Dummies Overview

Day trading is undoubtedly the most exciting way to make money from home. It’s also the riskiest. Before you begin, you need three things: patience, nerves of steel, and a well-thumbed copy of Day Trading For Dummies—the low-risk way to find out whether day trading is for you.

This plain-English guide shows you how day trading works, identifies its all-too-numerous pitfalls, and get you started with an action plan. From classic and renegade strategies to the nitty-gritty of daily trading practices, it gives you the knowledge and confidence you’ll need to keep a cool head, manage risk, and make decisions instantly as you buy and sell your positions. Learn how to:

  • Set up your accounts and your office
  • Connect with research and trading services
  • Plan and research trades carefully and thoroughly
  • Comply with regulations issues and tax requirements
  • Leverage limited capital
  • Cope with the stress quick-action trading
  • Sell short to profit from price drops
  • Evaluate your day-trading performance
  • Use technical and fundamental analysis
  • Find entry and exit points
  • Use short-term trading to establish a long-term portfolio

You’ll also find Top-Ten Lists of good reasons to go into day trading, or run from it in terror, as well as lists of the most common (and expensive) mistakes day traders make. Read Day Trading For Dummies and get the tips, guidance, and solid foundation you need to succeed in this thrilling, lucrative and rewarding career.

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5 Tips for Investing in Penny Stocks

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Investing in penny stocks provides traders with the opportunity to dramatically increase their profits, however, it also provides an equal opportunity to lose your trading capital quickly. These 5 tips will help you lower the risk of one of the riskiest investment vehicles.

1. Penny Stocks are a penny for a reason.

While we all dream about investing in the next Microsoft or the next Home Depot, the truth is, the odds of you finding that once in a decade success story are slim. These companies are either starting out and purchased a shell company because it was cheaper than an IPO, or they simply do not have a business plan compelling enough to justify investment banker’s money for an IPO. This doesn’t make them a bad investment, but it should make you be realistic about the kind of company that you are investing in.

2. Trading Volumes

Look for a consistent high volume of shares being traded. Looking at the average volume can be misleading. If ABC trades 1 million shares today, and doesn’t trade for the rest of the week, the daily average will appear to be 200 000 shares. In order to get in and out at an acceptable rate of return, you need consistent volume. Also look at the number of trades per day. Is it 1 insider selling or buying? Liquidity should be the first thing to look at. If there is no volume, you will end up holding “dead money”, where the only way of selling shares is to dump at the bid, which will put more selling pressure, resulting in an even lower sell price.

3. Does the company know how to make a profit?

While its not unusual to see a start up company run at a loss, its important to look at why they are losing money. Is it manageable? Will they have to seek further financing (resulting in dilution of your shares) or will they have to seek a joint partnership that favors the other company?

If your company knows how to make a profit, the company can use that money to grow their business, which increases shareholder value. You have to do some research to find these companies, but when you do, you lower the risk of a loss of your capital, and increase the odds of a much higher return.

4. Have an entry and exit plan – and stick to it.

Penny stocks are volitile. They will quickly move up, and move down just as quickly. Remember, if you buy a stock at $0.10 and sell it at $0.12, that represents a 20% return on your investment. A 2 cent decline leaves you with a 20% loss. Many stocks trade in this range on a daily basis. If your investment capital is $10 000, a 20% loss is a $2000 loss. Do this 5 times and you’re out of money. Keep your stops close. If you get stopped out, move on to the next opportunity. The market is telling you something, and whether you want to admit it or not, its usually best to listen.

If your plan was to sell at $0.12 and it jumps to $0.13, either take the 30% gain, or better still, place your stop at $0.12. Lock in your profits while not capping the upside potential.

5. How did you find out about the stock?

Most people find out about penny stocks through a mailing list. There are many excellent penny stock newsletters, however, there are just as many who are pumping and dumping. They, along with insiders, will load up on shares, then begin to pump the company to unsuspecting newsletter subscribers. These subscribers buy while insiders are selling. Guess who wins here.

Not all newsletters are bad. Having worked in the industry for the last 8 years, I have seen my share of unscrupulous companies and promoters. Some are paid in shares, sometimes in restricted shares (an agreement whereby the shares cannot be sold for a predetermined period of time), others in cash.

How to spot the good companies from the bad? Simply subscribe, and track the investments. Was there a legitimate opportunity to make money? Do they have a track record of providing subscribers with great opportunities? You’ll start to notice quickly if you have subscribed to a good newsletter or not.

