TM Education Spotlight – Paychex
In this educational article we are going to show you how
active traders are taking full advantage of the education provided by
TradingMarkets.com.
TradingMarkets University teaches traders how to scan the markets for the
best risk/reward trades everyday. When our criteria is met, we execute trades
systematically, in other words, without emotion. That way we can ignore the
talking heads on financial news networks, or the so called experts in the press
and trade based upon our rules, which are backed up by rigorous testing and
provide us with a statistical edge every time we enter the market. For more
information click here
or call 888-484-8220 ext 1.
In today’s example we’re going to show you a trade we executed
this week using a technique taught in our Swing Trading
College (STC). All of our trading systems start with at least one of
TradingMarkets 10 Rules listed on our homepage. This particular setup utilizes a
variation of
Rule 3 and
Rule 8.
Our system generated two buy signals in Paychex
(
PAYX |
Quote |
Chart |
News |
PowerRating),
one on September 22 @ $32.73 and another on September 23 @ $32.75. As you can
see from the chart, PAYX gapped higher the next day but according to our rules
we didn’t have an exit signal so we hold onto the position. The next day our
exit signal is triggered and we follow our rules, closing out the position @
$34.30 on September 27.
Now lets turn those numbers into actual trading profit/loss
figures. If you bought 100 shares @ $32.73 and another 100 shares @ $32.75 your
total position is as follows:
100 * 32.73 = 3273.00 + 100 * 32.75 = 3275.00
Total = $6548.00
So your total position is long 200 shares @ $32.74 (average
price).
You exit the whole position @ $34.30
200 * 34.30 = 6860
$6860 – $6548 = $312.00 (excluding slippage and commissions)
That’s a 4.76% return on your investment in only 2-days.
If you would like to learn more about this trading
technique, or one of the other we have featured in these articles
click here or call 888-484-8220 ext 1 for more info.
Ashton Dorkins