25% Profit In Under 24 Hours with Simple Trading System

In the last hour of trade on Thursday afternoon, the trading room identified a bearish trade on Newcrest Mining - NCM on the Australian Stock Exchange. With the market being so extremely volatile in the last few weeks/months, it was imperative that traders in the room were stacking the odds on our side when entering this trade. Using the technical analysis trading system we are taught by our mentor Johnny Howell, we identified the following factors in our favor:

1. Short term trend line broken on the daily chart
2. Trading Room Proprietary indicators all bearish.
3. Bearish Down Day - (if you don't understand what this is, you can learn the entire concept in the free home study that you get when you sign up for the trading room).
4. Increase in volume.
5. RSI pointing down
6. Other momentum indicators bearish.
7. Peaks and troughs bearish.
8. and there were actually even more indicators stacked in our favor for a bearish day on Friday.

Obviously, I don't want to go into too much detail here, because I think it's dangerous for me to equip you with information if you're not truly understanding what's going on.

If you really want to get your head around this stuff, you should get your butt into the trading room ASAP. Winning trades such as this week's NCM trade are identified on a regular basis. Sure - some of the picks are losers, but we are taught to cut our losses short, which means overall traders in the room are running at a nice profit.

Anyway, on Friday we were pleased to see NCM do exactly as the system had predicted. The trading room system had yet again picked a winner! Depending on the instrument used for this trade, most traders in the room achieved a profit of 20% to 25% on this trade by noon on Friday. Of course, the profit varies depending on whether traders traded options, CFDs or stock. For me personally, I love that the ONE trading room system can be used to trade in these MANY different ways on the ASX.

I'm sure you'd agree that the Planet Wealth Trading Room's Success is an AMAZING accomplishment in these current market conditions!

Here's why momentum is key for serious traders

OK, so I haven't posted here in a while. Why? Simply, because I lost momentum! And yet again, Johnny Howell has hit the nail on the head (for me at least) with a pep talk in the Trading Room about momentum.

And I don't mean momentum indicators for technical analysis.

What I mean is momentum in life... and more importantly momentum in trading.

To keep your momentum in trading, all you need is a little study each day. Keep on top of the charts. Keep up with the news. Even if - like me - you're sitting on the bench while the "Global Credit Crunch" slams the market, at least you should stick to a routine... just 10 minutes a day will do it. If you spend just 10 minutes a day studying charts and catching up on the news, you'll be primed for the day when the door of opportunity opens again.

Now, you might be thinking to yourself that you can sit out for a while and get back into chart study later. But be warned... that is how you will LOSE YOUR MOMENTUM! You'll become out of touch with the stocks you love to trade... and it could take a lot of work for you to get up to speed again. If you're like me, when you're faced with the prospect of a massive amount of study, you're inclined to procrastinate. Don't let that happen.

Instead, keep up your momentum. Stick to your routine every day. Study the markets and stay on top of your game!

P. S.
The more I trade, the more I realize how VITAL my overall psychology is in becoming a successful trader. This post on momentum is just one tiny example. The way you behave when you face financial loss or massive profits can make or break you as a trader... and as a person. This is serious business. Just recently, people have committed suicide due to the huge financial pressure created in these falling markets. If you need help with your mind set, get yourself into the Planet Wealth Trading Room today! It's the place to be for serious traders. Not only do we get stock-picks on a daily basis, but we get mentored in trading strategies and overall psychology - all for less that $20 per hour. I really can't believe I've found this gem. I urge you to join us if you really want to make trading work for you!

Live Trading System Suits all kinds of traders

I think in this blog I've mainly mentioned that we trade options in the Planet Wealth trading room. It's true that when the trading system we use identifies an entry signal, Johnny Howell uses The Bourse software to view the options series. Then together, we're able to look at the options volume, Open Interest, etc and pick the best option for the trade. Of course the option we pick will depend on the price target and time frame of the trade. Personally, if the trading system is predicting a one-day move, I pick an in the money option with a delta close to 1. If, on the other hand, we are looking at a large price movement over the long term, I might trade a riskier far out of the money option.

I should make a point though, that Johnny Howell's trading system suits more than just options trading. You can buy/sell the actual underlying stock - or you could use CFDs.

I'm actually looking into setting up my account for CFDs as I write. I like the idea of trading in smaller amounts. In the Australian market, 1 options contract is usually over 1000 shares. That means to trade options, you usually have to trade around $4000 to make any profit after brokerage. CFDs on the other hand can be traded with as little as $100 per trade. So, I feel more comfortable trading in smaller amounts - especially given the current market volatility.

Anyway, I guess the point of this post is... if you like the idea of the trading room, but you don't want to trade Options, then you don't have to. Trade any way you like. Johnny's trading systems work. You only have to look at the testimonials on the Trading Room page to see that!

Day trading case scenarios - buy and sell signals

I've just finished listening to yet another awesome pre-recorded day trading session with John Howell in the Planet Wealth trading room. As you read in a previous post, we've been studying day-trades and the best entry and exit points based on peaks, troughs, moving averages and support/resistance/trend lines.

