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Bill Hider – Short Term Momentum Trader Basic Strategy: Evening - Identify potential trades/entry points with the Daily Chart close Next day - Use the.

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Presentation on theme: "Bill Hider – Short Term Momentum Trader Basic Strategy: Evening - Identify potential trades/entry points with the Daily Chart close Next day - Use the."— Presentation transcript:

1 Bill Hider – Short Term Momentum Trader Basic Strategy: Evening - Identify potential trades/entry points with the Daily Chart close Next day - Use the Intraday 5-Minute Chart to find precision entries/exits based on the Stock Price candlestick-patterns Trade the Option, not the stock Stay in the trade until either of the following is met: 1. The first major retracement begins, based on the 5-min price candlestick-pattern of the stock being traded 2.A price target is reached Exit the trade the same-day (day-trade)

2 Bill Hider – Short Term Momentum Trader Basic Trade Entry Rules (Watch the Stock, Trade the Option) On Pullbacks to moving averages – on the bounce On Breakout from technical continuation patterns Trade in the direction of the S&P (Watching the SPX) Do not trade in the first 15 – 20 minutes after the mkt opens, or longer, until SPX has identified a tradable direction. Do not trade on slow trading days, or SPX Doji days Note: There are well over 150 trading rules plus several dozen technical pattern rules, and a set of Option selection rules

3 Bill Hider – Short Term Momentum Trader What I do Select 3 to 7 trading candidates each evening - Daily chart close I select from my personal trading list of 11 stocks: AAPLAZO BIDU CME FSLR GOOG GS ICE MA OIH POT And augment with 1 - 3 other stocks that have moved into entry patterns that day. For Example, my list for today (5/20/09) was: AMZN AZO GS MA PCLN RIMM I actually traded AMZN & AZO today. These trades follow:

4 Bill Hider – Short Term Momentum Trader Todays Selections from Daily Chart: My Game Plan first considers the SPX (daily). Heres what SPX looked like last night, 5/19/09 You can also see my pick- list in the left- hand column.

5 Bill Hider – Short Term Momentum Trader AMZNs Daily Chart (5/19/09):

6 Bill Hider – Short Term Momentum Trader AZOs Daily Chart (5/19/09):

7 Bill Hider – Short Term Momentum Trader GSs Daily Chart (5/19/09):

8 Bill Hider – Short Term Momentum Trader MAs Daily Chart (5/19/09):

9 Bill Hider – Short Term Momentum Trader PCLNs Daily Chart (5/19/09):

10 Bill Hider – Short Term Momentum Trader RIMMs Daily Chart (5/19/09):

11 Bill Hider – Short Term Momentum Trader AMZN Entry @ 79.44, SPX Bullish, Entry time = 9:52AM, 5/20/2009 ZQNFO, Jun 75C, 6.20 x 6.30, D =.70, BTO Fill = 6.30, 10 contracts

12 Bill Hider – Short Term Momentum Trader AZO Entry @ 163.10, SPX Bullish, Entry time = 9:53AM, 5/20/2009 AZOFK, Jun 155C, 11.70 x 12, D =.69, BTO Fill = 11.93, 8 contracts

13 Bill Hider – Short Term Momentum Trader AMZN Exit @ 80.34, SPX Doji, 10:08AM, Time in trade = 16 min ZQNFO STC Fill = 6.9 (tsl.1 @ 7.00). Profit = $600, 9.5%, $570 Net

14 Bill Hider – Short Term Momentum Trader AZO Exits @ 163.09/163.31, SPX retraced, 10:11AM, Tr time = 18 min AZOFK STC Fill = 12.02 & 11.82, Loss = -$15, (-$45) = $-60.00 Net

15 Bill Hider – Short Term Momentum Trader FOMC 2:15 PM decision day Special Rules: Stay in any trades you are already in from overnight the previous night Dont enter any new trades before the FOMC announcement @ 2:15 PM Then, wait until SPX 5-min chart gives you the all clear to do any trading Example: AZO 3-18-09

16 Bill Hider – Short Term Momentum Trader 3-18-09 AZO Entry after FOMC. SPX broke-out, retraced & broke out to 1 st retracement candle. Note: took 30 minutes for SPX to settle down. AZO @ 162.93, BTO AZOCK, Mar 150 C @ 8.28, 10 ctx* AZO @ 163.69, STC AZOCK, Mar 150 C @ 8.815* Profit = $535 – $30 $505 NET *All trade slips from this PPT, available on request.

17 Bill Hider – Short Term Momentum Trader My 4 Most Important Rules Are Posted In 3 Places Above my Trading Desk (really): Any number of trades/day producing a days profit of $100, $200, $300, or $400, yields the annual profit listed if averaged over the approx 250 trading days/year. No profit is too small!

18 Bill Hider – Short Term Momentum Trader ANY Questions? Comments? Bill Hider Rockville, MD 301-642-0903 n3rr@erols.com


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