A guide to stock trading
strategy should include a system for picking
stocks that increases the probability that
your portfolio as a whole will result in
profits. The Japanese Candlesticks system
is one of several stock trading strategies
that does just that.
Market Direction
– The information from the last two Candlestick
Commentary newsletters could be repeated
here. The markets are in no great hurry
to establish any sustained upward direction.
A test of the recent low is still a logical
target. Heading into the summer doldrums
in a dull fashion could mean the summer
is really going to be sleepy time. The stochastics
show all the indexes are oversold. This
is the area that a blowoff could be expected.
If there is big volume and excessive selling
in the next day or two, be prepared to step
in and buy.
Participating in individual sectors has
been the mode of trading for the past four
weeks plus. You may notice that the Candlestick
Forum portfolio returns are up 34% since
the inception of documenting each trade,
starting Feb. 21, 2002. For those who have
been watching the daily picks, it should
be evident that the trades have not been
lengthy holds. The money has been shifting
from sector to sector in a relatively rapid
manner. Fortunately the candlestick signals
can quickly identify where the funds are
moving to and from. The short holding periods
are not the norm. But as seen in the returns,
the Candlestick signals still produce a
good return despite the market choppiness.
Unfortunately, as some of you have expressed,
you cannot go short in some accounts. The
Candlestick Forum is currently working on
creating a program for this market environment
that will try to be as effective as possible
in creating returns by being in all long
positions. Keep in mind though, that there
are mutual funds that can short stocks.
This allows the accounts that cannot short
to be able to participate in the downward
direction of certain sectors. They can buy
the short funds.
Portfolio Positioning – As mentioned
above, the portfolio of Daily Picks has
produced a 34% profit since Feb. 21, 2002.
This was done with a mixture of short and
long recommendations. The Candlestick strategy
is beneficial in an indecisive market. Using
common sense entry strategies, the Candlestick
investor is able to take advantage of the
market direction, not executing a potential
position if it is contrary to how the markets
are opening. If long and short positions
are executed on the same day, the direction
of the indexes helps the position going
in that direction while the other position
will still hold up well in a market going
against it. This is due to the strength
being revealed by the signal itself. This
simplistic hedging concept keeps the profits
net positive the majority of the time. As
seen in the past few weeks of trading, the
good trades provide decent profits, while
the incorrect trades are either not executed
or liquidated immediately with small losses
or flat. Exactly the way an investment program
should operate. Knowing how and why the
forces are acting behind the formation of
the signals creates profit opportunities
not found with conventional technical trading
programs.
Are you taking advantage of the Candlestick
Forum’s expertise? The purpose of the
Candlestick Forum is to educate investors
with the knowledge conveyed through the
signals. Whether you are a paid member,
or taking advantage of the two-week free
stock pick trial, or even just reading the
free Candlestick Commentary ezine, you should
be utilizing the staff of the Candlestick
Forum as often as possible. Please email
us with any questions about using the Candlestick
method. Remember our goal, to create the
most knowledgeable group of investors on
the planet properly using these techniques!
The participants of Mr. Bigalow’s private
sessions are walking away from them with
a new perspective on how to invest. They
have reported immediate, impressive results
from what they have learned after two days
of concentrated training. These same concepts
are illustrated throughout the website,
e-books, and the ezines. If you want to
learn the powerful revelations that the
Candlestick method provides for making big,
consistent profits in the markets, send
us an email or private message Mr. Bigalow
on the TCNet chat room. Do not be bashful.
For more information on private, one-on-one
consultations with Mr. Bigalow, call toll-free
1-866-251-4015.
Mr. Value’s Comments
I agree with Steve that the markets are
definitely short-term oversold. They may
go a little lower from here, but I think
we may be nearing a good time to do some
buying.
Monday was a profit-taking day, to say the
least! Some of the fundamentally strongest
stocks were not spared. My recent recommendations
held up pretty well, and did not violate
any key support areas.
The strongest sectors recently have been
the precious metal and gem mining stocks,
first the Golds and now the Silvers. Hecla
Mining was a big mover Monday, for example.
I am not averse to having a portion of your
investment capital in a fund such as GOLDX,
just for insurance. I do have a problem
with recommending any individual stock in
this group, since I want to be comfortable
with my picks for the longer term. I feel
that there may still be money to be made
in the Silver area, but there will be some
volatility there too.
Watch Cisco Systems (CSCO). Although I would
be reluctant to recommend it at a P/E of
107, it did form a Bullish Engulfing pattern
with a White Marabozu candle today. May
be worth a play if it opens up strong tomorrow.
Coming Soon…
-New “Candlestick Counsel” section of the
web site, with “Lessons of the Week”, based
on the most successful trade made that week
-Candlestick Quiz – Test your knowledge
of the signals!
-The long-awaited series of e-books on how
to use TC2000 or TCNet to set up PCF’s (Personal
Criteria Formulas) for the Candlestick signals.
-How to maximize your Candlestick education
via Candlestick Forum / TCNet.
-…and much, much more!
Watch for Mr. Bigalow’s article in the
June issue of Futures Magazine. “Candlesticks
and Gaps, Huge Profit Combinations”.
In Conclusion…
We hope you are convinced that
right
now is the most important time in history
to take your investing into your own hands.
As seen almost every day in the news headlines,
the evidence continues to be shown that
nobody is more concerned in making
you more money than
YOU are yourself!
Become a Candlestick Forum Member today!
We are 100% convinced we can teach anyone
how to successfully invest their hard-earned
money, even in today’s markets. Check our
track record in the “Previous Picks Follow-Up”
section of the web site – we are up over
34% since 2/21/02, without taking compounding
into consideration. There is money to be
made every single trading day. All you have
to do is know where to look! We will help
you find those successful trades, and those
exploding small companies and other special
situations before the rest of the world
has heard about them.
We don’t have hundreds of millions of dollars
in stock inventory to unload on an unsuspecting
investing public. We are not being paid
to continue to tout stocks as they drop
96% in value. We have no axe to grind in
any way, except to continue to harp on the
subject of why you must take your investments
into your own hands and learn to trade the
markets successfully. Folks, it is just
not as hard to make money in the markets
as the media, the big brokerage houses,
the high-paid research analysts, etc. want
you to think it is. Join us today and we
will show you how to do it!
Our basic service is still only $97 a
month. Compare this to our competitors:
Competitor 1 –
Wants $275 a month to even look at your
stocks to give his analysis of them.
Competitor 2 –
Charges $350 a month to give you market
comments and a global economic analysis.
Competitor 3 –
Charges $150 a month for a whopping 6 –
9 stock picks!
Competitor 4 –
Charges $200 a month for each of their many
different services – how do you choose?
Competitor 5 –
Get this one! A well-known investment newsletter
group sent out an email last week, wanting
$1,000 to tell you the name of ONE stock
that may double in price soon! I guess Mr.
Value should have done the same thing when
one of his picks doubled last month.
Well, you get the picture. And, quite frankly,
our $97 a month pricing is only in effect
until we fill our “core” group of Members.
Then we will have no choice but to raise
our rates, as we add more and more valuable
products and services. But the core group
will enjoy the $97 a month rate
forever
as long as the Members remain active. This
we do in sincere appreciation for the brave
few who immediately see the value in what
we offer and become Core Members.
Enough ranting and raving for this issue.
Bottom line, we would love to have you as
a Member of The Candlestick Forum if you
are not already. Our goal is simple – to
provide the most valuable investment web
site on the planet!
Join us today!
Good Investing,
The Candlestick Forum Staff
www.candlestickforum.com