One other tip I would offer to you is not to invest more than 20% of your overall portfolio in penny stocks. You are investing to make money and preserve capital to fight another battle. If you put too much of your capital at risk, you increase the odds of losing your capital. If that 20% grows, you’ll have more than enough money to make a healthy rate of return. Penny stocks are risky to begin with, why put your money more at risk?

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Hit and Run Trading II: Capturing Explosive Short-Term Moves in Stocks, Updated

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Hit and Run Trading II: Capturing Explosive Short-Term Moves in Stocks, Updated Review


Following up the original collection of successful strategies in Hit and Run Trading is Jeff Cooper’s second and equally outstanding book on capturing explosive moves in stocks. I imagine the question on everyone’s mind is, “Great, but will this improve my trading?” and the answer is – YES. The first book kick-started daytrading careers for thousands, and this one is bound to make you wonder how much further the author can break down the complexities of the markets and delineate methods for taking advantage of it.

Hit and Run Trading II, like its predecessor, is all about taking advantage of strongly trending stocks. There are four parts of this book revealing 17 new strategies:

1. Trend continuation patterns, holding for a few days

2. Cooper’s best strategies, including Stepping In Front of Size

3. Reversal strategies

4. Techniques to improve your trading, including 40 learning examples.

Cooper provides solid groundwork for interpreting the dynamics of stocks and the market so traders can recognize the strategies for themselves. For example, the Intraday Relative Strength Trading Strategy (IRSTS), used to identify and exploit strength in big-cap Nasdaq stocks by comparing to the S&P futures action, is clearly defined for makings risk-adverse decisions. After Jeff outlines his strategies with a set of rules and examples, a trader is practically given a map of what to look for. All of the strategies of the book are discussed and broken down to a specific set of rules to follow. Of course, every situation in the market is truly different from the next, but it’s the basic pattern and trends that repeat themselves over and over that Jeff has identified and made obvious.

A chapter of Q&A’s is another valuable resource of this book. Through the years Jeff has been interviewed by radio shows and newspapers, and this represents the best and most useful insights from that material. This is where the reader can really get a feel for the thought process of a trader. Trading isn’t just about having some great strategies to apply to the market; to be successful requires lots of hard work and devotion. From being fully prepared each day by locking in hours of research, to having a good understanding of how your judgment may be flawed, this section is an important part of this book and alone makes it worthwhile.

If you read the first Hit and Run book, you are aware of Jeff’s style and well-thought-out strategies. This book is of the same spirit and quality. Having Jeff’s strategies on your side would be a tremendous asset to any trader. Simply getting a glimpse of his perspective on the market would be beneficial to everyone from scalpers to intermediate-term traders. Jeff is a daytrader and a highly successful one. If given a chance, this book could take traders a long way, but as always, the decisions are always yours.

Hit and Run Trading II: Capturing Explosive Short-Term Moves in Stocks, Updated Overview

Following up on his original collection of trading methods in Hit & Run Trading, is Jeff Cooper’s second and equally exceptional book, Hit & Run Trading Volume II – recently updated! Discover how to capture the explosive moves in stocks in his latest work containing:

- 16 personal trading strategies
- Readily identifiable patterns you can consistently count on
- Over 200 information-packed pages in a large 8 ½ x 11 format
- 21 fully illustrated chapters with over 100 sample charts of real trades
- Cooper’s finest learning sheets that will serve as your personal coach on a daily basis
- PLUS answers and insight into the most frequently asked questions about short-term trading.

Cooper’s updated work presents 16 top-tier trading strategies broken out over 4 main sections:

1. Section One deals exclusively with momentum continuation patterns including: Hot IPO Pullbacks, Flat-Top Expansion Breakouts (this alone is worth the price of the book), Reversal New Highs Method, Intraday Relative Strength Trading Strategy, Extended Level Boomers, V-Thursts, Jack-in-the-Box setups and so many more!

2. Section Two features Cooper’s top three advanced daytrading strategies including his best trading method, Stepping in Front of Size.

3. Section Three highlights more reversal strategies focusing on short-term reversal strategies that will allow you as Cooper puts it to “pounce on stocks as wrong-footed traders run for cover.”

4. Section Four focuses on the vitally important techniques of a Professional Trader that are often overlooked including money management, stop placement, exiting positions, daily preparation and more. Plus, an interview with the author and more than 40 actual learning sheets from Cooper’s daily trading service.

