Dan Zanger - Stock Market Trading System

Stock Market Trading System Of A Trading Wizard

Let’s continue now with the article series on Dan Zanger, by taking a look at the stock market trading system of this superstar trader.

What are the main aspects of his stock trading system? Let’s start from the top down.

According to the interview from Tradersworld magazine, Dan’s stock market trading system consists first and foremost of “… finding fast-growing companies that dominate their space in the global environment. You will find some incredible winners in the marketplace by following that method. Certainly, Apple dominates its place in the iPod market. They not only dominate it, they created it.  Google created the pay-per-click advertising and they dominate it. These are global companies with leading niches. They dominate and control their space. These are the types of companies that I look for.”

We’ll go into more detail about how Dan finds these companies in the next article, but I do want to point out a few things here.

First, Dan’s investment portfolio is in the multi-millions of dollars. He will oftentimes buy 10,000 shares of a $400 stock. Obviously, most of us “mere mortals” can’t afford that size of investment. So that forces Dan into the larger-cap companies. He simply can’t buy enough shares of a smaller company to put a dent in his portfolio. Besides, he would likely be buying a big chunk of the whole company!

Second, he does not buy companies such as Google and Apple in a vacuum – he would not be buying AAPL right now, for example, since the stock is in an obvious downtrend. Dan uses lots of technical analysis in his stock trading system – more on that in future articles – including Dan’s all-time favorite chart setup in his stock trading system.

And now, on to today’s business…

The markets are in a holding pattern today as participants await the results of this month’s Fed meeting, starting today. All indexes are slightly in the red as I’m typing these words.

From MarketWatch:

“U.S. stocks were at nearly flat levels Wednesday morning, after a half-hearted attempt at gains met with resistance as the Federal Reserve's long-awaited two-day monetary-policy meeting got underway.”

Here’s a stock that looks like a “good bet” today…

Stock For Review

Our Stock For Review today is LVS – Las Vegas Sands Corp.

LVS, like so many other stocks these days, is breaking out of a “W” double bottom base, on volume 117% above normal. Lots of summer vacations include Las Vegas – this could be a good pick for the next month or two!

Most Recent Double-Digit Percentage Gainers In One Day…

Here are a few of the DDPG’s since our last update:

LBIX – 06/26/06: Up 33.43% on a perfectly timed recommendation! From an Einstein Scan.

XING - 06/26/06: Up 10.5% in the ARM Play section.

CBEY - 06/26/06: Up 10.81% in the Stock Fishing portfolio.

PLC - 06/26/06: Up 13.59% in the RSVP Play section.

Product Of The Day

Dan Zanger’s Stock Market Trading System – who else wants to learn how to make 180.6% in one year, with larger cap stocks?  Get immediate access to Dan’s latest stock trading secrets by clicking on the following link…

Get Dan Zanger’s latest stock trading system secrets right now!

Stock Trading Picks

Dan Zanger’s Stock Trading Picks  – How To Make 180.6% In One Year

Dan Zanger recently said that last year was probably his most profitable year ever trading stocks, and his biggest dollar gain since he started trading. He scored a 180.6% gain for $22 million.

What were some of his stock trading picks last year that helped him accomplish that goal? Let’s take a look.

According to a recent interview from Tradersworld magazine, Dan’s main stock trading picks were comprised of the following stocks and stock groups:

1) The majority of his gains came from just two stocks - Google (GOOG) and Apple (AAPL) – Google first and Apple second.

2) Sandisk (SNDK) was another big individual stock trading pick.

3) The housing and oil sectors.

We’ll dive more into Dan’s trading strategy in the next article, but I do want to point out a few things here.

One, notice that Dan does not “diversify”. He finds the one or two stocks – or a handful at most - having the potential to produce huge gains, and piles boatloads of money into those. It takes him ENORMOUS amounts of time to find those few “diamonds in the rough”, so why spend more time finding dozens of others when you can focus your time, effort and money on the few gems?

Two, he does sector analysis – to find the strongest sectors of the economy at the current time, and then picks the strongest individual stocks from those sectors. Huge stock market winners have been found using this simple method of stock analysis.

So the lessons here are clear. You are simply not going to make a 180.6% return with a portfolio of 20 to 30 stocks, unless you luck out big time. And you must pick the strongest, “best of the best” stocks to achieve that goal.

I just have to chuckle when I read the mainstream investment literature stating you “must” be invested in at least 20 stocks to be “safe”. Gotta diversify! Safety in numbers! What hogwash. And a sure trip to mediocrity.

More on Dan’s strategies in the next article.

And now, on to today’s business…

The markets are perking up today on bargain hunting and sparkling buyouts in the energy sector.

From MarketWatch:

“U.S. stocks turned higher Friday as the lure of attractively-valued shares won out over caution ahead of next week's Federal Reserve meeting on interest rates, with the energy sector a notable gainer after two major deals suggested a round of consolidation among oil and gas producers may be on the cards.”

Here’s a stock that’s certainly “trucking along” today…

Stock For Review

Our Stock For Review today is CLDN – Celadon Group Inc.

CLDN is breaking out of a picture-perfect “W” double bottom base, on volume 152% above normal.  Transportation stocks – especially trucking - have been very strong lately, and this one is perhaps the “best of the best”. A handsome addition to any investment portfolio.

Most Recent Double-Digit Percentage Gainers In One Day…

Here are a few of the DDPG’s since our last update:

PRZ – 06/22/06: Up 17.92% for a week’s gain of almost 43% - discussed in the Members’ Ensign and Telechart Platinum chat rooms.

Product Of The Day

Dan Zanger’s Stock Trading Picks – what are they in the current market? Get immediate access to Dan’s latest stock picks by clicking on the following link…

Get Dan Zanger’s latest stock trading picks right now!

Dan Zanger

Dan Zanger – Secrets Of A World Record Holder Stock Trader

Dan Zanger made $43 million in three years recently trading stocks. Last year was his most profitable, when he was up 180.6% and made $22 million.

Do you think Dan Zanger can teach us a thing or two about trading stocks? I do!

That’s why I’ve decided to do a special series of articles on Dan called “Dan Zanger - Secrets Of A World Record Holder Stock Trader”.

Here are a few of the things we’ll be talking about…

Where did he make most of his money last year?

