Here is a question from Louis:
Thanks. I think the picture is coming into focus.
Hi Sanjoy, today is Monday which means it's time to look at the IBD top 100. Will you now load up all 100 looking for the power rating? And how do you communicate your results to those of us who look at your blog? I am looking forward to seeing how this works.
When the software tells you to buy, how do you know how many to buy, and where to place the stop? Thanks.
Hi Louis,
Thanks for your questions.
I do not post stock picks regularly to the blog.
Usually I post if there are some stocks I find interesting or if I want to share some articles with all users.
Also, you do not have to buy the picks i show. These stocks are just some stocks i found interesting. It is as if i am saying "Hey!! Check out these stocks.. Some of them may have potential.."
You have to keep the stocks you like in your watchlist and check then daily for the right time to buy
DreamTai does not predict the future. It just tells you the current state of the market and the stocks and you have to make a judgement on whether to buy or sell stock.
Think of DreamTai as a car.
The blue and pink moving averages are like the windshield and the mirrors of the car. It shows you whether you are in an uptrend or downtrend, just like you can see the road on front through the windshield and the road behind you using the rear view mirror.
The green color and the red color of the price bars is just like the speedometer of a car. It tells you whether you are speeding up or decelerating.
The Power Ranking is like the car engine. Higher Power Ranking is like Higher horse power car engine. A stock with higher power ranking will go up more easily.
The quantity to buy and the stop loss order are like brakes of a car to protect you in case of an emergency.
You should risk maximum two percent in any trade.
As a car driver, it is upto you to use these tools properly to rech your destinations. You have to keep looking at the windshield, rear view mirror, speedometer and keep your toe on the brakes while driving to ensure a smooth and a safe ride to your destination.
Similarly, you have to look at these stocks in your watchlist daily and make buy or sell decisions at the right time.
Let me give you an example which will make things much clear.
I had purchased a stock called TTEC.
I had posted about this stock on Jan 4, 2007
Have a look at the link where I had posted about TTEC.
http://dreamtai.blogspot.com/2007/01/dreamtai-stock-trading-software.html#TTEC
Let us analyze why I had picked TTEC.
STEP 1. CHECK THE TREND
QUESTION:
Is the stock above the blue line and the pink line ?
ANS:
Yes, The stock is above the blue line (20 days moving average) and also the pink line (50 days moving average)
Notice how the blue line is above the pink line for many months and the price has also remained above the blue line. This shows that there is a smooth uptrend and there is no resistance created by the bears.
The stock is moving up smoothly in an uptrend.
These 20 day moving average and 50 day moving averages are watched by major banks, financial institutions and hedge funds to make buy or sell decisions.
Here, the financial institutions are bullish on this stock.
STEP 2. CHECK THE BUYING PRESSURE
QUESTION:
Is the Power Ranking strong ?
The Power Ranking denotes how strong the buying volume is.
Usually, the Power Ranking above 3 is considered strong.
Here the Power Ranking on Jan 4 is 2.4 which is a bit strong.
STEP 3. CHECK THE MOMENTUM
QUESTION
Is there a high upward velocity for the stock ?
The bar color just turned green two bars ago.This means, that the stock is accelerating upwards.
If you had been using Stock Kisses pattern, you could have purchased it even when it was red, because you would have bought it when it was touching the 20 day moving average.
Some users like using the Stock Kisses pattern for up trending stocks with high power rankings.
STEP 4. CHECK HOW MANY TO BUY AND THE STOP LOSS
DreamTai also shows how many stocks to buy and where to place the stop loss sell order.
The stock quantity to buy and the stops are calculated such that the maximum loss you suffer is less than 2 percent of your total capital.
So, if your total capital is $100,000, the maximum you should lose in this trade should be $2000
STEP 5. PLACE THE ORDER WITH YOUR BROKER
So, we now place the order to buy TTEC
STEP 6. MONITOR THE STOCK DAILY
As you can see the stock has been rising steadily.
If you follow the stock kisses chart pattern, you can add to your position whenever the stock kisses the moving average.
Finally, in May, the stock started kissing the 50 days moving average, which is all right. No need to be afraid. many stocks in an uptrend frequently kiss the 50 day average also.
But then an incident happened which was a cause for concern. The stock went below the 50 day moving average.
Whenever the stock goes below the pink line, it means that the uptrend is no longer valid and it is the time to say goodbye to the stock.
STEP 7. RING THE CASH REGISTER
So, now, since the stock has gone below the 50 day moving average, we sell the stock and take our profits and search for the next stock to buy.
This completes the complete cycle. i have shown you how we make decisions on whether to buy or sell a stock.
OK, now Practice time:
Here is a stock: NetFlix [NFLX]. Would you buy this stock or short it ?
