Coming This Week

A Brilliantly Laid Out Trading Strategy From Gary Kaltbaum

There are a few times a year that I run across a pattern where I say to myself,

"This is so good, I could trade this one pattern for the rest of my life."

But I always resist that temptation. In trading you learn to be realistic and not rely upon any one single pattern or trading strategy.

I believe, however, you may be as tempted as I was when you read Gary Kaltbaum's new trading lesson "My Favorite Strategies For Gaps Up And Gaps Down." Do you tremble in fear when you see a stock gap -- fearing the gap will get filled? If so, Gary will teach you a brilliantly laid out strategy that allows you to profit from sustained moves that follow some gaps, as long as certain criteria are met.

Frankly, I was surprised. After all, I thought the intermediate-term guys mainly focus on cups and handles, breakouts and breakdowns from bases. But -- definitely -- both short- and intermediate-term traders will want to snatch up Gary's strategy for their war chest.

I know I have.

Tips For Trading Choppy Markets From Kevin Haggerty

Watch Kevin Haggerty for a few weeks and you'll see that he's a virtuoso at aggressively, unhesitatingly adapting to the ever-changing market. Kevin shared with me this week that this is one of the many things he will pound into your head at his "Trading With the Generals workshop" at the Hilton Naples & Towers Hotel in Florida, the weekend of February 23-25, 2001. Here's what Kevin had to say:

I've always said that time frames don't mean anything to me. If you do a daytrade, how do you know when the market takes you out? In a strong uptrending market, breakouts and continuation entries are working. But in a fear-induced market, it's a bull market for a day and half and a bear market for two days. If you play continuations like you did in the uptrending market, you'll get stopped out a lot. They're tough.

In the current choppy environment...it's been beautiful for us -- both on the long and short side.

Playing from the long side, you get some huge percentage moves. But you've got to trade a lot faster because the swings are quick. Daytraders love it. Position traders hate it. Time horizons have shrunk. Follow-through is non-existent. You have to trail the stops tighter...adjust position size to volatility...manage the trade intraday. Second entries become important. We also take the early entries -- something breaking out from the closing range. You can knock a lot of 'em out of the park and make "a pile" this way.

If you want "beautiful" results on the long side, on the short side, and in choppy markets -- no matter what the market throws at you -- you'll learn exactly how at Kevin's "Trading With the Generals" workshop. Find out more and register for this and other coming events at TradingEvents.com.

Be there when Marc Dupee takes you for a tour inside the head of one of today's premier option traders, Jon Najarian. Marc caught up with Dr. J just after Friday's open and captured some of Jon's choice thoughts about the current markets, his favorite strategies, tips for aspiring traders, and his new book How I Trade Options. Marc will also share with you insights he picked up after poring over this book for the past two weeks. Read Marc's latest piece: "Dupée With Dr. J On How I Trade Options"

There are Three types of Options Traders: What Type Would You Rather Be?

1. There are those that never get beyond just buying puts and calls. Their accounts usually blow up in few months.
2. There are those that attend a seminar taught by a non-trader who teaches strategies that look spectacular on paper, but which fall apart under real trading conditions.
3. There are those who win year after year using the small number of finely tuned strategies that consistently succeed under a variety of market conditions.

If you'd rather be among the "Type 3s" then I urge you to register for Jon Najarian's conference "Conquering The Options Market With Dr. J." Feb 26 - 27, 2001. Jon is a professional options trader with 20 years of hands-on experience. He will guide you through every aspect, every step, and every nuance of the strategies that he and his team of traders use successfully on a daily basis. After attending the conference you'll see the market differently because you'll be able to take advantage of events that make most traders run for cover. Whether the market is tanking, surging, or just directionless, you'll have the tools to come out a winner. Visit TradingEvents.com for more information and other dates and times.

Profits come from exits, not entries. One of the biggest and most common frustrations that traders face is exiting a trade at the bad times. You sometimes get stopped out of a stock right before it explodes. Or maybe take profits way too early. Worse yet, you exit a trade after the stock has plunged well below its entry point. In his lesson "Why, When, and How to Exit a Trade," Duke Heberlein will show you how to steer clear of the these pitfalls and systematically identify the best exit levels as trade progresses. Best of all, Duke will explain how you can scale out of a profitable position to reduce or eliminate the risk of a trade.

In addition to the Trading Lessons described above, please see our latest Trading Advisor. As always, if you'd like your trading questions answered, please send them to questions@tradingmarkets.com. Send any suggestions, recommendations and other input to suggestions@tradingmarkets.com.

Profitable trading,

Eddie Kwong
Editor-in-Chief
TradingMarkets.com