Start increasing your profits using Coopers updated personal techniques and easy-to-master setups today!

With or without Volume I, you’ll find plenty of new, high-profit potential strategies and methods in Jeff Cooper’s newly updated Hit and Run Trading II. Broken up into 4 main sections highlighting 16 invaluable trading strategies, this updated version is a must for serious traders looking to take their trading and their returns to the next level. Can you profit from Hit & Run II without having read Volume I? Absolutely! Start making money today using Cooper’s newest techniques and easy-to-master setups in this recently updated edition.

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Can Penny Stocks Make Millionaires?

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Is it possible for people to really make a substantial profit using Penny Stocks, even to become millionaires? Certainly there are some people who make huge amounts of money with stocks, ordinary people who trade in their own time perhaps as a hobby rather than as a professional trader. It is very likely however that although they started on penny stocks they eventually moved up to other potentially more profitable stocks using larger sums of money once they felt they were more experienced, and had more money to spend. Of course the question then becomes how do you start making profits quickly in penny stocks with the least risk?

Before we answer that question, let us quickly define exactly what we mean by penny stocks. There are different precise definitions, but in general the phrase refers to low priced, highly speculative stocks which normally sell at less than $1 per share. They are very volatile and can rise and drop hundreds of percentage points in minutes, sometimes as much as 400%. This can of course be dangerous, but can also be extremely profitable if you know what you are doing.

Now that we know what penny stocks are, how can we quickly work out what to trade and when, to maximise our profits? Remember, normally only after we have made a number of trades using small low risk sums can we even think about making the kind of trades we need to make the big money quickly. In most cases traders simply have to put in the hours – and weeks and months and years – to become experienced in the market. Only after trading many times and analyzing the trends and results over a long period can a trader say he really understands trading stocks, and even then he will still lose on many trades.

However there are of course many shortcuts on offer. There are many “systems” available, ways to help you identify trends and profitable opportunities as they happen, but there are huge problems with most of them. The main problem is simply that any system still relies on analysing the historical trends, and this takes time and effort. However, there may be a new solution.

Two computer programmers have created a piece of software which performs scans of stocks looking for companies who are forming bullish trading patterns, ie their stocks are about to increase. This software records historical information constantly and learns more and more over time, and every week it outputs recommendations of stocks it thinks should be bought and sold. These recommendations are only made when the software is confident in the outcome, based on the huge amount of data it has analysed.

Of course, as with all stock trading, and particularly in the volatile penny trades market, not every decision will be correct, even the software cannot predict every possibility. But on average the software is reported to create gains of 105.28% per week, even accounting for the trade recommendations which do not work out. Could this be the key to making significant profits from penny trades without spending years as a trader? Apparently if someone had put $5000 on each of the recommended trades over 4 months last year they would have made $387,684 in profit.

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The signaling aspect of pre-announcement insider trading and the stock price response to seasoned equity offerings.: An article from: Journal of Academy of Business and Economics

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The signaling aspect of pre-announcement insider trading and the stock price response to seasoned equity offerings.: An article from: Journal of Academy of Business and Economics Review

The signaling aspect of pre-announcement insider trading and the stock price response to seasoned equity offerings.: An article from: Journal of Academy of Business and Economics Overview

This digital document is an article from Journal of Academy of Business and Economics, published by Thomson Gale on March 1, 2007. The length of the article is 6580 words. The page length shown above is based on a typical 300-word page. The article is delivered in HTML format and is available in your Amazon.com Digital Locker immediately after purchase. You can view it with any web browser.

Citation Details
Title: The signaling aspect of pre-announcement insider trading and the stock price response to seasoned equity offerings.
Author: Younghwan Lee
Publication:Journal of Academy of Business and Economics (Magazine/Journal)
Date: March 1, 2007
Publisher: Thomson Gale
Volume: 7 Issue: 3 Page: 67(10)

Distributed by Thomson Gale

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Different Stock Trading Systems

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Developing a plan of action in trading is more important than just developing a rulebook, and much like the clichéd metaphor of the foundation of a house being the key to its longevity, it is the base of everything you need to take your trades into the winning every single time you go to bat.

To explain further, the problem most traders get into is when they hear all their advisers and coaches tell them to stick to their trading plan, that they haven’t actually created a plan at all – they just develop rules of what they can and can’t do, and when they should or shouldn’t do them.

