Daytrading Newsletter
for Active Traders

Vol. 3 - Issue No. 4
July 1999

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Dayraders: Here is "What's New" at the Daytrader's Bulletin

+ Find What's New at Daytrader's Bulletin
+ New Trade Parameters
+ Trader's Market Commentary - A Trader's Education
+ Candlestick Patterns - An Overview
+ Trading Rules - ADX
+ Recommended Reading
+ Software - NetPad
+ Pages of Interest - New Links

========== Find What's New at Daytrader's Bulletin
As new content is added it becomes more difficult to create links without overloading our Home Page. If you have bookmarked the interior pages, you may miss our new content altogether, except for what you read in this newsletter. Here are a few links to useful pages to find "What's New."

W H A T' S N E W: You can find "What's New" by clicking the Globe/Envelope icon entitled: "Bulletin News & Articles," (found on many pages) or use the link at the top of our Home Page that reads, "What's New."

S I T E M A P: At the bottom of nearly every page in our site is a link to our Site Map. This is a text version of the entire site's layout with descriptive page names.

T R A D E R ' S S T A R T P A G E: Especially during a free trial or if you decide to subscribe, use our handy Trader's Start Page. Links to the areas of the site used most frequently, including the Real-Time Signals, Overnight Updates, News Headlines, etc.

========== New Trade Parameters
Changing market conditions have prompted us to change our trading account parameters. Account size is increased due to the additional risk exposure. Details were previously e-mailed to our subscribers. If you didn't receive this information,review it here. A link has been added on our What's New section as noted above, if you'd like to refer to this material at a later time.

======== Trader's Market Commentary - An Educational Resource
What is the Trader's Market Commentary and how can you use it to enhance your own trading?

Throughout the trading day Charles Holt, CTA gives ongoing market commentary for the S&P500, Dow Jones Industrial Average (DJIA) and Nasdaq markets. Traders have told us they have learned more from following our commentary than any other method they have tried.

During the trading day Charles discusses turning points, support/resistance levels, moving averages, the interaction of indexes and much more. Using this commentary also offers opportunities for a trader to gain insight into our tried and true trading methods and techniques.

Our commentary offers educational and profitable opportunities for all traders. In an effort to enhance the usefulness of our commentary, we will soon begin sending the Trade Commentary Digest to our subscribers along with a 1-minute chart displaying the times the commentary was sent.

If you are unfamiliar with our commentary, we present an online example which displays the times (in blue) which when clicked will reveal the commentary given at that time. This is taken verbatim from an actual trading day. Review the entire trading day in sequence or check any individual time to reveal whether our commentary was on-target or way off the mark.

========== Candlestick Patterns - An Overview
Often our commentary includes mention of a Doji set-up, or other candlestick pattern. We've put together a brief review of the familiar Japanese Candlestick Patterns for all those e-mails asking, "What is a Doji?"

Here we present an overview of each Candlestick pattern with a graphic depict ion to show the pattern. Easy to read or review. To find a particular pattern, there are text links, or follow the alphabetical series.

========== Trading Rules Series - ADX
The ADX (Average Directional Index) is a useful indicator for determining trend and strength of trend. Subscribers, refer to our prior Mentor Updates which discuss the ADX. Here are basic trading rules for the ADX:

1. If the ADX is above 30, that market is in a trend.
2. If the -DI is above the +DI (and the ADX is above 30) you are in a strong downtrend, and vice versa.
3. If the ADX is below 16, then expect that market to breakout soon.
4. When the ADX goes above both the +DI and the -DI, tighten your stops since the move may be close to being over.

========== Recommended Reading
Are you really suited to day trading? Some people are better off as position traders. Find out in MindTraps : Mastering the Inner World of Investing by Roland Barach, Ph.D. You'll discover why following your natural inclinations while trading is a recipe for disaster.

"Greed often blinds us to danger and fear often blinds us to opportunity. These and other mindtraps are independent of intelligence or education. Instead, they are inherent in how we experience emotions, process information, and make decisions."

Detailed descriptions of mindtraps many of us have experienced and ways to deal with them so they no longer are a threat.
Category: Psychology

========== Software Finds
NetPad by Flying Objects Software, Inc.
(Freeware or optional register for additional features)

How many times have you wanted to store a bit of information from a web page or e-mail, but didn't have a convenient and easy way to do so? With NetPad a simple drag and drop stores all your notes. No need to remember what name you saved it under, or where you put it because everything is indexed and fully searchable by keyword. An easy way to save a bit of information from a web site, e-mail or anything open on your computer.

With NetPad save what you want by selecting it (click and hold the left mouse button) and drag to the MiniPad icon. A text line in the icon will turn red to indicate it's ready for pasting - let go of the mouse button and you've saved that note or image in your notebook. Use the search feature to find old notes. No need to remember details or what you named a file. Excellent for keeping more of that information at your finger tips.
Category: Browser Utilities

========== Links & Resources for Traders
A recent addition to our links page may be of interest to professional derivative and option traders.

PFS TraderTools+ LLC
TraderTools+ and LimitSentry

"LimitSentry facilitates the coordination and monitoring of limit orders between traders. The system is also used by traders for 'passing the book' or to run a 'global system.' This allows traders to manage and track orders as they are passed around the world." "TraderTools+ is a sophisticated suite of 'real-time' financial calculators, allowing traders to price and analyze complex derivative instruments and portfolios."
Category: Software

Good trading,
Charles Holt, CTA
Publisher Daytrader's Bulletin