Sunday, October 03, 2010
I've been getting a lot of questions on how to use Bluefin from some people just starting out with their trading career.
The first thing you need to realize; there is no special combination of secret formula, magical gizmos, or super human abilities to being a successful trader.
Yes, some strategies are better than others, some will outperform others during certain periods of the market while others will outperform at other stages of the market.
You can drive yourself nuts trying to figure out why doesn't this list match the IBD list exactly? Or why do these stocks not mach those stocks in that list.
If this is where you getting hung up, you need to let it go and focus on things like: does this stock fit the criteria of a stock that would move in the direction I am trying to trade? Does this stock have the potential for a 5%, 10% or 20% move from this point? IF so, why? Does this entry point offer me the lowest risk entry for the most reward in the past 10 days?
The biggest factor impacting your returns is how you manage a stock from the point of entry to the time you exit. What is your plan to do that?
Just like taking up a new sport, you first need to learn the basics before you can advance. So where do you start?
How To Make Money in Stocks - William O'Neil
How Charts Can Help You in the Stock Market - Jiler
Lessons From the Greatest Stock Traders of All - Boik
Hwang, Chuan-Yang and George, Thomas J., The 52-Week High and Momentum Investing. Journal of Finance, Vol. 59, No. 5, pp. 2145-2176. Available at SSRN: http://ssrn.com/abstract=1104491
Chen, Hong-Yi, Chen, Sheng-Syan, Hsin, Chin-Wen and Lee, Cheng-Few, Price, Earnings, and Revenue Momentum Strategies (March 15, 2010). Available at SSRN: http://ssrn.com/abstract=1571883
The Stockbee site offers trading templates and tons of detailed posts on all of the concepts above. There are detailed explanations on every method available along with access to the Telechart scripts to recreate every indicator and signal in the system. Also, the Market Monitor is provided; an invaluable tool to know when to be in and out of the market. The cost is minimal compared to what you would pay to take any online courses on the subject matter covered. Trading Bootcamps are offered monthly and take you into the nuances of each of the StockBee methods. I've been and still am a subscriber since 2007.
Investor's Business Daily provides the "CANSLIM' investing method, a proprietary system created by William O'neil. IBD provides stock picks and a general market timing mechanism through their Big Picture. They also offer educational articles and videos through their site. Great site, but I have to say most people that go through it have a hard time interpreting the proper buy point for their cup with a handle pattern. This is where the StockBee MDT breakout comes in to play. I am also a subscriber to IBD online version.
Once you've learned the basics, then you will be ready to use a tool like Bluefin.