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PROSPERING IN THE MARKETS WITH THE
QUOTRADER SYSTEM
STOCK TRADING WITH THE QUOTRADER SYSTEM
The first question in trading is always when to enter the market. Is
it right to buy into falling prices or better to wait for them to
stabilize? Is it necessary to wait a little longer and buy only the
first move up after a fall? Should one chase rising prices or even
wait for a base after a rise? Is waiting even longer for a restart of
the trend after a pause the right thing to do?
The answer is: It depends, but not on the situation, as you might
have thought now. Instead, it depends on the trading system you use,
which should be clearly aligned to one or the other style. In other
words, one can make money in the markets with cyclical and
anticyclical systems. Just don't try to mix one method with the other,
unless you aim to be a trading genius.
The quoTrader system is completely cyclical. It trades at the
current high, for short term entry situations and also for longer
terms. This has two advantages.
For one, the probabilities are skewed to the trader's favor. The
high indicates a running trend, there is pressure that drives the
price further and makes an entry easier. Moreover, there is a trend at
all, which means prices are moving in the right direction. The
cyclical method is the faster way to become rich. Anticyclical traders
are more investors. They generally need a long life.
The longer trend and fundamentals do matter for a sound system.
Stocks could be traded solely on a day trading basis, but that means
giving up most of the possible gain. The real money is made by holding
when things go well and riding a trend for many month that at its best
finally overshoots by a wide margin. And this is where fundamentals
come in. Like prices, which run away once they have gained momentum,
revenues and earnings of companies that rise do this often with a
remarkable constancy. We have a growth stock. It pays off to take
rising revenues into account. Over all concentration on such stocks
will yield better results even if the targeted time horizon of holding
periods is much shorter.
One of the beauties of stocks is that they are essentially options
but without the expiration date. At least this is true for stocks on
the move. It is possible that they multiply their value by a large
factor, and yet, they can't go below zero. This alone is highly
interesting, because it offers the possibility of a random trading
system, just driven by stronger moves upwards than downwards. Of
course this effect only becomes noticeable if you hold a stock for a
longer time. Day traders go away empty handed.
Another fine thing about stocks is that there are stock markets, by
which I mean that there are thousands of possible trading candidates.
Compare that to Forex or futures. Together with ETFs, some of them
being short-instruments and others matching foreign markets or
commodities, there is always something to pick. Without the need to go
short you can still enjoy the option-characteristic of stocks.
A trading system must be self-consistent. All parts of the system
must fit together. Something that doesn't fit, while it may be the
right thing for another system, is like a grain of sand in the
machine, the money machine that is. So, is there a money machine? Not
only that there is one, there must be one, otherwise you could have no
system and trading would be only gambling.
Of course this machine can't serve everyone. As common sense tells,
there will only be few who can exploit a specific system. A system
that is trading the high and overshooting prices has fortunately a
relative large capacity and is able to support quite some people's
thirst for success.
Trading at the high means also something else. The quoTrader system
only buys stocks long and doesn't go short. Together with the rules to
allocate the trading capital to the right number of stocks and not to
use margin, at least not overnight, it more or less assures that you
can't go broke. Money management is the part of a trading system that
should be nothing but a pure machine.
Of course even the best system and the best money management can't
guarantee that a trader will not incur losses, contrary to what so
many snake oil salesmen want to make others believe. If that is not
clear to you, please read my . Astonishingly, chances that prices go
in the right direction relative to the wrong one are almost always
about 50:50. Perhaps it is hard to believe, but the best bet for the
price some time ahead is usually the current price.
The reason is the market itself. In most situations prices are near
an equilibrium. Not only that demand matches supply, but also chances
for up- and downwards move approach each other. The market mutates its
state constantly so that it is hard to figure out. It has to be this
way. But then, how to trade? You probably guessed it by now. Chances
can diverge when the price is on the move. That is why quoTraders
operate at the high.
Strict rules in a trading system are also important because there is
psychology involved. Again we find that a system that concentrates
either on cyclical or anticyclical methods and doesn't try to mix
them, is far more easy to apply. A system whose elements are uniformly
supporting either one or the other style is enormously helpful. There
are more than enough reasons to get confused by the markets alone.
Psychology is the deep problem of a trader. He needs a trading system
as a foothold for combating uncertainty.
The most basic rule for the concrete trading is the stop-loss. This
is the ingredient that makes cyclical trading what it is, meaning it
is far more than just keeping losses in check. If you enter a position
and don't get stopped out, you are on a trend. If you get stopped out,
the trend has come to an end. This is of course a simplified and
probabilistic view but it shows how a rule of a trading system steers
the trader into the right direction.
For anticyclical investing a stop-loss is devastating, because it is
contradicting the idea of buying as cheap as possible. This is a fine
example where in trading the right element can be in the wrong system.
The basic principle of the quoTrader system is to get on board of an
ongoing, starting or restarting movement with a tight stop in a
situation where price pressure gives statistically more often than not
a good start. The preselection of stocks at a longer term high with
rising fundamentals will then do, again statistically of course, its
magic and produce some bigger gains over time.
