Welcome – Now Let’s Start Making Some Money!
Please Read The Below In Full
Thank you for becoming a member of Alphatrends. The Alphatrends community has helped to train and mentor thousands of traders worldwide since 2005. The knowledge I have accumulated in my 20+ years of day to day experience trading the markets is something I enjoy sharing. I have a passion for helping others and I am glad that you have entrusted me as an advisor and to nurture your success.
WHERE DO I START?
As soon as you start, you will navigate to your “Account” section and click on the “Day 1” material. This will get you acquainted with the Alphatrends style of trading. Please read all the way up to “Day 5” to get the full Alphatrends experience and to get familiar with our strategies.
I AM A TOTAL BEGINNER, WHAT DO I DO?
No problem! If you’ve read the intro education (Day 1 – Day 5) in your “Account” and don’t understand the material. We have a trading course for you that will definitely help mold you into a successful stock trader. It is called the Alphatrends Trading Academy and can be viewed here – https://alphatrends.net/education/. I’ve written an in-depth book on Technical Analysis and consider it a must-read. You can find the book here – http://www.technicalanalysisbook.com. If you are taking the Alphatrends Trading Academy course, this is a great supplement.
I’VE READ THE EDUCATION LOCATED IN MY “ACCOUNT” SECTION, NOW WHAT?
Great! Now you should head over to the blog every day to view important updates about the market, new trade ideas to capitalize on for big profits, and continued education via Webinars, Videos, and Blog Posts.
I WANT YOUR STOCK PICKS & TRADE IDEAS, WHERE DO I FIND THEM?
Every evening we will post new trade ideas with the title “Stock Trading Ideas For…” with the date for tomorrow. Every member should read these stock picks for the next day to help formulate their trading plan. During market hours, you should be in the Alphatrends Chat Room to receive LIVE trading ideas, collaborate with other traders, and make money! The chat is located here – https://alphatrends.net/chatroom/
I WANT THE BEST PLACE TO TRADE W/ THE LOWEST FEES, WHERE DO YOU TRADE?
I trade at Liquid Tree Group (http://www.liquidtreegroup.com/). It’s a proprietary trading firm that gives me an edge in the market by offering extremely low trading fees, a large amount of firm capital to trade with, excellent reporting, lightning fast execution, and more. Every Liquid Tree Group member will get a 20% OFF discount at Alphatrends.net
WHAT IS THE POSTING SCHEDULE FOR EACH BLOG?
Stock Trading Ideas – This is a daily video detailing what important stocks I am looking at and what levels to keep an eye on. Every day around 5-7PM EST, keep an eye out for this post to have a trading plan for the following day.
Mid-Day Video Updates – This is a daily video posted around 12-1PM EST to keep you updated on our Stock Trading Ideas and the current performance of the market. It’s a very important video so don’t miss it.
Stock Market Video Analysis – This is daily video available around 4:30PM EST located in the blog. It is designed to give you my overall analysis of the markets. It’s an important video to see what’s going on in the market as a whole, and to formulate your plan for the following week.
Webinar Recording & Trade Ideas – This is a Webinar conducted every other Monday that will contain a Q&A session for members so they can learn, collaborate, and ask trading questions.
Everything else has no set schedule but will be updated frequently. We will be posting new education, Webinars, and Videos periodically.
If you still have questions, you can send an email to firstname.lastname@example.org and I will answer it personally. Please try to be concise in your email, I will get to it quicker that way, but please do allow me a business day to answer.
As for individual stock advice, the only time I do that is in the chat room and in the live webinar, which is held every other Monday night.
If you are interested in one-on-one mentoring, it is something which I provide on a limited basis, please send me an email with your phone number and a good time to call so we can discuss.
ANSWERS TO FREQUENTLY ASKED QUESTIONS:
Which moving averages are better to use, simple or exponential?
Moving averages often act as an area of support in an uptrend or resistance in a downtrend. There are many times that a stock will blow right through an important moving average, leaving those who bought or sold short at that level with losses. Unless you are a systems trader, the correct way to utilize moving averages is as a visual reference point where there is the potential for support or resistance. Like any potential support or resistance area, a moving average gives us a reason to study price action more closely on a shorter timeframe for actual evidence that the supply/demand relationship is changing.