How does his basic stock trading method work?

What software does he use, and how does he program it to find market-beating stocks?

What does Dan’s daily routine look like?

How does he determine what to buy and what to sell?

How does he determine what moves a stock?

Does he have any pre-set alerts?

What are his favorite chart patterns?

How does he know when to step in and take a huge position in a stock?

How long is he in any position?

How does he use stops?

How does he think any trader can improve their skill-set?

How long does it take to become a good trader?

What has he changed in his trading over the past two years?

How does Dan use options to enhance his trading?

What is his outlook for the market?

What is his protection against something unexpected, like a terrorist attack?

Does he have any final recommendations for traders?

Dan Zanger has obviously “traded his way to wealth” and can show you how to also. In order to Trade Your Way To Wealth, what better way to learn how to do that than to study those who have actually done it? Success Leaves Clues! All you have to do is model that success and you can be successful too. And it ain’t rocket science, as some would have you to believe.

If you want to get a “head start” on what we’ll be talking about, here is the link to Dan Zanger’s website: ChartPattern.com. Otherwise, stay tuned for a power-packed, information-rich series of articles that can’t help but make you a more successful stock trader!

Now, here’s the seventh lesson in our Mental Fitness for Traders series…

Yum! The Seasoned Trader Feeds On The New Trader.

by Norman Hallett, former CTA/Trader

If you’re a new trader, you’ve got to pay your dues.

Seasoned traders know this and that’s why we love you so much. Look at your charts, mimic the experts, and buy those expensive trade-recommendation newsletters.

Dream your dreams.

But PLEASE just keep trading, because as you trade, we’ll be on the other side, putting YOUR cash into OUR pockets.

I’m not kidding.

So the thing is, you don’t want to stay a “new trader” for long?

What is a “new trader”?

A new trader, the way I refer to it here, is either someone who has just begun trading and has yet to make the mistakes of a beginner, OR

Someone who keep making the beginner’s mistakes over and over again and never learns.

Most traders that I’ve come across over my 22 years as a trader and CTA (3 years as a “new trader” and 19 years as a “seasoned trader”) have never gotten out of the “new trader” category.

It’s hard to transcend.

To some, it’s impossible and they wind up walking away blaming the “volatility” or the “institutional traders” for their failures.

OK, here’s the key to taking the leap from newbie to successful trader: Your mental discipline.

The fact is, the beginner who’s done his/her homework before trading is (largely) using the same indicators and techniques that the successful trader is using.

The difference is that the successful trader is IN CONTROL.

The “new trader” is not.

The beginner is controlled by emotions and fears and has not learned… I mean REALLY learned…  that trading the market is a math game.

It’s an exercise in probability and statistics and you must keep the odds on your side, even if, from time to time, it hurts.

If you’ve back-tested your system properly… if you’ve followed your guru’s past recommendations carefully… and you’re ready to start trading…then you have one job and that is to follow your system like the Ice Man.

If, over your chosen period of time, the system is not working, then change the system.  Never change your commitment to following your system to the letter once you’ve decided to trade it.

All this is MUCH easier said than done.

Fears and emotions can easily overtake you. We’re humans, not machines.

You must TRAIN your mind to be disciplined. That’s what seasoned traders do.

They train their minds because they know that habit patterns are simply neuro-pathways that are etched into your brain.. AND…

When one identifies a poor trading habit (and you know who you are) all that needs be done is to train your mind to create a new neuro-pathway to replace the old one.

It’s science, man, just science.

A good trading system and the mental strength to commit to and execute the signals that system gives you is the way of the seasoned trader.

Most seasoned traders won’t actually tell you that.

Why?

Yum, yum!

**Norman Hallett spent 21 years as a successful trader and CTA before starting

Subconscious Training Corporation. His company developed TradingMind Software, the industries leading mental/emotional

training tool for traders who understand the importance of being disciplined and focused in their trading.

And now, on to business…

It’s “Déjà vu all over again” as signs of a slowing economy weigh on the market today. As I stated a few days ago, one could make the argument that news would actually be positive, since the Fed would be almost forced to keep interest rate increases in check, for fear of throwing the economy into a recession.  The market is bouncing all over the place today, so let’s just see where it stands at the day’s end.

Here’s a stock we’ve mentioned recently on a new buy signal…

Stock For Review

Our Stock For Review today is ZOLL – Zoll Medical Corp.

ZOLL is recovering very quickly from a one-day selloff, and is challenging recent highs on volume 152% above normal.

ZOLL’s still a “doll” in my book! And may be a fine addition to your portfolio.

Most Recent Double-Digit Percentage Gainers In One Day…

Here are a few of the DDPG’s since our last update:

MED – 06/21/06: Up 14.15% in the Amazing Amex Movers section.

BVX – 06/21/06: Up 10.93% in the Amazing Amex Movers section.

OMNI – 06/21/06: Up 10.83% in the ARM Plays section.

Product Of The Day

Dan Zanger – Secrets Of A World Record Holder Stock Trader! Get a “heads up” start on our article series by checking out his website at:

Dan Zanger - Secrets Of A World Record Holder Stock Trader!

Stock Trading School

Stock Trading School Is In Session!

While regular schools are out for the summer, here’s your chance to attend a different kind of school – Stock Trading School!

The summer months are an excellent time to brush up on your stock trading skills. After all, volume dries up on the stock exchanges as the big New York traders take time off from trading and go on their summer vacations. Thus, the “Summer Doldrums” set in on the markets.

Of course, that’s no excuse not to keep watching the market each and every day. Contrary to popular belief, lots of money can be made during the “Summer Doldrums.” But it’s also a good time to learn new approaches to the stock market, try out new systems, etc.

And for the rank stock trading beginner, summer is a perfect time to “get up to speed” on this fascinating and fun game. Here at Trade Your Way To Wealth, we love to work with “stock market newbies.” One of the biggest reasons is we don’t have to take time to help beginners “unlearn” some of the mainstream investment and trading advice out there. You know the kind I mean – the advice that doesn’t work in the real world.

And that facet is one of our foundational building blocks here at TYWTW – we only teach trading techniques that work in the real world of stock trading and investing. How do we know it works? We’ve been successfully using our own system for over 16 years.

