Video - 5 charts in 5 minutes - Triangle pattern set ups 7/2/11

Tonight's 5 in 5 video focuses on triangle chart pattern set ups:



Remember videos are best viewed full screen and at least 360p resolution but preferably HD.

Alan

Video - 5 charts in 5 minutes - 31 Jan 2011

In tonight's video: SDL, AVB, CRJ, OEX and ALB.

Chart focus video - 28 Jan 2011

5 charts in 5 minutes:



Alan

Chart focus video - 24 Jan 2011

5 small cap charts in 5 minutes:



Happy trading!

Alan

Live chat - Stop Losses and Position Sizing

With the market attempting to break the key 4800 area, and small and mid cap stocks running hard everywhere, it's sometimes easy to forget that we still need to apply consistent discipline to our trading accounts. Stop losses and position sizing should be seen as just as important in a running market as they are in tougher times.

The chat software trial last week was encouraging, so next week I am going ahead with the first of a regular series of live chats, where we will discuss the techniques for placing relevant stops and position sizes to suit your risk profile.

To allow for meaningful input from all involved I am limiting the chat to 12 participants. I have opened the chat firstly to all registered readers of the blog, and an email was sent this morning to all who have previously completed the registration form. If it's not in your Inbox this morning, it may have slipped into your junk mail folder, so please check there.

If you're not registered and would like to participate, you will find the site registration link on the right hand side of this page.

The chat session will be held on Monday 24th January at 8pm AEDST (that's 7pm for you Brisbanites!) I expect it will run for 45 minutes or so.

Cheers

Alan

Have you registered on our blog lately and not received an email reply?

I've spoken to a couple of people who have recently registered on the blog, and have mentioned that they never heard anything back from me. On investigating further we found my email in their junk mail folder.

If this has happened to you please check your junk mail and see if our email reply is there. Depending on your email program, either mark it as "not spam" or set a rule to allow all mail from an address containing "cfdtradersedge", and we should be OK in the future.

I intend to send an email to all registered traders tonight, with details on an upcoming chat session, so this should give you a chance to track down where the mail is going, if it isn't arriving in your Inbox!

Happy trading!

Alan

Chart focus video - 17 Jan 2011

A quick video up tonight...trying something different this time in putting a time limit on the videos. This one is 5 charts in 5 minutes...a short, sharp look at 5 mid/large cap ASX stocks. I'd love to hear what you think!



Alan

Chart focus video - 13 Jan 2011

I haven't done a chart video in a while, so I got one up tonight. I mainly focussed on identifying a few potential stocks that may still have decent upside.



Cheers

Alan

Trialling some live chat software

As I slowly make progress towards a new website, I'm about to trial a couple of live chat software models. The intention is to have a moderated chat platform where I can interact with other traders and hopefully answer a few questions, and also pull in special guest speakers from time to time to share their knowledge with the group.

Last night I set a demo up that looks kind of promising, and I hope to trial it this week. I want to keep the first trials quite small to make sure everything works as it should, and iron out any problems, so I'm looking for 5 interested people who would like to share a 30 minute or so chat. I'm happy to try and answer any questions you may have, whether they are specific to my trading style or trading in general. I can't guarantee I'll have all the answers though!

At this stage I am hoping to run the test chat on Wednesday night from 8.00 to 8.30pm AEDST. If you'd like to participate please email your name to cfdtradersedge@gmail.com and I will forward the first 5 a username and password.

Cheers

Alan

Video - Scanning for swing trades and 10c plays

This week I had a couple of readers ask me to shed some light on how I look for swing trade set ups, and also a question regarding a formula for finding 10c tick change plays. Hopefully this video is of use:



Oh, as mentioned in this vid, the previous stock scanning video can be found here.

Alan

Happy 2011 to all readers

Morning all,

We after a short but refreshing break, i'm feeling revitalised and ready to tackle another year of trading.

I haven't managed to do many scans just yet, but will post some charts as soon as I get the chance. In the meantime I thought I would post a chart that I did this morning showing the disparity between the XJO and the SPX in the past 6 months or so since September. I thought this might be contributed to proposed mining tax, however scarily this was announced back in May... doesn't time fly!