How do we create a true trading plan, then? Firstly, you need to decide where you want to go. This goal or accomplishment isn’t as important as the need for having one – if you want to earn $100/day average income from your trading, have that be your goal. If you want to be at 100% winning trades constantly, make that your goal.

As a quick side note, your goals do have to be reasonable, in the sense that you have to belief that they are possible to accomplish. Even if just subconsciously you think that you could never have a 100% winning trade percentage, you never will because you won’t be able to devote yourself fully to the result and change your errors into correct actions. Allowing yourself room to make justifications for your mistakes only allows you to treat in the incorrect way.

The idea behind dedicating yourself to your goal is that each step we take along the way will have a purpose greater than what its immediate intentions are. By creating the big picture for our trading style and methods, we can really begin to start creating the guidelines for accomplishing our goal. With each small, successive accomplishment along the way we start a push of momentum into our next trade, improving each time and reinvesting our focus fully into the next trade.

Once you have set yourself a target and you know what you want, you’ll be able to drive yourself to that point even without adding any more new approaches to your planning stages. By focusing on where you want to be and self-evaluating your processes along the way, you’ll be able create through your ability to evolve the best plan of all – constant success.

You see, it doesn’t really matter in the grand scheme of things how you get from point A to point B, as long as you’re constantly moving towards point B. The road is less important than the movement you create while you are on the path to where you want to go. With each and every step you take towards your goal from wherever you are, you’ll find yourself closer and closer to achieving your result each time. Without worrying about how you are going to get there, you’ll keep your brain from getting stuck on less important side goals.

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Trading Channeling Stocks

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Channeling is one of the most reliable and accurate trading techniques that provide traders with precise entry and exit points as well as stop-losses and take-profit recommendations.

Channeling stock is a stock that moves up and down in repeated waves between two parallel lines. A lower line is called a support trendline and an upper – a resistance trendline. A support trendline connects the series of lows and resistance connects the highs. The area between these two lines is referred to as the channel. We need at least 4 dots (2 lows and 2 highs) to draw the channel. The more times the price touches and rebounds from the support and resistance lines without penetration, the more significant and reliable the channel becomes.

There are three types of channels:

- An ascending or a rising channel makes consecutive higher highs and higher lows.

- A descending or a falling channel makes consecutive lower highs and lower lows.

- A horizontal channel or a rectangle channel makes horizontal highs and lows.

Channeling offers several different efficient techniques for each type of channels. The most effective way of trading channel is to trade in the direction of the channel, going long at rising channel and shorting the falling channel. There are following basic rules of channel trading:

- Buy (or cover short position) at support level

- sell (or take a short position) at resistance level

Channel is considered “trade-able” if it consists of at least two lows and two highs.

Following is the real life example of how you can profit using this simple technique. Let’s look at the chart of QQQQ for the period from the January 2004. We can easily locate two relative highs: 38.54 in January 2004 (1/20/2004) and 40.33 in December (12/15/2004) and two relative lows: 32.52in August 2004 (8/13/2004) and 34.98 in April 2005 (4/29/2005). Now we are able to draw two trend lines – a resistance line connecting two highs and a support line connecting two lows. These lines are near parallel giving as a perfect channel. Following our basic trading rules we can place a buy order when the price crosses the support trend line and sell when the price crosses the resistance trend line. This simple technique will provide you with the perfect trading entry/exit points: sell on January 6, 2006 at 42.5 and buy on May 23, 2006 at 38.65.

There are several ways to locate the channeling stocks. You can manually look through charts or utilize the pattern recognition services. Following links provide you with the list of channeling stocks and ETFs.

http://www.thegreedytrader.com/Risingchannelingstock.aspx

http://www.thegreedytrader.com/Fallingchannelingstock.aspx

To narrow your search you can use an advanced technical analysis filter to find a list of channeling stocks and ETFs with price testing the support or resistance line. For example, use the following links to find a list of equities with rising channel pattern with price near support level and equities with falling channel near resistance.

http://www.thegreedytrader.com/RisingChannelSupport.aspx

http://www.thegreedytrader.com/FallingChannelResistance.aspx

In addition to the basic trading rules a channeling technique provides risk management in form of stop-loss rules:

1. If you enter a long position at a channel support level, set a moving stop-loss slightly below the support.

2. If you open a short position at a channel resistance level, set a moving stop-loss slightly above the resistance.

There are additional trading rules and techniques that can help to improve performance and reduce the risk in case of the channel breakout, false breakout and channel narrowing.

