BBS Trading Expert is available with the “BAND INDICATORS” DVD! Want to know more about “Capturing Profit with Technical Analysis”? AXIOM business books awards, forex 123 method medal for my book! AXIOM Business Books Awards, bronze medal.
A great majority of private investors are trading based on fundamental analysis. They are long term investors buying stocks that are kept in portfolio for the long term. The idea behind is that in the long run the stock market is basically rising. With this kind of investing the money must be spread among a bigger number of different stocks and sectors. This means that there must be sufficient starting capital and that it must be reserved for long term investing only.
A big disadvantage is the difficulty to define rules when to open and close a trade, because fundamental data is generally lagging considerably. Looking for an alternative based on technical analysis techniques you can use the BBS or the “Band Break System” presented here. Please note the formulas for BBS and indicators are proprietary but are licensed for private use with the purchase of the DVD. It is ready and you can have it for free.
Using technical analysis I believe there are two different approaches to look for buy and sell signals. This is not the easiest method, because you need a very broad knowledge of all the basic techniques and the know how to apply them successfully. A second method is to trail the price movement of a stock, buying and selling based on the fact that a short or medium term up or downtrend is broken, signaling a trend reversal. Here you have to find the most profitable balance between fast entering a trade avoiding as much as possible false entries and staying in as long as possible to let profits run. BBS uses this kind of method.
It should be clear that this kind of trading can only be profitable if the stock makes big enough price moves. A stock making only small moves over longer periods of time will not make you money. Therefore it is very important to make a selection of stocks that make regular larger moves over longer time periods. Later on I will give you some simple method to look for the right kind of stocks to be used with BBS.
Each stock will be traded individually with no profit or loss sharing with the other stocks in portfolio. This means that you must make a limited selection of stocks beforehand. Charting: Use a template with the special indicators that are part of the BBS system. BBS is not perfect: Keeping in mind that there is no perfect always winning system in the world, you have the possibility to decide for each BBS buying or selling signal to open or close that particular trade or not.
With the help of some special indicators, I will show you simple technical rules that will help you making this decision. That way you can make even more profit compared to the full automatic trading based on BBS that proves to be successful. Please note I will not include a description of standard techniques used. Find a Stock ticker symbol, enter the ticker and find a chart, news, fundamentals and historical quotes. Risk Disclosure: Futures and forex trading contains substantial risk and is not for every investor.