So why not take some time this summer to learn a trading system that actually works? Go back to “Stock Trading School” and become a world-class trader by the time the next primo period of the market rolls around – and that’s just a few short weeks away.

See the product section for details of our “Summer Doldrums” Stock Trading School offer.

Now, here’s the sixth lesson in our Mental Fitness for Traders series…

I See The Future And The Successful Trader Is Me!

by Norman Hallett, former CTA/Trader

Believe it or not, it’s true what they say…

Visualizing your future the way you want it, is much more likely to make that future a reality.

I’m a “doubter” by nature and this notion of visualizing didn’t really make much sense to me when I heard about it the first hundred times.

I mean, come on!

Sit in a quiet place and wish and hope and pray and all your dreams will come true? I think not. That’s what my mathematician brain told me (University of Cincinnati, 1973, BA Mathematics).

Then I met a subconscious trainer (whom I later married), who sat me down and stated, “Thoughts are things.”

OK, what kind of things?

I’ve seen Kreskin and other guys bending spoons with their thoughts…it that what she means?

Rather than give you the entire exchange of words (I don’t know that I remember all of them, as I was falling in love while I was listening), I’ll give you the capsule.

According to her, there is this stream of consciousness somewhere up there that you can plug into, and then, by directing your thoughts, you can harness this consciousness somehow to get what you want (as long  as what you want is positive… you can’t wish someone a losing trade!).

This, combined with the notion that time, as we know it, is not linear, we can affect the future from the present through this universal consciousness!

That’s all I’ll say about that.

Excuse me while I hug a tree…

I’m back.

I don’t know that I understand all of this, let alone believe it, but I’ll tell you one thing I DO KNOW…

If you get your brain into an alpha brain wave state and you tell yourself (of have someone else suggest to you) what you’d like to happen in the future, say, the picture of you as a successful trader…you WILL head in the direction of that picture you’ve created in your head.

At least that’s what happened to me, and just about every successful trader I know.

There are different ways to visualize. During a quiet time (I know You can’t imagine any quiet time…so start while seated in the bathroom), …

Now, just see yourself living the “Life of Riley” (am I showing my age. … for those of you that don’t recognize that phase, it means “the good life) and having people around you recognize you as that successful trader whom everybody is talking about.

You can move up the effectiveness ladder (get off the pot?) as you get used to the notion of visualization and get more and more effective with your thinking, but the idea is to get started.

Once you start creating pictures of the money-bulging-pocketed-successful-trader-you, you will actually become less likely to allow your emotions to lead you to trading mistakes…because…

“doing the wrong thing”, like pulling your stops when the market comes close to them, or not taking your profit when your system tells you to, becomes inconsistent with your picture of who you are.

Eventually, if you keep up your visualizations, you become that picture.

Now THAT makes sense!

**Norman Hallett spent 21 years as a successful trader and CTA before starting Subconscious Training Corporation. His company developed TradingMind Software, the industries leading mental/emotional training tool for traders who understand the importance of being disciplined and focused in their trading.

And now, on to business…

It seems like we are back in the “all news is bad” mode today, with signs of a slowing economy weighing on the market today. One might think that would actually be good news, by the fact that the Fed may be almost forced not to raise interest rates any more, for fear of throwing the economy into a recession.  Let’s hope for a bounce by the end of the day.

Here’s a stock bouncing on its own today…

Stock For Review

Our Stock For Review today is SIRF – Sirf Technology Holdings Inc.

SIRF has four nice white candles in a row as it bounces off a bottom in the $28 area. It’s moving up today on volume 103% above normal.

SIRF’s up! And may be ready to be added to your portfolio.

Most Recent Double-Digit Percentage Gainers In One Day…

Here are a few of the DDPG’s since our last update:

XNN – 06/14/06: Up 10% in the ARM Plays section.

ISIG – 06/15/06: Up 12.58% in the Einstein Scan section.

VOL – 06/15/06: Up 15.48% in the Stock Fishing section.

TGIS – 06/15/06: Up 17.79% in the FARM Play section.

Product Of The Day

Stock Trading School is in session! Use the “summer doldrums” to elevate your stock trading skills to levels the pros would be jealous of!

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Stock Trading Advice

Stock Trading Advice From A Sports Psychologist.

In yesterday’s blog post, I mentioned an article in the latest edition of Trader’s Monthly called “The Enemy Within”. The author of the article is Doug Hirschhorn, a former Division 1 baseball player and commodities trader, who also has a Ph.D in sports psychology. He has some great stock trading advice hidden in the article I’d like to tell you about.

The premise of the article is interesting – that it’s often not the fear of failure that holds many great traders back, but it’s the fear of success.

The fear of success? Am I off my rocker? Well, let’s see…

Hirschhorn mentions that “We’re about to enter the ultimate quadrennial pressure cooker – the World Cup – and I’m watching not to see who wins, but who chooses not to.”

What he’s referring to is this – that some championship-caliber athletes are actually afraid of winning.  As an example, be brings up Bode Miller’s monumental flop in the recently-held Winter Olympics (see my last blog post for details).

Hirshhorm goes on to say that this phenomenon relates directly to trading. He has counseled numerous would-be world-class traders who somehow restrict themselves to the silver medal instead of the gold in trading. Part of his counseling seems to be simply going back to the basics.

So what are some of the basic, foundational truths to successful trading? Well, it’s been proven over the years that patience, discipline and focus are the keys to winning. And that applies to just about anything else in life, not just to trading.

Even if those basic requirements are met, the “fear of success” issue may still have to be addressed. In that case, Hirshhorn again stresses going back to the basics – which is a two-step process.

Step One is to re-solidify confidence – compile a list of the reasons why you deserve to win the gold medal. Why you are truly  “The Man” or “The Woman” when it comes to your area of excellence.

Step Two is involves the concept of “wanting vs. willing.” Hirschhorn states: “Everyone “wants” to be great, but precious few are “willing” to do what it takes to make it happen.”

Hirshhorn goes on to say that “… experiencing fearful emotions is the key to confronting them.”

Here’s how Hirschhorn applies that concept to trading…

“Whenever you feel fear creeping in, instead of reacting destructively, view the sensation as a trigger point: a cue to be 100 percent focused, to slow down, to take the game one trade at a time. Focus on the skills you know you have, and on being better on each trade.”