I'm going to have a bit more of a look into it, but would love to hear from any readers out there as to what they think might be contributing to this unusual behaviour. Is it dollar related?

Cheers and welcome to 2011.

Kevi

Easing into a new year.

Well here we go...Trading 2011. I wonder what the markets have in store for us this year. Personally I find it a complete waste of time trying to predict what will happen...let's face it noone really knows. Some will get it right and crow about it like they are market gurus. Those that get it wrong will conveniently fail to mention their prediction again.

For me I try really hard to keep a blank slate when it comes to market expectations and purely follow the price action. No expectations means no bias on your trading. Sure on a short term basis I will always ride momentum waves but longer term forget it.

U.S markets hit 2 year highs last night. The XJO 2 year high is around the 5000 mark so still well off it at the moment. With commodoties strong as well, and sectors such as Rare Earths running hot again, there are no shortage of short term opportunities.

I'll continue to ease into trading this week. Still hoping to get a few days off later in the month before school holidays end, but then it's full steam ahead!

Happy trading all!

A

Avoid Common CFD Mistakes

Sorry for the lack of charts and videos leading into Xmas...time is one commodity I really wish I had more of since I got back from holidays!

Following on from the link to the ASIC CFD guide that I posted a few days ago, I thought I'd provide a link to a publication from my own CFD Provider - FP Markets.

It's called Avoid Common CFD Mistakes and is well worth the read, particularly for less experienced traders.

Kevi's morning charts 17th Dec

Morning all,

Its heading into the XMAS/New Year period, and for anyone who hasn't traded at this time of the year before you will find it very quite as the volumes drop right off. I for one will be taking some time over this period to spend some quality time with the family.

Here are some charts of interest.

Elemental Minerals (ELM) - Closed @ $1.20 yesterday which is a new closing high. I have draw the resistance @ $1.19 from that previous spike but I negated to mention that the recent high of $1.25 might offer some resistance also. Nevertheless, its a nice chart and one which looks to have more left in the tank.



Ausenco Limited (AAX) - Its spend a long time consolidating under the $3.00 resistance level, though it decided yesterday that it was time to move on. Strong buying lead to a breakout to close @ $3.13 after hitting a high of $3.19.

Here is the chart from during the day yesterday after it had made the break. There is no real resistance now until $3.80.



Globe Metals & Mining (GBE) - with urnaium stocks still performing well, this stock seemed to be bucking the trend until they announced they had finally raised funds through placement @ 25c. The market liked the news and we saw some decent buying and a turnaround for Globe. Needs confirmation today, but a break above the MA's would be a real positive.



Prima Biomed (PRR) - Looked at this at 11c yesterday and didnt think it would push on. Before I knew it, it was looking to close @ 12.5c on what was impressive volume. Chart suggests there is a fair bit more upside here, but who knows with this stock as sometimes these BIO stocks have a mind of their own.



Altona Mining (AOH) - a bit of a personal favourite this one. Currently setting up a nice pennant pattern here while consolidating. Break point is around the 36/36.5c level which I will be waiting for. One to definitely keep an eye on as there is news due soon. Chart was done on Wednesday, so its missing yesterday's candle which was not work doing a new chart for.



Finally, Flinders Mines (FMS) - Here is a weekly chart I did at the start of the week. Seems to want to still consolidate and retest the old weekly downtrend as it closed back @ 14.5c yesterday. I think there is some big potential in this stock once it starts moving. One to keep an eye on.



Cheers and good luck today

Kevi

Chart focus video - 16 Dec 2010

I had time to do a quick chart video this morning:



Have a good one!

A

ASIC guide to trading CFD's.

While I was on holidays, ASIC released a new guide that aims to provide retail investors with independent advice on how contracts for difference (CFDs) work and the risks that can be involved in CFD trading.

"Our research with CFD traders found that many traders don't know or don't appreciate key aspects of how CFDs work, despite the fact that they are actively trading them," ASIC commissioner Greg Medcraft said.

I'd certainly like to think that my readers are aware of the mechanics of CFD's, and how they differ from regular equities trading. If you're not, you need to be. In my opinion, it's particularly important to familiarise yourself with the difference between Market Maker and Direct Market Access models (Page 12). Choosing a provider with a DMA model is the only choice as far as I'm concerned. Why even risk trading in a situation where your provider could be profitting from your losses.