1. CHECK THE TREND
The stock is without a trend. The moving averages intersect again and again The stock is jumping all over the place, some times above the moving average and sometimes below the moving average.
This shows that the financial institutions are indecisive. They do not know what to do with this stock.
2. CHECK THE BUYING PRESSURE
QUESTION:
Is the Power Ranking strong ?
The Power Ranking is -0.44. Usually a strong up trending stock will have power ranking of +3 and above. A strong down trending stock will have power ranking of -3 and less.
Here, the power ranking is -0.44, which is not very Powerful. So, there is no buying or selling pressure for this stock
Based on this facts, we would not do anything with this stock.
Now, let us look at the market indices.
If the market is weak, then even if we have a strong stock, it will face difficulty going up.
If the market is strong, all the stocks go up smoothly.
The indices started their upwards move from April 2007
See the entry for April 9th in the following link.
http://dreamtai.blogspot.com/2007_04_01_archive.html
All the indices just turned bullish and above their 50 days moving averages on April 9, 2007.
Here is the current market status.
1. Dow Jones Average : Represented by DIA
Still in an uptrend and strong. Moving up smoothly
2. S and P index : Represented by SPY
Still in an uptrend. recently started slowing down
3. NASDAQ index : Represented by QQQQ
Still in an uptrend. recently started slowing down
Hope this article makes it clear on how to use DreamTai. Please feel free to ask questions.
Welcome to DreamTai Stock Trading Software blog. Here, DreamTai members can post their views, ideas, opinions and list of stocks which they like and which have given a Buy Signal or Sell signal by DreamTai stock Trading Software.
Monday, May 21, 2007
Wednesday, May 16, 2007
Secrets of Top Hedge Funds
By exploiting arcane areas of risk in finance, these private investment funds have been raking in huge profits. Herewith, a peek at some of their strategies
CLICK HERE ===> http://www.businessweek.com/bwdaily/dnflash/content/may2007/db20070509_526989.htm
CLICK HERE ==> http://images.businessweek.com/ss/07/05/0509_hedgefund/index_01.htm?popupWidth=770&popupHeight=660
CLICK HERE ===> http://www.businessweek.com/bwdaily/dnflash/content/may2007/db20070509_526989.htm
CLICK HERE ==> http://images.businessweek.com/ss/07/05/0509_hedgefund/index_01.htm?popupWidth=770&popupHeight=660
Labels:
Dreamtai Stock Trading Software
The Money Meter
Time, as they say, is money--so how much is your time worth?
To find out, enter your salary into the box in the webpage, then click Start to launch the Forbes.com Money Meter.
CLICK HERE ===> http://forbes.codefix.net/moneymeter/
The Money Meter will run quietly on a separate Web page, and it will show you how much you've earned as the minutes and seconds tick by.
To find out, enter your salary into the box in the webpage, then click Start to launch the Forbes.com Money Meter.
CLICK HERE ===> http://forbes.codefix.net/moneymeter/
The Money Meter will run quietly on a separate Web page, and it will show you how much you've earned as the minutes and seconds tick by.
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Dreamtai Stock Trading Software
Tuesday, May 15, 2007
Stocks with Accelerating Earnings
Hi,
Here is a link to web page showing a list from Investor Business Daily of stocks with Accelerating Earnings.
Add these stocks to your DreamTai Trading Software watchlist, keep an eye on them and buy them when they trend up.
Click here == > Target Stocks With Accelerating Earnings
- Sanjoy
Here is a link to web page showing a list from Investor Business Daily of stocks with Accelerating Earnings.
Add these stocks to your DreamTai Trading Software watchlist, keep an eye on them and buy them when they trend up.
Click here == > Target Stocks With Accelerating Earnings
- Sanjoy
Labels:
Dreamtai Stock Trading Software
Sunday, May 13, 2007
Stock Pcks for Monday May 14, 2007
DREAMTAI Software Daily Report
as of : 2007_05_13
Stock List sorted by Power Rankings
Legal Note: For Education and Entertainment only
Please do more research before placing buy or sell orders
Usually stocks with Power ranking above 3 have a strong uptrend
Usually stocks with Power ranking below minus 3 [-3] have a strong downtrend
Usually stocks take support at 20 day moving average and 50 day moving average
Then either they resume their trend or crash through the Averages. Do not ignore the 20 and 50 day moving averages lines
Please... please... please... please... do not risk MORE THAN 2 percent of your capital on ANY SINGLE trade... THANK YOU!!