Hirschhorn is currently a consultant for traders, trading firms and hedge funds.
(He can be reached at headcoach@tradersmonthly.com. )

I witnessed a prime example of someone “willing to do whatever it takes” to be a successful trader.

I’m working with a New York chiropractor who wants to segue out of that business and go into trading full time. He has an intense, burning desire to do that, not just a want or wish. He stated up front he would do “whatever it takes” to accomplish that goal. Right away, I knew he had a tremendous chance of success.

But even I was amazed at his progress.

It took intense, concentrated effort on his part, but in just a few weeks, his transformation has been nothing short of amazing. From not knowing a darn thing about setting up a trading account, how to enter a trade online, what a great trade setup looks like, etc., he is now finding great trades like there’s no tomorrow – with analysis that sounds like it’s coming from a weathered, stock trading veteran. On his first live trade (admittedly with my help) he scored a 45% gain in three days. He’s now giving ME stock trading advice, and I’m listening!

I think his story is a perfect example of “wanting” vs. “willing”.

You can (with a little effort) duplicate my chiropractor’s success. I will be helping many other chiropractors (and anyone else not satisfied with what they’re doing for a living) segue into this exciting business – that of trading for a living. How about you? (See the product section for details of our “Summer Doldrums” offer).

And now, on to business…

The index charts look like roller coasters today as they are still seeking out a bottom to this pullback. Up, down, up, down, and currently down. Ah, the summer doldrums!

The good news? At least there are five stocks we can choose from today, as opposed to just three yesterday.

Here’s a good candidate for your consideration today…

Stock For Review

Our Stock For Review today is ZOLL – Zoll Medical Corp.

ZOLL is pretty much just simply ignoring the recent market weakness and marching higher on volume 266% above normal.

ZOLL looks like a “doll” to me!

Most Recent Double-Digit Percentage Gainers In One Day…

Here are a few of the DDPG’s since our last update:

It would be asking a lot to show some DDPGs in yesterday’s harsh downdraft. But any rebound will produce a slew of them!

Product Of The Day

Stock Market Advice for those willing to do what it takes to become a trading expert in as little as a few weeks! Use these “summer doldrums” to blast your stock market skills to levels you’ve only dreamed of! It can happen – just ask my chiropractor student!

Special Offer on the Trade Your Way To Wealth QuickStart E-Class!

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How To Play The Stock Market

How To Play The Stock Market – And Why That Might Be A Bad Idea…

Lots of would-be investors and traders have asked me how to play the stock market. I usually answer that question by retorting, “If you think trying to make money in the stock market is some kind of game you “play”, then I think you are setting yourself up for failure.”

Actually, I guess it depends on your definition of the word “play” and the word “game”.

When I think of “playing a game”, I reminisce on the backyard kickball games we used to play as kids. Or maybe some of the old board games we used to play, like Clue. Or maybe even Trivial Pursuit - a game that came along later in my life. In other words, just something we did to pass the time and have a little fun.

But the word “game” – when applied to the stock market – implies a very different kind of activity in my mind.

Now, I suppose if you see the stock market as some kind of replacement for casino gambling, and you can live with losing money as just part of the “entertainment value”, then I guess it’s not too bad to learn “how to play the stock market.” But just don’t let that thinking overwhelm you when you’re actually trying to trade the market for a living, or if you are actually trying to make the market cough up some profits for you.

At that point, it becomes a very different kind of “game.”  It should be a game you want to win at all costs. Otherwise, why play the game at all?

Let me explain this concept with a recent example, taken from a great article entitled “The Enemy Within” by Doug Hirschhorn in the latest issue of Trader Monthly magazine. In the article, Hirschhorn discusses an interesting phenomenon – world-class athletes who are afraid of winning.

As an example, he talks about Bode Miller. Remember him? He is supposedly the best skier in the world, and was highly likely to win medals in all five Alpine events representing the United States in the Turin, Italy Winter Olympics.

He flopped, monumentally.

According to Hirschhorn, Miller’s spin was “I’m comfortable with what I’ve accomplished. I came here to race as hard as I could. I got to party and socialize at an Olympic level.”

To me, that last sentence really gets to the meaning of the word “game” in Bode Miller’s mind.

But Hirschhorn was more blunt. He states: “Miller might have convinced himself that he met his goals, but I smell b***s***. Not only does this justification not make sense, but it contradicts what the word champion supposedly means. Miller sabotaged his performance by not setting himself up to succeed. I think he got scared. I once heard a painfully accurate expression during my days as a sports psychologist: ‘You don’t win silver: you lose gold.’ Any true competitor knows what that means.”

The market is a tough, tough beast right now. In times like these, it’s easy to get discouraged – you think your trading system is not working – or that you’re a failure. That’s why I’ve been hitting Mental Fitness for Traders so hard recently.

And if you think you’re going to “play the market” right now, you may have your head promptly handed back to you.

So why not set yourself up to succeed? Go for the gold, and don’t settle for the silver.  If that takes working on your “mental game”, I can help you there. See the product section for details.

And now, on to business…

The markets are still displaying classic bear market action, weakening in the afternoon and closing at or near the lows of the day.  The candlestick signals I saw last week in the index charts were wiped out, so who knows where the bottom is now. So gloom and doom prevails, at least for now.

But here was one bright spot in the dismal market today…

Stock For Review

Our Stock For Review today is FMD – First Marblehead Corp.

FMD was on this weekend’s Stock Fishing segment, and I said we should wait to see how the Doji from Friday would play out. That doubt was removed, at least for today, as FMD continued strongly off the Doji. I think the stock would have been lots stronger if the overall market had been a little more steady. Now today’s signal could be a Shooting Star, so be alert to that.

Personally, I would have most of my funds safely in cash right now, until we see the bottom of this market.

Most Recent Double-Digit Percentage Gainers In One Day…

Here are a few of the DDPG’s since our last update:

Slim pickings lately – but we had a couple.

HSR – 06/07/06: Up 18.75% in the Amazing Amex Movers section.

VOL – 06/09/06: Up 10.09% in the Stock Fishing section.

