[Geester]

Does anyone use the advance/decline (AD) line? I'm reading chapter 8 but the indicators, apart from stage analysis, seem very specific to the NY markets? I'd appreciate any feedback/insights. Many thanks!

I use advance / decline data. There are a few charts on line and some of the charting providers might carry it. However, I suspect the US data is commonest. You can get US date from:
http://unicorn.us.com/advdec/

For some other data I calculate it myself. Which takes much more effort and has some large limitations.

Thanks for the link. The data looks like it does in the book! It serves to remind me just how old the book is now. I suppose that when Stan's organisation was maintaining this data, it was for all of his PTR subscribers. It must be a very arduous task for a single individual to maintain.

[pcabc]

Thanks for the link. The data looks like it does in the book! It serves to remind me just how old the book is now. I suppose that when Stan's organisation was maintaining this data, it was for all of his PTR subscribers. It must be a very arduous task for a single individual to maintain.

I've got my own database. It has taken a lot of time to develop and maintain. However, that is how I like to do it. Sensible people would pick a suitable charting service. Jump back 20-30 years and I'm sure that a team of people and a lot of expense would be involved to generate / track similar data.

[Smellypunks]

Not a question today but a textbook example of a stages 1-3 with stop-loss positions showing. Buy points marked as A and B, stop-loss marked with numbers.

[Ponki]

Hi all,

I am new here. Thank you for the awesome forum on this method.

I have been reading as much as possible of the old posts and various forums to ensure that I do not ask stupid questions.

My questions is what are your daily routines in finding these stocks. This is my current routine:

1) Inspect indexes ( I am fine with this)

2) Key in on on strongest sectors ( This is where I battle how do you define the strongest sector and over how many days)

3) Look for stocks with the said characteristics from these sectors for possible entries. (How many stocks do you usually end up with to manually view?)

Thus I feel like I get stuck at point nr. 2 the most as I am not sure how to go about it.

Another thing does anyone out here have any experience with HGSI Investment software or is stockcharts and chartmill the preferred tools if one invests mainly on the US markets?

Thanks guys!

[isatrader]

Hi all,

I am new here. Thank you for the awesome forum on this method.

I have been reading as much as possible of the old posts and various forums to ensure that I do not ask stupid questions.

My questions is what are your daily routines in finding these stocks. This is my current routine:

1) Inspect indexes ( I am fine with this)

2) Key in on on strongest sectors ( This is where I battle how do you define the strongest sector and over how many days)

3) Look for stocks with the said characteristics from these sectors for possible entries. (How many stocks do you usually end up with to manually view?)

Thus I feel like I get stuck at point nr. 2 the most as I am not sure how to go about it.

Another thing does anyone out here have any experience with HGSI Investment software or is stockcharts and chartmill the preferred tools if one invests mainly on the US markets?

Thanks guys!

Hi Ponki, welcome to the site.

To your questions, if you are using the Forest for the Trees method like this then stockcharts has a free sector view here: http://stockcharts.com/freecharts/indust...#&S=PD&O=2 which lets you filter them on intraday, and on various other settings. So you can find what the strongest sub sectors easily that way and drill down into the individual stocks within them.

Stockcharts is my preferred charting software for the method, but any charting software will do as long as it can set up the basic requirements of the method so that you can identify the stages correctly.

[Ponki]

Hi all,

I am new here. Thank you for the awesome forum on this method.

I have been reading as much as possible of the old posts and various forums to ensure that I do not ask stupid questions.

My questions is what are your daily routines in finding these stocks. This is my current routine:

1) Inspect indexes ( I am fine with this)

2) Key in on on strongest sectors ( This is where I battle how do you define the strongest sector and over how many days)

3) Look for stocks with the said characteristics from these sectors for possible entries. (How many stocks do you usually end up with to manually view?)

Thus I feel like I get stuck at point nr. 2 the most as I am not sure how to go about it.

Another thing does anyone out here have any experience with HGSI Investment software or is stockcharts and chartmill the preferred tools if one invests mainly on the US markets?

Thanks guys!

Hi Ponki, welcome to the site.

To your questions, if you are using the Forest for the Trees method like this then stockcharts has a free sector view here: http://stockcharts.com/freecharts/indust...#&S=PD&O=2 which lets you filter them on intraday, and on various other settings. So you can find what the strongest sub sectors easily that way and drill down into the individual stocks within them.

Stockcharts is my preferred charting software for the method, but any charting software will do as long as it can set up the basic requirements of the method so that you can identify the stages correctly.

Thank you Isatrader I truly appreciate the advice!

[Ponki]

Hi all,

I have another few questions. Currently I am reading the following books. Ho to make money in stocks - Oneil, Trade like a stock market wizard - Minervini, secrets to profiting in bull and bear markets - Weinstein.

Now although all the books differ to a certain degree they all share one common principle trading with the trend.

Thus the thing that makes Weinstein's book even more appealing is that fact that I work full time and its tough for me to follow Minervini's method to the T by watching the relative volume through out the day and then buying on the break out if the volume is there.

But what seems attractive w.r.t Minervini's method its seems more precise with regrads to position sizing... if I can call it that.

Look at the example of FCX since copper is breaking out.

Lets say you have a $20,000 account thus risking 1% per trade equals $200.

Now with a ATR of 1.63 and a stop loss of 3x of ATR = 4.89

Thus you trade will look like this:
Entry: 13.89
Stop: 8.95 (No round numbers)
Position size = $200/4.94 =40 shares *13.89 = $555.50

Now this is what I do not get your position size is not even 3% of your total capital?

Or would you do this trade and then add to the position (Pull backs to 10 week sma) and as the stock moves in your favor you average up and your position will get bigger with time?

---

FCX

[isatrader]

Hi all,

I have another few questions. Currently I am reading the following books. Ho to make money in stocks - Oneil, Trade like a stock market wizard - Minervini, secrets to profiting in bull and bear markets - Weinstein.

Now although all the books differ to a certain degree they all share one common principle trading with the trend.

Thus the thing that makes Weinstein's book even more appealing is that fact that I work full time and its tough for me to follow Minervini's method to the T by watching the relative volume through out the day and then buying on the break out if the volume is there.

But what seems attractive w.r.t Minervini's method its seems more precise with regrads to position sizing... if I can call it that.

Look at the example of FCX since copper is breaking out.

Lets say you have a $20,000 account thus risking 1% per trade equals $200.

Now with a ATR of 1.63 and a stop loss of 3x of ATR = 4.89

Thus you trade will look like this:
Entry: 13.89
Stop: 8.95 (No round numbers)
Position size = $200/4.94 =40 shares *13.89 = $555.50

Now this is what I do not get your position size is not even 3% of your total capital?

Or would you do this trade and then add to the position (Pull backs to 10 week sma) and as the stock moves in your favor you average up and your position will get bigger with time?

---

FCX

The position size is so small becuase the ATR value is very large on this particular stock. i.e. almost 12% movement a week. So the position size is much smaller because of this.

However, you are using the ATR value that I use for the investor method that focuses on weekly charts, whereas Minervini's method is for the trader method that uses daily charts, so I'd recommend looking at a daily ATR value such as the 20 day ATR, as you are going to be using much tighter stop losses than that, and hence your position size will be larger.