Today John added to the teaching by introducing us to the concept of "Case Scenarios". I guess we can get caught up, trying to fit each trade into a step-by-step mould. But, it's not really that simple. Johnny stressed that each trade is different - and so must be analyzed and executed differently. For each and every trade, a good trader must construct a separate case scenario:

* What is happening right now.
* What is the technical entry.
* What is the technical exit (where are you placing stops).

If you, like me, are just starting out day-trading, then don't expect your next trade to execute the same as the last. It will be different. Construct a case scenario for your trade and be prepared to exit at any time. As the old cliche goes: "plan your trade and trade your plan". Keep your eyes open... and don't leave the screen!

My first look inside the Planet Wealth Trading Diary

I thought I'd post a bit today about how I got started with the Planet Wealth trading room. It actually all started when my husband stumbled across the 21st Century Academy's website. Their package was too expensive for us at the time... but we noticed in a lot of their testimonials that there was reference to the Dimitri Strategy. At first (when I got started) The Dimitri Strategy referred to a method of selling put spreads in a bull market as a form of generating income. Andrew Dimitri uses fundamental analysis to recommend a put spread - and places his recommendation in the Planet Wealth forum - part of the Planet Wealth Trading Diary.

As of 2008 - the Dimitri Strategy has been vastly expanded and now includes about 8 (from memory) ebooks covering various investment strategies. These were created when the bull market ended early 2008 and selling put spreads started to result in losses to many members of the PLanet Wealth trading Diary. Thankfully, we had all been taught excellent money management by Andrew Dimitri and Bill Stacy - and so most of us are still in the game.

With these additional strategies came an interest in trading puts and calls on their own (i.e. just buying a put or buying a call - not selling spreads) and some of us dabbled in option strangles and straddles. Before long, there was a demand for more knowledge in how to trade options - we needed a system.

And in walks Johnny Howell! I'm sure it wasn't that quick and easy from Planet Wealth's point of view. But for the trading diary members, he has been a godsend.

Johnny teaches us in-depth technical analysis - chart analysis - and we're all on the road to becoming full time professional options traders.

So that's a long story made short!

If you're looking for an options trading course - forget books and DVDs. There is nothing like trading live with a pro trader by your side.

Intraday Trading 50 Percent Profit in One Hour

In my last post I told you about Johnny Howell's awesome teaching on intraday entries and exits. He actually prepared us for an intra-day entry signal on BXB - we were waiting for it to form today. And form it did. One of the guys in the trading room actually got in and out in just one hour... and made a 50% profit!! I gotta say I wish it was me. He got right in at the bottom of a trough and out as the price rose... bought calls obviously. I'm in a trade right now - I didn't get in as early as the other guy - wanted to wait for the trough to form "more fully" (for want of better words). Anyway, lets see how we go with it. I would not have the foggiest idea out to do this if it wasn't for the Planet Wealth trading room - trading options on the ASX using technical analysis - and Johnny Howell.

Intraday Entry and Exits Signals

In today's trading room, Johnny spend the first 30 minutes going into detail about how to enter and exit an intra-day trade based on peaks and troughs, with the added help of Fibonacci Levels.

We start out with a 60 minute chart to identify peaks and troughs... then move to the 10 minute chart to time the entry.

In these types of setups, Johnny Howell usually has a profit target of 20% for the day. It's really exciting to think that if you have $10,000 on a trade - a 20% profit in a few hours is possible!

Even a 10% move makes for good money on a $10,000 account in a few hours! Absolutely.

When you trade with Johnny in the trading room, he shows you how to stack probability on your side. It's important to stack the odds in your favour before trading... especially before trading intra day.

If you want to learn more about intra day options trading on the ASX, the Planet Wealth trading room is exactly what you need.

LGL is still going down!

I'm pleased to confirm that my analysis from Thursday, July 31, 2008 was correct! Actually I'm stoked. Even though I didn't get on a trade. I'm just so excited that the professional trading techniques I've learned in the pro trading room are actually becoming easier for me to understand and implement!

Technical analysis is about reading the charts. It gives a clear picture of where a stock is going, based on it's past footprints.

AMP Breakaway Gap

Friday's trading room... identified a Potential Breakaway Gap on Australia's AMP stock. The room is buying Puts.

• Breakaway Gaps source: Stockcharts.com
  
• Breakaway gaps are the exciting ones. They occur when the price action is breaking out of their trading range or congestion area. To understand gaps, one has to understand the nature of congestion areas in the market. A congestion area is just a price range in which the market has traded for some period of time, usually a few weeks or so. The area near the top of the congestion area is usually resistance when approached from below. Likewise, the area near the bottom of the congestion area is support when approached from above. To break out of these areas requires market enthusiasm and, either, many more buyers than sellers for upside breakouts or more sellers than buyers for downside breakouts.

