MTrader

The MTrader Chatroom has been the foundation of MTrader since 1997. The focus of this room is high-potential momentum trading with tight risk management. We go where the momentum is, and that usually means high-volume news stocks and tech leaders. In today's high-tech world, stocks often move in dramatic waves, driven by greed and fear and short-term perception. Taking advantage of this momentum, we use a combination of technicals, fundamentals and crowd psychology to anticipate and time direction changes for maximum potential.

With the dawn of online direct access trading, came fundamental changes in the market. In the last few years we have experienced potential and risk, in historical proportions. Traditional investing strategies have been pushed aside, as individual investors, for the first time in history, are free to execute their own ideas and perceptions directly, on a mass level. These changes have turned the strategy of “buy and hold for a consistent 10% return”, into an anachronism. The game has changed.

Today's market is driven by momentum. No longer are our investment decisions ruled solely by fundamentals. Investors are responding to short-term prices movements, they are responding to news, and more than ever, they are responding to their immediate perceptions. They are creating, and then responding to momentum, in a cycle of reactions and counter-reactions. Because of the direct nature of today's market, this is creating an enormous amount of short-term momentum. This momentum can be a wonderful friend if you understand its nature, and know how to identify its patterns. As many individuals and professionals have found however, it can be a terrible foe if you are still trying to play according to the old rules.

At MTrader, we are taking advantage of large price fluctuations, caused by both general market movements, and news-propelled momentum. As close market observers, we are carefully following the markets, indices, sectors, and individual stocks, watching for signs of relative strength and weakness, patterns and opportunity. We are also closely watching for any breaking news that can shake the markets and individual companies. Through this careful observation we are able to catch market changes and turning points. For every action there is a reaction, and we are there waiting for it. We are simply riding the momentum as it unfolds, for as long as it lasts.

Our momentum trading strategies are based on the principles of relative strength, market patterns, stock category patterns and tape reading. Among the variables we consider are price movement, time and current volume. Our plays are held anywhere from several minutes to several days, and naturally risk management is a top priority.

For market indicators, we use the sector leaders with the strongest momentum. They will move out slightly ahead of the market, leading the direction. This gives us a head-start and enables us to catch the more predictable laggards. In addition, we take into consideration the recent patterns in the market, the historical position of the market, the recent patterns of our focus stock, the category of that stock, the recent patterns in that sector, and any pertinent news. To pin-point entries and exits, we then use tape reading techniques.

For more information regarding our momentum trading methods, read Ken Wolff's Book "Trading On Momentum" published by McGraw – Hill.

Our day begins about 1 ½ hours before market open. This preparation time is the most important part of the day. This is when we scan for news, build our expectations, and plan for our early trades. The early action, in the first two hours after

the market opens, is the most predictable, and trades during this time generally hold the most potential. So it is important to be prepared.

For those who are struggling or new to trading, our classroom prepares traders in greater detail with greater focus on only one or two trades and encourages questions and participation.

From my experience, I find that those who do not go about their trading in a systematic way, tend to be less successful. Those who make “fly by the seat of your pants” trades, without a solid plan, criteria, or expectations, tend to have erratic performance. So it is important to start your day off prepared.

9:00am est , give or take a few minutes:

Ken will post his early trade considerations, with expectations and targets. Shortly after, you will receive these in our

Early Trades Advisory Email.

9:30am – 11:30am est:

The first two hours of trading is generally when the most predictable, highest potential trades are to be found. This is

when the general pace of market trading and volume is most active. During this time you will see and hear “calls” being made. Ken will also be posting charts for stocks he is focusing on.

11:30am – 12:30pm est:

After the first two hours, the general pace of trading slows and trades become less predictable. During this slower time,

you might find us joking around a lot. This is generally a good time to ask questions or get help. This doesn't mean we

have stopped scanning for opportunity though. We are on the lookout at all times, for unusual movements or breaking

news that could move the market and create opportunity.

During this time we hold our daily classes in #mtclass. These are taught by Shawn Wolff-Klug (aka Gimmie) on Tuesdays and Thursdays, and by Ken Wolff on Mondays, Wednesdays and Fridays. During this class-time we discuss the basics

of the methods we use, emotional blocks to trading, the technical aspects of trading, and we discuss the day's action and calls. Questions and participation are encouraged. In case you can't make it during class-time though, don't worry; all classes are emailed to you daily.

At this time general pace of trading is generally slow, and trades less predictable. During this slower time, you might find

us again joking around a lot. This is generally a good time to ask questions or get help. But again, this doesn't mean we have stopped scanning for opportunity!

About an 1 ½ hours before market close, the general pace of trading again picks up and predictable potential will often return. The last half hour are usually spent in discussion of any new Intermediate-Term candidates, or exits. In the last five minutes as well, we will decide on any "gap plays" (long positions bought at the end of day, in anticipation of a positive gap the following day).

Afterhours Trading...

Afterhours you will find members still hanging out in the room with whale, watching afterhours trading as well as breaking news, particularly during earnings season. Sometimes this is the most active trading time of the day. This is also a good time to mingle, ask members opinions, and get to know your fellow traders.