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Swing Trading Weinstein’s Theory of Relativity to Profits
 

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Thursday, September 6, 2007


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    Thursday, September 6, 2007

Swing Trading Weinstein’s Theory of Relativity to Profits
When Stan Weinstein was first featured in the famous book, "Market Wizards: Interviews with Top Traders", by Jack Schwager, he stood out as a trader with the highest win/loss ratio. He finally revealed his method in his only book, "Secrets For Profiting in Bull and Bear Markets," for the long-term investors. This informative book covers many aspects of trading, including rules of do's and don'ts as well as a single methodology in finding the right stocks with setups to enter and exit.
This book is mainly for investor and speculator (or trader as he termed it). Investor is a person who holds a position at least 3 months while a speculator trades 2-3 times a month. This is basically not for day traders but is at least the swing and positions traders.
His method requires a few simple indicators and tools to make the method work, including:
1. 30-week moving average indicator
2. Relative strength ranking indicator
3. Volume indicator
4. Trendline drawing tool
Here are the rules he laid in finding the right stocks:
1. Identify what stage the market is in. What stage it is the market in? In the chart below, Weinstein categorizes the stages of the market, uptrend, consolidation, and downtrend, consolidation and repeat again. Stage 1 and 3 is consolidation phases while stage 2 and 4 are trending phases.
2. Search the sector with strength. Compare the sector to the overall indexes such as Dow Jones Industrial Average or the S&P 500. See image below.
The first task is the search the best sector that is outperforming the indexes (for long while underperforming the indexes for shorts). Comparing this using the charts and compare to find where the strength lies. If the index is weak or getting weaker (by either moving sideways or downwards) while the sector is getting stronger (trending upwards). The image above shows the divergence in strength between sector and index.
1. Once the sector has been found showing strength (in bull market) or weakness (in bear markets) compared with the index, the next step is to check the charts in that sector to find the strongest stock. First by checking (refer to Figure 3 below to view each of these steps):
a. What stage the individual stocks are in: stage 1, 2, 3 or 4.
b. The 30-week moving average is used in identify the stages, direction of the trend, and the criteria to setup to take a position.
c. The RS reading is used to sort out the strong stocks from the weak. Any stocks above 0 are qualified, but the higher the positive number, the stronger it is.
d. Use the trendlines to identify the breakout points.
e. Resistance (for longs) or support (for shorts) is identified as possible obstructions to the stocks trending movement. The less the resistance/support, the more likelihood that the stock will make big moves without major problems.
2. Taking the entries on the best candidates by identifying high volume at breakout and entry level where the trendlines are drawn. By having a high volume breakout will determine if the stock will have enough interest to continue higher. This is an important criterion to take a position. With little or no volume, the breakout cannot be trusted. Remember a stop loss must be place when the position is taken. The stop loss should be below the last correction low (see chart below).
3. Exiting position happens when either the stage has changed from trending in one direction to another. The stops are placed just below the last correction low. So as the stock moves higher to new high, the stop is moved to the last low.
This is simple but effective method for long-term investors who do not and cannot dedicate full time to studying or watching the market. This method can be done in a couple of weekends and can be checked once a week if not more to keep abreast of the new market price action.

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Larry Swing CEO & Head Swing Trader swing trading theboss@mrswing.com +1 (281) 968-2718 Yahoo & Skype ID: larry_swing


How to Get Cheap Car Insurance for a Young Driver
Drivers under the age of 25, especially males, pay the highest car insurance of anyone. So how can you get cheap car insurance if you're a young driver? Read on ...
Cheap Car Insurance for Young Drivers
Here are the seven best ways to save money on your car insurance if you're a young driver:
1. Comparison shop - Because car insurance can vary as much as $1,000 or more between companies, comparing car insurance rates is the best way to save money on your car insurance.
The easiest way to comparison shop is to go to an insurance comparison website. Once there you'll fill out a simple questionnaire in order to get rates from a number of companies. Then you can compare those rates and choose the cheapest one.
The best comparison sites have insurance experts on call so you can get answers to your car insurance questions through an online chat service or by telephone. (See link below.)
2. Raise your deductible - Raising your deductible from $250 to $500 can save you up to 30% on your yearly premium. Raising it to $1,000 can save you up to 50%.
3. Consolidate your insurance - You can save up to 15% by placing your policy with your parent's policy.
4. Take a driver's training course - Taking a driver's ed course can save you 10% to 15% on your insurance premium.
5. Keep your grades up - If you're in high school or college, getting good grades will get you a discount with most insurance companies.
6. Buy a conservative car - If you're in the process of buying a car, purchasing a conservative car like a Honda Accord, as opposed to a souped-up muscle car, can save you up to $1,000 or more a year on your insurance.
7. Safety and security features - Insurance companies will give you discounts for anti lock brakes, air bags, and automatic seat belts. They will also give discounts for having a burglar alarm or other anti-theft device installed in your car.

Visit http://www.LowerRateQuotes.com or click on the following link to get cheap car insurance quotes for young drivers from top-rated companies and see how much you can save. You can get more insurance tips in their Articles section.

The author, Brian Stevens, is a former insurance agent and financial consultant who has written extensively on cheap car insurance quotes for young drivers.


Financial planning and personal loans
Many people do not save money for the rainy days ahead. In a recent survey from National Savings & Investments (NS&I), it was found that 55 percent of people do not have any financial plan for the future. There was also a gender bias involved in financial planning. NS&I, the financial services firm, found that women were more likely than men not to have planned their financial future. Two-third of the women as compared to half of the men made no financial arrangements for their future.
The most interesting aspect of the survey was that only 11 per cent of people were found to have a detailed strategy for handling their money. Around one-third of Brits said that they do not worry about their personal finance problems because they expect to either earn more money in the future or receive a windfall of some kind or be able to borrow whenever the need arises.
Personal loans are the most dependable option when it comes to an easy and quick financing. The 'me now, debt later' attitude of the Brits sometimes spells financial trouble for them. Although a careful and meticulous planning is not a guarantee against any financial hiccup, but still it can do wonders in alleviating needless financial troubles.
Quick personal loans are very much popular in the UK. A resident in UK can get up to £25,000 without providing any security. The repayment period may be from six months to 8 years depending upon the lender’s policy and your individual circumstances. The interest rate on such loans starts from seven per cent and may increase with every adverse condition of the borrower.
You can take out personal loans by applying online. The online process is not only easy but time-saving also. Besides, you get several loan deals from the lenders to choose from.
About The Author: The author is a business writer specializing in finance and credit products and has written authoritative articles on the finance industry. He has done his masters in Business Administration and is currently assisting Cheap Personal Loan as a finance specialist.
For more information related to personal loans please visit: http://www.ask4loan.co.uk