Martha Stokes CMT teaches you how to prepare for the most active trading season...
MetaStock® SPRS Series - Week 134 – August 30, 2013 - MetaStock Spatial Pattern Recognition Skills Series written by Martha Stokes CMT
September through February are the busiest and most active
trading months of the year, with heaviest trading volumes and higher
energy. Even though August appears to be
quiet on the surface, there is a huge amount of activity just below the
slumping Index action. If retail traders only watch the indexes they miss all
of the underlying activity in August, which gives vital information about what
to expect for trading in September and forward.
Explorations that are customized to follow the indexes, do
not track what is crucial to successful trading. Without this information
retail traders are utterly reliant upon less than 10% of the listed stocks, and
NONE of the Exchange Traded Derivatives which at this time is 1,395 ETFs. The
NASDAQ currently has 2,663 listings, the NYSE has 4,632, AMEX 438, and OTCBB 1,076.
The S&P500, Dow, and NASDAQ only represent 630
companies.
The remaining 9,574 trading instruments on the exchanges
represent a far larger body of stocks that do not always follow the lead of the
indexes. In fact of you were to study this huge group of stocks and ETFs, you
would discover that often times these lead the indexes. This is because they expose
the direction and sentiment of the giant funds. They reveal the Sell Side
institutions and Buy Side institutions and their interest or lack of interest,
their accumulation or their distribution in and out of sectors and industries, and
whether they are going to move into large cap or are vested in smaller cap
stocks.
All of this information is available IF you use Explorations
that are defined to track the institutions both Sell Side and Buy Side, and
where they are placing money and where they are rotating. This activity is not
seen on the indexes. It can only be studied by using Explorations designed to
expose what is going on with the vast majority of stocks and ETFs that are not
listed on indexes.
If you are a TechniTrader® Student using our Advanced
Tools specifically designed for MetaStock, you have all the Explorations you
need to study the underlying market beneath the major indexes in relation to
how the indexes are performing. In
addition you also have specific Explorations for your trading styles such as Swing
or Position trading, price levels, strategies, and quiet accumulation tracking
bottoming or topping action.
The goal of trading should be to streamline your trading
process so that you spend more time trading and less time trying to find stocks
to trade. This means understanding the
market conditions so that you can select the right stocks for the current
trading conditions, the correct strategies to use based on which market
participants are in control of price at that time, and the overall sentiment of
the underlying securities because these lead the market action most of the
time.
If you are still using the 3 major indexes as your guide to
trading you are missing a huge chunk of critical information. This can be one
of the reasons for chronic losses, whipsaw trades, and disappointing net
profits. Upgrade your trading process by
incorporating not only the 3 major indexes, but also the analysis of the bulk
of the market which are the underlying securities not listed on the 3 big
indexes.
For more information regarding Explorations that are defined
to track the institutions both Sell Side and Buy Side, sign in to watch a free
TechniTrader - MetaStock Webinar "Explorations: Beyond the Basics" CLICK
HERE or http://goo.gl/bhE7F3
Trade wisely,
Martha Stokes CMT
Member of Market
Technicians Association
Master Rated Technical
Analyst for Decisions Unlimited, Inc.
Instructor and Developer of
TechniTrader® Stock Market Courses
For additional training
visit http://technitrader.com
This Stock Discussion and
Training Lesson is sponsored by TechniTrader.com
MetaStock® Partner
©2013 Decisions Unlimited,
Inc. dba TechniTrader® All Rights Reserved.
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