This is another demonstration on the Diamond Scanner which picks up stocks for further analysis every single day.
Inorder to trade well, I believe that we should not worry about not having stock to trade each day.
If a stock which we are holding is losing its upward momentum, it is best to protect the profits and
use the scanner to pick another potential stock to trade. No point holding on to a stock which is
exhibiting weakness and hoping that it will turn up in the future.
That is one of the reasons why I do not hang on to stock which shows weakness. Protecting profit or
know where to sell is as important as where to buy.
By taking profits on weakening stock and moving quickly to another stock picks up by the scanner proves
to be a nice way to compound earning again and again.
So in order to trade well, you need to have a Personal Trading System that includes the following:
1) A good Charting Software which allows personal coding of indicators and scanners
2) Stock Scanners that can pick up potential stocks for serious picking for income.
3) A strategy to cut loss and take profits base on what the market tell us.
4) Strong discipline to follow the system.
5) Nothing is free, when tips are from any sources, brokers or friends. Justify the claim from the chart
instead.6) Believe the chart, the professionals cannot lie to you as their footprints are caught in the transacted volume.
If you can decode the volume, you know how to master the market.
Inorder to track all activities of the professionals, I have created a trading system that alerts me as price moves forward each day. Most indicators today available in standard charting package are lagging in nature or are derivatives of price and volume.
Kelvin's Trading System is created purely by understanding the demand and supply of the market, using of
trend channel, trendlines to determine the probable trading range and seek to buy from the base of the channel and sell at the top of the channel. Many indicators require the Day + 1 (future day) to meet certain
criteria before an indicator alert will appear. This system seeks to decode the activity of the professionals
within a short time frame and ride the journey with the professionals.
Below is a nice chart on Streettrackers Gold, looking where the blue diamond (Go Long1) appeared
at the base of the channel each time, provides a very lucative trading position without fail.
With the help of the Diamond Scanner, I am able to study with great detail on the stock for trading
opportunity.