Product Of The Day

How To Play The Stock Market – Setting Yourself Up To Succeed. Master the mental techniques of the trading pros with this unique software…

Mental Fitness For Traders Software

How Does The Stock Market Work?

How Does The Stock Market Work? Lessons From A 13 Year-Old Home-Schooled Girl Who Found Out How…

If you really want to know how the stock market works, read on.

I firmly believe that 99% of the investors and traders out there are making things much too difficult for themselves when it comes to trading the stock market. Some of them are in the eternal search for the “Holy Grail” – that one system which will run on autopilot and just go out and buy stocks at their lows and sell them at their highs.

I hate to break the news to you guys, but that system does not exist. But I’ve discovered the next best thing, in my humble opinion.

My favorite trading success testimonial in our files comes from a friend of mine here in Houston. I’ll let him tell the story…

Daryl,

As I mentioned to you.....my girls watched many of your videos in September as part of their homeschooling. My three daughters are 13, 15, and 18. After they finished the videos, I had each girl take ONE Stock Fishing Stock each day and label the chart with the Candle Signal, Support/Resistance, and say if they would buy the stock. Moreover, they had to trade one stock in a paper portfolio at all times. They used Stock Tick to track their trades.

All three girls were holding gains of over 10% in overall performance by the first week of November. I did not look over their shoulder any either. I asked my 13 year old what she did to get her gains. She said.....if it started doing bad, I got out!! That kept her out of the losers and into the winners. The Stock Fishing Pond has some real trophies in it as long as you do not settle for the whimpy fish and leave the pond. My girls are on break from that now and in Louisiana at their grandparents. In January, they will use Stock Fishing again.

The exercise has proven that a thirteen year old kid can do it. My youngest daughter learned the 12 Major Candle Signals and watched your videos. That is it. All of us will admit that it is easier when it is just paper money but my girls will be able to transition over one day. My 18 year old daughter is already trading in her own account. She did better on paper than with real money but that is part of the process!!

My girls watched your videos and the 12 Major Signals CD Package. They know a good bit of stuff now. They may not ever choose to do it but they have the preparation for it.

Tommy B.
Houston, TX

Now I hope you see why you don’t need to be on a constant search for the trading Holy Grail. You simply follow the advice of a 13 year-old home-schooled girl who is slaying the stock market!

I’ll show you the tools she used in a minute, but first…

Here’s your fifth article in the Mental Fitness For Traders series…

“Mental Fitness for Traders” Series

Are You The Turtle Or The Hare?

by Norman Hallett, former CTA/Trader

What would you rather have - the perfect trading system or the perfect soul-mate?

Don’t answer that out loud!

I would venture to say that most traders are so “into” their trading that they would hesitate and ponder that question.

By the way, the answer is the perfect soul-mate. That’s because there is no perfect trading system.

The perfect trading system is the right system for YOU.

Let’s assess.

Are you the Impatient Type?

Let me stress here that by impatient, I mean that you don’t like the notion of waiting more than, say, a day, to see your trade results.

You use logic like “I don’t like to stay in a trade overnight, because that’s where the risk is…anything can happen in these crazy times.”  Or…

“My signals are just as valid with a 60 second chart as they are with a weekly chart and I’d rather be able to keep adjusting.”

These things that you say to yourself (valid or not) come from your inner-self trying to move you to comfort.

Are you the Position-Trade Type?

You say, “The market can be controlled short-term, but eventually the fundamentals come home to roost.” Or…

”I’m not looking to eat up my capital in transactional costs. As far as I’m concerned, the trend is your friend and I’ll stick with a trade.”

Are you the Where The Action Is Type?

You tend to think, “A signal is a signal, whether it’s on a 2-minute chart or a monthly.  When my signal sets up, I GO!”  You add, “Sometimes I don’t even know which (stock/commodity/currency) I’m looking at.”

“That really doesn’t matter to me. I just care about the technical pattern.”

I won’t bore you with more types, because they are unlimited. In my coaching of traders for years, these above types were the predominant ones.

There is no right and wrong type.

There is only assessing which type you are comfortable with perceiving yourself as and then committing to a trading system that reflects that type.

There are plenty of winning trading system, of all types, that can be very successful. The best way to have a good system work for you is if you can follow it’s signals without hesitation.

You are more likely to follow your trading signals if the system “agrees with you.”  Now look inside yourself. Then commit to following what your tested system tells you to do!

You must win the BATTLE WITHIN YOURSELF first, before you can win in the markets.

RECOMMENDED: TradingMind Software

**Norman Hallett spent 21 years as a successful trader and CTA before starting Subconscious Training Corporation. His company developed TradingMind Software, the industry’s leading mental/emotional training tool for traders who understand the importance of being disciplined and focused in their trading.

And now, on to business…

The markets are still in the red today as Bernanke’s hawkish comments on fighting inflation continue to weigh on the market.  The good news, at least so far, is the major market indexes are well off their lows of the day. Panic selling just about over? Stay tuned – today’s market close could provide some clues.

But here’s a stock whose buyers are not too concerned with market weakness today…

Stock For Review

Our Stock For Review today is OII – Oceaneering International Inc.

OII has basically ignored recent market weakness and is actually close to new all-time highs today, as it forms a Piercing Pattern back to the upside. This action is taking place on volume 90% above normal.

OII may allow you to go “oceaneering” on a cruise with the gains in your portfolio!

Most Recent Double-Digit Percentage Gainers In One Day…

Here are a few of the DDPG’s since our last update:

They were few and far between in Monday’s market swoon, but we still managed to snag one.

CUP – Up another 14.37% for a two-day gain of 28.38% in our ARM Plays area.

Product Of The Day

How Does The Stock Market Work? Here are the tools our favorite 13-year old home-schooled girl uses to beat the stock market…

Let’s Go Stock Fishing! Get a video each and every day on how the stock market works!

The 12 Most Valuable Candlestick Signals DVD Set! Master these easy-to recognize signals and you’ll know exactly when to buy and when to sell!

Stock Market Gift

A Stock Market Gift (Or Two), And… What Goes Around Comes Around, A True Story…

Today I’m going to do something a little different. I’m going to give you two stock market gifts, and tell you a true story that proves “what goes around comes around.”

So let’s get right to it…

What Goes Around Comes Around – A True Story…

His name was Fleming, and he was a poor Scottish farmer.