So, here is the answer to the question.. whether you use simple or exponential moving averages is irrelevant. The simple and exponential moving average will generally be quite close to each other and we will have plenty of time to observe the shorter term price action for evidence of trend change using either one. All the charts you see on Alphatrends are simple moving averages because that is what most people look at and I am most interested trying to understand the psychology of the majority of participants.
Why do you often suggest more than one level for stop losses?
The official ideas have suggested stop levels which are often 2-3% from the entry price and not everyone is comfortable with stops so far away. The focus of Alphatrends is swing trade setups but those setups often provide excellent day trade opportunities. A day trader who is looking to hold the stock for the initial momentum in the trade will often want immediate action once the stock triggers and will recognize failure of that momentum to materialize well before a swing trader may wish to exit.
The alternative stop level is much tighter than the official stop level and will often times get triggered while the swing trade stop will keep a trader involved longer. It is up to you to decide how to use the stops in your own trading, sometimes it may even be appropriate to stagger your stops so that half of the position is exited on the tighter stop and the other stop will keep you in the balance. As with all the material on Alphatrends, it is hope that you can learn more about market structure and how various participants view the market, this information allows you to be more in tune and ultimately more profitable!
How important is it to know traditional technical analysis patterns like cup and handle, head and shoulders, etc.?
A solid understanding of basic technical analysis, including price patterns, is helpful but more important than remembering pattern names and identifying patterns is to understand the psychology of how those patterns develop and the motivations of participants which may trigger actionable price movement. The daily videos emphasize the psychology of participants and what may cause them to act at certain times for a deeper understanding of how price movement evolves.
I often cannot decide if XYZ is a long or short, what is the best way to know?
If it is not clear whether you should be long or short it typically means that you should avoid trading the stock until the message becomes clearer. There are thousands of liquid individual equities and ETFs to trade, if you have a favorite stock to trade that is fine, but don’t forget that cash is the best position during uncertain times, it allows you to objectively observe the action and have capital ready to deploy when the lower risk trade is revealed by the market.
Is Alphatrends just for day traders?
No, the primary timeframe we focus on is swing trade setups. While there is an active group of participants in the chat room who do day trade, the setups are always presented as swing trades ideas first, these stocks also happen to be great day trading ideas most of the time. It is up to you to decide which timeframe best suits your personality.
What about using fundamental as well as technical analysis?
I am generally aware of the fundamentals of a company, but about 95% of my decision making is based on technical analysis. As a trader, timing is key and regardless of how good a story may appear. If price action doesn’t support the story I consider it too risky to be involved. As I like to say “Only Price Pays!” So the majority of our analysis should be focused on price action.
What role does volume play in your analysis?
I think that analysis of volume for individual equities is much more important than the widely reported trading volume for the indicies. For equities I first look at volume as a measurement of liquidity to determine whether or not I want to get involved in the stock, anything less than 500K shares/day is typically where I cut-off my search for trade ideas.
Once I have found a stock of interest I like to see the general pattern of volume expanding in the direction of the primary trend followed by lighter volume as the stock experiences a corrective move in that trend. To me the volume represents the level of emotions (enthusiasm or disdain) the participants have for the stock. Increasing volume in a rally shows motivated buyers, while the lower volume corrective move indicates that there is a higher likelihood that the selling is simple profit taking and typically not the beginning of a reversal lower, the opposite would be true for a stock in a downtrend. I should point out that volume is a secondary measurement to price action but it is does provide us with a good insight into the collective psychology of the participants.
See www.onlypricepays.com for more.
What was the most important aspect in becoming successful in the market?
There are obviously a lot of components which factor into being consistently successful but a few of the more important traits shared amongst the best traders are: honest introspection and understanding of your personal psychology, quick thinking and able to be flexible as the market presents new information and a strong ability to be disciplined and follow our plan. For me I think that plan should be based around a solid understanding of market structure and a strong emphasis on risk management.
How important is it to know candlestick patterns?