The leverage available in CFD Trading can certainly lend itself to large losses if you don't manage it properly and show strong discipline...but I personally wouldn't be in the position I am now without CFD's. Trading CFD's and utilising that leverage wisely and conservatively has helped me grow my equity consistently for many years now.

In the coming weeks I'll try to post in more detail what I see as the advantages and potential pitfalls of CFD's, but in the meantime the guide can be found here.

Easing back into trading this week

Well the holiday is over, and now I need to refocus myself in preparation for trading again this week.

After an extended break from the market (and in these conditions I consider 3 weeks an extended break), I find that it's important not to rush back into trading. Even though the process hasn't changed, I think that even those few weeks is enough to create a disconnect from the market. For me, just looking at charts isn't enough to give me a true "feel" for what's been happening.

Part of my trader's edge comes from having a clear picture of how the market is reacting in given circumstances. Are tight range breaks moving explosively? Are stocks kicking on after a break of recent highs? How are news plays behaving? What sectors are hot? While charts can tell you some of the story, for me, only time watching the market can tell the true picture.

So tonight I'll start my market scanning and preparation process. I'll set alerts and create new watch lists for tomorrow, as I would always do. But as the market opens I will try not to rush into positions, and will probably also try to keep position sizes down a little.

As the market tells me more about it's state throughout the week, I'll ramp back up into full trading capacity.

One thing a break does allow is a fresh start with a fresh attitude. It's a great chance to reaffirm all the positive trading habits that you want to pursue. I'll be particularly focussing on making sure I'm trading to plan, and keeping my discipline where it needs to be.

If I continue to focus on the process, the profits should take care of themselves.

Alan

Kevi's morning charts 7th Dec

Morning all,

Here are some charts of interest for today.. Plenty of charts out there looking nice, so i'm expecting some decent movers again today even with the DJIA slightly red.

Jabiru Metals (JML)



Sino Gas Energy (SEH)



CUE Energy Resource (CUE)



Altona Mining (AOH)



MEO Australia (MEO)



Good luck today

Cheers
Kevi

Evening all 6th Dec 2010

Evening all,

I didnt get to post any charts this morning, but had a bit of time now to post some that may be of interest.

The first is Minemakers Limited (MAK) - This chart I did up this morning, it shows a fairly convincing cup and handle pattern which given todays move to close at 42.5c, confirms the breakout.

Here is the chart without today's candle.



Aspire Mining (AKM) - Hit a high of 43c, low of 37c before closing @ 41c. Watch this tomorrow, as it looks like a reversal might be in place.



MEO Australia (MEO)



Altona Mining (AOH) - News due here I believe, so wouldn't be surprised to see this break recent highs in the coming days..



I have a few more nice ones for the morning. Its bed time for me, have a good night.

Cheers
Kevi

Kevi's morning charts 2nd Dec

Morning all,

Well who would have thought a strong night was ahead of us in the US as we heading into close yesterday afternoon? I'll raise my hand slowly...and here's why!

I flicked over a few stocks yesterday afternoon to see how most of the majors were holding up? ALOT were right on support levels, yet there were a fair few that closed in the green like the big four banks.. I also liked the fact that there were still some stocks rallying even with the 'market fear' starring us in the face.

Here is the Jb hi Fi (JBH) chart yesterday. Right on a major support with a long way to fall if it was broken as the next major support level was some way down. I actually think it might be a buying opportunity in most of the retails leading into xmas as we have factored in such a bearish xmas retail season.. (I may be wrong).



Here are a few index charts, the DJIA and also the XJO. The DJIA chart shows a very nice and convincing break last night from a falling wedge pattern. With the rising volume, I think its significant!





Now here are some stock charts of interest. This afternoons scans will be interesting as I would guess there will be a heap more reversals that show up after todays trading action.

Crane Group (CRG)



Bandanna Energy (BND)



Tiger Resources (TGS)



Independence Group (IGO)



Noble Mineral Resources (NMG)



Charter Pacific (CHF)



Atlas Iron (AGO)



oh and one chart which I did the night before last but havent posted it Aquilla Resources (AQA). Nice breakout.



Anyway thats enough from me.

Good luck today

Cheers
Kevi