Thursday, March 30, 2006
Can I use DreamTai trading software to trade options and if so, what is the best
You can use DreamTai trading software to find highly trending (Uptrending or
downtrending) stocks with high power rankings and then buy three months or later in the money Calla or Puts for these stocks.
The Power Rankings will help you to filter out the stocks with strong buying or selling volume.
The reason I said three months or later is because we want to give the stocks some time to move.
Please papertrade till you are confident that this method is suitable for you.
Again, all the rules for risk control and money management apply here.
Tuesday, March 28, 2006
1. Improvements to graphs so that they can be expanded and be seen
clearly. Currently the graphs can not be resized, Zoomed. The new release will have resizable and zoomable graphs.
2. The latest downloaded price date will be displayed on the graph, so you
can tell if today's prices have been updated or if DreamTai is showing yesterday's prices.
3. Modify the stock profiles so that all the countries can see their local
stock profiles. Currently, DreamTai
4. Add voice to speak out the trades strategy
5. Make bar color user configurable.
6. Allow user to create, save and select multiple watchlists
7. Allow users to print Reports
8. Have a news feed or News Web Page
9. Try to get Real Time Quotes or at least 20 minutes delayed quotes
If you feel that you need some extra feature to be included in the next release of Dreamtai, please do post it here.
Sunday, March 26, 2006
BID [PR =7.2]
Buy at 26.06
no of Shares=89
AUDC [PR =5.2 ]
Buy at 13.94
no of Shares=198
Total investment=$ 2760.12
AEPI [PR = 4.4]
Buy at 30.32
no of Shares=121
Total investment=$ 3668
BGC [PR = 3.8]
Buy at 29.87
no of Shares=99
Total investment=$ 2957
NZT [PR = -3.99 ]
Short at 25.99
no of Shares= 161
Total investment=$ 4184
TRB [PR = -4.04 ]
Short at 27.77
no of Shares=125
Total investment=$ 3471.25
OI [PR = -4.79]
Short at 16.79
no of Shares=333
Total investment=$ 5591
Friday, March 24, 2006
One investor's two golden rule of investing:
1. Never lose money
2. Never, forget Rule No. 1
My basic advice is don't lose money
I am more concerned about controlling the downside. Learn to take the losses. The most important thing in making money is not letting your losses get out of hand.
Paul Tudor Jones
I am alway thinking about losing money as opposed to making money. Do not focus on making money. Focus om protecting what you have.
What I Learned Losing a Million Dollars (Hardcover)
by Jim Paul, Brendan Moynihan
Why a book on losing ? Because most books on trading gloss over losing, money management. They stress on technical indicators and trading systems.
This book is the personal adventure of the trader,Jim Paul, whose unbroken string of trading successes took him from a poor country boy to a jet setting millionaire and a member of the executive committee at the Chicago Merchantile Exchange before a devastating $1.6 million loss brought him crashing down.
Here are a classic gem from this book:
Speculating is the only human endeavor in which what feels good is the right thing to do.
We all know we should not smoke. A lot of us still do.
We all know we should not drink. A lot of us still do.
We know we should not drive over the speed limit. A lot of us still do.
Why do we do all these things that are not good for us, and that we know are not good for us?
Well, because they feel good.
It feels good to drink and smoke and drive fast.
But ever since we are kids, we have been told not to do things which feel good.
When it comes to the markets, you are supposed to do what feels good.
If you deviate from your plan and the market starts going against you, what are you going to say when I knock on your door and ask, "Well? Are you having fun? Is this an enjoyable experience ?"
You are going to say, "No! This is not fun. Looking at these prices going down is not fun"
You know what you should do ? Do not go looking for supporting evidence or reasons to stay in the market.
DO WHAT FEELS GOOD. GET OUT !!
Stay with the positions that make you feel good; get out of positions that make you feel bad.
I had purchased a second hand copy of this book for four dollars. Now it is available for greater than 70 dollars in Amazon and Barnes & Nobles, which is a bit strange. May be it is expensive because it is out of print. Or may be people think that spending a hundred dollar to learn to protect thousands of dollars is a worthwhile investment.
Before purchasing, try to see if you can borrow it from your local library to read.
Even if you are not interested in the market, this book is worth purchasing just to learn more about Jim's amazing life story. Jim is candid, funny and dynamic in this work. I wish the world had more people like Jim Paul and more books like "What I learned While Losing a Million Dollars."
According to one of Amazon's reviewers, the author Jim passed away on September 11, 2001 in 1 World Trade Center, New York.
Thursday, March 23, 2006
When you say for example:
sell at 12.48 and stop at 12.72
What do you exactly mean?
The meaning of sell at 12.48 and stop at 12.72
is to short sell the stock at 12.48 and place the stop order at 12.72 to protect your position, if the stock goes up instead of going down.
Kindly refer the following link for details about what a stop order is.
What is stoploss order and how do I place it ?
A stop loss order is an order you place with your broker to close your positions automatically if you lose more than a specified amount of money in that trade.
In this way, if you place a trade you can be confident that your trade will be closed if you lose more than a specified amount.
For example, if you buy IBM at $110.00 and then place a Stop Loss order at $107.00, if the stock price goes below $107.00 your shares will be sold.
