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Thursday November 20, 2008 |
New Daytrader
Vital Statistics
Q. What does the term pivot level mean?
A.
The pivot level is the price that we have deemed to be the key support or
resistance level. For the purposes of day trading, the pivot level is the ACTION level.
When a stock trades at that level some action is warranted.
Q. Stock XYZ closed at 55. Your pivot level is 53.88 and your target is 49.25.
Should I sell short XYZ at the market when trade begins?
A. No. In this case we are waiting for the stock to trade through the 54 level
before we take a position. In effect, we want the stock to break down. This strategy is
used to avoid early entry into a position.
Q. I don't really want to trade the actual stocks. Can I trade the options
instead?
A. We strongly recommend that you trade the actual stocks. Although the New
Daytrader is a day trading service, option trading is very different from stock trading
for the short term. If you really want to trade stock and index options we suggest that
you look to our sister publication, the Bedford Option Review.
Q. How are trading ideas selected?
A. Each night our analysts perform a series of technical evaluations for
all of the stocks in our stock universe. That group of stocks is reduced to the best eight
ideas (four long, four short) based on risk, potential reward and the proximity to the
nearest support or resistance level.
Q. What is the long term track record?
A. Our monthly returns are online. You can explore our trade by trade
history. Click here to view
the complete trade history.
Q. The market experiences periods of strength and
weakness. How does the New Daytrader cope with this?
A. Of course we cannot guarantee that future results will be as strong as past
results, but the New Daytrader is structured to take advantage of all market conditions. The focus
of the New Daytrader is virtually hedged or market neutral. Each night you will be given our best
long and short ideas. If the market turns unexpected lower we would consider only our
short ideas. A strong market would effectively negate our best short sale ideas.
Q. How will the New Daytrader make me a better trader?
A. Having the New Daytrader is like having a professional trader at your side. Although we
are not perfect, we can help you reduce risks and make better trading decisions.
Q. Why do you "day trade"? If you sell too early, you could miss the
real move.
A. The New Daytrader is a day trading service for active traders. Our focus is day trading
because that strategy is the best way to remove market risk. Logically, your portfolio is
most vulnerable when fully invested. Closing positions over a shorter time frame reduces
market risk. However on occasion there are opportunities that warrant overnight positions.
In such cases we would hold positions and utilize a trailing stop loss.
Q. How do I get started?
A. You can subscribe to the New Daytrader by becoming a Bedford & Associates
Research Group member. Online subscription prices are $195.00 for 1 month, $497.00 for 3
months and a 2 week trial is FREE to new members. Click here to become a
member.
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