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We started our relationship in 1992 when I purchased Swing Catcher. I want to tell you of my experience as a young trader and hopefully as a new member of the CTCN.
I began acquisition and trading without any experience for a German company in January 1987. Three weeks later I got my first client and money for trading in the stockmarket (S&P 500).
The first money I earned I spent it all on books, articles and brochures, etc. I decided to learn everything about the markets. There was nobody who helped me to learn, so I became a do-it-yourself trader. Everything was cool in this time, because we have had a bullmarket in stocks.
My first really bad experience came in October 87 on that bloody Monday. I lost all the money in the market and was really shocked and depressed. But this situation gave me one of my most important rules, I discovered later, that the trees never grow too high into the sky and the markets are not a one-way-road. So, I stopped trading and left the company and went out for a holiday in Spain. There, I had much time to think about what I really wanted to do.
All I wanted to do was trade! So I went back to Hamburg, changed the company and started again, but I was so afraid of losing money, that often I stood apart of the markets. It took so much time to lose my fears, but slowly I listened to my feelings (intuition) and a small success in trading helped me during this difficult period.
At this time, I read an article in a German commodity newsletter, concerning mechanical and trend-following computer systems. I was very interested in that and I spent money for a system called "MESA" and an additional program called "EPOCH." I had bad experiences with these programs, so I was generally disappointed in computer forecasts. I stopped the trading with these programs and decided to use my own program (intuition and psychology).
The trick is that a trader always uses a system (consciously or unconsciously) but he has to find his individual system or method. I found this for myself as I started trading with Swing Catcher in 1992 and was surprised how precise it was and is! With Swing Catcher System, I need not ignore my feelings about market moves, so I combined technical research, technical forecast, individual intuition and some important rules for best results.
My most important rules are: taking small losses - taking big profits - discipline on money management!! - not to break rules and to know when to break rules!
These are the results of 5-years trading experience and I hope I can share the wisdom and knowledge of other club members and traders.
Globex Data - Luis Lobo
I believe the hypothesis about using non-globex data and excluding Globex/Night Session Data is correct. I was beginning to get some nonsensical signals when globex data was included in the financial data from CSI. In fact, one of my losses in the Japanese Yen could have turned quite profitable if I had been receiving globex-free data at that time.
But one lives and learns. I was lucky that I only had one currency position at that time.
Gann & Fibronic Trading Technique - George Cooper
This program, Advanced Get squares time and price to supply a reversal date, in this case, the 26th of May. It is usually within a day, one side or the other of the protected reversal.
The program enables me to draw the trend line from the (7102) down to 26th of May. When the price breaks above both the trend line and the DMA Line (divergence measuring line) I then consider going long.
I usually draw a trend line hitting as many tops or bottoms as is possible to the G.E.T. projected reversal date.
I would expect that there would be much more down move since the D.M.A. line is so distant from a (1085) minus B (1310)=(225 x .62=139.5 plus C (1193)=1333.
The .62 retracement projection. 225 plus C,=(1193)=1418 for a 100% retracement if the 1418 projection is penetrated. I then multiply 225, the distance from A to B by 1.618 and add the result 364.05 to CDR, 1193.
The result is 1557 for a 1.62 retracement if the 100% is broken. I use this method when G.E.T. projections are off the chart, as they are on sugar at this time. Charts in Print Copy.
A Unique Way to Reduce Commission Costs - Ashley Crowell
The booklet by George Angell "The Essential Secrets of Day Trading" in which he says: "A little-known method of cutting your commission cost is to join an Exchange." This doesn't mean that you have to trade on the floor in Chicago or New York. But it will give you an opportunity to trade like professionals at a very low cost.
Now, the price of some exchange seats can be in excess of a half million dollars. There are less valuable seats selling for a fraction of that cost.
Take the MidAmerica Commodity Exchange, a division of the Chicago Board of Trade. The MidAmerica's seat price varies. Right now, it is considerably less than $10,000. Once you own the seat, your only obligation is to pay the $1,000 annual dues.
As a MidAm member you will be entitled to commissions as low as $8.00 per round-turn on non-MidAm contracts. If you want to trade MidAm contracts, you would pay just $1.00 a round-turn if you accomplish the trade in the pit or just $3 or $4 if you call in your order and have a floor broker fill the order for you.
For any active trader, purchasing a membership on an exchange - even if you don't plan to be a full-time pit trader - makes a lot of sense.
For more information contact: MidAmerica Commodity Exchange, Memberships, Chicago Board of Trade Building, 141 West Jackson Blvd., Chicago, IL 60604
Angell's text continues with: "Another very inexpensive membership is that of the Chicago Rice and Cotton Exchange, another affiliate of the Chicago Board of Trade. CRCE memberships have changed hands for just several hundreds of dollars. The real cost of the seat, therefore, comes from the cost of the annual dues which are payable on a quarterly basis.
At $1,000 a year, MidAm dues are just less than $85 a month - hardly the cost of two or three trades with the average broker.
Lastly, the purchase of a seat membership is an investment. The value of the purchase price could easily rise in value . . . Huge capital gain opportunities exist for the intelligent purchaser of exchange seats."
Trident System - Andrew Pustay
I just want to preface my comments with letting you know that the TRENDX Program continues to operate flawlessly.
I know it's been awhile since we touched base, but I want to bring you up-to-date about what we talked about in reference to the Trident System. I know we had many discussions in the past about the Trident System and how difficult the algebraic formulas are in terms of the P3 qualification, at least for me. What I've done was to sidestep that qualification procedure and look just for the Trident P1, P2 and P3 formation in conjunction with the TRENDX signal to go long or short and therein, I believe, lies the road to profitable trading.
Two recent successful trades which gave off just that type of signal was a short position in Wheat in January and a long position in Corn in March. The signals don't often line up but when they do it is hard to ignore and something that I will continue to watch for as an entry into a successful trade. I believe that this Trident pattern as it sets up with the TRENDX signal deserves further study and research. You may want to pass this info along to your other TRENDX users, especially those who may have the time to do the necessary research.
Good Timing - Paul Brown
Great idea Dave, this new Commodity Traders Club News. I wish that there would have been a letter like this when I started trading. One thing that I have had the misfortune lately to do is over trade. By this, I mean risking too much capital when trading. It is very easily done when you get caught up in the everyday routine of trading. It will reduce your overall efficient because you can't follow a slow or weak trade as long as you could, if you were capitalized correctly.
CSI Gets an A+ by Paul Brown
During my trading adventures so far (8 months) I have found that receiving daily data from CSI is very convenient. There is never usually more than a 30-second wait and the data is very reliable.
I have also purchased Quick/Plot Quick/Study programs. It is a very good bargain for $99.00. It will do an array of things like moving averages, weighted RSI and there own CSI trend. I have found it very useful and worth the money!
ROLLOVER CALENDER - Rick Lorusso
This easy-to-use commodity contract rollover calender was developed by member Rick Lorusso as a convenient way to keep track of the recommended contact months and the dates contract rollovers/switcovers should be done. Calendar in Print Copy
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Thanks to everyone who has contributed knowledge to this issue of Commodity Traders Club News. Without you it would not be possible. P.S. - Remember, as a special reward for making just one contribution/submission per year, you'll receive an automatic 50% price reduction on your renewal. Submissions can be any length, long or short; typed, handwritten or submitted on a disk. Formal or informal. Please participate by sharing your information and knowledge with other traders. Please make a contribution about your experiences, both good & bad with systems, services, advisors, data vendors, and other trading related product.
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