In short, the quoTrader system enters at the day high or near the
high of a short term move and that in a longer term trend possibly
with fundamentals also on the rise. This is the ideal, but in reality
it is more complicated than identifying a buy signal every time the
price is near a high in all time frames.
Prices can get ahead of themselves and become vulnerable to swinging
back. What we need are forces that are not exhausted. Oscillations are
a necessary occurrence in all time frames, otherwise the market would
be too easy, everyone could figure it out and everyone should win,
which is impossible. Then there is the "magnetic" effect of the whole
market. Relative strength can indicate price pressure even with prices
going down. The ideal of trading at the high has to be adjusted to
cope with these oscillations, random influences and index induced
forces.
What about swing trading? Perhaps it could not easily be seen as
cyclical, because the swing trader typically waits for a price retreat
and then for the first turn of the tide. The quoTrader system trades
preferably swings being in a longer trend. This way it converts the
regularity of swings in entry safety and exploits still the power of
the trend, which is a basic method for managing oscillations. You are
a swing trader and you knew this already or find it simplistic? Well,
look at your trading history and see if you applied your knowledge!
In reality things differ from the ideal and so a trading system
needs some robust rules for dealing with the real world. The quoTrader
system uses the daily bar chart, because it has a medium time frame
usable for short-term trading and holding a position for a longer
time. The system requires only a short time of work around and after
the open to analyze the situation, get directly in and out of
positions and set up orders for the rest of the day.
The other basic advantage is that daily bars are the most natural
time frame, mirroring our activity during the day and the pause of the
night. If you look at the market through the glasses of the daily bar
chart, you will find more regularities than with any other time frame.
The daily bar chart is the foundation for the entry patterns of the
quoTrader system. These entry setups allow for statistical advantages
exploiting more coherent movements that arise for short times from a
generally chaotic market behavior. Even the atypical usage of the
system for day trading is possible this way.
It is this advantage at the start of a trade that is psychologically
necessary for applying the stop-loss rule. Both combined with the
preselection of stocks with a longer term strength lets quoTraders
operate near the possible optimum.
You can get the quoTrader system right now and here. It comes as an
eBook in PDF format waiting to be downloaded by you. Just accept that
useful things have their price and you may improve your trading
substantially. Your payment is securely processed by Clickbank and you
will immediately be able to download your personal copy. Refund
requests are also processed by Clickbank. Don't worry, if the
quoTrader system is not for you for any reason, I have a 60 day money
back guarantee ready.
On 117 pages I describe detailed and with a compact style all you
need to know to execute the system. Here is an overview of the
contents:
* Short introduction of the basic idea and why the system is
suitable for a short-term oriented trading style like swing trading
and also for riding longer trends or growth investing.
* The preselection of stocks by long-term prospects. After briefly
showing why this is important even for swing traders, the exact
criteria are presented. What are the identifying features in a chart,
the fundamental situation of the company and its product spectrum?
Some long-term charts with revenues and earnings get discussed in
conjunction with products and background to demonstrate with examples
how to gauge the future potential of companies.
* Entry and exit. The technical part of the quoTrader system is
made up of 13 trading rules, 19 buy setups in 3 categories and 4 sell
signals. Don't try to judge now what exactly this means. This chapter
has an introduction that explains why I have structured the system
like this, how these elements work together and why it works. The
trading rules are simple to understand and easily applied and the same
goes for the sell signals. The buy setups are the more difficult part
despite a precise description of each. But, to get started, you can
concentrate on any subset of them you like. There are some example
charts depicting the buy setups. Most charts show more than one entry
situation and every buy setup gets illustrated at least once. For
traders who like to handle things more flexible, there is a part
devoted to fine tuning the hot entry phase.
* Money Management. This is an important ingredient of every system
and thus deserves its own chapter. With the help of some graphics I
show where the borderlines are, how to maximize results, what you
should never do, and where there is some freedom allowed suiting your
personal readiness to assume risk.
* Psychology is the trader's mine field. The quoTrader system is
executed by discrete entry and exit decisions and so its users need to
be aware of the effects of psychology. After a short introduction how
to use this chapter, this difficult topic gets discussed from three
angles. I start with preparations for using the quoTrader system and
go on asking the question "What can go wrong?" with a comprehensive
list of possible problems and answers how to counteract them. Finally
the question becomes even more embarrassing: "What will go wrong?". I
think it is necessary to face psychological difficulties that can't be
circumvented. These are the things that make up a trader's life, and
how he handles them distinguishes good traders from not so good ones.
* However, the technical part of the quoTrader system is designed
to be robust. As much as possible I wanted to diminish the influence
of psychology. Still, I think the psychology chapter has its merits
and to finish the book not on the grim side, I have at the end some
encouraging words for you.
I consider the quoTrader system to be a good investment. If you are
a trader struggling with the stock market who feels that there should
be more in it for you, it could be even a very good investment.
All the best,
Martin Wirblat
$97 - Buy now? Ok!
Prospering in the markets
with the quoTrader system
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