Are You Trading with an Edge?

October 16, 2007
John Patrick Lee

At TradingMarkets, many times the first thing new customers want to do is
jump right into the data, see a list of potential trading candidates and go make
a trade. Obviously, this is not the way to go about your business as a trader,
but people will be people. The markets operate on the underlying emotions of
fear and greed; human impulses inherently play a huge role in market behavior.

So where do you start when you first gain access to our indicators and
research? It’s easy to get confused, and it’s also easy to lose your focus as a
trader, and forget what you initially set out to accomplish. Making money is
obviously your top priority, but many traders still crystallize their ultimate
goals ($) without making any plans about how to get there.

The answer is, that you need an edge when you make a trade. It is an unwise
decision to trade without a plan that you know works. By trading on your
emotions and opinions alone, you are ignoring the fact that there are countless
professionals who earn their living through trading and investing in the
markets. It is impossible to successfully trade without an edge or plan. In the
end, you will be placing blind bets against the house, and you will run out of
money to trade. Period.

So where do you find an edge, every day, to help you design a trading plan?
TradingMarkets
Indicators provide traders with a historically-backed edge, quantified by
millions of trades in the past decade. There are 16 indicators which provide
traders with a short-term edge, based on the historical tendency of the stock’s
chances of moving, based solely on price action.

Click here to view today’s free list.

These are stocks that have made a lower low for five or more consecutive days
and are trading above their 200-day moving average. Our research shows
that stocks trading above their 200-day moving average that make lower lows for
five or more days have shown positive returns, on average, 1-day, 2-days and
1-week later. Historically, these stocks have provided traders with a
significant edge.

Stocks that have fallen to extended lows are historically primed to rise over
the next 5 trading days. Our research supports that stocks revert to their mean
conditions, and that markets (and stocks) tend to move from oversold to
overbought conditions. Our indicators are geared towards timing when that
momentous swing occurs, so that you can get into a trade before the move
happens.

Eli Lilly
(
LLY |
Quote |
Chart |
News |
PowerRating) has a PowerRating (for Traders) of 6.