One day, while trying to eke out a living for his family, he heard a cry for help coming from a nearby bog. He dropped his tools and ran to the bog. There, mired to the waist in black muck, was a terrified boy, screaming and struggling to free himself. Farmer Fleming saved the lad from what could have been a slow and terrifying death.

The next day, a fancy carriage pulled up to the Scotsman’s sparse surroundings. An elegantly dressed nobleman stepped out and introduced himself as the father of the boy Farmer Fleming had saved.

“I want to repay you,” said the nobleman. “You saved my son’s life.”

“No, I can’t accept payment for what I did,” the Scottish farmer replied, waving off the offer. At that moment, the farmer’s own son came to the door of the family hovel.

“Is that your son?” the nobleman asked.

“Yes,” the farmer replied proudly.

“I’ll make you a deal. Let me take him and give him a good education. If the lad is anything like his father, he’ll grow to he man you can be proud of.”

And that he did. In time, Farmer Fleming’s son graduated from St. Mary’s Hospital Medical School in London, and went on to become known throughout the world as the noted Sir Alexander Fleming – the discoverer of Penicillin.

Years afterward, the nobleman’s son was stricken with pneumonia. What saved him? Penicillin.

The name of the nobleman? Lord Randolph Churchill. His son’s name? Sir Winston Churchill.

Someone once said what goes around comes around.

Jesus said it another way: “Give and it will be given to you. A good measure, pressed down, shaken together, running over, will be poured into your lap.” (Luke 6:38).

With my Trade Your Way To Wealth website, I’m trying to give back – with personal anecdotes and stories that hopefully will provide some measure of personal enjoyment and profit to whoever reads and studies them. I truly believe that “what goes around comes around”. I believe that you cannot do some good for people without that good coming back to you tenfold.

I hope you feel the same way.  Help me spread the good news.

Need some help? Think about becoming an affiliate for Trade Your Way To Wealth. Let’s do what we can to make this world a better place. And see below for your stock market gifts.

And now here’s your fourth article in the Mental Fitness For Traders series…

“Mental Fitness for Traders” Series

Coping With Losses: A Major Key to Successful Trading

by Norman Hallett, former CTA/Trader

Be warned.

“Part of overall winning is taking losses along the way.”

“If you have 55% winning trades, you’ll win in the long run.”

We’ve heard it said a million times in a hundred different ways.

In any trading system, we will experience losing trades as well as winning trades. We know this.

So why is it that as we moved forward from trade to trade, we become frozen with doubt when the losing trades appear in bunches?

If you think about it, when winning trades appear in bunches, we get motivated and we look for reasons to find the next trade. We’re on a roll and we love it. We’re on top of the world.

The words “genius” and “professional trader” seem to fit us perfectly.

Conversely, when losing trades appear in bunches, we become fearful of the next trade and look for reasons to shy away from following our system.

We become filled with doubt and the words “gambler” and “loser” seem to describe us best.

OK, so why?

It’s because you’re are viewing our trading outcomes as reflections of you as a person.

This leads to the destruction of virtually all failing traders.

Negative personal evaluation leads to your being emotionally out of control, which leads to straying from your tested trading system … and the result…you’re trading by the seat of your pants (which should be pulled down and you spanked!).

You see, you must develop the mindset (and the true under-standing) that you are a winning trader whether you are experiencing a run of losing trades or winning trades.

Your self-image of a winning trader allows you to glide through losing streaks so you can be there for the winning streaks.

Most new and “intermediate” traders do NOTHING about their mental trading fitness. They are willing to spend thousands of dollars on “holy grail” systems and out-of-town seminars, but are totally neglecting mental conditioning.

You should be training as hard on your mental fitness as you do on preparing your trading signals.

As a broker/trader/CTA for 21 years, I have probably seen 50+ trading systems that were money makers, IF you had the mental/emotional strength to follow them!

You need to find a system that suits your personality (more on this next week), back-test the system, appropriate the money to trade the system, and then GO FOR IT.

The “go for it” part won’t actualize without the mental strength to take the good with the bad.

RECOMMENDED: TradingMind Software

**Norman Hallett spent 21 years as a successful trader and CTA before starting Subconscious Training Corporation. His company developed TradingMind Software, the industry’s leading mental/emotional training tool for traders who understand the importance of being disciplined and focused in their trading.

And now, on to business…

The markets are back in the red today as geopolitical tensions and the rising price of oil are taking their toll on traders’ psyches. Not to mention news that the service sector of the economy is slowing down. The Dow is down 73 points and the NASDAQ down 17.

We’ll see if the market can get any traction by the end of the day, but it’s not looking very promising so far.

But here’s a stock getting some traction today…

Stock For Review

Our Stock For Review today is IDCC – InterDigital Communications Corp.

IDCC is breaking out of a Fry Pan Bottom cup base and hitting new three-year highs on volume 100% above normal.

IDCC may be a good stock to cause new highs in your own portfolio!

Most Recent Double-Digit Percentage Gainers In One Day…

Here are a few of the DDPG’s since our last update:

We bagged six of these bad boys last Friday (6/2/06)!

IFO – Three DDPGs in a row with another 10.55% gain, making it 37.92% just in the past three days of trading, in our Amazing Amex Movers area.

MED – Up 10% in our Amazing Amex Movers area.

XNN – Up another 11.9% on top of the previous day’s 16.67%, making it a two-day gain of 28.57% in our ARM Plays area.

SIMC – Up 17.54% in our ARM Plays area.

CUP – Up 14.01% in our ARM Plays area.

BOOM – Up 17.83% in our Stock Fishing Portfolio.

Products Of The Day

Stock Market Gifts for you today – nothing for sale! Just two e-books for your reading pleasure… (click on the following links to download the e-books – they are in PDF format). Enjoy!

The Amazing Power Of Japanese Candlesticks E-Book

Stock Market Miracle E-Book

Stock Market Seminar

A Stock Market Seminar In The Privacy Of Your Own Home – Each And Every Day? Here Are Two Ways…

I very rarely go to those multi-thousand dollar stock market seminars any more.

