Congratulations, you have completed the theoretical
portion of the online training course!
Now comes the real-life experience with
stocks---trading for profits. What we strongly recommend is that you first
try "paper" trading to gain the experience required to gain both
skill and confidence. For this purpose, we provide you with a trading simulator.
You can learn how to use the trading
simulator by studying the Help files that come along with the program. Once
you feel confident that you can trade for profit, then---and only then should
you venture into "real" trading with an online broker.
Training
Drills
Here are some training exercises that
you can use with the trading simulator. Choose the topic that best fits your
anticipated trading style, and work the recommended strategy until you gain
the skill and confidence necessary for "real" trading.
Day Trading (or AM / PM-only trading)
Exercise 1 - AM Gap Down. On
a day when the market is poised for a lower opening, run the Vulcan Oracle and
examine the After Hours list before the opening bell. Note the top 4 or 5 stocks
that are showing a gap down (their 'ask' price should be lower than the previous
close price). Enter the stock into your quote streamer to see what it does when
the market opens. If it plummets even further, or even trades sideways, "buy"
the stock with the simulator until it produces either a 2% gain (or more), or
a -2% loss (in which case you bail out). If you lose on the trade, study the
intra-day chart and consult the rules for DMGD in
this course to find out where you went wrong.
Exercise 2 - Trap Door. Sometime
while the market is open, turn on the Trap Door Scanner in the Vulcan Oracle.
Wait for a stock to trip the Trap Door alert (which will display a popup window
with the stock that triggered the alert). Immediately examine the intra-day
chart for today's session, and if it appears to meet the criteria as outlined
in Winning Patterns, go for the trade in the simulator.
Don't hold it for too long, sell when you are happy with the gains. Sometimes
this happens in minutes. Note that you have to be very fast when trading Trap
Doors, so it is recommended that you have the simulator ready to go before the
Trap Door Scanner fires.
Exercise 3 - Lunar Bounce.
On a day when the major indices are 'red' (to the downside), run the Vulcan
Oracle about 30 minutes before the market close (the market closes at 4PM-eastern).
Using the Bounces list, examine the top stocks showing losses, and using an
intra-day chart, spot the ones that are at or near their session low. Then if any
are near or at their lows a couple of minutes before the close, buy them in
the trading simulator. Note that you should not do this exercise unless you
can be at the next session opening, which is 9:30AM-eastern, because the idea
of this strategy is to take the gains when the stock bounces in the morning.
Semi Day Trading (holding for a day or two)
Exercise 1 - Staircase to Heaven.
On a day that the market appears flat or to the upside in the early going, run
the Vulcan Oracle and examine the top 10 to 20 stocks about 25 minutes after
the open (which would be 9:55-eastern time). Using an intra-day chart, note
any that are at or near their session high at that time. Then if one or two
make a session high at 10AM, buy and hold the stock for the remainder of the
session. Takes gains either at the end of the day, or the next morning, assuming
that gains are there to be taken. Don't let it lose more than 3% to 5%. Set
a stop if necessary.
Exercise 2 - Breakout. This
exercise requires ideal conditions to work, which are (a) The market has been
uptrending, and (b) You have a "green" light in today's session in
the Vulcan Oracle. But before you find those conditions, begin making a watch
list, using the Best/Worst list, of stocks that are forming a sideways base
and/or are trading near the upper end of their recent channel. Then, once one
of them breaks above their channel's high, and with strong volume, but the stock
in the simulator and ride it for at least one session. Set stops as necessary
to avoid deep losses if it backfires.
Longer-term Trading
Exercise 1 - MACD Tracking. Choose
a day in which the market is distinctly positive or negative, avoiding a day
where it travels sideways or is indecisive. Following the example shown in the
strategy for MACD Tracking, use the Vulcan Oracle's
"Longer Term" list to locate a stock whose MACD has recently crossed
lines. If the market is bullish, go with one that has crossed to the upside
(the "red" line crosses above the "green"), or if the market
is bearish, sell short one that has the "green" crossing the "red."
The idea is to catch one that has recently crossed, matching the market's direction,
rather than one that has crossed some time ago. But (or sell short), then hold
the stock as long as the MACD signal remains in the same position, and close
the position if the lines cross the other way. Juggle this strategy back
and forth for several weeks and see how you do. Don't let one lose more than
7%.
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