So, the maximum loss you will face is = $ 3.00 ( $110.00 -$107.00).
Contact your broker for details on how to place stop loss orders.
It is always safe to place the stop order IMMEDIATELY as soon as your order is filled to protect your position if the prices go against you.
DreamTai calculates the stop loss based on the stock volatility. The more volatile a stock, the furthur away is the stop price to give the stock some room to move.
Tuesday, March 21, 2006
Comments from a member:
So far I like what I see. I would like to know if you have come across stocks with a high PR that actually failed. Examining these samples visually would also be of great help to avoid losses. Please post examples if any. Many Thanks
Sure, I would paste these failures also. It would be educational for all of us to analyse them.
Actually, there will be failures, but if you follow risk management and capture the BIG moves profitable, you will more than make up for the failure.
See the previous post of MRGE. If you look at the past moves of MRGE, there is a MAJOR Up move and a MAJOR down move.
Capturing these moves will more than make up for any losses due to false signals.
Also, if you notice, you can see that before October month, there was not a large profit. The big move came only after an upward breakout in October first week.
Note how the price chart turned red around November last week even though the stock was moving higher. This indicated that the buying power was drying up and it was time to take profits and make the cash register ring.
From Jan mid week to Feb last week, you would have made a little bit of profit.
From Feb last week, the market made a HUGE down move and if you had been prepared for it, made a lot of money in the down move.
Here is what we can conclude from this study.
Huge up moves or down moves usually come after some trendless sidewards movement. You have to patiently wait out the sidewards movement and catch the BIG trend.
You will not be able to buy or sell at the EXACT top or bottom but will be able to capture the MEAT of the big move.
Proper risk control and money management is essential during the trendless sidewards move to avoid wasting and losing money needlessly.
Now, we have got a sell signal in MRGE again. Where will it go ? No one can predict. However, the odds are in our favour because it is already in a down move. There is lot of selling pressure with low DreamTai power ranking. So, there is more change it will go down.
I would welcome your feedback, comments and suggestions.
Thanks to the member who asked this question!!
Saturday, March 18, 2006
A stock moving up in price on higher than normal volume indicates strong buying conviction that could carry the stock even higher. A stock headed lower on big volume increases could signal strong selling pressure and an emerging downward trend.
NEU [ DreamTai Stock Power Ranking = 10.9 ]
HLEX [ DreamTai Stock Power Ranking = 6.34 ]
NCTY [ DreamTai Stock Power Ranking = 6.11 ]
LECO [ DreamTai Stock Power Ranking = 5.94 ]
I am not associated with the author.
Actually the book is really old set in the 1950s to 1960s.
Many of the companies talked about in this book no longer exist. Many of the stocks are no longer traded. Still the basic principles are as sound as ever.
Nicholas Darvas was a professional dancer who has a busy life travelling to various dance shows at exotic places like Burma, China, Africa and India.
He devised a method to buy trending stocks. He gave his weekly buy sell orders to his broker by telegram.
Just by selecting upwards trending stocks, he made upwards of two million dollars in less than 6 years.
Do get this interesting book to read from your library.
It is not very expensive.
Amazon is selling it for around 5 dollars. Here is the link below.
That is why, we stress searching for trending powerful stocks for DreamTai.
Where will it go ? Well, we do not try to predict, rather, we react as the market unfolds. Currently, the trend is bullish. We should try to get long on the bullish uptrending stocks.
We will maintain our bullish opinion till the Dow Jones Industrial Average (^DJI) turns below 10,156 low, which is a major Resistance point.
At that point, the market will no longer be bullish.
We can call it a side ways market.
If Dow Jones Industrial Average (^DJI) goes below 9,708 level then Dow has broken downwards from the sidewards range and will be in a bearish trend.
Attched is a picture of the Dow Jones Industrial Average (^DJI) .
Click on the chart to enlarge
Friday, March 17, 2006
Thursday, March 16, 2006
Wednesday, March 15, 2006
I am Sanjoy, the creator and developer of DreamTai Stock Trading Software available at http://www.dreamtai.com .
Welcome to DreamTai Stock Trading Software blog. Here, I will post my views, ideas, opinions and list of stocks which I like and which have given a Buy Signal or Sell signal by DreamTai stock Trading Software.
DreamTai is an easy to use software that advises you when to BUY/SELL stocks so as to maximize your profits and minimize your risk.
DreamTai is a powerful software that :
- instantly conducts online analysis of the stock trend
- precisely identifies clear entry and exit signals and the number of shares to trade
- automatically downloads the End of Day price data for your selected stocks
- displays precise BUY/SELL signals visually
DreamTai is very easy to use. It is beautiful in its simplicity. Many programs are too complicated and require too much analysis. You will never see a more easier program that gives you BUY/SELL signals automatically
Also, DreamTai software comes with automatic Money Management strategies which will advise you exactly how many shares to buy/sell.
Please feel free to leave comments, feedback and suggestions. If you have any stocks you feel is in a strong uptrend or downtrend and is worth trading, please feel free to share with all.
Please remember that I am not a registered money manager or a professional hedge fund manager. Please employ risk control and money management techniques when investing.