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As Seen On ...
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Advanced Concepts |
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Short Term Trader It is important at this stage to be completely familiar with the Basic Concepts regarding the MRL - Moving Resistance Line, the MTL - the Moving Trade Line, and the MSL - the Moving Support Line. To review that information, just click here. It is also important to review the charts regarding the Buy and Sell ranges. To review that information, just click here. The third step is to understand the example charts and the information below the charts, specifically the "Buy Step" and the "Sell Step". Now to proceed with the trade procedure. After you have selected the stock to buy and the price at which to buy it at, you should locate the price range in which the price you paid is at. You can then trade further by using the "Buy Step Amount" and purchase additional shares either above or below the MTL. You may purchase additional shares as the stock price moves up or down. ( The one exception to this is to never buy additional shares if the stock moves down in price from above the MTL.) Additional shares may be purchased if the price is moving down below the MTL all the way to the last buy range before the MSL. Remember that after each buy, you need to put in a Stop Loss order. As stated previously, you should have the price in mind at which you will sell after your purchase. The price we suggest will be the price you paid per share plus the dollar amount indicated on the bottom of the chart known as the "Sell Step". You are now ready to use Moving Trade Line.com at it's fullest potential !
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Basic Concepts: Philosophy of Moving Trade Line .com These higher highs and higher lows may become a predictable pattern. If you understand that the price will probably reach new higher highs, then you understand the basic strategy of Moving Trade Line .com. Look at the example above and see what actually happened to the price of the stock when we add two more months of prices reached. |
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Basic Concepts: The Resistance and Support Lines A line can be drawn between the historical low price points and a corresponding parallel line between the historical high price points. The area between these two lines is called the PRICE RANGE with the upper line being the RESISTANCE LINE and the lower, the SUPPORT LINE. It is within this price range that the MOVING TRADE LINE can point you to your buy and sell points. |
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Basic Concepts: The Resistance and Support Lines Selling your stocks is the key. When investing in the stock market, it is not when you buy that counts, it's when you sell. You should know when you are going to sell your stock before you even buy them. Knowing when you are going to sell before you buy the stocks helps eliminate the emotional factors of fear and greed that sometimes push or pull individual investors. As you become familiar with Moving Trade Line .com, we are confident the nervousness of being an investor will subside. If we divide the price range of the stock anytime from resistance to support by 2, the price point between the resistance level and the support level will be the Trade Line. This line shows it gradually moving up in time. It is from this line, the Moving Trade Line, that we suggest all trades be made. |
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Basic Concepts: The Resistance and Support Lines The following is an actual example of how an individual investor could have profited using the Moving Trade Line concepts. This example excludes any commission amounts as they vary from one broker to another. SE was traded 16 times during the 6 month period shown. In each case, 500 shares were purchased at prices ranging from $18.50 to $24.50 as the Moving Trade Line increased. This netted an average gain of $0.93/share on each trading event (buy and sell) a $7,440.00 gain during this six month period!!! (excluding broker fees) $11,000 invested for a $7,440 gain = a 67% return  During the 6 month period in the above example, you could have traded (bought and sold) a company with the symbol SE on 16 different occasions. The buy and sell points would be from the buy and sell ranges provided by Moving Trade Line .com. Each time you bought and sold the stock you would have taken a profit of $0.93 multiplied by the number of shares you bought and sold. |