I personally am choosing to stay out of this trade because I'm not confident that AMP has broken down through resistance yet. The resistance line is not definite (to me) - it's quite wide, so IMO could rebound a bit... as it's doing today. I will re-assess this trade during this week. If it breaks down more with good volume, them I may enter with bought puts.

Note to self: this post is created with ScribeFire... first one like this... just trying it out.

ASX LGL Technical Analysis Trend Lines

Please note I am not a financial expert & anything you see on this blog should not be taken as financial advice! In the trading room yesterday, John taught us how to draw long term trend lines using parallel lines... and how past trendlines become valid in the current market. Using the techniques I learnt just yesterday, I was able to come up with the following bearish view of LGL. There was an LGL entry signal yesterday, I couldn't get in the trade coz my baby woke up right as the market was closing! So, entry signal was yesterday, but I think today's volume is good for entry too. Here's what I've come up with...



Weekly is looking very bearish, breaking past the parallel lines trending resistance... H&S... methinks ripe for a long term trade which I'll be considering today.

I'm factoring in the possibility that there could be a bit more upside to form a bigger right shoulder, but it's still going down IMO!

If you want to learn some of these "crystal ball" technical analysis techniques for yourself, then you can't do better than to check out the amazing Planet Wealth Trading Room. It goes for just an hour a day and you can join up to live sessions or just get the pre-recorded sessions like I do.

Bought Puts - Options Trade Aussie Gold Stock

In today's trading room, we identified a short term trade on an Aussie gold stock. A bearish price bar with lots of volume and bearish indicators on the daily chart. Options volume was also good, so the choice was easy to buy puts on the stock with a planned exit in the next 1 to 3 days.

Our mentor Johnny Howell generously gave an extra 45 minutes of his time to explain drawing of long term trend lines using parallel lines on weekly charts. It's so amazing to see past trend lines come into significance on Today's charts.

The Trading Room Technical Analysis techniques are like a crystal ball in my opinion. If you're serious about trading for a living, you must check out the trading room!

FREE PDF On Trading Entry Signals - Bullish Up and Bearish Down Days

Prior to joining the trading room, I would spend ALL day examining the charts for my watchlist... painfully looking for a trading opportunity. I wasted so much time! Then, on just my first session in the trading room, I discovered how to identify potential trading opportunities in a matter of seconds... it's all to do with the day's "price bar".

Basically, what I've learned from John in the trading room is that you need to identify the day as either "bullish up" or "bearish down" or "rubbish day". If it's an up or down day, then you should spend time checking indicators etc. (stuff you learn in the room). If it's a "rubbish day", then the magic word is "NEXT" and you don't need to waste any more time on that stock.

THIS SAVES ME HOURS AND HOURS EVERY DAY!

To help you get the gist of what I'm talking about, check out this PDF written by John Howell - my trading room mentor. NOTE: If you get an Adobe Acrobat error when clicking this link to open... you can work around it by just right-clicking to save the file to your computer and then open it from there... here is the free PDF Trading Room Price Bar Entry Signals. Enjoy.

Example Options Trade WOW - ASX Woolworths Bought Puts

Just an example of the type of trades we place in the Planet Wealth Trading Room.

Disclaimer: This is NOT a recommendation in shape or form. I am not a financial guru!

Entry Signal 22nd July 2008 - Bought WOW $20 December 2008 Puts

Reasons for Entry:

• Head & SHoulders formation on weekly chart
• Proprietary indicators we use in the trading room are bearish
• 22nd saw a bounce of a significant area of resistance (= also daily H&S neckline)

This is a longer term trade.

When you come into the trading room, you will learn all the indicators our mentor uses to create winning trades. And most importantly you will learn when the enter and when to EXIT a trade such as this one.

The room teaches trading through technical chart analysis. Usually Johnny Howell (room leader) trades options (puts/calls) but you could use the entry/exit signals for any form of trading. For example:

• straight options - buy/sell puts and calls
  
• option spreads & strangles
  
• CFDs
• buy & hold stock
• basically any form of trade

If you're interested in learning from the best, the best way to see for yourself is to check out the "intro video" here. Johnny Howell's Trading Room Intro Video at Planet Wealth

Learn from my trading mentor

I'm starting this Blog to chronicle my journey on the road to become a professional trader on the ASX. As a newbie trader, I lost half of my trading funds on the ASX (Australian Stock Exchange) during the market collapse of 2007/2008. Sadly, these were borrowed funds on a Home Line of Credit! I'm now paying 10.5% interest on this loss.
Since then I've been searching for a system I could to trade for a living... and I'm finally in the right place.
With the help of an amazing mentor by the name of Johnny Howell, I'm learning how to trade like a PRO.
Along with a few others, I am part of a "trading room" run by John Howell. He teaches us entry and exit signals and coaches us in psychology and mindset. Since joining the room, I have been in PROFIT! Yay.
I'll be posting results from the room shortly... while you wait, check out the room for yourself. If you desire to become a professional trader on the ASX, you won't be disappointed.

Planet Wealth Trading Room with Johnny Howell shows you how to trade like a pro!