Stock Ticker Name | Power Ranking | Last Closing Price | Strategy | New Buy New Sell |
AFSI | 18.34 | 14.51 | BUY 36 shares at 14.9 Put Protection Sell Stop at 9.46 First Profit Target=20.34 Total Investment=536.4 | |
TNH | 16.05 | 95.75 | BUY 10 shares at 95.87 Put Protection Sell Stop at 76.3 First Profit Target=115.44 Total Investment=958.7 | |
FWLT | 15.46 | 95.91 | BUY 7 shares at 95.99 Put Protection Sell Stop at 70.34 First Profit Target=121.64 Total Investment=671.93 | |
TRT | 14.93 | 21.93 | BUY 29 shares at 22.52 Put Protection Sell Stop at 15.63 First Profit Target=29.41 Total Investment=653.08 | |
MDR | 12.89 | 70.65 | BUY 16 shares at 70.91 Put Protection Sell Stop at 58.58 First Profit Target=83.24 Total Investment=1134.56 | |
ANO | 12.64 | 2.95 | BUY 434 shares at 2.97 Put Protection Sell Stop at 2.51 First Profit Target=3.43 Total Investment=1288.98 | |
PAL | 12.49 | 11.98 | BUY 85 shares at 12.23 Put Protection Sell Stop at 9.9 First Profit Target=14.56 Total Investment=1039.55 | |
ICOP | 11.38 | 9.08 | BUY 87 shares at 9.22 Put Protection Sell Stop at 6.94 First Profit Target=11.5 Total Investment=802.14 | |
GNA | 10.21 | 15.02 | BUY 112 shares at 15.07 Put Protection Sell Stop at 13.29 First Profit Target=16.85 Total Investment=1687.84 | |
EXM | 10.09 | 26.45 | BUY 50 shares at 26.5 Put Protection Sell Stop at 22.57 First Profit Target=30.43 Total Investment=1325.01 | |
APFC | 9.53 | 15.14 | BUY 65 shares at 15.47 Put Protection Sell Stop at 12.43 First Profit Target=18.51 Total Investment=1005.55 | |
B | 9.4 | 29.23 | BUY 34 shares at 29.74 Put Protection Sell Stop at 23.98 First Profit Target=35.5 Total Investment=1011.16 | |
IPAR | 8.31 | 27.07 | BUY 42 shares at 27.65 Put Protection Sell Stop at 22.9 First Profit Target=32.4 Total Investment=1161.3 | |
BKR | 8.03 | 33.46 | BUY 67 shares at 33.5 Put Protection Sell Stop at 30.53 First Profit Target=36.47 Total Investment=2244.5 | |
DSX | 7.21 | 23 | BUY 88 shares at 23.1 Put Protection Sell Stop at 20.83 First Profit Target=25.37 Total Investment=2032.8 | |
BAP | 7.17 | 61.95 | BUY 32 shares at 62.14 Put Protection Sell Stop at 56 First Profit Target=68.28 Total Investment=1988.48 | |
KMGB | 7.11 | 13.48 | BUY 108 shares at 13.63 Put Protection Sell Stop at 11.79 First Profit Target=15.46 Total Investment=1471.77 | |
ESP | 6.97 | 24.15 | BUY 53 shares at 24.28 Put Protection Sell Stop at 20.56 First Profit Target=28 Total Investment=1286.84 | |
CBI | 6.52 | 38.99 | BUY 36 shares at 39.86 Put Protection Sell Stop at 34.41 First Profit Target=45.31 Total Investment=1434.96 | |
SHI | 6.49 | 68.63 | BUY 18 shares at 70.22 Put Protection Sell Stop at 59.58 First Profit Target=80.86 Total Investment=1263.96 | |
MMS | 6.03 | 40.5 | BUY 32 shares at 41.02 Put Protection Sell Stop at 34.95 First Profit Target=47.09 Total Investment=1312.64 | |
ASY<---- New Buy | 6.01 | 7 | BUY 152 shares at 7.12 Put Protection Sell Stop at 5.81 First Profit Target=8.43 Total Investment=1082.24 | ASY<---- New Buy |
PCU | 5.96 | 90.26 | BUY 26 shares at 91.88 Put Protection Sell Stop at 84.28 First Profit Target=99.48 Total Investment=2388.88 | |
YZC | 5.89 | 60.48 | BUY 30 shares at 60.55 Put Protection Sell Stop at 53.98 First Profit Target=67.12 Total Investment=1816.5 | |
SONE | 5.72 | 7.4 | BUY 212 shares at 7.52 Put Protection Sell Stop at 6.58 First Profit Target=8.46 Total Investment=1594.24 | |
BLX | 5.65 | 21.25 | BUY 94 shares at 21.4 Put Protection Sell Stop at 19.28 First Profit Target=23.52 Total Investment=2011.6 | |
CPL | 5.59 | 53.33 | BUY 54 shares at 53.53 Put Protection Sell Stop at 49.87 First Profit Target=57.19 Total Investment=2890.62 | |
ACH | 5.3 | 33.04 | BUY 62 shares at 33.49 Put Protection Sell Stop at 30.28 First Profit Target=36.7 Total Investment=2076.38 | |
NRGP | 5.23 | 54.66 | BUY 29 shares at 54.7 Put Protection Sell Stop at 47.82 First Profit Target=61.58 Total Investment=1586.3 |
AFSI
Go to TopTNH
Go to TopFWLT
Go to TopTRT
Go to TopMDR
Go to TopANO
Go to TopPAL
Go to TopICOP
Go to TopGNA
Go to TopEXM
Go to TopAPFC
Go to TopB
Go to TopIPAR
Go to TopBKR
Go to TopDSX
Go to TopBAP
Go to TopKMGB
Go to TopESP
Go to TopCBI
Go to TopSHI
Go to TopMMS
Go to TopASY
Go to TopPCU
Go to TopYZC
Go to TopSONE
Go to TopBLX
Go to TopCPL
Go to TopACH
Go to TopNRGP
Go to Top
Labels:
Dreamtai Stock Trading Software
Saturday, May 12, 2007
Get Latest Picks delivered directly to your Email
Hi,
Now you can get any updates to this blog delivered directly to yout email box by subscribing.
