Basic Concepts
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Basic Concepts: Philosophy of Moving Trade Line .com
Emerging growth stocks have a very clear and easily identifiable historic pattern. These
growth stocks move in a continuing pattern of higher highs and higher lows. Notice in the
example above how this stock, SE (Seven Eleven) moves in a definite pattern of higher highs and
higher lows.
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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.
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