Candlestick charts are more visually appealing than bar or line charts, beyond that I personally pay close to zero attention to the patterns they form. It is my belief that if you want to understand the message that an individual candle, or a group of them, you can learn a lot more by analyzing the data on a shorter timeframe. The detail from shorter time frames allows for a much clearer interpretation of the action on the larger timeframe.
Which timeframe is most important to look at on the chart?
There really is no “one best timeframe” to analyze. In order to achieve a true edge in trading it is imperative to study price action on multiple timeframes. A minimum of three timeframes (long , short and intermediate term) should be consulted before entering a stock position. For swing traders these timeframes should be 1- daily chart of 150-200 days for the long term trend recognition 2- 30 or 65 minute timeframe for 30-50 days for risk/reward determination 3- 10/5 or even 2 minute timeframe for 2-10 days to fine tune entries For daytraders the three suggested timeframes are 30/65 minute for long term trend, 10/5 minute timeframe for risk/reward determination and 2/1 minute charts for fine tuning of entry.
How much focus should be placed on price targets?
It is smart to have an idea where the stock has the potential to go (this is the basis of the reward part of a risk/reward ratio) but remember that a price objective is just there as a guide to help us decide if taking a position is justified. Once we actually enter the trade we have only one job and that is to manage risk! There is an often mentioned phrase that “winners take care of themselves” and to a degree that is true but we cannot sit idly waiting for our target to be reached and fail to lock in profits or to let a winner turn into a loser. The market does not care where we think it should go, it is going to do whatever it does and we need to listen objectively to price action and adjust our position size and stops according to that message.
Do you make specific options trade recommendations?
No, this is not an options trading service. I do not think that options are appropriate for a lot of participants but there are instances when they can be used to reduce risk. There are times when I will mention that I am considering options on a certain trade and fewer instances when I actually disclose an options trade I am in. Generally speaking, options are riskier to trade and should only be used by more experienced traders who fully understand the full risks. You are always welcome to ask about an option strategy you are considering and I will give you feedback on it as I would with an individual stock request.
Do you make specific leveraged ETF recommendations?
No, like options, leveraged ETFs have their own unique risks which make them inappropriate for a lot of traders. The End of Day video focuses on the major index ETFs and the kevels mentioned for those markets can be used to trade the leveraged products, make sure you understand how daily compounding can dramatically affect the actual returns of these products versus the relationship you expect to the non-leveraged ETFs. This is an excellent source of leveraged ETFs http://bit.ly/Ztcu29
What is the difference between the official ideas and the watch list ideas?
The official ideas are generally setups which show lower volatility and have more developed patterns which make finding actionable levels easier to identify than the watch list ideas. Official ideas are tracked (with fairly tight stop levels) for swing trades, while the watch list ideas are typically more volatile stocks or ones where the setup has not yet developed fully. We will often “stalk” watch list stocks for a few days and then they will become “official” ideas as the setups become clearer. There are often some very good trades which develop from the watch list ideas but they are best suited to day traders who can watch the action closely throughout the day. Both the official and the watch list ideas are monitored in the chat room throughout the day.
Do you trade all of the ideas mentioned in the videos?
No and neither should you! In fact, there are often stocks which I mention may be a good setup but that I won’t trade myself because the personality of the stock does not match my own personality. I know that stocks which look like “slower movers” are not ones I typically have patience with so I avoid those, but more patient Alphatrends traders often do quite well with them. There are a wide range of stocks covered each day and that is done intentionally to offer up low risk/high potential ideas which fit your parameters. Focus on the stocks which “speak to you” if you don’t understand or are not comfortable with the setup you will be more prone to making emotional (costly) decisions.
Why don’t you have an official track record posted?
No two traders will trade a setup exactly the same and no one will trade all of the ideas mentioned. There are a lot of personal variables which will greatly vary the trading results between various participants (are you comfortable buying on the open or do you wait for a pullback, do you sell partial positions on strength, do you only trade stocks under $10/share or maybe over $50?) The primary goal of Alphatrends is to consistently bring you ideas which are profitable and at the same time do not expose you to large losses. We have all seen “track records” from various sites and when you study them further you realize that most of the time the results were unobtainable. Alphatrends stands on the quality of information brought to you each day in an educational format. If you are unhappy with the way this is handled cancel your account in the first 7 days and you will not be charged.