The Guide

How to Profit by Trading S&P 500 Real-time Signals

Day Trading Mentor
Trading Lessons

Day Trading Glossary
What's That Word?

Daytrading Links
& Resources

Daytrading Tools

Daytrading Software

Every trader who subscribes to the Daytrader’s Bulletin is advised to have sufficient risk capital and a strong desire to succeed in the markets. You will also need access to the following:

		A real-time data feed
		The ability to call directly to the trading floor, or a consistently-reliable, electronic order system
		Low broker commissions. Commissions can represent a significant expense for a daytrader. For example, when trading a 3 contract set, if you pay $35 (NOTE: This figure is now $5 per trade as of June 1st, 2004) per round turn, costs will come to $105. If you make three trades a day, the commission total will be $315 a day, $1,575 a week, and $78,750 a year! This large, recurring overhead can determine whether you are a winner or a loser at the end of the year.
		A way to record your broker orders over the phone (If you make orders on the phone).
		A trading space that is quiet and without interruptions.
		A subscription to the Daytrader’s Bulletin.

The Overnight Update

The Bulletin Overnight Updates for the S&P 500 and Nasdaq 100 futures indexes are e-mailed in the evening to Subscribers and Free-trial users. A complete Archives of the Overnight Updates is also available on the Historical Results page. 

The Overnight Updates give the daytrader a necessary overview of price action along with valuable clues about market reversal times and the price levels at which they will occur. This information is generally very accurate and can make you money. The following categories are included:

Commentary

Market recap of that day’s activity. This recap gives a complete technical description of what happened and why, as well as how the technicals influenced our trades.

We also review the efficacy of our support/resistance values and our market cycle data for that day.

The Commentary then gives a specific outline of our view of the upcoming market actions for the next trading session. Included in this discussion are congestion areas, critical break points, cycle points, trending data, and a general overview of longer time periods and how they will interact within the context of our intraday time period.

Our recommendations will provide you with several intraday, low-risk opportunities.

Cycle Timing

When combined with Support/Resistance and other technical tools, cycle timing is a unique and effective tool for anticipating market reversals. The cycle times are given in Central Time and indicate where a short-term turning point, or a move out of congestion, is likely to occur. These times are calculated from short-term cycle phasing analysis. Our subscribers have had terrific success with these windows of opportunity.

Our cycle information is designed to be used in conjunction with the support and resistance levels to help you gain an edge in the market place.  Our cycles are ranked by potential strength with 4 stars  (****) denoting a high degree of probability for an intraday turning point, and 1 star (*) denoting a low degree of probability for a turning point. 

Important windows that have the greatest potential for movement are discussed in the Commentary. The Key Cycles shown are the larger, hourly and daily cycles that occur in the markets. These intermediate cycles tend to pull the Intraday Cycle periods towards the Key Cycles.

Support/Resistance Levels

The support/resistance levels should be placed as horizontal lines on one of your 1- or 3-minute intraday charts.  This provides the trader an excellent guide to pinpointing trends, intraday extremes, and trading opportunities.  Any protective stops should be tightened when price approaches a strong resistance or support line.

When  a number of support/resistance lines cluster, an important level is indicated.  If price can pierce an important level, the market will probably run.  The intraday resistance lines above the previous close form a sell envelope, and the intraday support lines below the close form a buy envelope.  Prices generally stabilize within one envelope and then reverse toward the other envelope.

The support and resistance levels are designed to be used in conjunction with the Cycle Timing chart.  When a cycle turning point occurs at or near a support/resistance line, a reversal is most likely.

Current Performance

The Update next analyzes all intraday bulletins sent during that day. Included is a 5-minute chart of all contracts traded, along with the trade entries marked for that day.  Successful intraday trading demands that all trades be reviewed at the end of the day.  This daily review is absolutely critical for growth as a trader.

Trading Statistics

The trading statistics give all the data that is pertinent to our trading methodology in an easy-to-understand format. Included in this section is data concerning wins, losses, size of winners and losers, drawdowns, percent time in the market, and other valuable information.

Back

Next