Controlled Trading Techniques

Author: Walt Bressert

MarketClub Trading Service

Gamblers roll the dice and hope they are going to make money.  they trade on tips, their broker's advice, and "instinct".  They usually lose money.  Speculators trade because they believe they have an edge.  They might know the fundamentals, they might know the technical, but they fell they are not "rolling the dice", but are making an "educated guess".  Whether gambling or speculating, most traders are out of control.  They do not know how to make the decisions (and to do the research) to put them in control.  You are in control when you have an idea, not just of what direction a market will move in, but of how far it will move and when it will reverse.  You are in control when you have a profit objective and a game plan for taking profits.  You are in control when you have a set of rules or guidelines that you follow to eliminate to trade based on your knowledge, your ability, not your broker and not an advisor (unless his work confirms yours).  Your are in control when your trading approach is so structured that the surprises the market throws your way do not end up with margin call, or large, unexpected losses.  Speculation is a risky business, and taking losses are part of the business.  They cannot be eliminated, but they can be minimized and controlled.  By following the 4-steps of controlled trading you will always be in control of yourself and your trading.  There may be losses, but there will not be margin calls.  Seeing large profits disappear and turn into losses will be a thing of the past. Controlled Trading has four steps to profits:

1. Market Analysis

2. Oscillator Analysis

3. Market Entry and Exit

4. Controlled Risk Money Management

Step 1 - Market Analysis

Step 2 - Oscillator Analysis

Step 3 - Market Entry and Exit

Step 4 - Controlled Risk Money Management

contract 1 -- the money contract

contract 2 -- the short-term profit objective contract

contract 3 -- the long-term profit objective contract

Utilize pivot analysis as part of your plans for entry and exit criteria.  The four time periods that have special significance in analyzing points are: a) the open, b) 30-minutes after the open of each market, c) mid-day and d) 35 minutes before the close.

About the author:

Walter Bressert is acknowledged as the man who brought cycles to the futures markets in his original newsletter "Hal commodity Cycles", which was profitable 10 of the 12 years it was published (1974-1985).  His book, "The Power of Oscillator/Cycle Combinations" defines a new dimension of oscillator and cycle analysis.  His present advisory service, Cyclewatch, is available via mail, FarmDayta, Telerate's commodity Service.  In Cyclewatch he uses cycles and oscillator to forecast tops and bottoms and to identify tops and bottoms as they occur in both financial and agricultural markets.  Bressert provides consulting services and offers  seminars to educate traders and investors on how to identify tops and bottoms using cycles and oscillators. Many of his seminars and trading methodologies are archived by the MarketClub trading service and can be accessed by all MarketClub members for free. To learn more about MarketClub and get a feel for what the trading community thinks about this trading tool, visit the MarketClub review site.