Trading Room is Now Emini's Live Trading Room

I'm sad to say that today marks the last day of John Howell's live ASX trading room. But it's not all bad news!

If you love to follow John Howell - he's now teamed up with Planet Wealth and opened the E-minis Trading Room. This is fantastic news - especially if you're an Aussie working a day job... since you can now trade at night.

Discover more about the Planet Wealth E-Minis Trading Room with John Howell by clicking here.

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!

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.

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!

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