Breakout appears when price breaks through the support or resistance line. You can tight protected stop-loss order to limit your risk. Some traders use channel breakout as a trend reversal confirmation to open a new position in the direction of the new trend. To estimate the minimum breakout target some chartists suggest measuring the vertical distance from the trendline to the latest high/low and projecting it from the breakpoint into the direction of the breakout.

In example with QQQQ above, if a trader opens a long position at channel support 38.65 on May 23, 2006 he immediately places a moving stop-loss order slightly below the support. When a price breaks the support line and a stop order is executed, a trader can also enter a short position to profit from the channel breakdown.

While a channel breakout terminates the current channel, the false breakout appears when a price just pierces the channel trendline and then moves back into the channel area. Usually a false breakout scares traders out of the stock and makes breakout traders enter the wrong position.

In opposite to the false breakout – the channel narrowing appears when price drifts inside the channel area without touching the support or resistance trendlines. In this case the narrower channel could be considered or other techniques can be used to enhance the accuracy.

There are several techniques you can use in conjunction with channeling to help verifying the channel strength, recognizing the price reversal and predicting breakouts.

1. Overbought/oversold momentum oscillators and bullish/bearish divergence are useful for providing early warning signals of trend reversal.

2. Candlestick patterns can be useful to confirm the price reversal or a channel breakout.

3. Fibonacci technique is helpful in finding hidden channel cyclicity to spot an intermediate support/resistance within the channel area as well as for estimating the breakout target.

4. Analyzing chart trends in several different time frames can also help you accurately determine the price reversal and a channel breakout.

5. Channeling trend often presents an Elliot waves structure. The sub waves in the direction of a major trend have a five-waves impulse structure while sub waves in the opposite direction have corrective three-wave zigzag structure. Using Elliot Wave analysis with channeling stocks can provide a valuable trading strategy for an experienced trader.

Channeling works the best for short and medium-term trading with ETFs and medium volatility stocks. Channeling provides one of the most accurate and reliable market timing techniques especially when it is used in conjunction with other technical indicators.

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How to Make $500 a Day in Day Trading Stock Picks

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If you desire to know how to make $500 a day in day trading stock picks, there are at present reliable programs or email newsletters that provide the perfect method to generate an ongoing passive stream of income for everyone online without recourse to wasting your time every day. You only have to subscribe to the newsletter or program, lay back and let the day trading robot do all the hardwork of picking profitable stocks for you.

I hear you ask, if it’s so easy why isn’t everyone making piles of money by getting the day trading robot? Yes, at the moment, the cost of acquiring the robot runs into over $100,000, which is way too high for the small trader.

What is making this day trading stock pick newsletter of making $500 a day so popular is, that once you subscribe, you will receive regular emails of profitable stock picks which you can invest your money and you just get an alert when to buy and sell each stock at the desire time and you can actually make over $10,000 within 24 hours depending on the quantity of stock you decide to buy. Or if you prefer, and most do, put forth some additional effort and make a very comfortable income. Many have found it to be an excellent method to earn $500 – $1,000 from home.

Less than three short months ago, Jason Kelly introduced a very real potential for making $200, $300, and $500 every morning with his automated stock trading robot. You now have the very opportunity to own your own automated stock trading robot and begin to generate a great deal of income within a short time. Many are already benefiting from this opportunity of a lifetime.

How can you make $500 a day in day trading stock picks? Every single day, the day trading robot downloads data from the stock market. The robot then uses this downloaded data to construct a chart of each stock for a period of 7 days. These charts are then referenced against the encrypted trading patterns stored in the robot database. If in the last 24 hours a stock has formed a price pattern, which matches what is stored in the robot’s database, the robot will start further analysis of that particular stock in details.

What makes this day trading opportunity so attractive is that it is so easy. It is sure to make you $500 a day. It stands to reason, the more money you invest in a particular stock picked by the robot, the more money you will make on a daily basis.

All you require to make $500 a day is to be focused and be ready to put your money on the selected profitable stocks you will receive in your email. Your email must be reliable and functional so that you do not miss out on any stock.

You must swiftly act to benefit from the stock picks of the day. Issues of procrastination will do you in. I have not seen any other simple way of making $500 a day where the start-up costs can so easily be recouped within a very short time and profit starts rolling in. From those who have no experience, to the most experienced trader, it is a great opportunity to see at least $500 flowing into your pocket within a relatively short time every day. It is also a great way to earn extra income at home.

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