Just add your email on the text box on the right hand side.
You can also subscribe to this feed in a Reader
http://feeds.feedburner.com/dreamtai
Sanjoy
Now you can get any updates to this blog delivered directly to yout email box by subscribing.
Just add your email on the text box on the right hand side.
You can also subscribe to this feed in a Reader
http://feeds.feedburner.com/dreamtai
Sanjoy
Labels:
Dreamtai Stock Trading Software
Thursday, May 10, 2007
Stock Pcks for Thursday May 10, 2007
DREAMTAI Software Daily Report
as of : 2007_05_10
Stock List sorted by Power Rankings
Legal Note: For Education and Entertainment only
Please do more research before placing buy or sell orders
Usually stocks with Power ranking above 3 have a strong uptrend
Usually stocks with Power ranking below minus 3 [-3] have a strong downtrend
Usually stocks take support at 20 day moving average and 50 day moving average
Then either they resume their trend or crash through the Averages. Do not ignore the 20 and 50 day moving averages lines
Please... please... please... please... do not risk MORE THAN 2 percent of your capital on ANY SINGLE trade... THANK YOU!!
Stock Ticker Name | Power Ranking | Last Closing Price | Strategy | New Buy New Sell |
NGA | 33.05 | 14.6 | BUY 42 shares at 14.99 Put Protection Sell Stop at 10.28 First Profit Target=19.7 Total Investment=629.58 | |
CRY | 14.75 | 13.21 | BUY 60 shares at 13.27 Put Protection Sell Stop at 9.98 First Profit Target=16.56 Total Investment=796.2 | |
LXU | 9.77 | 20.45 | BUY 45 shares at 20.97 Put Protection Sell Stop at 16.61 First Profit Target=25.33 Total Investment=943.65 | |
PAL | 9.61 | 11.84 | BUY 85 shares at 12.06 Put Protection Sell Stop at 9.71 First Profit Target=14.41 Total Investment=1025.1 | |
GNA | 9.27 | 14.62 | BUY 68 shares at 14.64 Put Protection Sell Stop at 11.71 First Profit Target=17.57 Total Investment=995.52 | |
MPP | 5.22 | 12.92 | BUY 103 shares at 13.26 Put Protection Sell Stop at 11.33 First Profit Target=15.19 Total Investment=1365.78 | |
PMACA | 5.04 | 10.56 | BUY 159 shares at 10.68 Put Protection Sell Stop at 9.43 First Profit Target=11.93 Total Investment=1698.12 | |
BLX<---- New Buy | 4.7 | 20.98 | BUY 104 shares at 21.04 Put Protection Sell Stop at 19.13 First Profit Target=22.95 Total Investment=2188.16 | BLX<---- New Buy |
KMGB | 4.31 | 12.75 | BUY 147 shares at 13.04 Put Protection Sell Stop at 11.68 First Profit Target=14.4 Total Investment=1916.88 | |
XRIT | 3.68 | 13.96 | BUY 129 shares at 14.11 Put Protection Sell Stop at 12.56 First Profit Target=15.66 Total Investment=1820.19 | |
BOOT | 3.68 | 17.37 | BUY 113 shares at 17.52 Put Protection Sell Stop at 15.76 First Profit Target=19.28 Total Investment=1979.75 | |
ECLG<---- New Buy | 3.4 | 20.84 | BUY 64 shares at 21.11 Put Protection Sell Stop at 18.03 First Profit Target=24.19 Total Investment=1351.04 | ECLG<---- New Buy |
NGA
Go to TopCRY
Go to TopLXU
Go to TopPAL
Go to TopGNA
Go to TopMPP
Go to TopPMACA
Go to TopBLX
Go to TopKMGB
Go to TopXRIT
Go to TopBOOT
Go to TopECLG
Go to Top
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