My Strategies

Feb 26, 2007: 5:53 PM CST

Here, I post part of my personal trading strategy and what I look for to identify watchlist candidates, entry targets, risk zones, and trade management.In the open blog, I discuss the following strategies briefly:

Momentum Divergences
The “Impulse Buy”
Sector Rotation/Sector Strength and Weakness (hedging strategies)
Playing Against the Crowd
Fading Classic Technical Analysis Patterns
“Perversion” Trades (capitalize on euphoria and greed from classic patterns)
Intermarket Analysis Insights
Trend Beginning and “Sweet Spots” in the Data
How to Trade a Bull Flag

For categorizing the overall market, I will be discussing:

The Four Principles of Market Behavior
The Four Main Trade Set-ups across any time frames (and how they are derived from the Four Rules)
Market Profile and Dynamic Behavior
What is Meant by Price “Structure?”
The Three Basic Rules of Elliott Wave

In response to the indicators I use, particularly the morphed MACD or “3/10 Oscillator,” I wrote a post entitled “How I Setup My Charts” for reference.

Insights on the 3/10 Oscillator (construction and definitions).

I offer educational, private mentorship opportunities. Contact me to see how we can design a plan for you which addresses these topics and many more foundational concepts in a structured, guided method of interaction on an individual level at your own pace. Contact me directly at for more information as to how I can help get you on the right track to trading success.

stocktickrinterv2.jpgI classify myself as a risk-averse, analyst trader and am most comfortable with short-term trades including semi-scalping, day trading, and swing trading. I am moving more to position trading using sector rotation strategies, as the edge and risk/reward ratios are overwhelming when capturing a trend ’sweet spot’.

You may also hear my interview with Andrew Horowitz at the Disciplined Investor (podcast) for a small discussion on my strategies.

Comments
  • tejinder singh

    I'm always open to new information and new techniques, but I'm honestly
    not looking for any Holy Grail or anything magical any longer. It all
    comes down to math and statistics and a probabilistic edge (putting the
    numbers in your favor) and however you can do that in a manner that
    works with your personal risk tolerance - that's what matters.

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  • Scalp Traders look to take advantage of very short term trading opportunities. By entering and exiting a trade within a minute or two, develops confidence for the beginner trader, trading consistently without fear and without big drawdowns.

  • I added your post to my college Report

    respect
    Joseph tan
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  • HarrisonMcdaniels009

    my inernet not working properly I have bookmarked ur story i'll read it latter

    respect
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  • I honestly don't know much about the Seykota tribe, but what I've read seems encouraging. I started this blog as a way to reach out and connect with other traders, and I'm sure I would thoroughly enjoy such a tribe in my hometown, but there is none here. I love the networking, encoruagement, and sharing of ideas that these groups seem to provide, but I cannot comment as to their program or their content. Just the act of talking things out can be very helpful.

  • The point of the blog and my strategies are to overcome fear through techniques and solid strategies, including a solid market education, both from various sources and from actual live trades with real (small amounts) money on the line.

  • McCan,

    Thank you so much for the comment and encouragement. Trading injuries (or forced awarenesses) seem inevitable, and it's how you respond that determines your success. Most market wizards endured many such moments! For me, those moments make me learn more and study more, after the initial discouragement.

    I honestly don't know much about the Seykota tribe, but what I've read seems encouraging. I started this blog as a way to reach out and connect with other traders, and I'm sure I would thoroughly enjoy such a tribe in my hometown, but there is none here. I love the networking, encoruagement, and sharing of ideas that these groups seem to provide, but I cannot comment as to their program or their content. Just the act of talking things out can be very helpful.

    Feel free to contact me and discuss this further, or discuss further on the blog if you like.

  • McCan

    Corey,
    I believe that your choice to step more deeply into the trading arena once you felt injured is what defines you as a promising and mature source of information and inspiration. Very glad to find your blog.
    What is your take on the Seykota approach of emotional healing leading to successful trading (and lifestyle) choices?

    Best Regards,

    McCan

  • Raul

    Hi Corey,

    I am very new to the markets. I´m interested in swing trading because of my crazy schedule. How do I get started? Can you recommend a course or a good book(s)?

    Thank you,
    Raúl

  • Bill,

    Thank you so much for the comment and for reading. I would love to discuss more with you! I have met many traders over the last 6 or so years, but no one has come close to 50 years of market experience! I am extremely humbled and impressed! I know you have so many valuable insights from those years.

    You're exactly right. There is no truth but price. Everything else is secondary. Almost all indicators are mathematical derivations of price anyway - they all show what's already there, but sometimes make it easier to see.

    Letting to of what we expect/want/desire is extremely difficult, and may be nearly impossible for some people. I think you're right in that when we stop putting into place so many barriers, the path of least resistance becomes the one that leads to success, almost in a Buddhist sort of way.

    I would love to hear any insights or experiences you would be willing to share.

    Corey

  • Hi Corey,
    Just a quick note to tell you I am enjoying your blog. I have experienced many of the same fears and behaviors you note. Next year will be my 50th year of active trading (I started in 1958). I do, however, think there really is a HOLY GRAIL and it is five simple words....

    WANT WHAT THE MARKET WANTS!!!

    When we can let go of our own wants and how we think it should be - winning becomes the path of least resistance.

    Keep it up ---- bill williams

  • Paul,

    I'm absolutely trading! Too much, it seems. The point of the blog and my strategies are to overcome fear through techniques and solid strategies, including a solid market education, both from various sources and from actual live trades with real (small amounts) money on the line.

    I day-trade and scalp the morning session using mainly the Dow Jones ETF in my personal accounts - both a futures account (almost exclusively trade the @YM - Dow-Mini) and a margin stock account. Using sector rotation and relative strength, I establish swing trades and occasional position trades in a second personal margin account for myself and a third for my family (including a small futures account). I also research and recommend positions as part of a team for a longer term oriented, new tactical professional portfolio. That's keeping me busy in the afternoons beyond my personal trading. I keep up with the blog with time left over in the evening.

    The fear lasted about two years after the 'trading scar', during which time I sought out and learned as much as possible from as many sources as I could, which developed a firm foundation from which to proceed. I think the term I used was "overkill."

    Four years later, I still haven't found the "Golden Fleece," but I've always heard it called the "Holy Grail." I've tried a variety of strategies, lined up a number of indicators, and utilized option strategies... and I suspect the #1 thing I've found that works is a specific risk management strategy - being conservative and not putting on overly large positions. It keeps you in the game much longer.

    To me, (the grail) comes down to momentum, support/resistance, participation (volume) and trends. Create a scenario where each trade has a favorable risk/reward and take the trade. Over time, provided you stay disciplined and can intelligently articulate your edge (if even just to yourself), the numbers play themselves out. Keep it small and keep going.

    I'm always open to new information and new techniques, but I'm honestly not looking for any Holy Grail or anything magical any longer. It all comes down to math and statistics and a probabilistic edge (putting the numbers in your favor) and however you can do that in a manner that works with your personal risk tolerance - that's what matters.

    Thank you for the comment and for reading, and feel free to discuss more.

    Corey

  • Paul Lessler

    Just found your blog and really enjoy it. Bottom line --are you trading now--or still afraid?

    If you are trading --have you found the "Golden Fleace?"

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