I have several reasons. Here are a few:

1) Some are just scams. You may have seen these on late-night TV infomercials. Now, I’m not about to say that ALL these are scams, but let me ask you a question. If someone really had the “Holy Grail” of stock trading – say a piece of software that flashed green if a stock should be bought or red if the stock should be sold – and it worked every single time – why in the world would they sell that software for a measly $2,000? The owners would keep it to themselves, make a fortune, and retire to Tahiti.

2) Some teach systems that are too complicated and complex to use for the normal person. My 18 years of experience in the market has told me that the proper system is a KISS system – Keep It Simple, Student! (You are not “Stupid”).  Complicated systems with all this “whiz-bang” terminology tend to send most would-be traders into “paralysis of analysis”, leading to never even putting the first trade on.

3) My time is highly valuable to me. It now has to be something exceptional for me to put everything else on hold, hop on a plane and head to some far-off place to attend a multi-day seminar. Unless it’s in Las Vegas, then I may make an exception.

4) Finally, I simply know more about how to make money in the stock market than most of the seminar presenters. This is not said out of arrogance, but instead directed to some of the arrogant presenters, who are obviously simply trying to show the world “how smart they are” by explaining their “trading system” that only a rocket scientist could understand. I see these types of people in a certain trading chat room I frequent. I just chuckle and go on about my own system of finding great trade setups, and would not touch some of these guys’ recommendations, explained after dropping various arcane names and parameters, with a 10-foot pole.

Here are two ways of getting much better information into your home at a tiny fraction of the cost of these thousand-dollar stock market seminars.

The first way is to sign up for my Trade Your Way To Wealth Stock Fishing service. I provide a 20-minute video presentation (on average) each and every day the market is open. It’s like having your own personal mini-seminar every day. You can watch the videos over and over again until the simple concepts I’ve used successfully for over 15 years become second nature to you. For just pennies a day, I guarantee you will get much better, profitable, put-into-practice-immediately information than most of those expensive seminars offer.

And here’s another way to get this kind of information into your home – as much information as you want on any kind of investing and trading subject imaginable – each and every day.

I’ve found a brand-new service that’s growing like wildfire. Have you heard of Netflix? You rent DVD’s through the mail, watch them whenever you want, then mail them back when you’re done.

The service I’ve found is just like Netflix, but they only rent DVD’s related to investing and trading! And not only those related to the stock market, but, like I said, on any subject imaginable related to investing and trading – Forex, options, commodities, futures, indexes, how to figure tax gains and losses, you name it, they have it.

So now you no longer have to worry about spending gobs of money attending expensive stock market seminars. You can have even better information delivered right to your desktop or your mailbox. See below for details.

Netflix For Traders And Investors? Check it out!

And now here’s your third article in the Mental Fitness For Traders series…

“Mental Fitness for Traders” Series

Could This Be The “Huge Winning Trade” You’ve Been Dreaming Of?

by Norman Hallett, former CTA/Trader

It’s why we all signed up for the battle against the markets.

In the beginning, we read an article or saw a sales leaflet about a guy who took his last few dollars and parlayed it into millions in the markets.

It usually involved a simple secret that when revealed to you (for a few hundred dollars), you could have the same success.

Most of the time, we would chuck the article/leaflet into the trash as garbage, but at some low ebb in our psyche, the article read like the answer to our prayers.

Most of us joined the fray for the “big hit”.

Whether we 1-2-3-counted with Ken Roberts, waved with Prechter, seasoned with Bernstein, or banded with Bollinger, we all soon realized that if we were going to stay in the game, we needed something more than desire and a dream…

We needed a back-tested system that we could have confidence in.

We realized that we needed to take our emotions out of trading and look at trading like a professional… like a job.

Now, that doesn’t mean we can’t have fun, because winning traders enjoy their jobs like no others.

So, we either adopted a guru, inspected his archives of trades (that’s back-testing, right?) and watched him/her live for a while before jumping in, or we bought software to test a system we thought could work.

Our system in hand, we saddle up to the computer.

We have stops to defend against losing too much in one trade and we have limits to make sure we take our profits when our system tells us to.

After a mix of trades over the first few weeks, we hit on a big one.

The news confirms that we are geniuses and we are quickly heading to our profit target.

In fact, we’re just ticks away. Hey, this heat wave is bigger than anyone expected.  There’s no way beans (or that stock or currency) are NOT going to the teens!

“I’ll lift my limit and keep my eye on it.”

Market closes 5 cents above the (former) profit target.

“I’m getting good at this. I’m really developing a market ‘sense’.”

You decide you’ll put a stop right at your (former) profit target, so that if the market backs off, you’ll take your profit where you were going to anyway.

(OK, reader, you know what’s coming).

Rain in the plains overnight.

Soybeans open 26 lower. Stopped out.

Your genius turned a nice winner into a nice loser.

What happened?

The same thing that happened when you read that original ad that got you involved in all of this… You let your emotions take over.

If you’re still trading after a few years, it either means you have very deep pockets or you’ve learned to control your emotions and take the profit your system tells you to.

You’re going to need them to overcome all the losses …

and become the winner you know you can be.

**Norman Hallett spent 21 years as a successful trader and CTA before starting Subconscious Training Corporation. His company developed TradingMind Software, the industry’s leading mental/emotional training tool for traders who understand the importance of being disciplined and focused in their trading.

And now, on to business…

As I am typing these words, the markets are bouncing off their lows for the day – hit around noon EDT. The Dow is down 35.46 points and the NASDAQ down 6.2. The markets are concerned with the weak jobs report today, perhaps indicating corporate profits will be slowing down in the near future. The good news? That may cause the Fed to pause interest rate increases for awhile. But today the market is choosing to look at the negative side of things, at least so far.

With Thursday’s rather lackluster volume, it doesn’t count as a follow-through day, which means the markets are still searching for a bottom here to rally from.

Here’s a stock doing its own rally today…

Stock For Review

Our Stock For Review today is R – Ryder Systems Inc.

R is breaking out of a high basing area on volume 182% above normal.

R may be a good stock to “ride” out this market pullback with!

Most Recent Double-Digit Percentage Gainers In One Day…

Here are a few of the DDPG’s since our last update:

We bagged seven of these bad boys yesterday (6/1/06)!

IFO – Back-to-back DDPGs with another 14.84% gain on top of the 12.53% yesterday, in our Amazing Amex Movers area.

