How is our "DAY
TRADING" very DIFFERENT from what
you might already know ? ...
Our
Day
Trading philosophy and techniques
are really
VERY DIFFERENT from the
"traditional"
day
trading style
, which is also, unfortunately, the one most
commonly depicted by the Media and perceived by the general public.
"THEY"
(these
"traditional
day
traders")
gather by the dozens in computer war
rooms,
eyes glued to their screen for 6 1/2 hours...
"THEY" are highly stressed and are even afraid to
take 5 minutes off their trading to go to the bathroom, scared that their positions will go against them
and make them lose hundreds or thousands of dollars in those few minutes...
"THEY" do HUNDREDS of trades per day...
and
"guarantee"
lots
of
profits
to
only
one
person,
their
broker(through
tens
of
thousands
of
dollars
of
commissions)
"THEY" only do DAY TRADES and
no SHORT TERM trading (positions held a few days/weeks)
while...
"WE" trade from the comfort of our own home (or
hammock, backyard, beachside, middle of a trout stream, hotel rooms on
vacation
in
Europe
etc.
... almost
anywhere!...)
"WE" protect our positions with
"Smart Stop
Loss™"
orders
so
that we can ENJOY OUR LIFE while the markets are moving (play with our children, read, paint, fish, golf ... whatever it is
that we enjoy doing...)
"WE" tremendously enjoy our
Trading and we trade
with very little stress (or even none) as we do not REACT to the market, but instead
we ACT on
our
positions
and
our
emotions...
"WE" do VERY FEW trades per day
(1 to 5 as an average)...
"WE" do DAY TRADES of course,
but we also learn and practice "Overnight trading1"
as an
important
complement (positions held a
few days/weeks)...
... and so many other differences wich you will learn and appreciate if you
decide
to
join
us.
Pascal
Monmoine designed his whole trading philosophy in such a different and unique way simply because it
fit
his personal goals of having a chance to reach a great
lifestyle with an almost total freedom of living, being and thinking.
The basic concept of "DAY
TRADING" is to take positions in specific stocks for a few minutes
or a few hours, but to ALWAYS CLOSE those positions before the market close, on the very
SAME DAY that you entered them.
The
major advantage of
this form of trading
is that you never expose your capital to the major "GAPS" which happen, in the morning,
at the open on most stocks. (GAPS
=difference
between
the price
of a stock
at the
open and
the price
of that
same stock
at the
previous
market's
close) How many times did you buy a stock, only
to see it open(gap) down 15%, 30% or even 50% the next morning because of some really bad news on that company
(or its
industry) which was released after the market closed?... You are then "stuck" in that
position
and that
can often
last a
very long
time. Your money and your emotions are now "slaves" to the market's mood and
this is
always a very painful and very costly situation.
Maybe you are unfortunate enough to know that recurring "investor's"
nightmare... as soon as you buy a stock, it starts to go
down!!!???...
When you "Day
Ttrade"
efficiently, we also believe that you are in a much
stronger position than traditional investors as they rarely know how to EFFICIENTLY TAKE THEIR PROFITS
or TAKE THEIR LOSSES as needed.
They are usually totally dependent on the market and its mood. If their stock goes up 5% today and goes
back down 5% tomorrow, they will be back to zero ... while we might have made SOME PROFIT on
the way UP and SOME MORE PROFIT on the way DOWN and those profits will
be OURS to keep, credited to our account, in cash!
To us, it just seems that traditional
"buy and hold" investing might actually be much more
difficult to "control" than Day Trading... When you invest, you
have to be
realistic
enough to
realize
that you do NOT control
much... you just HOPE that, over a long period of time, your stock will go
up. And that's exactly what it is -- HOPING!
That point of view might surprise you at first, but
please think about it ... and you might start to understand what we mean.
As an efficient Day Trader, if a stock
tanks 10% in 2 hours, you will know exactly how to deal with it, both emotionally and
money wise. Even if you initially entered that trade on the "wrong"
side and you were
"LONG" on it
(meaning
that you BOUGHT that stock), you
will know exactly how to take
a small loss on your initial position (maybe 0.5-1% for example) and then possibly REVERSE and
go SHORT with it to actually end the day with a NET PROFIT. You will be
"ACTIVE"
... while the
traditional investor, with all his subjective "opinions," extensive
financial statements, analysis, and lack of trading knowledge and discipline will be DOWN 10% on his capital,
highly
depressed
and
powerless!
Does it now start to make more
sense?...
There is also the
constant major question to
us of "How do INVESTORS make money when the market is choppy, tanks or
crash?..." As of now, the only answer that we have is that they just
DON'T
!
They either LOSE MONEY and/or they are stuck on an emotional roller coaster which is
always very painful and costly.
To us, whether the market goes
up, down or is choppy, does not matter at all. We simply "SHORT" stocks (the technique of
SELLING a stock before you BUY it) as needed. It is not any more complex than
"BUYING"
(once you know what you are doing of course! Please see the table of contents of
our PRIVATE COURSE for
more details).
For our
Members, ANY
KIND OF
MARKET is
a
"GREAT
MARKET",
full of
opportunities
to have
fun and
make money
... unlike
investors
who can
only enjoy
bull
markets.
If you really want to make money in the stock market and to be able
to do so
in ANY
KIND OF
MARKET, the question is
never "Should you
SHORT ?..." but it really is "HOW do we short?..."
Deciding to become seriously involved with the markets and not
knowing how to SHORT is exactly like buying a car which can ONLY MAKE RIGHT TURNS... you
might be
able to
drive it
somehow
but you
are going to miss a lot of
opportunities
to go to
some great
places!
In the
stock
market, it
is a
reality
that you will
simply miss
a LOT of
profits if you do not
learn how take
"SHORT"
positions.
It is also very important that you know that we always measure our trading results in % (percentages),
and not in "$ amounts" as too many traders do...
This way, we can really
measure how well (or how poorly) we are doing compared to our own track record,
compared to other traders,
compared to the stock market as a whole, or compared to any other kind of
investment. In addition, this allows our members trading with $5,000 to be able
to totally relate to
those trading with $1,000,000.
Another very important reason for this is that many of our techniques
use "%" figures so that they will apply in the same manner to any stocks
whether they are at $200 or at $20.
You will too often hear beginners or inexperienced traders say "I'll set my STOP at 1/2 point..."
"If it goes down 1/4 I am out
" etc., which of course is as inefficient as it is irrelevant: 1/2 point on
IBM at $100
is certainly not the same as 1/2 point on COMPAQ at $15... don't you agree?
(
1
"Overnight
Trading"
:
Specific
rules and techniques apply to that form of Trading. They will be the object of a separate
COURSE
which is
in the
process of being written
) Specific
rules and techniques apply to that form of Trading. They will be the object of a separate
COURSE
which is
in the
process of being written
)
Information: (919) 490-0463
E-mail
us at: pm@pmtraders.com
This is not an offer to buy or sell investments or securities in any jurisdiction.
Do not make any investment/trading decision without first doing your own due
diligence.
Trading can be VERY RISKY
ONLY trade money which you
can afford to LOSE totally
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