Here’s one of the best trading strategies I’ve seen in my trading career… it’s simply so versatile.
In short, it can help you identify the best performing trading candidates in the best performing markets. Stuart’s recorded a short video for you below, explaining how you can employ these techniques in your trading.
Please note: Just because Stuart McPhee (www.tradinginanutshell.com) applies the concepts to stocks doesn’t mean it can’t work equally well in other markets. It’s application is much more wide reaching.
For example, imagine ranking currencies from the strongest to the weakest and then trading both extremes against each other on the FOREX. If you understand the power in this, you’ll understand this single idea is worth its weight in gold.
I’m eager to read your comments, so please post them below. Also if you want to find out more about Stuart’s work be sure to grab a copy of Trading In A Nutshell - Click here.
Your Trading Coach,
David Jenyns
Geo says:
In concept, great, but as always, the devil is in the details, and many more details are required.
April 22, 2009 at 9:16 pm
Pim says:
Look great, What is the Explorer name taht you were using to scan the sectors. Is it pre-loaded in MetaStock or is it a custom version.
Cheers
April 23, 2009 at 12:26 am
Irene says:
Hi:
This seems to be great information. I am always looking for means to increase my profitablilty.
April 23, 2009 at 9:47 am
David Jenyns says:
Geo: You’re right this video was designed to introduce the concept… I’m looking to put together a PDF document to outline the details.
Pim: It’s a custom built explorer… I’m putting together a PDF to give away the code. That said, if you join the Online Trading Mastermind, we’ll be running these scans for you.
Irene: Thanks for the kind words.
Your Trading Coach,
David Jenyns
April 23, 2009 at 5:14 pm
Akin F. says:
Thanks a lot David.
As regards the new trading mastermind group. I would be happy to join. Just keep me informed of necessary steps to take ahead of time.
Once again, thanks and warm regards.
Akin.
April 23, 2009 at 5:57 pm
Andra says:
Thanks for writing this.
April 24, 2009 at 12:03 am
Jack says:
I was thinking when we have identified the best performing sector and the best stock in that sector and we would like to buy it, how would we know whether it is at the tail end of its great performance. I think the risk is there as great performing stock can be overcome very overvalued and correct drastically.
April 24, 2009 at 2:48 pm
David Jenyns says:
Akin & Andra: Thank you for the feedback
Jack: Great question. Unfortunately, we never know when a stock is at the end of its trend. A lot depends on the time frame you’re trading, and subsequently the width of your stop.
If you’re trading a shorter term I would agree, it may be overbought… that’s not to say it won’t pull back and then provide another entry point.
If you’re trading a longer time frame… the RSC may identify the start of a new trend.
We’ll discuss this more inside the http://www.onlinetradingmastermind.com
The RSC should be used as part of your setup - not to be confused with the trigger for your entry. If you’re interested in triggers, here’s a few of Stuart’s favourites:
http://www.youtube.com/watch?v=QTlrpGQvaTE&feature=channel_page
Hope that helps… your trading coach,
David Jenyns
April 26, 2009 at 11:48 pm
Jim Cox says:
Top stuff guys!
I think the strategy of sector analysis would work very well with longer term position trading e.g Darvas Box trading, or/and swing trading.
I’m going to recommend this to my clients.
Can’t wait to see what exactly this trading mastermind is all about.
As always, remember the trend is your friend.
Jim Cox
April 27, 2009 at 1:56 am
Arthur V says:
“It short it can help you identify…” - what the?!
I suggest you fix up the website typos in order to be taken seriously…
April 29, 2009 at 8:28 pm
Donna says:
Hi Stuart,
That was a very good clear method of RSC & sector analysis. Many companies sell this info for many $, is this freely available or is it going to be released as a package soon.
Regards,
Donna
April 29, 2009 at 9:57 pm
David Jenyns says:
Jim: Cheers
Arthur: I usually leave a few small typos in my work since I know some people like finding them… I’m just trying to keep everyone happy
But serious, thanks for that… I’ve updated it!
Donna: We’ll be covering this in much more detail within the Online Trading Mastermind. We’re planning to launch on 11th of May. Stay tuned.
Your Trading Coach,
Dave
April 29, 2009 at 10:27 pm
Malcolm Cryer says:
Hi Dave
You introduced us to RSC in your MetaStock news letter some time ago. Looking forward to more details on it. AIQ have it built into their software. You can scroll up from a stock to its group then sector and market in its charts by the click of an up arrow, and back down again. It will be useful to have something similar in MetaStock.
Many thanks for all the effort you put into helping us less capable traders than yourself.
Malc
OTM 1. WHY do you want to trade the markets (besides the money)? I’m looking for the ultimate reason you got interested in trading in the first place.
Having taken early retirement, I find trading keeps your mind active and any successes give a real feeling of personal satisfaction. There are so many facets to it that it always keeps your interest.
2. HOW do you think the OTM will help you?
From experience of your other work, especially Trading Secrets Revealed, I have great faith it will be able to help all those who participate, not just me. As stated, having taken early retirement and still got three kids at home and one at university I anticipate it will help me boost my returns on share dealings. Though not an absolute novice, I am not an expert, and I enjoy improving my trading ability and have learnt a lot from you through your newsletters etc. and foresee this being a step up on that.
May 5, 2009 at 9:13 am
Malcolm Cryer says:
Thanks Dave! You have included my answers to the competition with my comments on Stuart’s work on RSC. Do I have to think up better reasons to have a chance of winning now?
Malc
May 5, 2009 at 4:58 pm
Ron A. Matzkin, Israel says:
I started trading in the Forex market over five years ago and I have seen my share of winning and loosing trades.
The reason I want to trade the markets is to allow myself to be wherever I want and to keep on earning money not bound to any physical work location.
I think the main reason the OTM will help me is by giving me a group of people - similar to myself to trade with, exchange ideas and compare results.
Good luck to us all.
May 6, 2009 at 9:57 pm