HSR – Up 11.53% in our Amazing Amex Movers area.

XNN – Up 16.67% in our ARM Plays area.

RHEO – Up 11.21% in our Baffle Plays area.

AEHR – Up 14.62% in the Gun To The Head Trader area.

DBRN – Up 11.97% in our VAL-CAN Portfolio.

RHAT – Up 10.11% in our VAL-CAN Portfolio.

Product Of The Day

A Stock Market Seminar in your home each and every day? Here are two ways…

Sign up to the exclusive Trade Your Way To Wealth Stock Fishing service!

Netflix For Traders And Investors? Check it out!

And here are some other tools I highly recommend for your trading success:

If you like our Mental Fitness For Traders article series, you’ll love Trading Mind Software! Get “mentally fit” for trading in the fastest time possible. Eliminate profit-killing emotions from your trading once and for all. Guaranteed results!

Read more about this incredible TradingMind Software!

Summer Investing Special!

Here’s yet another way to bring a stock market seminar right into your home! Enroll in the Trade Your Way To Wealth QuickStart E-Class now and save $500. Use the “summer doldrums” to hone your trading skills to a fine art!

If interested, click on the link below, and Tim will send you a special coupon code to sign you up immediately. Coupons are about to run out for this special. Better hurry!

Click here to get your special coupon code to knock off $500 from the regular price!

Click here for more information on the e-class!

Stock Market Forecasting

Stock Market Forecasting  – An Exercise In Futility, A Huge Waste Of Time, And Why You Don’t Have To Do It Anyway.

I get really amused when someone asks me “What do you think the market is going to do in the next few months?” As if I had some “insider information” or “secret knowledge” of stock market forecasting up my sleeve.

Now, like anyone else, I can come up with any one of several different scenarios of what I think the market will do in the future. And I can really sound “smart” when I expound on the future stock market trends based on what the Fed will do with interest rates, looking at chart trends and extrapolating them into the future, etc.

But here’s the real truth when it comes to stock market forecasting. It really doesn’t matter one iota what you or I think the market will do in the future. The market is going to do what the market is going to do.

Remember, the “market” is made up of human beings. These human beings have these things called “emotions” that will go bonkers to the “fear” side of things, then will go berserk to the “greed” side of things. That’s related to another thing called “human nature”. Can you confidently say you are able to predict how humans will react to anything 100% of the time? I rest my case.

But what if there were a way to effectively measure and monitor these human emotions at any point in time – especially as they relate to stock market investing and trading? That would be a much more useful thing to have, in my humble opinion, than the ability to forecast the stock market over a broader time frame.

The truth is, and this is where 99% of investors and traders go wrong, you don’t have to know where the market is going, you just have to know what it’s doing today.

And you know something else? Human nature is not going to change. It’s the same today as it was 2,000 years ago, and it will be the same 2,000 years from now.

A certain Japanese rice trader family in feudal Japan – over 400 years ago - tapped into this concept, and developed a system of rice trading that made them the equivalent of billionaires in their time. They developed a series of little markings on rice paper that indicated whether the price of rice was going to go up or down the next day. These little symbols look like candlesticks, and today the system is called the Japanese Candlesticks charting system.

And guess what we discovered over the past 400 years? This system works for any tradable entity with a high, low, open and close price. That includes the stock market of individual stocks.

These patterns tell anyone who learns the intricacies of the system the probable direction of that entity the next day, especially at key reversal points. Using this system, you don’t have to know what the market is going to do six months from now, because you can tell with reasonable certainty what the market will do the next day!

The ancient Japanese rice traders called this concept “let the market tell you what the market is doing.”

And the system is a visual depiction of human emotions, especially at the extremes of fear and greed.

So now you don’t have to worry about stock market forecasting. Not when you have a system to measure human emotions in the stock market each and every day.

I’ll tell you how you can get your hands on this system (that’s been newly honed and refined over the past 21 years), but for now…

Due to the length of today’s article, we’ll skip our Mental Fitness For Traders lesson for today.

And now, on to business…

As I am typing these words, the markets are off to a great start this month, with the Dow up almost 62 points and the NASDAQ up over 26. Maybe we just needed to get over the “stigma” of May – which this year was the worst month for the general markets since 1984! Good riddance! Time for a summer rally.

Here’s a stock doing its own summer rally today…

Stock For Review

Our Stock For Review today is SPSS – SPSS Inc.

SPSS is breaking out of a basing area to new highs today, on volume 219% above normal.

Here’s a secret… PSST! Buy SPSS for your portfolio!

Most Recent Double-Digit Percentage Gainers In One Day…

Here are a few of the DDPG’s since our last update.

We bagged five of these bad boys yesterday (5/31/06)!

IFO – Up 12.53% in our Amazing Amex Movers area. (And it’s up another 12.65% today!)

PAE – Up 10.37% in the Volume Plays area.

SIMC – Back-to-back! Up 11.59% on 05/30/06 and up 12.51% 05/31/06 in our ARM Plays area.

SGMO – Up 15.15% in our ARM Plays area.

WBD – Up 10.6% in our Stock Fishing area.

Product Of The Day

Stock Market Forecasting is no longer needed with our own Trade Your Way To Wealth Japanese Candlesticks Trading System!

Here’s the antidote to stock market forecasting!

And here are some other tools I highly recommend for your trading success:

Trading Mind Software! Get “mentally fit” for trading in the fastest time possible. Be sure to read the exciting testimonials on this page…

Read more about this incredible TradingMind Software!

Summer Investing Special!

Part of the Trade Your Way To Wealth QuickStart E-Class contains complete training in the ancient art (modernized and improved for the 21st century) of the Japanese Candlesticks trading system. I even include a set of candlestick flash cards so you can get up to speed on the most important signals in the fastest time possible.

Sign up for my Trade Your Way To Wealth Quick-Start E-Class right now, and I’ll knock off 500 bucks for the first ten students who enroll. Your success is guaranteed! If interested, click on the link below, and Tim will send you a special coupon code to sign you up immediately. Coupons are now running low, since we’ve been running this special for a few days now. Better hurry!

Click here to get your special coupon code to knock off $500 from the regular price!

Click here for more information on the e-class!